January 10, 2010 9. Lay Offs, Firing and the Demotion of Others: Moral Leadership in Corporate Settings

Genesis 30:33 - and my honesty will testify for me in the future, whenever you check on the wages you have paid me.

Women in responsible positions have to make decisions that affect other people's lives.  Some of us are very uncomfortable with this responsibility.  Some of us choose not to have jobs that require such decisions of us.  Others of us are on journeys in which our leadership gifts require that we maintain such positions.  This essay is for those.

It is easy to believe that being a spiritual person greatly conflicts with the responsibilities we have as corporate executives or business owners. This is not completely true, however.  History shows us that there are people who have been able to be good business people as well as good people.  One of my favorites is St. Theresa of Avila.  She founded 15 different convents, serving as a fine administrator and manager for each.  If it is our calling, we can be both a merchant and a saint. Proverbs (31:10-31) also offers a model for us.  It just generally takes more work on our part.

Assuming we “belong” in a business setting, we will often find ourselves having to manage very difficult situations.  Some people may choose to find a different occupation all together.  But those who choose to remain in business will face some special challenges.

Challenges

Three challenges in modern America include laying off people, firing or demoting a person.  Each of these can confuse us regarding our responsibility to an individual person versus our obligation to the enterprise.  This may be one of the most difficult moments in a spiritual woman's life.  Before becoming spiritual, we could just say, "I'm just doing my job."  But now we don't just react, we act—thoughtfully and prayerfully. We act recognizing our own higher purpose in life.  And firing, laying off or demoting a person (particu­larly if we have invested in them emotionally) seems to contradict the higher aim directly.

There are times we should take a stand to protect an individual.  Our spirituality requires that we act courageously and prevent an injustice.  But there are also many times when we cannot control the events and forces around us.  How can we tell the difference?  And how should we act if we must cause someone else's distress?

How can we tell the difference between a situation that requires a courageous stand and one where we need to "do what we have to do"? 

The Decision

Let's talk about The Decision as any situation which affects the livelihood of another person: a layoff, outright firing, demotion, undesirable transfer, not awarding a contract, not giving a raise or a promotion, etc.

In order to know whether we should take a stand to "fight" The Decision or not, we need to use all our powers as managers.  This means that we need to analyze the situation carefully.

What are the business considerations involved in this decision?

Ø  Is lack of revenue the reason? 

o   If yes, can you find an alternate way of saving money that will meet the business needs of the organization?

o   If no, is there another good business reason?  For example, poor performance, or insubordination?

Ø  Is the logic clear and straightforward about The Decision?  Or are politics, favoritism, or prejudice at work?

o   If yes, what is inevitable and what is clearly wrong and unethical?

Ø  Is the person affected by The Decision culpable in some way?

o   Has she committed an infraction? 

o   Has her performance been poor? 

o   Has he not changed in spite of counseling? 

o   Have you provided the support needed for good performance, but he has still not improved?

First, ask these questions and answer them truthfully.  Having analyzed the results, you may be clearer about your next step. It may be appropriate for you to stop the flow, and take a courageous position, challenging the decision.  On the other hand, it may be that the tough decision needs to be implemented.

Certainly prayer, meditation, and turning the decision over to our God are ways of coming to the correct conclusion. 

But we also need to look at the ways in which we are not being realistic, not seeing the reality of the situation.  Here are some of the ways reality can be obscured.

A need to control

We need to examine our own need for control.  A need for control is an unhealthy need to ensure that the outcome of a given situation meets our needs and desires.  For example, there might be two routes to home. The wife prefers one; her spouse prefers the other.  The need for control is present when the wife, nervous about an upcoming presentation, insists that her way home is better and faster—not because the route matters, but because controlling the route eases her nervousness about the presentation.  (Husbands can be just as controlling, but we are talking about ourselves here.) In facing The Decision, our need for control can cause us to “take over,” or “fight City hall” to the detriment of our employees.

Our Other Needs

Sometimes we make our decisions based on other needs that we have—such as for nurturing and care-taking. Needs for nurturing and care-taking are different from controlling needs.  In these, we function as if a script were being played out.  It goes like this: “I didn’t get the nurturing I needed as a child, so I will fix this hole in me by care-taking others.”  This need shows up in tough business decisions where we are more concerned about other people’s situations (“her husband is sick,” “he just moved into a new house”) than the work that needs to be done. 

While losing a job is a terrible thing, employees are better served by clear and fair think­ing than by nurturing and care-taking—which prevent them from being able to act as responsible adults.  In other words, we need to be “clean” about the actions and decisions that we are making.  In this context, “clean” means being honest and authentic.  There are lessons for us everywhere, and when making The Decision this truth is even truer.

