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GUIDE TO MANAGING
THE PEOPLE SIDE OF
ORGANIZATIONAL TRANSITIONS
PREFACE
This Guide to Managing the People Side of Organizational
Transitions is intended to help managers and their employees to
deal with major organizational changes.
It is addressed primarily to managers who play both a corporate
and an individual role in the management of organizational
transitions. It may also be of interest to human resource
specialists and other employees who are affected by the changes or
who have related responsibilities.
This Guide is being issued as a draft for consultation and as an
invitation to managers throughout the Public Service to
participate actively -through the use of new electronic
conferencing and networking capabilities - in:
- identifying elements that are critical to the successful
management of transitions;
- sharing practices and practical tools; and
- adapting policy and programs that relate to these
transitions.
The draft for consultation was developed by the Human Resources
Policy Branch (HRPB) with the overall support and guidance of
Jean-Guy Fleury, Deputy Secretary, and Ric Cameron, Assistant
Secretary. It was prepared in collaboration with departmental
managers by members of the Human Resources Development Division
including: Carmelita Boivin-Cole, Patricia McDowell, Barbara
Elias, Marilyn LeBlanc, Paula Batson, Huguette Messier and Tonette
Allen.
Organizations that have contributed their experiences and insights
to date include: the Human Resources Development Council; the
Manitoba Human Resources Regional Council; Veterans Affairs
Canada; Indian and Northern Affairs Canada; Employment and
Immigration Canada; Environment Canada; Supply and Services
Canada; the Public Service Commission; Statistics Canada; Revenue
Canada; Health and Welfare Canada; Public Works Canada; the
Canadian Grain Commission and the Canadian Centre for Management
Development; Energy, Mines and Resources Canada; Canadian
International Development Agency; Industry, Science and Technology
Canada; Fisheries and Oceans Canada; and Agriculture Canada.
INVITATION TO PARTICIPATE
You are invited to participate in the development of this guide
and other tools to help us effectively manage transitions in the
Public Service.
- HR CONNEXIONS is a telecommunications network serving the
information needs of the human resources community. If you
have access to SEN or GEMDES - the Electronic Mail component
of HR CONNEXIONS - you can send us your comments and views
electronically. (You can also contact the HRPB Departmental
Services Group at: (613) 957-3168 (telephone) or (613)
957-4025 (FAX)).
- You can also access the Electronic Resource Centre (ERC),
another important component of the HR CONNEXIONS network.
Many of the materials referenced in shaded boxes in this
guide, as well as the guide itself, are available in the ERC.
In addition, there is a wide range of other materials,
including policy documents, information on departmental
practices and initiatives, and reference documents (with
names and telephone numbers for further contact).
The document entitled "Overview of HR CONNEXIONS" provides
information on how to access the network. To get additional
copies of this document, contact:
Treasury Board Distribution Centre
P1, West Tower, L'Esplanade Laurier
300 Laurier Avenue West
Ottawa, Ontario
K1A 0R5
Phone : 613-995-2855
Fax : 613-996-0518
INTRODUCTION
Stability and predictability are gone for good - and
therefore must not be the implicit or explicit goals of
organizational design... Victory will go to those who master
instability by constantly working on responsiveness-enhancing
capabilities.
T. Peters
INTRODUCTION
ENVIRONMENTAL PRESSURES
Stability and predictability are gone for good. They are gone,
however, because new opportunities are beginning to emerge.
Downsizing, restructuring, mergers, re-engineering - and all the
other changes we are dealing with - are only a means to an end - a
way to adapt to new service opportunities and the changing needs
of Canadians. They are part of a broader and continuing process
of change and adaptation.
The Public Service has to adapt to a world of global competition,
fiscal constraint and changing client needs. The purpose is not
to destroy but to build differently for the future.
This will mean becoming more flexible than in the past. We have
to free up resources to address new and emerging priorities. We
need tools and processes that support ongoing flexibility and
adaptation that will help us move from a position-based security
to one which emphasizes employability in a broader public- and
private-sector context.
MANAGEMENT CHALLENGE
The real question in managing this transition is not "how can we
get through specific cutbacks or changes?", though this is
important. It is "How can we do so?" in a way that:
- focuses energies on key services and protects core
competencies;
- maintains a motivated and productive work force; and
- moves from a position-based security to one that is based
increasingly on learning, employability, and transferability
of skills.
This challenge calls for both corporate and individual commitment.
More than ever before, it calls for managers to exercise the
skills outlined in the Profile of Public Service Leaders and
Managers:
- judgement to arrive at sound decisions;
- integrity demonstrated by actions that treat people fairly in
accordance with consistent values and performance standards;
- flexibility in the face of changing conditions and
priorities;
- initiative in seizing opportunities; and
- perseverance in surmounting obstacles.
Managers need all of these skills to protect and build on the only
adaptable resource - people. To do so, though, managers also need
leadership, full organizational support, information, and
practical tools.
APPROACH
The information contained in this guide is not new. It has been
drawn from a wide variety of sources in both the public and
private sectors and reflects the collective wisdom of
organizations that have lived (and thrived) through major
transitions.
The guide is structured around the three major levels of
activities in which managers - individually and as members of a
corporate team - are involved:
- providing a sound basis for transition (Section 1);
- implementing the changes (Section 2); and
- rebuilding for the future (Section 3).
These levels are not mutually exclusive. Successful organizations
pay attention to all three levels throughout the process - but
with different emphasis at different times. Involvement of
individual managers in the various levels of activity will also
vary.
Figure 1 depicts these three levels of activity and outlines - for
each level - specific goals, potential negative effects and the
main areas of intervention.
SECTION ONE: PROVIDING A SOUND
ORGANIZATIONAL BASIS FOR THE TRANSITION
There is no recipe to handle transitions like downsizing or
restructuring successfully. There are, however, a number of
organizational elements - or characteristics - that are present in
organizations that handle transitions well.
These organizations approach transitions from both a business and
a human resources perspective. They provide leadership, direction
and support. They are clear about their principles and values.
They mobilize their people to "rethink" the work. And, they plan
and implement strategically: they look at both long-term and
short-term effects of the measures they propose to take.
This section of the guide outlines six elements that organizations
need to put in place to provide a sound basis for transition:
- Vision and Direction
- Explicit Values and Responsibilities
- Strategies and Plans
- Leadership and Employee Participation
- Corporate Communication Strategy
- Specialized Support
VISION AND DIRECTION
Talk About the "Reasons Why"
The first step in managing downsizing, restructuring, and other
organizational changes is to talk about the reasons why behind the
exercise. Employees need both context and information. They need
context to understand that the changes are the result of
overriding corporate circumstances and not a comment on their own
value or the value of the work they are doing.
Managers should not assume that their staff will automatically see
the links between restructuring/downsizing in their own units and
the broader strategic and environmental issues affecting the
future of the Public Service and their own organizations. They
can help employees put what is happening in context by providing
them with the rationale, as well as the context of specific
decisions.
They should also actively encourage their employees to explore the
changing circumstances in which the government of the future will
operate. Employees can do this through a wide variety of means:
letters, discussions, circulation of information and papers,
issues review meetings, coffee sessions, electronic notice boards
and so on. One example is given in Exhibit 1 below.
__________________________________________________________________
EXHIBIT 1
TALKING ABOUT THE REASONS WHY
In 1993, the Canadian Grain Commission undertook a major
downsizing exercise. A variety of means were used to help
employees understand the context and feel that they were an active
part of this adaptation process. These included a September 11,
1992 "context letter" from the Executive Director that covered the
following points:
CONTEXT
- The continuing value of the Commission's work to customers.
- Changing national and international circumstances:
unprecedented international competition; changes in grain
movements in Canada; effect of this year's crop, etc.
- Federal organizational changes: effect of regulatory reform
and conversion to Special Operating Agency.
COMMITMENTS: "Things we will do and things we will protect"
- Measures to protect individual security
- Commitment to "the fullest and most intensive campaign" of
meetings, letters, communiqués so all know what is happening
- Examples of challenges and opportunities that will be
addressed together with employees -- "all will be drawn into
the process"
- Union consultations at both head office and local levels
See the HR CONNEXIONS ERC, under Library
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Build a New Vision and Set Directions
Organizations that are successful in downsizing - at least in
terms of long-term results - see organizational transitions as an
opportunity to reposition themselves - proactively - in terms of
their core products and services.
Transitions give their organization a new sense of direction - a
clear vision of where their organization is heading. This "road
map for the future":
....helps make resource allocation priorities transparent to
the entire organization. It provides a framework to help
lower-level managers understand the logic of resource
allocation priorities and disciplines senior management to
maintain consistency. It helps to create a managerial
culture which supports teamwork, a capacity to change and a
willingness to share resources, protect core competencies and
to think long term.
Abridged from Harvard Business Review
Individual managers contribute - to varying degrees - to the
development of this new sense of direction. They all, however,
play a key role in making this vision happen - in working with
their employees to translate it to the level of day-to-day
activities as, for example, described in Correctional Services
Canada's Our Story, which should be available through departmental
libraries.
EXPLICIT VALUES AND ACCOUNTABILITIES
Be Explicit about Principles and Values
Employees find implicit - if not explicit- value statements in:
- the degree to which human resources are cut in comparison
with other resources;
- the type of staff protected or selected for dismissal (age,
past service, formal skills, past performance, potential for
future development);
- the degree to which voluntary versus selective programs are
used to select staff;
- the benefits, compensation and support given to dismissed
employees;
- the degree of assistance to help employees adapt, e.g.
training, counselling.
