Q.ZYX is a larger manufacturing firm that is well known as a ‘Good employer’. Over the past few years, ZYX has experienced difficult times with reducing sales and mounting losses. In desperation, it...

Q.ZYX is a larger manufacturing firm that is well known as a ‘Good employer’. Over the past few years, ZYX has experienced difficult times with reducing sales and mounting losses. In desperation, it employed management consultants to analyze its situation. The consultants have concluded that the downturn in sales is permanent and that ZYX needs to reduce its workforce by 40% over the next year to survive. Reluctantly, ZYX’s board of directorshas accepted these findings, including the need to reduce the number of staff. The directors have also agreed to act as honestly and as fairly as possible, but realize that any change they propose will be unpopular and may meet with resistance.

a) Discuss what initiatives ZYX can take to achieve the job reduction needed given thecompany’s reputation for being a good employer (your answer should includereferences to appropriate support for any individuals affected).

b) Discuss the potential strategies available to overcome resistance to change,and identify those strategies that would be most suitable for ZYX.