Assuming we are looking at the situation realistically, we may come to the conclusion that the appropriate response may be to focus on the methods used to convey the bad news to the person(s) affected.

How should we act if we must be the instrument of someone else's distress?

If we conclude that we are indeed responsible for implementing The Decision, then we have certain principles to follow.  Honesty, authenticity and utilization of all available support are the guiding themes. 

Honesty:

To remain spiritual, we need to be honest in our dealings with others.  This does not mean, however, that we talk endlessly about potentialities, or reveal every nuance of the situation with all parties--concerned or not. Such activity masquerades as honesty, but in fact is just gossip.  If performance is the problem, we are obligated to inform the employee that his performance is not meeting expectations.  This does not mean that we nag, or berate, or mock the poor performer.   It does mean that we send our messages clearly.   It means that we work to overcome our own hang-ups about authority, about not being liked, about giving bad news.  In other words, we are required to act with moral courage, even in the face of giving bad news.

Being honest in times of uncertainty requires moral leadership.  A “softening” economy or potential mergers/acquisitions or impending restructuring of our organizations demand that we keep employees informed about the likelihood of different scenarios.  It is as dishonest to draw a totally negative picture (when chances are even-or-better that a positive outcome will result) as it is to prevent people from knowing that A Decision may be in the offing. As good managers, we provide moral leadership by helping employees to plan for the negative possibilities. 

Being honest also means clearing out our control, nurturing and care-taking needs before engaging in this difficult work.

Authenticity:

Authenticity in the face of implementing A Decision means carefully sharing your own feelings and opinions.  If you are scared for yourself, but put on a happy face, you are misleading your employees and not being authentic.  But notice the word "carefully."  Sometimes you are under obligation to keep information to yourself.  Other times you really do not know whether a given corporate change will affect your department.  In these instances, authenticity means acting with integrity.  It means helping people to prepare for any eventuality.  It means preparing people for change in general, helping them to become more resilient.  Help them to look beyond the organization at all times.  Help them to explore other options, preparing resumes, regardless of future outcomes. 

Never mislead employees.  Never experience one feeling but pretend to feel another.  Sometimes being quiet is the only appropriate response.  Other times silence will be misleading.  Thoughtful prayer will guide you.

Utilize all available support:

Utilization of all available support is the third ingredient in handling decisions that will negatively impact others: Be sure you understand the principles of change management yourself.  Perhaps arrange to have a seminar presented to your staff—or at least distribute books and pamphlets on the subject. Provide leadership to your group in the form of working through your own emotions, such as flight or fight, fear or need for control, etc.  Help employees to be authentic and honest as well.  You are not a therapist, but showing moral courage can create opportunities for growth. Growing during a period such as this is what living spiritually is all about. 

In a practical vein, identify services (involving others if possible)  inside the organization as well as in the community (outplacement services, re-entry programs at junior colleges, 40+ Clubs, Unemployment Insurance procedures, continuation of benefits services, support groups for the unemployed, bumping procedures) that will help people through the transition.  If possible, provide time and equipment to prepare resumes and begin job hunting, or identifying what a person is "good" at so that the next position is more in keeping with their skills, temperament, and personal path than this one might have been.  One fine executive I know has provided books and workshops to all her employees because downsizing of her department seemed inevitable.  She didn’t seek permission to do so; she merely made many resources available to help her employees develop the resiliency they need in times of change.

One final note

This chapter was originally written in 1995—long before today’s economic crisis hit.  What may be different today is that whole companies are disappearing, and tens of thousands of jobs are being eliminated, never to return. But the elements remain the same. Railing against the economy (or even certain politicians) merely postpones the spiritual work we need to do.  As Americans, we have been blessed with a robust economy for most of our working lives.  That may be chang­ing forever; but God’s love for us has not diminished.  It is just more important than ever that we be aligned with our God and what our God expects of us. 

Prayer during Layoffs

Dear God, give me the serenity needed to face this situation:  let me see clearly what I can change in this corporate activity that will disrupt the lives of many people.  Give me the moral courage to change what I can change.  Let me accept the things I cannot change, and provide leadership to my staff through my own honesty, authenticity, and support.  And please dear God, give me the wisdom to know the difference, so that I do not mislead people who are already disrupted enough by the rumors and uncertainty that moving this giant requires.

Essay and prayer by Kathleen Whiteside, with thanks to The Serenity Prayer