Organizations that manage transitions well recognize that every
choice they make sends a message about the organization's
priorities and values. These organizations set out specific
guiding principles for the restructuring or downsizing process.
They are explicit about the management philosophies that underlie
their choices.
In developing their guiding principles, they look to both their
immediate requirements and the long-term impact their choices
could have on: (a) employee trust and morale during and after the
cuts and (b) the company's ability to position itself in the
future. They communicate the ground rules before they start
implementing; they don't improvise new reasons for each decision.
They also know that the application of these rules has to be
perceived as consistent and fair.
An example of a set of guiding principles adopted by a federal
organization - National Health and Welfare - is attached in
Exhibit 2 below. This statement of principles is included at the
beginning of the department's plan for restructuring the Income
Security Program.
_________________________________________________________________
EXHIBIT 2
GUIDING PRINCIPLES FOR A MAJOR RESTRUCTURING
(Adopted by National Health and Welfare's
Income Security Program (ISP) Redesign Project)
The success of ISP Redesign depends on the active participation of
management, human resource specialists, and employees, in an
environment characterized by collective support and recognition of
respective responsibilities. The following principles will guide
us throughout the process:
- Senior management commitment and leadership, demonstrated
through action.
- Open, honest and timely communication with employees and
other stakeholders.
- Fairness and equity.
- Active employee involvement throughout the redesign process.
- On-going and meaningful consultation with the bargaining
agents.
- Human resource plans, with employee needs as a basic
component, developed and implemented in partnership with the
Human Resources Program.
- Maximum employment security for indeterminate employees of
the existing organization with minimum negative impact.
- Optimum placement of employees at their current group and
level, and in their current geographic location.
- Personalized action plans for all affected employees.
- Commitment to the provision of appropriate equipment as well
as training and development of staff.
- Recognition of Employment Equity and Official Languages
responsibilities.
Human Resources Framework for Relocation, Work Force Adjustment
and Staffing Income Security Programs Redesign Project
_________________________________________________________________
Take Responsibility: the Roles of Central Agencies, Departments,
Managers, Employees, and Unions
Central agencies, departments, unions and employees all have
specific roles and accountabilities in a downsizing or work force
adjustment situation as outlined in TABLE 1 on the following page.
Managers play a key role in ensuring that all parties are involved
in the planning process and are kept apprised of progress. They
help employees take charge of their careers and develop the skills
they need to function in the restructured organization or
elsewhere. They should also be clear about the legislative and
policy accountabilities that affect their work area and know where
to get specialized assistance when they need it.
Employees have a responsibility to keep their skills current and
to prepare themselves - through training, innovation, and
initiative - to participate fully in the organization of the
future as it evolves. The section on "Specialized Support" in
Section One of this paper highlights some of the support
mechanisms and tools that employees can use in taking charge of
their careers.
Unions are also key players in the process of change. A regional
focus group on downsizing and restructuring (Manitoba Human
Resources Regional Council) emphasized the importance of ongoing
union involvement. They pointed out that labour management
consultation on where an organization is headed should be a
continuous process, and not conducted at the last minute when
major negative news is to be announced.
Know About Corporate Policies and Accountabilities
In addition to legislation and policies affecting the overall
activities of government, there are specific policies that
managers should be aware of, as they apply to such changes as:
mergers, contracting out, downsizing, relocations, etc.
_________________________________________________________________
TABLE 1
KEY ROLES AND RESPONSIBILITIES
IN WORK FORCE ADJUSTMENT
Treasury Board Ministers (TB)
Recommend resourcing levels to Parliament
Approve Work Force Adjustment policy
Allocate contingency funds - Vote 5
Approve waiver of reduction of annual allowance
Treasury Board Secretariat (TBS)
Review resource proposals
Recommend resource levels to TB
Inform departments of cutbacks
Provide advice to departments on policy
Monitor application of policy
Review submissions of "pension reductions"
Assess departmental performance
Approve surplus periods of less than six months
Consider requests for retraining resources
Public Service Commission (PSC)
Review staffing policies and procedures
Assess qualifications of surplus employees
Ensure priority consideration for employment
Market surplus employees
Propose retraining and approve eligibility
Provide counselling Inform relevant bodies of priority referrals
Identify areas of skill shortage for which surplus employees may
be retrained
Provide TBS with some statistics
Audit application of policy for TBS
Inform TBS of results of audits
Publish information on work force adjustments
Department
Determine human resource requirements
Consider alternatives to staff reductions
Determine if staff cuts are needed
Identify units of workers likely to be affected
Provide for the redeployment, retraining and counselling of
employees
Identify and notify surplus employees and PSC
Manage financial aspects including the travel, relocation,
retraining, separation and protection costs and payment in lieu
Terminate term and contract staff to assist placement of permanent
employees
Consider the appointment of laid-off or surplus employees from the
department in question or other departments
Establish control and monitoring mechanisms Inform PSC and TBS of
major adjustments
Inform and consult with unions
Notify employees of lay-off date
Certify that no additional costs will be incurred in any way
during cash-out period
Account for implementation of policy
Employees
Seek employment actively
Seek information about entitlements and obligations
Provide information to assist in redeployment
Consider job offers
Accept retraining
Request payment
National Joint Council (NJC)
Review policy periodically
Provide interpretation of policy intent upon request
Hear grievances
From Auditor General's Report 1992, p. 191
__________________________________________________________________
Policies relating directly to work force adjustment are: the Work
Force Adjustment policy (WFA) and the Executive Employment
Transition policy (EETP). Managers who have not previously had
experience with the application of these policies and other
relevant policies should familiarize themselves with the details.
They should also consult the appropriate specialists in their
departments for further details and clarification.
Appendix A contains a "primer" listing of the existing policies
that could be applicable in various transition situations. The
text of many of these applicable policies is available in the HR
CONNEXIONS ERC.
STRATEGIES AND PLANS
Develop Management Frameworks and Plans
A management framework was put in place. Detailed action
plans were prepared to ensure that the objectives would be
met. Ad hoc committees at various levels, such as steering
and local work force adjustment or implementation committees,
were set up for the duration of the exercise. Headed by
senior line managers and supported by personnel and others as
required, these committees reviewed action and implementation
plans to ensure a co-ordinated and integrated effort.
Auditor General's Report 1992
Management frameworks are essential to successful transition. The
approach to developing management frameworks and processes varies,
depending on the scope of the adjustment process. Some
organizations adapt their ongoing management frameworks and
practices to handle the change. Others - particularly those
involved in major restructuring, downsizing, or outright abolition
of sections - use special steering and work force adjustment teams
to deal with the transition. Some private sector corporations
have set up crisis team centres that are external to the
organization.
Protect and Develop Core Competencies
Successful organizations don't just set new directions. They also
identify their core competencies: the collective learning and
skills they have to maintain on a continuing basis - particularly
those skills that enable them to coordinate diverse skills and
integrate multiple streams of activities.
These organizations protect core competencies and further develop
them - to the extent they can - during the downsizing and
restructuring process. They also expect their managers to support
a corporate approach to deployment of people with these core
skills. They recognize that:
The benefits of competencies, like the benefits of the money
supply, depend on the velocity of their circulation as well
as on the size of the stock the company holds. Companies
have to be able to reconfigure them quickly to meet new
requirements. If these competencies are imprisoned, they
fade and disappear.
Harvard Business Review
The PSC and a number of departments are currently working on ways
to identify and inventory those core competencies and to
facilitate protection and redeployment of the skills either within
or between departments.
Choosing Measures Strategically
There is no best way to design restraint measures, nor are
there any pat solutions. All restraint measures have their
problems and issues. Companies simply selected restraints
that created problems they could most ably resolve.
Conference Board of Canada
Downsizing is the "acid test of human resources management". When
all options have been explored, it presents hard choices - none of
which can guarantee success.
Many of the approaches used in the Public Service to control costs
have also been used by the private sector. The Conference Board
of Canada's study of firms that had implemented "retrenchment"
programs found that these firms used combinations from the
following groupings:
- staff reductions such as lay-offs, hiring restraints,
selective dismissals of staff, early retirement programs,
work sharing, and leaves of absence;
- work reorganization and working condition changes;
rationalization of hours or locations of work, and changes in
performance standards;
- human resource program cost reductions, in such areas as
staff training and development (the government explicitly
protected investments in training in the current cutbacks);
- compensation cost reductions in such areas as wages or
salaries, benefits, merit or bonus pay, and perquisites.
The mix chosen by different organizations varies depending on such
factors as characteristics of their work forces, legal
requirements affecting dismissal or lay-off of staff, the company
human resource philosophy and previous experiences (good and bad)
with restraint. There is no "best solution"; each choice has both
advantages and disadvantages as outlined in TABLE 2 which follows.
Successful organizations recognized the drawbacks of the methods
they choose; they are careful to pick a mix that best positions
them for the future. They also look to mitigate the negative
aspects of their choices. For example, organizations that have a
no-lay-off policy and have restricted all new hires may want to
pay particular attention to university intake, the Management
Trainee Program and other developmental programs in the
medium-term to ensure adequate junior staff for the future.
Organizations that offer a voluntary retirement program may want
to work out ways to keep key staff or reintegrate them on return
from education leave, or developmental assignments, etc.
