Ken Siegel, president of The Impact Group Inc., a Los Angeles-based group of psychologists who consult for managers, says supervisors can overreact to economic or market downturns. Many layoffs have a financial impact only during the quarter of the job losses, and most positions are filled within a year.

What is "survivor management"?

It occurs during the days, weeks and months after a staff reduction in a work force. It is an enormous challenge because managers are faced with employees' increased sense of uncertainty, plus a large amount of disguised distrust that will have crept into the employer/employee relationship.

How does this strategy show management incompetence?

The No. 1 reason organizations lay off employees is because economic outcomes have not met forecasts. It means that the strategy that managers designed, and the plans put in place to implement those strategies, did not work. The irony is that the people who lose jobs did not design the strategy. Management ends up punishing a segment of the organization that followed a flawed management and leadership strategy.

Why do you advise against using restructuring as a cost-saving technique?

It undermines so many of the core operating principles that an organization needs to [rebound] from an economic crisis. It erodes trust, commitment, motivation and productivity - all essential for a business turnaround to occur. As a result, the battle to gain competitive advantage disappears. That is why, many times, 12 to 18 months after a layoff, management gets replaced. That should have happened in the first place.

What are better alternatives to layoffs during an economic downturn?

There is no one best way to respond to an economic crisis. However, engaging in layoffs is the least challenging and most destructive way to go about it. A less obvious way is for management to ask for advice from the work force. One of the most creative companies I have worked with asked for advice and a plan was created where the workforce engaged in a job-rotating plan. The employees each got much-needed time off, and the company did not dismantle its greatest strength, its people. So there are many alternatives, but if your mind is locked in on layoffs, you fail to see them.

- Dawn House

dawn@sltrib.com