The research and statistics on downsizing have been evidently clear as it its lack of effectiveness. Continually it has resulted in decreased production, deteriorating interpersonal relationships, and poor growth (Cameron, Caza, & Bright), 2008). Yet, organizations continue to utilize lay-offs as a means to an end without any change in their organizational culture or mentality. The elements of distrust, anger, and fears of deception promulgate in the minds of those let go and those that remain.
One recent example is the Big 3 auto makers that have made headlines with a call for government assistance. Massive lay-offs have not only been initiated, but warnings of more have been made. The focus in the news with the recent arrival of the Big 3′s CEO’s to Washington D.C. was shadowed with their levels of extremely high pay and costs of flying in private jets. It is unclear if these individuals understand the perceptions of not only the congressional representatives, but the public and their remaining employees. If the element of lay-offs being handled unfairly is perceived, then this will have a serious impact on the motivation and performance of their workforce regardless of any financial assistance.
There is a tendency to focus on the negative elements of a situation when there is a problem in life or in business which usually leads to more stress and more difficulties. Each seed produces fruit relative to its kind. The concepts of Positive Organizational Scholarship follows the conceptualizations of positive psychology in looking at the impact of building on those elements that are working or healthy verses what is not working. Such is the case with recent research reported on the impact of virtues in an organization during downsizing to determine if the previously reported dysfunctional trends of downsizing can be utilized for more positive outcomes.
In recent research by Cameron, Caza, and Bright (2008), organizational virtuousness is viewed as a potential factor that can enhance performances and profit in a downsized company. They emphasized the importance of this type research because of the perceptions in the corporate world that being positive or virtuous does not correlate to profits. From their review, they pinpointed five specific virtues of importance that could have an impact on improved performance — “…forgiveness, optimism, compassion, trust, and integrity” (p.18). These elements were presented as having a direct positive outcome against the reported declining and negative outcomes that have previously been shown to accompany downsizing. While their research validated the negative impact that downsizing may have on an organization’s success, it also gave hope that virtues may act as a “buffer” against these effects. Specifically, the three virtues of integrity, trust, and optimism.
Cameron, K., Caza, A., & Bright, D. (2008). Positive deviance, organizational virtuousness, and performance.
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author’s note seemed to me very helpful and changed my outlook on many things.
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