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Please read the below articles and answer the following questions
Article 1
https://www.forbes.com/sites/glebtsipursky/2023/01/25/tech-layoffs-are-an-opportunity-tobuild-a-resilient-tech-team/?sh=26e0a1702889
Layoffs have become an unfortunate reality in today's fast-paced tech industry. But instead of
viewing job cuts as a setback, companies can use them as an opportunity to build a resilient
tech team.
First, it is important to understand the reasons behind tech layoffs. As companies prepare for
a potential recession and difficulties in raising capital, layoffs have become seen as a
necessary measure.
Last year, more than 107,000 jobs were cut from public and private tech companies in the
U.S., with thousands more cut this January. These include companies such as GoogleGOOG 0.4%, MicrosoftMSFT -1.2%, AmazonAMZN +0.6%, and Salesforce. Most tech workers are able
to find a job quickly, since there’s still high demand for tech talent, according to a
recent survey by the ManpowerGroup, but the demand is softening.
The primary reason for the layoffs at the top tech firms and the softening demand for tech
talent more broadly is a bearish market, where investors are becoming more conservative and
unwilling to invest in high-risk ventures. Additionally, the primary market is down significantly,
with fewer IPOs expected in the near future. However, as a highly experienced expert who
has consulted for companies on the topic, I can attest that tech layoffs provide an opportunity
for companies to build a more resilient tech team.
Article 2
https://www.forbes.com/sites/radhikaphilip/2020/07/23/the-paradox-of-layoffs-engagementdrops-when-you-need-it-most/?sh=214de5ad3fd2
Unemployment in the United States reached 17.7 million, according to the June Bureau of
Labor Statistics Report; a staggering number when you compare it to last year’s 5.9 million.
Close to 12 million people have lost their jobs during the Covid-19 pandemic. Layoffs—
research repeatedly shows—lead to declines in survivor engagement, that is, employee
willingness to go the extra mile on behalf of the organization.
Research by Magnus Sverke and Johnny Hellgren of Stockholm University and Katharina
Näswall of the University of Canterbury found that after a layoff, survivors experienced a 41%
decline in job satisfaction, a 36% decline in organizational commitment, and a 20% decline in
job performance. Moreover, high performers may simply leave.
Paradoxically, declines in engagement and performance come at a time when the demands
of the workforce are greater than they were before the layoffs. Employees are expected to
do more—to support and lead efforts to navigate challenging economic times and often to
pick up work that their terminated colleagues left behind. If employees are distracted,
discouraged, and overburdened, they may resist doing more, and the organization will
sputter rather than ride the tide.
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QUESTION: With such rapid changes occurring in the workplace, what is are the potential
issues and benefits these layoffs have according to motivational theories and how might
companies and employees alike be able to survive this epidemic.
Answer Guideline:
The above articles address the recent issues with layoffs occurring in masses amongst
technology companies globally. This has never occurred on such scale previously and has
thrown the industry into disarray with many employees experiencing job insecurity and
anxiety. The potential issues that this has had on the industry are employees may have
decreased job satisfaction and organisational commitment. Knowing that so many people
have been laid off, means that hygiene factors in the workplace have been impacted
according to the Herzberg’s two factor theory. Another issue could be a decline in employee
performance. Magnus Sverke and Johnny Hellgren's research aligns with Expectancy Theory,
suggesting that survivors from these layoffs may perceive reduced job security, leading to a
decline in their motivation and performance. The theory suggests that employees will assess
the likelihood of a reward for their efforts, influencing their engagement and productivity.
Where layoffs may occur without warning and with such severity, the likelihood of a reward
in people’s minds significantly reduces.
But despite the potential issues which have risen, there are many potential benefits to
employee motivation. With the original size of many of these tech companies, it was too big
for the company to properly resource all teams and track performance. With these layoffs,
existing members can get more attention from managers, where most of the employees
remaining would be the high performing employees. This could overall increase productivity.
But through these changes, teams will be forced to become more resilient. Resilience theory
talks about how individuals and teams can grow stronger through adversity. Layoffs, viewed
as an opportunity to build resilience, could align with this theory. Resilient teams can adapt
positively to challenges, fostering a sense of collective efficacy and commitment to
organizational goals.
Now for those who have survived the epidemic, how should employers move forward to
ensure company motivation continues. One essential task they will need to do is to address
the employee needs. Maslow's Hierarchy of Needs emphasizes addressing basic needs for
security and stability. Companies can implement transparent communication and support
structures to alleviate concerns, fostering a sense of security and job stability among
employees.
Another way is to foster intrinsic motivation for their employees. Self-Determination Theory
underscores the importance of autonomy, mastery, and purpose in fostering intrinsic
motivation. Companies can empower employees by providing opportunities for skill
development, autonomy in decision-making, and aligning individual roles with a larger sense
of purpose.
In conclusion, understanding and strategically applying motivational theories during layoffs
can guide organizations and employees in navigating challenges and fostering resilience,
ultimately contributing to sustained success.
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References
Philip, Radhika. “The Paradox of Layoffs: Engagement Drops When You Need It Most.” Forbes, 23 July
2020, www.forbes.com/sites/radhikaphilip/2020/07/23/the-paradox-of-layoffs-engagement-dropswhen-you-need-it-most/?sh=214de5ad3fd2. Accessed 1 Dec. 2023.
Tsipursky, Dr Gleb. “Tech Layoffs Are an Opportunity to Build a Resilient Tech Team.” Forbes, 25 Jan.
2023, www.forbes.com/sites/glebtsipursky/2023/01/25/tech-layoffs-are-an-opportunity-to-build-aresilient-tech-team/?sh=26e0a1702889. Accessed 2 Dec. 2023.