Organizations that are successful in downsizing combine the quick,
short-term reductions with careful, longer-term targeting. They
make sure that they protect the skills they need over the long
term and even increase investment in certain areas, jobs and
individuals - providing additional training where necessary.
__________________________________________________________________
TABLE 2
CHOOSING DOWNSIZING METHODS STRATEGICALLY
METHOD ADVANTAGES DISADVANTAGES
Freezing hiring Removes the threat of Mainly affects young,
and allowing of job loss from new employees with
attrition to everyone else. fresh ideas (who
reduce the work typically change jobs
force more often to find
"the best fit",
senior (experienced)
employees who retire,
and designated group
members who make up
the bulk of the
support staff.
Limiting the use Is a quick, Restricts the
of term employees measurable response. ability to react to
and overtime. cyclical peaks in
workloads and, for
terms at least,
impacts most heavily
on the young and
female workers.
Laying off staff. Offering incentives to Has an unsettling
employees to volunteer effect on those
for lay-off reduces the retained which may
stress on all employees. reduce productivity.
May attract the best
staff (who feel
confident of finding
other work).
Transferring staff. Moving staff to busy May be unsettling for
units, loaning staff employees to be
out, giving away staff rootless.
and PYs with "recall"
rights when demand picks
up all have a similar
effect - no one is out
of a job.
The CAP program in the
federal Public Service
is an example of how
such "loaning" might
work.
Shorter work weeks For some positions, Changes to work hours
(with reduced pay) reduces salary costs in and work-sharing or
shorter work in part. In the longer imply union days and part-
time. term, overhead reduces acceptance.
as leases expire, office
materials, consumption,
etc. drop.
Accelerated Increases the May lead to the loss
retirement through flexibility within the of highly skilled,
financial organization. senior staff who see
incentives. retirement as an
opportunity to take
their skills
elsewhere.
Early retirement by
managerial choice may
focus on those least
able to cope after
leaving.
Leave without pay It is not threatening Is often attractive
for academic study. to anyone's job to those who are sure
"security" of redeployment or
finding another job
if necessary at the
end of the period -
usually the highly
skilled people whom
it is most crucial to
retain.
__________________________________________________________________
LEADERSHIP AND EMPLOYEE PARTICIPATION
Recent studies of downsizing conclude that the most successful
exercises are both "top-down" and "bottom-up". They have visible
leadership from senior management and also actively involve
employees at all levels of the organization.
Support and Strengthen the Corporate Management Team
Organizational transitions put a heavy burden on managers and
supervisors who share the same anxieties as their employees ("how
safe is my job?") but must contribute enormous amounts of time and
energy to corporate initiatives. From a people perspective,
immediate supervisors bear the brunt of employee reactions; yet
have little control themselves in many cases over the actual
choices that are made.
Examples of what senior management can do to support their own
transition teams include the following:
- Use every opportunity to acknowledge the difficult task these
managers face - where possible in front of a broad range of
employees.
- Tell transition managers where they can get assistance and
that they are expected to use this assistance - that it is a
sign of strength, not weakness, to seek assistance when they
need it. For example, managers should be told that
approximately one-third of the Employee Assistance Program
clients are managers, and that the program is there to help
them personally, as well as to give them assistance with
their approach to their staff. Lists of available contacts
on organizational redesign, work force adjustment, etc.
should be given.
- Expect transition team members to show the same range of
reactions as affected employees, e.g. increased feelings of
anger, discouragement or physical and emotional signs of
stress. Allow them - non-judgementally - to vent these
feelings and to grieve their losses (loss of colleagues and
loss of familiar organizational structures).
- Encourage use of informal networks for cross-branch contacts
as discussed below.
A sense of connection - of being in the same boat as other
managers - can be a tremendous motivator for managers in times of
change. The informal net can be expanded exponentially through
the use of electronic bulletin boards (SEN-GEMDES) or internal
departmental bulletin boards such as the one used by Taxation
Canada and on which managers exchange practices on a day-to-day
basis.
__________________________________________________________________
EXHIBIT 3
SUPPORT NETWORKS FOR MANAGERS
Departments have implemented a number of initiatives that could
strengthen networking and mutual support among managers. For
example, Employment and Immigration and Transport Canada involve
"twinning" of managers from different sections of the organization
following courses or workshops. Another example is the
interdepartmental support and sharing of expertise by the Manitoba
Regional Human Resources Council and the Atlantic Provinces.
Other examples can be found in the HR CONNEXIONS ERC under
Departmental initiatives and Practices.
__________________________________________________________________
Involve Employees in Exploring Cost - Reduction Alternatives
Organizations who managed restraint successfully "did not
simply ask their managers to cut staff; they were asked to
rethink the work and to make substantial changes in the way
they provided services and managed their activities. They
had to do things differently or better. The nature and
magnitude of such significant challenges required an
organizational response and the mobilization of a significant
portion of the organization, including support services such
as personnel."
Successful organizations INVOLVE THEIR EMPLOYEES in finding ways
to reduce costs, improve services, increase revenues and adapt to
increased service demands. They know that the best - and most
practical - cost-cutting strategies are usually recommended and
designed by employees who analyze the operations of the
organization job-by-job and task-by-task. Management deliberately
set out to free up and encourage innovative rethinking of the
workload by the employees who do the work.
Successful organizations also EXPLORE ALL ALTERNATIVES. They do
not assume that downsizing is the only way to meet budgetary
constraints. While downsizing may initially appear to be the only
solution, usually it is only one of a number of approaches used by
organizations to constrain costs while addressing increasing
program demands. Often, there are innovative alternatives waiting
to be uncovered. The more employees are involved, the more
people - with specific knowledge and skills - there are to uncover
these alternatives.
__________________________________________________________________
EXHIBIT 4
STREAMLINING AND REENGINEERING
When looking at redesigning work patterns, you may want to
consider the initiatives and approaches used by the Council of
Administrative Renewal, which operates under the auspices of the
Office of the Comptroller General. Its initiatives cross
organizational and functional boundaries to improve efficiency and
service. The Council emphasizes strategic alliances within
government and with the private sector to share the cost of system
development. It encourages new attitudes toward mutual trust and
interdepartmental co-operation at all levels. Information can be
obtained from the CAR Notice Board on ConnEXions or by contacting
the Office of the Comptroller General.
__________________________________________________________________
SPECIALIZED SUPPORT: EQUIPPING THE ORGANIZATION FOR THE
TRANSITION
Organizations have learned that the more effort they put into
easing the hardship of affected employees, the better their
long-term relations were with remaining employees, customers and
the community at large.
Successful organizations take a pro-active approach to providing
cost-efficient and appropriate support programs before
implementing major change. Such programs cannot be developed
overnight nor during the frantic atmosphere of a major
restructuring or lay-off.
Some of the elements involved are outlined below. They are based
to a large extent on the experiences of the Labour Services Unit
of Employment and Immigration Canada - a unit that provides
specialized assistance to private sector firms that are closing
out their operations or undergoing major transitions.
Market Affected Employees
One of the first marketing steps is to determine the competency
and skill profiles as well as the number of employees who will be
directly affected by the change. Human resource profiles should
be available for each affected employee.
Distributing an overview of the affected employees' skills can
help potential employers decide who is ready immediately for
redeployment - and where - and who could be ready with some
training. The Federal Provincial Relations Office recently
prepared a series of books outlining the skills and profiles of
affected employees and gave these wide circulation to other
federal organizations. This approach might be adapted for use
within other departments.
Help Employees Assess Options
Affected employees have major personal decisions to take under
both the Work Force Adjustment policy and the new Executive
Employment Transition policy (EET). They may have to choose
between taking early retirement, taking a job at a lower level,
moving to the private sector or, for executives, accepting an
individually-negotiated severance package under EET.
Many of these choices have significant financial implications
which are not particularly easy for the individual employee to
calculate. Departments should be prepared to provide individuals
with information on pensions (under various decision scenarios),
options for continuing life or medical insurance coverage, etc.
As employees understand the parameters of their financial
situation (salary, benefits, salary protection, separation from
employment, settlement) they become more receptive to the job
search activities presented by their employment counselling team.
They might also choose options they had not really considered
before - e.g. early retirement, part-time employment, educational
leave, etc.
__________________________________________________________________
EXHIBIT 5
TOOLS TO HELP EMPLOYEES ASSESS OPTIONS
The Human Resources Policy Branch of the Treasury Board
Secretariat is currently exploring with Supply and Services Canada
the possibility of adapting computer software that could be used
by employees to analyze their own situations with the help of
information available from the finance and personnel units. HR
CONNEXIONS will carry updated information on this
interdepartmental initiative.
__________________________________________________________________
Consider Deployment
Under the Public Service Reform Act (Bill C-26), deployment is a
flexible tool for protecting core competencies by matching
employees with new jobs since it does not require the application
of many of the procedural requirements associated with
appointments and competitions. Employees can be moved, with their
consent, to new jobs at their level. In making the deployment
decision, individual preferences and career aspirations can be
taken into account along with operational needs. By deploying
employees to new jobs before they must be declared surplus, much
of the trauma and uncertainty associated with being declared
surplus can be avoided.
Managers should familiarize themselves with both their
department's and the Public Service Commission's support systems
for redeployment of affected employees and how these can be
accessed. They should also look into ways in which affected
employees in their units can prepare themselves to use these
resources effectively. (The Public Service Commission has
recently printed an information book for employees entitled Are
You Facing Surplus and Lay-Off?)
