Managing Employee Morale After Organizational Downsizing

Date of Conferral

10-20-2023

Degree

Doctor of Business Administration (D.B.A.)

School

Management

Advisor

Ronald Black

Abstract

Business leaders who lack effective strategies to manage employee morale after downsizing may encounter feelings of distrust, disloyalty, and job insecurity from employees, resulting in decreased productivity. This decrease in productivity can cost an organization millions of dollars. Grounded in transformational leadership theory, the purpose of this qualitative single case study was to explore strategies business leaders use to manage employee morale after organizational downsizing. The participants comprised three business leaders in central Maryland who successfully used a strategy to improve employee morale after downsizing within the past 5 years. Data were collected through semistructured interviews and a review of public financial reports and company information. Thematic analysis was used to analyze the data, and three themes emerged: effective communication, team building, and training and support. A key recommendation for business leaders is to open lines of upward communication to understand the emotional state of the employees better. The implications for positive social change include the potential to protect the emotional and physical health of the employees in support of the local communities and families.

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