SEMESTER SPRING 2012
Organizational Behavior (MGT502)
Assignment No. 01
Due Date: 30
TH
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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