A number of departments that successfully managed previous
reductions put in place specific transition and redeployment
mechanisms. One example is Statistics Canada, which managed to
absorb about 10 per cent in cuts between 1985-86 and 1988-89 using
four mechanisms in particular: an internal priority clearance
process, Departmental Redeployment Committee, the departmental
Assignment Programs and cash-out as described in Exhibit 6.
Use Training and Re-training Effectively
Training and re-training are important options available to
re-position employees whose skills no longer fit organizational
needs. Under the Work Force Adjustment policy there are
provisions for the re-training of affected, surplus and laid-off
employees, to enable them to fulfil new responsibilities within
their own department or in another department which may recognize
their potential.
__________________________________________________________________
EXHIBIT 6
STATISTICS CANADA: EXAMPLE OF
APPROACH TO REDEPLOYMENT EMPLOYEES
AFFECTED BY DOWNSIZING
Between 1985-86 and 1988-89, Statistics Canada absorbed cuts of
about 10 per cent and maintained a no-lay-off policy by using four
mechanisms in particular:
- An internal priority clearance process: this ensured that
vulnerable employees who had the potential to be trained for
a vacancy would be considered first. It also helped to
ensure that excessive qualifications etc. were not used to
circumvent redeployment.
- A Departmental Redeployment Committee: cases in dispute
between division directors and the Director of Personnel
Operations were referred to a Redeployment Committee which
was composed of 10 line division directors.
- Career Assignments Division (CAD) Program: This program was
used to help convince directors to take a chance on unproven
and untrained vulnerable employees. With the CAD, directors
knew that they had the option of sending vulnerable employees
back to their home division if they did not show sufficient
potential. This helped prevent dumping of marginal employees
through the redeployment process.
- Cash-out: this was used only in cases of voluntary
lay-offs. By requiring the director to give up 80 per cent
of the person year to help pay for corporate-wide budget
reductions, the department established a discipline which
prevented the allocation of cash-outs to employees who would
be leaving in any event or whose services were badly needed
by the organization.
__________________________________________________________________
Support Personal Career Planning
The requirement for pre-retirement seminars, skills assessment,
career planning, résumé preparation assistance, job search
techniques, and counselling services should be identified and a
framework for implementation should be put in place as soon as
possible after the announcement of change. While in-house
resources can be used to a large extent, it may be necessary to
purchase specialized services from the private sector. Whatever
route is chosen, at the time of the announcement, employees need
to be aware that these programs will be available to them.
Support Outplacement
The need for specialized outplacement assistance for certain types
of employees - or employees in particular regions - should be
identified early in the process. Where organizations have highly
specialized employees, such as scientists, engineers, or senior
executives, management may wish to consider using a head-hunting
organization to help identify alternative employment outside
government. Programs such as Interchange Canada and
Business/Government Executive Exchange may be effective bridging
mechanisms to aid the transition from the public to the private
sector.
__________________________________________________________________
EXHIBIT 7
PSC CAREER ASSESSMENT AND ADVISORY SERVICES
The PSC provides a number of assessment and counselling services
that could help departments involved in a downsizing or
restructuring process. They include the following:
- Assessment Centre for Early Identification of Executive
Potential
- Diagnostic and Career Counselling Service
- Leadership Competency Questionnaire (computer-scored
diagnostic tools for five levels of management)
- Executive Programs Branch Programs
- Interdepartmental Secondment Program
- Career Counselling and Referral Bureau for Women
Additional information available in the HR CONNEXIONS ERC, under
Departmental Practices and Initiatives and Library
__________________________________________________________________
EXHIBIT 8
SELF-HELP CAREER PLANNING AND JOB SEARCH TOOLS
A wide range of services and tools are available within the Public
Service. Types of tools include:
- Self-Assessment and Career Planning Workbooks. These are
available from a number of departments including: Revenue
Canada Taxation, Office of the Comptroller General (available
in the HR CONNEXIONS ERC under Library, and Career
Management, Assignment Program), Employment and Immigration
Canada.
- EIC's Creative Job Search Techniques. Includes information
on interview techniques and résumé writing.
- Are You Facing Surplus and Lay-Off? A Public Service
Commission of Canada Publication. Provide answers to
questions commonly asked by employees in these situations.
Also includes tips on interviews and résumé writing.
__________________________________________________________________
Provide Access to Counselling Services
Specialized counselling services are available within many
communities. However, some may not have the ability to respond to
a major change initiative. Frequently in larger urban centres
these services have waiting lists of several months. Employees
facing financial uncertainty may be reluctant to pay for these
services privately.
Existing Employee Assistance Programs (EAP) are a major
cornerstone of this support component. Co-located departments may
want to consider cost-sharing these services and possibly having
the counsellors available on site wherever possible. The Employee
Assistance Program Branch at Health and Welfare can provide
departments with advice on how to reach their nearest service and
can also give advice on the qualifications of prospective
suppliers.
A number of organizations have also found it useful to offer a 24
hour hotline for employees and their dependents. An evaluation
conducted by the U.S. Department of Defence identified increased
family discord as the most frequently cited concern for employees
experiencing major job transitions. The evaluation identified a
need to assist dependents of employees - as well as employees
themselves - in coping with the stress of their spouse's or
parent's job loss.
__________________________________________________________________
EXHIBIT 9
COUNSELLING SERVICES
The Employee Assistance Program is the primary source of
assistance. Specialists involved in this program can usually
arrange to visit regions where there is no ongoing local service
available. For assistance in reaching your nearest service, call
the Corporate or Personnel Services in your department or agency.
Information is also available in the HR CONNEXIONS - ERC (under
Departmental Practices and Initiatives, and Responsive Work
Environment) on Ombudsman programs in place in Communications
Canada and Indian and Northern Affairs.
__________________________________________________________________
Logistical support
Logistical support can help employees considerably, but is an
often-overlooked factor. Details such as providing access to
closed offices and telephones for confidential discussions can be
important. Employees will also require facilities from which to
conduct job searches, conduct meetings and meet with counselling
staff. The availability of these facilities should be widely
communicated to employees as early as possible in the transition
process.
CORPORATE COMMUNICATIONS STRATEGY
Get the truth to people before the rumours take over. Tell
them what happened, what's happening and what will be done.
An Affected Employee
The only thing that is worse than bad news is uncertainty.
Experts advise organizations to prepare a corporate communications
strategy before any announcements are made. Consideration should
be given to the advantages of informing all employees at the same
time, to ensure that corporate messages delivered at each step of
the transition process are consistent, timely and accurate. Often
a variety of delivery methods are used in combination, such as
face-to-face meetings, print material (newsletters, bulletins,
fact sheets), electronic bulletin boards and videos.
Managers need corporate materials that they can use with their
employees. Electronic bulletin boards can be used to reach
everyone effectively within a department. Ways to get corporate
information out should also be explored. People are interested in
knowing, for example, how many of affected employees have already
been placed - what is the department's success rate?
Focus groups on downsizing in both Ottawa and Manitoba emphasized
the importance of consultations with the unions throughout the
process. While the Work Force Adjustment policy and specific
agreements establish minimum standards for notifying unions of
impending lay-offs or work force adjustment situations, a number
of organizations have been able to work in close collaboration
with the unions in developing their downsizing strategies.
__________________________________________________________________
EXHIBIT 10
COMMUNICATIONS TOOLS AND STRATEGIES
Departments have implemented many initiatives in this area.
Examples of communications strategies and materials used in
federal organizations include: a 1-800 line developed by Veterans
Affairs; the "Personal Outreach and Hotline" approach put in place
by Industry, Science and Technology Canada for affected employees;
employee information booklets from Environment Canada, Indian and
Northern Affairs Canada, Employment and Immigration Canada and the
Department of Supply and Services; quarterly newsletters and
employee focus groups in the Canadian Grain Commission. The HR
CONNEXIONS ERC (under Departmental Practices and Initiatives) can
assist you to find more information on this type of initiatives.
__________________________________________________________________
SECTION TWO:
IMPLEMENTING DOWNSIZING/RESTRUCTURING:
THE HUMAN FACTOR
This level of intervention is the one that is most difficult to
handle for managers - no one likes to deal with anxieties,
uncertainties or bad news for individuals.
Discussion of the implementation level is focused primarily on the
manager as an individual - though the need for a corporate, team
approach is always present.
COMMUNICATING, COMMUNICATING, COMMUNICATING
The most important factor for the individual manager at this stage
is to communicate and to recognize that communication is not just
about giving information - it is also about maintaining supportive
human relationships and contacts and, above all, LISTENING.
Managers should convey as much information as they can as often as
they can. They should keep repeating what they know. They should
not assume that their staff or unions have the same information -
or even the same context for understanding that information - as
they have.
Messages should be specific, not vague. Rumours and
misinformation should be replaced with facts:
- Employees deserve a balanced point of view. As part of the
management team, you are responsible for helping to "sell"
the changes. But this does not mean you just throw people a
sales pitch about the positive side of the changes and how
wonderful things are going to be. Both sides of the story
should be told.
- Let people know what they can expect. Give it to them
straight. They can handle it, and you couldn't fool them for
long, anyway. Level with employees - it helps protect your
credibility.
- Keep the lines open. Even keeping people posted that you
don't have any new information is meaningful to them.
- Have someone "in charge". Some organizations such as the
Canadian Grain Commission have found it useful to have one
person be seen as driving the transition - to act as a
"lightning rod". This approach has helped employees find a
focus for their questions and concerns.
