The Harvard Business Review has an excellent article on managing during a recession. After all:
[Susan] Fiske explains: “People pay attention to those who control their outcomes. In an effort to predict and possibly influence what is going to happen to them, people gather information about those with power.” Further, people tend to interpret what they see the boss do in a negative light…. Related studies also show that when people down the pecking order feel threatened by superiors, they become distracted from their work.
The articles advice is for managers to work hard to address four areas:
- Predictability: Give people as much information as you can about what will happen and when….
- Understanding: Explain why the changing you’re implementing are necessary…
- Control: Take a bewildering challenge and break it down into “small win” opportunities.
- Compassion: … Express empathy and — when appropriate — sorrow for any painful actions that have to be taken.
This article seems to have a strong grasp on the issues. I’ve seen the “cone of silence” where managers don’t talk about the layoffs and keep me in constant stress. However, I’ve also seen managers personally talk to every employee in their department when employment seemed unsure. It quickly eased the tension. Now that’s good management!