You are the manager of a poorly performing research and development department. In view of the performance problems, there has been talk in the company about the possibility of downsizing your unit. This has aroused a great deal of concern in the workplace as people begin to fear for the security of their jobs. This, in turn, has been disrupting the flow of work. Productivity is slowing down as some of your top engineers have been taking new jobs.

1. Does it make sense to expect your employees to have these fears? Why or why not?

2. Describe the steps you can take to help allay these fears and to return work to normal. How effective do you think these steps may be?

3. If large-scale downsizing were to occur, how might you use an organizational development technique to help smooth the transition?