Good communication is a two-way street. Managers must listen as
well as talk. They may want to use a range of formal and informal
opportunities - townhall meetings, brown bag lunches, corridor
conversations - to solicit employee concerns. These listening
communications demonstrate visibly that the manager is concerned
about and accessible to employees. They also provide the manager
with information about some of the obstacles that might prevent
the streamlined organization from succeeding or lead to some
creative ideas about how to manage the change.
ANNOUNCEMENTS AND MEETINGS WITH EMPLOYEES
It is necessary to strike a balance between two approaches.
If no advance notice is given, considerable shock and
distrust may be engendered. Besides, employees usually sense
what is coming, and their morale and performance are
adversely affected. On the other hand, if advance notice is
premature, the insecurity and anxiety of the waiting period
may significantly hurt productivity and morale.
Personnel Administrator
Break the News Sensitively - The Initial Announcement
There is considerable debate about the timing and approach taken
to the initial announcement. Horror stories abound. Some
organizations choose a transparent process where employees are
kept informed and involved throughout the planning process.
Others try to minimize long-term anxiety by not announcing
anything until every alternative to downsizing has been exhausted.
There is no single right way to handle the initial announcement.
Some organizations choose to have a group announcement, followed
by individual interviews. Others do the reverse, with individual
interviews with affected employees just before a general
announcement, as the preferred approach.
In either case, the talk with the group - which includes both
affected and non- affected employees - should be given by the most
senior person available.
Experts also suggest that managers:
- schedule the announcement early in the work week so that
questions can be answered and counselling can be provided
immediately, rather than letting the employee "stew" through
a weekend without support;
- factor in a definite but reasonable amount of time for
employees to recover from the initial shock and obtain
adequate information before they are expected to make
critical decisions about the future;
- build time into affected employees' work schedules to allow
them to seek financial and personal counselling, to reflect
on their priorities and interests, and to prepare for
interviews. Finding a new position or alternative employment
should become the first priority of affected employees.
Follow Through - Supervisor Support
Meeting with affected employees is the most painful task facing
the individual manager. Lay-offs or redeployment are not abstract
choices; they are situations that affect the livelihood of
individuals with whom a particular manager or supervisor has
worked on a daily basis.
The immediate supervisor may or may not have had much to do with
the actual decision or the announcement of the decision (which is
often handled by more senior management). He or she, however,
plays a critical role in supporting affected employees as they
work their way through the "four stages of the redeployment
process":
1. Initial shock and regaining equilibrium
2. Inventory of marketable skills
3. Developing a market strategy
4. Creative job search
PSC Downsizing materials, 1985
Once the initial announcement has been made, employees should be
given the opportunity to meet individually with their supervisors
to discuss their immediate situations. This should be done as
quickly as possible to avoid undue stress and anxiety.
Experts agree that managers should prepare carefully for these
meetings. They should know what kinds of reactions they might
expect and where they can get specialist support. A practical
checklist managers can use to prepare for these meetings is
attached to this guide as Appendix B. It draws from material
produced by Supply and Services Canada, Canada Mortgage and
Housing Corporation, and Public Works Canada.
Managers should anticipate a wide range of reactions. Dealing
with employees who have just lost their jobs is uncomfortable for
everyone. Although few of these meetings reach crisis
proportions, some employees may have extenuating personal
situations that the manager may not be aware of and that may make
the shock even more difficult.
Managers should know where they can get help to deal with
difficult-to-handle reactions before they schedule meetings with
their employees. Does the department have an Employee Assistance
Program? An ombudsman program? A health unit? A redeployment
counselling team? Some managers have a counsellor present during
the initial announcement or meeting while others opt to have a
counsellor in the immediate vicinity to provide immediate
follow-up support.
If at all possible, managers should have opportunities to meet
these specialists before they need to call upon their services.
Some of the most common reactions include:
- Anticipation (thought it was coming) - you can be more
factual with an employee experiencing this type of reaction;
- Disbelief (cannot be happening to me) - the employee may need
time to let this sink in before dealing with specifics;
- Escape (urge to leave immediately) - follow through if this
results in employees burying themselves in their work (too
busy to deal with this now) or disappearing;
- Euphoria (I'm in control) - some employees may, in fact, be
in full control. But others may just be expecting
unrealistically for the organization to take care of them as
it has always done in the past. In such cases, you may want
assistance in dealing with a possible delayed reaction or
unwillingness to look for other work;
- Violence - the most feared and least common reaction. If
there is violence, it is usually verbal. Specialist
assistance should be sought.
PAYING ATTENTION TO THE HUMAN FACTOR
Recognize the Effects of Too Much Stress
It is important for managers to realize that almost everyone in
their organization will be affected either directly or indirectly
by the changes and that the capacity of individual employees to
handle these changes can vary enormously. They should also
realize that they themselves are not immune to the stressful
effects of uncertainty and major changes in their environment.
There are certain signals that indicate that a particular
individual may be going beyond their normal abilities to handle
stressful events. These symptoms - which may require specialized
attention - include:
- Physical symptoms: insomnia, migraines, fatigue, frequent
illnesses;
- Behavioral manifestations: absenteeism, a drop in
productivity, increase in interpersonal conflicts, an
inability to make decisions;
- Emotional reactions: loss of self-esteem, guilt, fear,
anxiety, depression, uncertainty, anger.
Maintain and Improve Organizational Responsiveness
There are a number of things departments and individual managers
can do to improve employees' sense of control over their
environment and to reduce the negative effects of too much change:
- Provide employees with concrete opportunities to contribute
and be recognized for these contributions. This helps
employees maintain their self-esteem and the esteem of their
colleagues, both of which are important in the management of
stresses associated with change;
- Reduce unnecessary changes or "surprises" (work schedules,
assignments, physical set-up, office space). Setting up
areas of relative stability allows employees to focus their
adaptive energies on major change;
- Increase flexibility and let employees manage or control as
many areas of their work as possible (policies on flex time,
alternative work arrangements, telework, part time). This
will improve employees' abilities to balance stressful work
demands with their ongoing personal responsibilities.
- Provide strategically timed "mini-breaks" for employees, e.g.
informal learning sessions.
Deal Openly with Downsizing
I'm glad you're talking openly about what has happened. A
lot of people just walk by me. They don't even look at me.
That's hard to take.
A laid-off employee, 1992
One of the fundamental ways management can help is by providing
both affected employees and those who remain with opportunities to
deal with their sense of loss. Survivors often feel guilty for
still having jobs when friends have lost theirs. They may also
feel afraid that the last wave of lay- offs hasn't hit. They are
afraid to talk to colleagues who have been affected and sometimes
go to great lengths to avoid looking at them or speaking to them.
Brown bag lunch sessions, informal coffee breaks and corridor
conversations can help both groups deal with their feelings. It
is important for managers to acknowledge the validity of these
feelings and emotions - including their own - in a non-judgemental
fashion. Take the time to listen.
SUPPORTING REASSIGNMENT, OUTSIDE EMPLOYMENT, OR SEPARATION
Private-sector approaches encourage joint management of the
transition process (separation or re-deployment) by employees and
management. This approach empowers employees and helps them to
regain a sense of control over their lives.
Managers can and should play a strong role of support and
encouragement. They should find out what career assessment
services and tools are available in their departments and how
their employees can best access these. Tools should cover the
entire range: career assessment, résumé writing, creative job
search techniques, preparing for interviews, obtaining
recommendations and references, etc. See Exhibit 8 in Section One
of this guide.
Because of their personal knowledge of the employee's skills and
experience, managers can also act as a "sounding board" for some
employees; they might be able to suggest specific areas for their
job search, people they could talk to, and re-training
opportunities. They can also use their own networks to help their
employees.
It is also important that managers prepare what they will say
about the employee in advance - before they are called for
reference checks.
SECTION THREE: REBUILDING
If I had to do it again, I would pay much more attention to
the "survivors".
Veterans Affairs, Relocation Manager
Private sector experiences show that companies that manage
downsizing well also rebuild at the same time. These firms take a
"three-pronged approach" to rebuilding. They start with a series
of "small wins"; they redesign and work on the long-term changes
they want to make at the same time; they carefully nurture
corporate values and staff motivation. They pay a great deal of
attention to their survivors.
In the current context of rapid environmental change, rebuilding
primarily means working with those who will remain to develop a
new kind of approach to employment security - one that is based on
learning, innovation, and transferability of skills. It means
developing the self-confidence and skills that support
productivity and job satisfaction in a turbulent and constantly
changing environment.
LEARNING - THE KEY TO REBUILDING
Nothing is really happening in the world except the education
of people in it.
Northrop Frye
Learning - and the communications that sustain learning - are the
most critical factors in managing successful transitions.
Organizations can become smaller, more streamlined and more
technologically up-to-date. But, these achievements are not of
much use unless the individuals who remain with the organization -
and the organization itself - become "smarter" in the process.
Ironically, this is often the most ignored facet of transitions.
Pressures involved in meeting immediate targets and the increased
workload associated with transitions tempt organizations and
employees to "get through this first" and then worry about
learning.
Management teams in successful organizations build on the fact
that transitions - as somewhat of a venture into the unknown -
present more opportunities for individuals and organizations to
"stretch" their capabilities and grow than organizations that are
in a business-as-usual mode. They actively seek to make maximum
use of these possibilities to develop individuals and to build
"smarter" new organizations.
