Communication during downsizing of a telecommunications company

Abstract

Reports the emergency stopgap measures undertaken by industry giant Tele Link to counteract downward market trends and the ensuing problems caused by its Efficiency Program not being managed effectively, resulting in lingering and negative impact on surviving employees’ behaviors and attitudes, demonstrated by decreases in productivity, motivation, emotional health, job satisfaction, and confidence in management, as well as increases in absenteeism. Also reports Tele Link was unprepared to handle the inevitable pre‐announcement rumor mill and was forced to present cutbacks prematurely, lengthening the period of time from announcement to implementation and fueling anxiety at the time. While Tele Link’s handling of the Efficiency Program is well rated it did concentrate, almost entirely, on the “during” phase, with no formal plans to help survivors mourn or adjust to new circumstances. Emphasizes that the power of informal communication, in this case the “rumor mill”, should not be underestimated, and management should not overestimate their own ability to control it.

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