A Case of Layoffs
The rumor mill in tie, Harrigan's department has been in full operation this week. It seems everyone's mind is on the new equipment being installed. The machinery was approved by a management committee more than six months ago and is the result of company efforts to modernize the facilities. The machines are state of the art but, despite their sophistical., still require just as ma, people to run them as did the old machines. Nevertheless, this has not stopped the rumors aociut impending layoffs. In an effort to deal wth the situation, Harrigan called a meeting of her staff and explained to them that three months before she became department manager, a committee had approved the purchase of this new machinery. She was unable to explain why no one in the unit knew about the impending purchase, but she assured everyone that there would be no layoffs or cutbacks in the number of hours worked "These machines are going to help us increase the query of work, but they will not increase the quantity We are going to need everyone in the department and will probably have to hire two more people." The group listened quietly as Harrigan spoke. When she was finished, she asked if there were any questions. One of the young men, F., in the back .id, "Are we the only department getting new equipment," Harrigan exPlalned that two other units also were having new machinery install. She then hastened to add, "And like us, neither of them is going to have any layoffs either." With this, the meeting broke up. As soon as she returned to her office, Harrigan had a call from her boss. "took, I don't want to pa, you," he said, "but I've just had a call from the vice president of administration. The other departments that got new equipment are going to have some layoffs because they were overstaffed to start with. However, you will not have any. YOU are understaffed, and as we agreed, you will be getting two new people within the
month. Unfortunately, none of the peoPx being laid off has the qualifications you need, or we would simply transfer them to your department The reason I wanted to call was to let you know that you have nothing to worry about." Harrigan thanked him and hung up. Just then there was a knock at her door. F. who attended the meeting came in and said, "I just heard that people in those other two departments are to be la, off. I was wondering what effect this would have on the new hires in our department. ff I'm going to get laid off, I'd like to start looking for a new job as soon as possible." Harrigan ask. F. to stay for a few minutes, which he did Fred, however, reminded her that the company softball team was having a meeting in 30 minutes. She congratulated Fred on the team's winning streak this year. Since becoming manager, Harrigan had noticed that some of her staff often left work with people from the other two departments. She did not think too much about it because she felt they were probably having a beer together after work. Harrigan, on several occasions, overheard a couple of her staff laughing about some of the things that had been discussed the evening before. Sometimes they would even share the information with Harrigan.
Questions
- Why didn't the staff know about the purchase of new equipment in the department? How did Fred find out about the layoffs in the other departments?Explain.
- Will Hamgan's comment about no layoffs in her department now be regarded with skeptiosm? Why?
- What would you advise Harrigan to do to Fred? Explain
- What should Harrigan do to maintain her credibility? Tell why
5 How can Harrigan use the grapevine to her advantage?