There are a number of approaches that managers can use. They can,
for example:
- Protect funding for learning and training - cut out work
rather than training;
- Work with employees to develop individualized learning plans
to identify ways they can use training and on-the-job
assignments to use the "stretch" opportunities inherent in
transitions (The Human Resource Development Council's guide
Career Management in the Public Service gives a model that
can be used to develop these plans);
- Use staff and planning meetings to do both "prospective" and
"retrospective" learning: e.g. to identify opportunities for
learning on upcoming agendas and to look back over previous
happenings to see what can be learned and applied - put
"learning" as a standing item on meeting agendas during the
transition;
- Model learning themselves: talk about what they learned from
their attempts to deal with a new environment; share what
they learn from readings and meetings.
__________________________________________________________________
EXHIBIT 11
MATERIALS TO HELP STIMULATE A LEARNING APPROACH
- Report of the Steering Group on Training and Development This
HRDC document provides an explanation of what continuous
learning means and gives information on a variety of
approaches that organizations and individuals can take to
learning. This report is available in the HR CONNEXIONS ERC
(under Library and Continuous Learning, Training and
Development.)
- Human Resources Development Council, Career Management in the
Public Service: This document is available in the
HR CONNEXIONS ERC (under Library and Career Management,
Assignment Programs). It provides graphs and processes that
can be used by organizations and individual managers to
develop individualized approaches to learning through
transition.
- Departmental practices and initiatives: The HR
CONNEXIONS ERC, under this item, contains information on
approaches taken by individual departments.
__________________________________________________________________
CREATE A NEW VISION FOR THE FUTURE: DEFINE NEW ROLES WITH AND FOR
THOSE WHO REMAIN
Organizations that intend to rebuild solidly for the future try to
minimize ambiguity and clear up the unknown as much as possible.
Efforts to build a new image of the future organization may be
somewhat hazy at first, but employees have to have a sense that
corporate management is steadily building a clearer view and is
also involving them actively in the rebuilding process.
At the working level, this translates into helping employees keep
their priorities clear. When things are constantly moving,
managers can't assume that all employees know exactly where and
how to aim their efforts. Even if they don't ask, even if they
are confidently moving in what seems like the right direction -
check it out! Each employee should be helped to identify the
important aspects of his or her job in the broader scheme of where
the organization is heading.
"WORKOUT": IMPLEMENT STREAMLINED STRUCTURES AND WORK PROCEDURES
When many companies downsize, "the cart seems to come before
the horse". First, companies "get rid of people, then they
make some decisions about organizing those who remain. Only
eventually, as they find that their lean staff cannot do all
the work that remains, do these businesses start to consider
work priorities."
R. Tomasko
Companies that successfully manage downsizing realize that it is
not enough to outplace some of the workers; they also have to have
some of the work done outside. They do not expect the "survivors"
to take on the functions of the workers who left on top of their
own. They redesign and eliminate functions.
These organizations encourage employees to participate in helping
the organization regain its equilibrium - for example, determining
how best to deal with backlogs or keep service going, or deciding
what work should be discontinued. Empowerment can tangibly
demonstrate the worth of the survivors' efforts and the esteem in
which management holds them.
This participative approach to redesigning the work has another
very important side benefit. Employees in downsizing situations
need to feel that they are part of the team - that they are
plugged into the decision network. This is essential to bringing
them through the rebuilding - it helps them move from anxiety to
action.
__________________________________________________________________
EXHIBIT 12
WORKOUT: USING ORGANIZATIONAL
TRANSITIONS AS AN OPPORTUNITY TO
RETHINK THE WORK WITH EMPLOYEES
The HR CONNEXIONS ERC (under Departmental Practices and
Initiatives) contains examples of how some departments are
rethinking their work. These include:
- Energy, Mines and Resources' use of the GE workOUT approach
to downsize the work as well as the work force.
- Fisheries and Oceans' review of its strategies for managing
the science fleet. This increased the output of the science
fleet and achieved major savings. It was also done without
lay-offs by reassigning 92 ships' officers and crew to other
vessels.
__________________________________________________________________
PAYING ATTENTION TO THOSE WHO REMAIN
Employees who remain in the organization after a downsizing/
restructuring situation need networking, support and direction as
much as those who leave. They may need more discussion than in
the past about priorities, how they feel, and where the
organization is going.
A common reaction among survivors is that they feel guilty as well
as anxious. They may be afraid of risks ("when will the next shoe
drop?") just when the rebuilding organization most needs
innovation. They are often afraid to say no to overworking, and
are likely to feel highly critical of senior managers. Every
action of management will be looked at carefully for its "hidden"
or "value" messages.
These reactions may tempt managers to stop the effort of
communicating - to close in on themselves and expect their staff
to just get on with the job. The dangers for the organization
that intends to rebuild differently are considerable. Unless the
manager is sensitive to a survivor's dynamics, the best workers
may leave for other jobs and the "rebuilding skills" of the others
may be considerably dampened.
In one private sector company, the Chief Personnel Officer met
personally with each remaining employee to signal the importance
of the individual and the support the organization was prepared to
give.
Exhibit 14 provides some practical tips about rebuilding survivor
morale.
Recognize and Reward Performance in a Difficult Situation
In rebuilding the organization, it is essential to recognize those
who are carrying extra weight in maintaining service operations,
who are showing innovation and sound judgement, and who are
actively contributing to the transition process. Transition
processes require more active and frequent feedback than more
stable situations. Employees will be frequently asking themselves
if what they are doing is in line with management expectations.
__________________________________________________________________
EXHIBIT 13
REBUILDING MORALE
Managing the Remaining Staff
In order to maintain or reinstate morale, the remaining employees
should be regularly informed of impending changes, the reasons for
any reductions and developments as they occur.
You may wish to meet with the remaining employees as a group or on
an individual basis. Be prepared to answer their concerns
regarding workload and priorities.
Assure remaining staff that special measures are in place within
the department and at the Public Service Commission to assist
those affected by work force adjustment.
Provide a realistic picture of what the reductions will achieve,
in terms of savings, and whether further reductions are a
possibility. Don't promise anything that cannot be guaranteed.
Focus on progress and accomplishments in order to re-establish
confidence in both management and the organization.
(Extract from a document prepared by Public Works Canada using
material provided by Canada Mortgage and Housing Corporation.)
__________________________________________________________________
There is no limit to the psychological bonuses that managers can
provide to employees. They should not underestimate the value
employees place on simple things:
- Listen and show empathy;
- Ask their opinions about things;
- Say "thank you" when you know they are trying hard;
- Praise individuals in public for small jobs well done;
- Don't always wait for the finished product; acknowledge the
direction and right attitudes.
Provide Career Opportunities in the "New" Organization
It is clear that the new kinds of organization that are emerging
will not give employees the same kind of "graduation to
retirement" certainty and stability that many have become used to.
It is also clear that there will be fewer opportunities for
vertical promotions in the flatter organizations that are
emerging.
However, survivors often - at least implicitly - expect some kind
of recognition and reward for sticking it out during the rough
times. These expectations often include promotions or at least
the recognition that goes with challenging new job opportunities.
They may feel that an implicit contract has been broken if their
expectations do not materialize.
Many Public Sector employees counted some measure of job security
as one of the benefits of employment. In the current environment,
security may not be guaranteeable over the long term. This means
being honest with employees about the limits to specific job
security and helping them move towards a security based on skills,
competency and employability in a broader labour market including
both the public and private sectors.
There are a number of things organizations and individual managers
can do to further this more flexible view of a career - to wean
the employees who remain away from the view that they belong in
perpetuity to any particular organization. These include:
- making training and development opportunities available to
survivors as well as affected employees;
- exposing employees early in their careers to a variety of
businesses through carefully planned rotation programs;
- providing employees in mid-career with periodic assignments
to cross-divisional project teams to diffuse core
competencies and to provide individuals with a solid basis
for developing their careers;
- encouraging those who remain - without making them anxious
about their future prospects - to use some of the
self-assessment tools and workbooks outlined in Exhibit #8 to
give themselves a sound basis deciding what they might like
or ask to do in the reconfigured organization.
CONCLUSION
The Public Service must "continue the task of retooling
itself. If Canada is to survive and prosper, it will be in
part because it enjoys the benefits of a committed, modern,
flexible and professional Public Service. This will be one
of our most important legacies to future generations."
Public Service 2000: First Annual Report
to the Prime Minister on the Public
Service of Canada
In rebuilding for the future, the important role for managers is
to prepare themselves and their employees to adapt to changing
circumstances. They need to equip people who work with them with
the skills they need to understand their own strengths,
limitations, motivations, career needs, and goals so they can find
the right place for themselves within or outside the Public
Service.
Managers need to show leadership in selecting and developing
people for the future, in protecting their organization's core
competencies, and in ensuring that employees who leave or stay can
do so with dignity, self-respect, and a sense of worthwhile
contribution.
END NOTES
1. Tom Peters, Thriving on Chaos (New York, 1987).
2. Report of the Auditor General of Canada to the House of
Commons (Ottawa, 1992) pp. 194-97.
3. Abridged from C.K. Prahalad and Gary Hamel, "The Core
Competence of the Corporation, "Harvard Business Review"
(May-June 1990) p. 89.
4. Sally R. Luce, Retrenchment and Beyond: the Acid Test of
Human Resource Management (Ottawa: The Conference board of
Canada, 1983) p. XV.
