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Downsizing results in force reduction, which can lead to a multitude of emotions for everyone involved. Areama has a colossal task to ensure that she can devise a restructuring plan that will benefit the associates that are left. To address the effectiveness and efficiency component, Areama will need to focus on the goals of the new business model and looks for ways to integrate the remaining staff into new roles or offer them the opportunity to transfer to new roles that pique their interest. Historically Izzy's was compromised of many different departments that included staff specialized for each area. As a result of the reduction in staff, Areama will need to focus on the skill set of each of the remaining associates and look for ways to motivate the team that is left to take on departments that is new to them. Merging the staff to cover multiple departments will deem efficient while encouraging the staff to focus on the goals of the new business model will be considered effective. Furthermore, Areama needs to adapt the organization so that it is ideally situated to accomplish current organizational goals. Thus, the need to know how to plan and implement change to achieve organizational success (Black & Bright,2019).

Due to the heightened uncertainty as a result of the layoffs and the way it was handled, Areama's priority should be to increase the employee morale of the remaining staff. The goal is to ensure that Areama has all the facts about the new company's direction since she does not want the remaining staff to disengage or lose their trust in her leadership and leave as a result. Disengaged employees often do only as they are told, miss more work, and are likelier to leave an organization (Macauley, 2015). Once the uncertainty has been addressed, Areama should focus on the restructuring and incentive plans. The staff will be more receptive and open to change if incentives are involved since the reconstruction will involve them in merging duties, assignments, and departments.

The organizational culture preserves all the values that have been historically validated as being beneficial to the organization and its employees (Ilie &Ghita,2019). Izzy's Bed Emporium was a family-owned company led by Areama, who understood each employee personally. The structural component shifted most of the manufacturing to a corporate level, except for the LiftOmatic. The staff left at Izzy's Bed Emporium will be solely responsible for sales. Mattress Mart aims to reduce the number of high-paying jobs in Izzy's Bed Emporium. In contrast, the cultural component resulted in Areama worrying if her staff would be able to adjust from an intimate family-owned business to working for a large corporation. In addition, Areama was concerned that the new structure would leave her staff uneasy about their future. To assure her staff, Areama should follow the planning process that focuses on the future of Izzy's Bed Emporium. This step involves establishing clear goals to achieve success at Izzy's.

Before Areama meets with the staff, it is integral for her to fully understand the merger so she can be equipped to make decisions and answer any questions the staff might have. Through planning, Areama will establish goals and specify how these goals will be achieved. Planning offsets uncertainty and change and enables focus on organizational activity on a set of objectives. It also provides a coordinated, systematic road map for future activities resulting in increased economic efficiency; and control by establishing a standard for later activity(Bright&Cortes,2019). Secondly, Areama will need to understand how each employee feels about the merger and devise and execute a plan to increase morale. For example, being open about why the family-owned business could no longer be financially stagnant. Discussing the financial, technology, and production barriers would put the employees at ease, resulting in them dealing with the integration positively. Lastly, Areama should consider the incentive plan to retain the staff left. This merger will create an even distribution of work, something that could not have been done in the past. She should also consider the positive effect the new budget will bring. Areama can use the excess budget to ensure the staff is appropriately compensated and monies are set aside for incentives and alignment of the company.