SEMESTER SPRING 2012 Organizational Behavior (MGT502)
Assignment No. 01
Due Date: 30TH April 2012 Marks: 20
Assignment: XLS was a renowned telecom company of Pakistan. XLS was losing its market share and resultantly profits because of intensive competition in telecom sector. The overhead cost of this company was higher than its competitors. To reduce this cost CEO of this company decided to downsize. He announced that more than 10% of the work force will be laid off. As many as 500 employees received early retirement. Although CEO’s ambitious cost-cutting plans were aimed at improving the financial performance of XLS but layoffs are rarely painless. Those who retain their jobs often face new obstacles and difficult adjustments. They have to take over the task of colleagues who are now gone. Survivors may lose trust in the company and may experience “survivors’ guilt” for being allowed to remain in organization, while their other colleagues have been forced to leave. Any rumors of additional layoffs only add to the stress, making employee more fearful and interfering with their ability to focus on their work. XLS must face the immense challenge of keeping the workforce motivated while creating a firmer foundation for profitable operation in the years ahead. Question
1. According to expectancy theory of motivation, how XLS’s layoffs affect the survivors’ motivation? Give logical reasons to support your answer.
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