5. Auditor General, p. 196.
6. Prahalad, p. 87.
7. Luce, p. IX.
8. Ibid, p. X.
9. Adapted from Luce, pp. 52-58.
10. Auditor General, pp. 195-96.
11. Lewis Newman, "Goodbye is Not Enough: Avoid Outplacement
Programs that Threat People All the Same", Personnel
Administrator (February 1988) p. 86.
12. Stephanie Overman, "The Layoff Legacy" HR Magazine (August
1991).
13. Robert M. Tomasko, Downsizing: Reshaping the Corporation for
the Future, cited in Overman, pp. 29-30.
14. Paul M. Tellier, Public Service 2000: First Annual Report to
the Prime Minister on the Public Service of Canada (Ottawa,
1992), p. 170.
__________________________________________________________________
Appendix A
Outline of Relevant Corporate Policies and Guidelines
1. Deployment and Staffing
2. Relocation
3. Work Force Adjustment
June 1993
1. DEPLOYMENT AND STAFFING
1.1 Deployment
- What is it?
A deployment is essentially the transfer of an employee, with his
or her consent, to a new position generally at the same level in
the same occupational group. Unlike other staffing processes
leading to appointments, a deployment does not require the
application of the merit principle (i.e. the selection of the
"best qualified" candidate) nor is it subject to many of the same
procedural requirements. As are result, deployment is a
relatively flexible and efficient tool for moving employees to new
jobs. Deployments are made by deputy heads, or their delegates,
in accordance with Treasury Board and departmental policies.
- As a tool for downsizing and structural changes
Decisions about deployments can be made jointly by managers and
employees taking into account the emerging organizational
requirements and the employees' career interests and aspirations.
Once the new organizational requirements are known, managers and
employees can discuss the new possibilities and find the best
matches between the organization's needs and individual
preferences. Deployment can then be used to formally move
employees to the new jobs. Where there is no continuing "fit",
other actions can be taken. In this way, the trauma,
administrative burden and costs associated with work force
adjustment can be reduced.
1.2 Level-Based Staffing (Appointment-to-Level)
- What is it?
In level-based staffing, employees are appointed to a level rather
than a particular position. Selection to a level is based on
generic criteria and the employee's competence to carry out a
range of duties at a given level of responsibility. In essence,
the employee has a personal rank or level and can be asked to
perform different sets of duties at that level as required by the
organization or for career development purposes.
Once an employee in a level-based staffing program has been
"certified" at a given level of responsibility, he or she can be
moved - deployed - to any job at that level. Such moves are not
subject to a recourse process as are other types of staffing
moves. Employees in such programs generally do not need to give
their consent before each deployment since they are asked to
accept the possibility of future deployments when they initially
enter the program.
Level-based staffing programs are most suitable for occupations
with a relatively high degree of homogeneity and require Treasury
Board approval and regulations.
- As a tool for downsizing or structural changes
As described earlier, deployment can be used to move employees to
new job duties relatively quickly and easily. The added
advantages with level-based staffing programs are that employees
do not need to be asked for their consent to particular moves and
there is no recourse on those deployments.
Departments that are considering using a level-based staffing
approach should contact the Treasury Board Secretariat early in
the planning stages of the organizational change exercise since
some time is required to structure the program and obtain the
necessary instruments.
Summary of Issues and Options to address
Staffing
Issues/Options to address
1. Staffing the delayered organization
- Ensure adequate human resource plans are developed,
including plans for re-training.
- Use deployment to move employees to new jobs. Match
organizational and employees' interests where possible.
- Consider using a level-based staffing program.
- Conduct closed competitions on a regional basis to
appoint employees to the new positions; use restricted
area of selection where required.
- Where feasible, make appointments without competition
with approval of the PSC.
- Initiate a staffing freeze prior to the implementation
of the new organization to limit the number of affected
employees.
2. Coordination of regional and national staffing
- Develop a national framework to be used by the regions
for the development and implementation of their human
resource plans.
- Consider interregional links.
3. Term/Casual Employment
- Maintain the status quo until the new organizational
structure is approved.
- Consider using term/casual employment when staffing
vacancies prior to the new organization.
4. Acting Appointments
- Develop a plan to regularize all positions staffed on an
acting basis.
- During short absences, divide the duties of the vacant
position among employees of a work unit.
5. Employees who do not Fit the New Organization
- Develop personalized training plans for all employees.
- Develop plans that include options for employees who
cannot meet the training standard, such as deployment to
another position at the same or at lower level, or
retirement.
- Market employees to other departments.
6. GE Conversion
- Develop contingency plans to take into account the shift
from the current classification system to the new
system.
7. Employment Equity
- Consider employment equity objectives as an integral
part of the human resource plans.
2. RELOCATION
2.1 Relocation and Decentralization Policy
The Treasury Board policy regarding relocation and
decentralization applies to departments undergoing relocation of
the work units or decentralization of activities that result in a
change in domicile on the part of employees.
Essentially, when relocation or decentralization occurs,
departments are responsible for developing human resource plans,
consulting with the bargaining agents, notifying TB 48 hours prior
to the official announcement, notifying employees, and providing
information to counsel them on options. See the diagram on page 8
and the summary of Issues and Options to address on page 9.
2.2 Relocation Directive
This directive, deemed to be part of collective agreements, covers
the reimbursement of actual and reasonable relocation costs. It
applies to departments, agencies and corporations as listed in the
Financial Administration Act. TB approval is required for payment
of relocation expenses not covered by the directive. Terms and
conditions are to be discussed with the employee at the time of
the authorization to relocate.
There is no minimum distance qualification, however, the general
rule is that a relocation should not be considered unless the new
principle residence is a minimum of 40 kilometres closer to the
new work place.
The Department should inform employees who may have to relocate of
the relocation policy and ensure that they have a copy once the
relocation has been authorized. Employees should receive
appropriate counselling.
Reimbursable relocation cost for employees (excluding Management
Category) are as follows:
Househunting Trip: Transportation, accommodation, meals and
incidentals for employee and spouse, for up to five (5) days at
the new location to search for permanent accommodation. Rental of
sub-compact car.
Temporary Dual Residence: (When the employee precedes the family
because of schooling, or until the former residence is sold) -
rental of a furnished, medium-priced bachelor apartment plus
parking and utility costs, a daily meal allowance, a monthly
laundry allowance, the cost of a weekly 10-minute call home, and
any costs for subletting or breaking the lease on the rental
accommodation. In addition, the cost of shipping up to 70 kg of
personal effects.
A two (2) day trip home after one month, at the end of the
assistance period as well as travel home in emergencies.
Dual residence assistance is payable up to nine (9) months.
Disposal and Acquisition of Accommodation: Real estate and legal
fees, repayment penalties for first mortgages. Legal and mortgage
acquisition fees, bridge financing interest (up to 100%) of equity
in the previous residence, for up to six (6) months, and mortgage
interest differential costs (based on the principle amount of the
former mortgage, for the unexpired period, up to five (5) years,
to a maximum of $5,000.00).
Shipment of Effects and Automobiles: Arranged by Central Removal
Services of SSC. Service includes packaging and shipping any
household and personal effects that a moving firm would accept on
a straight weight basis (e.g., hazardous or explosive chemicals
are not included).
Employees who own two (2) vehicles may choose to drive both to the
new place of duty, or drive one and ship the other. Where the
relocation distance exceeds 3,000 km., both vehicles may be
shipped.
Incidental Expenses: Reasonable expenses which can be directly
attributable to the relocation such as charges levied for
disconnecting and connecting appliances, local licenses, removing
and reinstalling curtain rods, cancelling local memberships, etc.
Expenses of up to 6% of the employee's annual salary, part of
which could include a non- accountable allowance. The allowance
is $200.00 for employees shipping effects weighing 900 kg., or
more, or $100.00 for employees shipping effects weighing less than
900 kg.
Travel to New Location: Reimbursement for travel to new location.
2.3 Travel Directive
This directive is deemed to be part of the collective agreements
between the parties of the National Joint Council. For the
purposes of Relocation, this directive provides the guidelines for
reimbursement for temporary accommodation and travel.
Summary of Issues and Options to address
Relocation
Issues/Options to address
1. Lack of Mobility of Employees
- Where possible, involve employees in the planning
process for relocation of work units.
- Finalize decisions regarding the relocation of work
units in a timely manner to allow for effective human
resource planning, which takes into account the
notification periods.
- Arrange for visits to the new location and for
representatives from the new location to visit and speak
with employees.
- Provide spousal assistance to seek employment in the new
location.
- Provide appropriate counselling as soon as possible
through human resources or EAP or external
professionals.
- Offer enhanced financial assistance to encourage
employees to relocate.
- Minimize cost through staffing freezes in order to
reduce the number of employees required to relocate.
- Ensure plans take into account the on-going operation of
the work unit until the relocation date.
3. WORK FORCE ADJUSTMENT
3.1 Work Force Adjustment Directive
The WFA Directive outlines the Treasury Board policy regarding
work force adjustment situations. The current Directive took
effect on December 15, 1991 and is subject to review on March 31,
1994. It forms part of the collective agreements between the
National Joint Council and employees, and applies to indeterminate
employees appointed to positions in the Public Service.
The Directive highlights the roles and responsibilities,
notification requirements, and special conditions that surround
the relocation of a work unit, retraining, salary protection,
privatization, lump-sum payments, and contracting out.
