With the economic downturn in full swing, many companies are beginning the belt-tightening process. At such times, effectively communicating, listening, and setting a good example are more important than ever.

First, know what to expect. Keeping employees focused when they fear a job loss can be a challenge. And it may get more difficult if you are expected to deliver the same amount of work with a smaller budget, fewer people, and more responsibilities.

Managers in changing organizations also face a range of employee reactions – euphoria, panic, and everything in between. And as a backdrop, supervisors often face the possibility of losing their own jobs.

Even if a manager understands and is on board with certain business decisions, that knowledge often doesn't make the changes that follow any easier, says Lisa Mininni, president of Excellerate Associates, a Canton-based organizational consulting and business coaching company. But the good news is that managers can help employees by modeling positive behavior and attitudes toward change.

Managers also need to remember that they usually have more time to digest news about layoffs and organizational change than employees, said John Patricolo, Southfield-based executive vice president of professional services for the Great Lakes region of HR consulting firm Right Management. Remembering this can be helpful when supervisors begin to experience occasional unpleasant employee reactions in response to change.

Communicate Well, Manage Rumors

To help employees navigate the personal and professional changes that sometimes accompany layoffs and large-scale organizational shifts, Mininni and Patricolo have a few suggestions:

• Communicate effectively and often. “You can't overcommunicate,” Patricolo said. When employees think you're hiding something from them, rumors abound and uncertainty ratchets up fear. Managers also need to decide how frequently they're going to communicate news with employees, and how they're going to go about doing it. To accommodate different employee preferences, Mininni recommends developing a communication plan that includes a variety of methods. Be sure to listen to employees as well. Acknowledging their feelings can go a long way toward helping workers cope – and keeping them loyal to the company.
• Manage the rumor mill. No matter how much you communicate with employees during times of change, rumors still will rise to the surface. But the rumor mill can be managed if handled in the right way. Having a confidential toll-free number rumor line that employees can call can be effective. Managers also can supply a rumor box so that employees can write down what they've heard via the company grapevine. Supervisors then can address each rumor in newsletters, meetings, or in other formats.
• Expect different reactions. Some employees thrive on change, while others resist it – sometimes with behaviors that seem out of character. Employees also tend to experience layoffs and large-scale organizational changes as they would a death or loss. Some employees may get angry and lash out; others may call in sick or come in late. It's also not uncommon for managers to see a decline in productivity in the weeks following a big announcement. But productivity eventually returns if management handles the changes, transitions, and employee reactions effectively.
• Model positive reactions to change. Managers can help employees by setting a good example. Embracing new ways of approaching work is one way to do that. So is keeping an open mind. It's also helpful if supervisors create their own career development plans. Supervisors who set a good example can make that process easier for employees. Management also can help employees develop more effective problem-solving skills.
• Offer training. Sometimes it's easier for employees and managers to cope with change if they develop a greater understanding of their own reactions to it. Training can help provide that knowledge, and it also can supply employees with effective self-assessment tools, coping skills, and behaviors. Career transition and coaching services also are helpful to employees.

Additional Resources

• For more information about Mininni's book, seminars, and on-site coaching and training services, visit Excellerate Associates.
• Members of the Society for Human Resource Management (SHRM) can visit the organization's Web site and access a number of resources in the Layoff Toolkit, including a couple of white papers called “Managing Employees In a Downsized Environment,” and “Restructuring and Downsizing: Managing Disruption.”
• "The Harvard Business Review on Change", includes a collection of articles from the publication about change management.
• To help employees adjust to organizational change, read “Corporate Diet: Adjusting to a Lean Organization” in Chief Learning Officer online.
• To read more advice about change management from others in HR and management, visit Susan Heathfield's About.com article, “Change Management Wisdom."

Written by Jenny Cromie, certified human resources specialist (CHRS)