Decisions about restructuring usually depend on models that show how different approaches might affect the enterprise, by projecting the values of organizational attributes such as net income, market share, or shareholder value. Although these projections rarely include attributes like employee anxiety or fear, such factors are truly important. They help to determine productivity, voluntary turnover, the workload of the people in Human Resources, and many of the attributes that the experts do model, albeit indirectly.
Most important, restructuring-induced fear can create a need for future restructuring, through a variety of paths, some of which are subtle and rarely identified. Here's Part I of an exploration of some of the less obvious mechanisms by which restructuring-induced fear creates a need for future restructuring. Refer to the accompanying diagram of effects [Weinberg 1989], which displays these dynamics graphically.
- Degraded and disrupted relationships
- When we relocate people, eliminate positions, or merely change reporting structures, we disrupt relationships between people. Those who formerly relied on each other for advice, instruction, or services must sometimes find new contacts. Even the relationships that aren't totally eliminated can be degraded by restructuring-induced fear, in the form of competitive attitudes that can take hold when people come to believe that further restructuring is possible, and that everyone is in competition for a declining number of jobs.
- Although relationships between and among employees are valuable organizational assets, the value of these assets doesn't appear on financial statements. Unaware of the amount of these assets lost to restructuring, the depressive effects on results seem surprising to planners. The unexpectedly disappointing results can sometimes lead to further restructuring.
- Risk aversion
- When people believe that their When people believe that
their jobs are at risk,
their appetite for risk
in general declinesjobs are at risk, their appetite for risk in general declines. In effect, some people have difficulty keeping separate their own personal risk profile and the risk profile associated with their job responsibilities. This can affect the necessarily subjective judgments people make as part of their responsibilities, which creates a risk aversive approach to operating the enterprise.
- After experiencing several serial restructuring events, people in organizations that formerly had a healthy approach to risk can find themselves being overly conservative in their strategies and tactics, because they have begun to confuse their own personal risk experience with the risk experience of the organization. In this way, the organization can become so risk averse that it is no longer capable of accepting the levels of well-managed risk that are so necessary in today's market environments. These organizations then find that they can innovate only by acquiring innovative organizations, which is an expensive method for attaining market leadership. The resulting high costs and low yields sometimes lead to further need for restructuring.
Are your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!
Your comments are welcomeWould you like to see your comments posted here? rbrenogMhuqCxAnbfLvzbner@ChacigAthhhYwzZDgxshoCanyon.comSend me your comments by email, or by Web form.
About Point Lookout
Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.
This article in its entirety was written by a human being. No machine intelligence was involved in any way.
Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.
Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.
More articles on Emotions at Work:
- The Slippery Slope That Isn't
- "If we promote you, we'll have to promote all of them, too." This "slippery-slope"
tactic for winning debates works by exploiting our fears. Another in a series about rhetorical tricks
that push our buttons.
- Email Happens
- Email is a wonderful medium for some communications, and extremely dangerous for others. What are its
limitations? How can we use email safely?
- Filtered Perceptions
- How we see things influences how we see things, almost like a filter or sunglasses. What are your filters?
- The Problem of Work Life Balance
- When we consider the problem of work life balance, we're at a disadvantage from the start. The term
itself is part of the problem.
- Regaining Respect from Others
- When you feel that a colleague has lost professional respect for you — or never really had respect
for you — what can you do about it? Check your conclusions, check whether it's about you, and
ask for a dialog.
Forthcoming issues of Point Lookout
- Coming October 4: Self-Importance and Conversational Narcissism at Work: I
- Conversational narcissism is a set of behaviors that participants use to focus the exchange on their own self-interest rather than the shared objective. This post emphasizes the role of these behaviors in advancing a narcissist's sense of self-importance. Available here and by RSS on October 4.
- And on October 11: Self-Importance and Conversational Narcissism at Work: II
- Self-importance is one of four major themes of conversational narcissism. Knowing how to recognize the patterns of conversational narcissism is a fundamental skill needed for controlling it. Here are eight examples that emphasize self-importance. Available here and by RSS on October 11.
I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenogMhuqCxAnbfLvzbner@ChacigAthhhYwzZDgxshoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.
Get the ebook!
Past issues of Point Lookout are available in six ebooks:
- Get 2001-2 in Geese Don't Land on Twigs (PDF, )
- Get 2003-4 in Why Dogs Wag (PDF, )
- Get 2005-6 in Loopy Things We Do (PDF, )
- Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
- Get 2009-10 in The Questions Not Asked (PDF, )
- Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )
Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500-1000 words in your inbox in one hour. License any article from this Web site. More info