These features are outlined in the charts and schematic diagrams
that follow. However, specific departmental issues on the
interpretation and implications of the WFA Directive such as
Devolution, Lump Sum Payments and Benefits, Reasonable job offer
and redress mechanisms should be discussed with your personnel
specialist.
In addition to the government-wide priority clearance system or
those appointments under the jurisdiction of the Public Service
Commission, a number of departments have instituted a priority
referral and clearance process to ensure consideration of internal
priorities. A schematic diagram which overviews National Health
and Welfare's process is shown on page 12.
3.2 Selection of Employees to be Laid-Off - Reverse Order of
Merit
When a unique job is no longer required in an organization, the
incumbent of that position is declared surplus to requirements.
In an environment where positions are similar or identical in
nature, a work force adjustment situation requires the
identification of employees to be declared surplus. The process
follows the reverse order of merit with employees who are the
least qualified to perform being declared surplus.
Management must carefully consider the requirements of the
positions being affected and identify assessment criteria. Each
employee affected is assessed against the criteria to determine
the degree to which the employees possess the qualifications to
perform the functions.
The assessment should be carried out using the appropriate
selection standard. The use of existing documentation on past
performance such as performance appraisals as the sole source of
information is not generally adequate. Depending on the situation
and the number of employees involved, interviews, written
examinations, and other selection tools may be required.
Seniority is taken into consideration only when deciding between
equally qualified employees.
While this process can be time consuming, the importance of
conducting it properly cannot be overstated. Ensuring that the
best qualified employees are retained in the organization is
critical to your program.
Summary of Issues and Options to address
Work Force Adjustment
Issues/Options to address
1. Costs Associated with Work Force Adjustment
- Implementation plans take into account WFA cost
including a contingency fund for unanticipated costs.
- During the planning process, identify training needs,
commence training for upgrading, and account for
retraining of displaced employees for up to two (2)
years.
- Review alternative work arrangements such as part- time,
work sharing (telework) to reduce the number of affected
employees.
- assist employees appointed to lower level positions in
obtaining employment at their substantive level.
2. Consistency in Granting Lump Sum Payments
- Establish a national committee with regional
representation to insure consistency in the application
of the national strategy for payment of lump sums.
- Review requests for lump sum payments on a case- by-case
basis.
3. Counselling of Employees
- Provide one-on-one counselling and discuss options, such
as relocation, lump sum payments, retraining, and
alternate employment through human resources.
- Make counselling services available to deal with stress,
financial matters, and personal concerns through EAP or
external professional services.
- Provide training sessions, through the human resources
function, to assist employees in preparing resumes,
preparing for selection boards, and developing job
search skills.
- Provide information packages to affected employees (to
include information about stress management, employment
opportunities, etc.).
4. Development and Maintenance of a Tracking System
- Ensure that the Human Resources Information system meet
the needs of redeployment
5. Impact of Changing Environment on Employee Placement
- Prepare a national work force adjustment strategy that
is flexible in order to respond to the changing
environment.
- Negotiate with the PSC to minimize the number of outside
priorities hired at the expense of indeterminate
employees within the department.
- Coordination of Inter-Regional Placement
- Negotiate with the PSC to establish special regulations
to deal with departmental priorities.
6. Selection of Employees to be laid-off - Reverse Order of
Merit
- Assess the qualifications of employees based on
established criteria.
- If there are a high number of affected employees, a
number of selection tools may be required.
- Seniority is taken into consideration for equally
qualified candidates.
7. Time Factors
- Account for notice periods in the development of a
national WFA strategy.
__________________________________________________________________
Appendix B
MEETING WITH AFFECTED EMPLOYEES:
A MANAGER'S GUIDE
This document has been produced from material provided by
Public Works Canada, Canada Mortgage and Housing Corporation,
and Supply and Services Canada (PSCS Work Force Adjustment:
Manager's Handbook).
HRPB
March 1993
I - PREPARATION OF THE MEETING - NOTIFICATION OF PRIORITY
STATUS
1. Have all the facts
The first step is to prepare yourself by getting all the
facts. Several specialists will help you give your employees
detailed information. However, you are your employees' first
point of contact, and you should be prepared to provide them
with the basic facts, including:
- applicable policies and guidelines (Work Force
Adjustment and EETP); and
- support services and resources that exist in your
department, and how you and your employees can access
them.
2. Select the appropriate people, time, and place for the
initial notification
Who will give the notice?
- The written notification of vulnerable or surplus status
must be signed by the manager delegated with staffing
authority.
- While the delegated manager must sign the letter,
managers are encouraged to arrange for someone familiar
with the employee to give the notification in person.
It is suggested that notices be delivered by a manager
two organizational levels above the employee and that
the manager be excluded from the union representing the
employee. In cases where a reverse order of merit was
established, the manager responsible for the decision
should be the person who notifies the employee.
- In some cases, the employee may wish to have a witness
(e.g. union representative or personnel officer) present
at the interview.
- In all cases, however, when the notice is given by
someone other than the immediate supervisor, the notice
meeting should be followed up as quickly as possible
with further discussion between the employee and his/her
immediate supervisor.
When?
- late in the day: so the employee can leave work early.
This will reduce the awkwardness of having to face
co-workers after learning the news
- early in the week: to permit the employee to start
planning, meet with a counsellor, and avoid a weekend of
worrying without access to information or support
structures
Where?
- not in your office (where it would be difficult to avoid
"urgent" interruptions)
- in a neutral area: Some managers prefer to do the
interviews away from the workplace so that employees can
arrive and leave without being observed by co-workers
- in an enclosed space that provides complete privacy
3. Prepare what you will say
Write down and practise what you will say at the meeting (be
consistent with all employees). There are four main goals to
accomplish during the interview:
- inform the employee of his or her impending or actual
surplus status;
- provide support and reassurance;
- help the employee redirect his or her thinking towards
alternative employment; and
- link the employee with the personnel services available.
4. Prepare for questions
Think in advance how you would respond to the following
questions:
- Why me?
- Was it my performance?
- What will you say to the staff?
- How long have you known about this?
- What about (another employee)?
- How do I tell my family?
- What will you say to prospective employers?
- How did you decide who?
- Is there another position for me?
- Does my union know?
5. Anticipate reactions and emotional responses
Think about how you would respond to the following range of
potential reactions and emotions:
Common reactions
- Anticipation (thought it was coming)
- Disbelief (cannot be happening to me)
- Escape (urge to leave immediately)
- Euphoria (agreeable, but not realistic)
- Violence (verbal or physical)
Common emotions
- Anger
- Shame
- Fear
- Sadness
- Self-pity
- Relief
6. Plan how you will inform the rest of the staff
This question may also arise in the course of your interviews with
affected employees.
- Determine the method you will use.
- Prepare an outline of the new distribution of work, as
previously determined, where appropriate.
- Develop a training plan to assist those who remain to assume
reorganized responsibilities, where appropriate.
II - THE MEETING
1. What to say
Focus your comments -- as prepared earlier -- on the four main
points you would like the individual to understand.
- Tell the employee in the first few sentences that a decision
has been made and that he/she is being given advance notice
of potential surplus status.
- Make sure he or she understands that being declared surplus
is not a result of an evaluation of his or her work
performance, skills or value to the department
- Reassure the employee that you will be supportive and
available throughout the process and that the department will
be providing more specialized personnel, counselling and
other support. Encourage him or her to take advantage of
these services.
- Encourage the employee to begin thinking immediately about
how and where -- on the basis of skills and experience --
they could find alternative employment.
2. How to say it
Get to the point quickly and directly. Since employees are
usually aware of the purpose of the interview, a long introduction
will only serve to alienate them. You should be direct, without
being blunt or brutal. The communication should be clear, candid,
and supportive, with facts to support your announcement.
- Avoid words like "terminate" and "fire". Instead, use "the
position/function will no longer exist".
- Don't argue or justify the department's decision. It is
non-negotiable.
- If the employee wants to express his or her feelings, be
prepared to be sensitive but limit the discussion. He or she
will receive further counselling and you can not change the
situation. It is not the time for in-depth rational
dialogue. The meeting should not last longer than 15-20
minutes.
3. Closing the interview
- Give the employee the letter. You will want to follow up to
ensure that the employee has actually read the letter.
- Thank the employee for his or her service and commitment to
the department.
- Remind the employee that issuing the notice will maximize
redeployment efforts by engaging the assistance of
redeployment officers within the department and, for surplus
employees, the Public Service Commission.
III - POST-NOTIFICATION STAGE
1. Employee reactions
- The person may be emotionally vulnerable and prone to make
judgement errors.
- Expect to have to repeat much of what was said during the
notification meeting. Often employees do not hear anything
after they have been told the purpose of the meeting.
- Expressions of intense emotions will probably occur. Be
prepared; they are not directed at you.
2. Follow-up support
Counselling and job assistance should be provided to the employee
by the department and the Public Service Commission. You, as the
manager, are responsible for identifying redeployment
opportunities, authorizing absences required to find alternate
employment and actively promoting the employee, both within and
outside the Public Service.
3. Writing a reference
You will be required to provide a reference for the priority
employee. A reference does two things:
- it provides the new employer with your perceptions of the
individual's technical competence and abilities; and
- it is a great ego booster for the individual.
To be effective, a reference should include:
- dates of employment;
- position(s) held;
- an overview of the individual's technical ability,
interpersonal relationships at all levels within the
organization, and strengths, abilities and aptitudes;
- reason for their current status; and
- your willingness to rehire the employee.