Build Teams That Can Better Withstand Downsizing

Unfortunately, in organizations today layoffs and downsizing are often everyday events. For example, team leaders may be laid off and teams are left to fend for themselves. Today’s best managers know that some teams can cope better than others when team leaders are let go. Teams that are emotionally stable where team members are typically calm and even-tempered will perform better after a team downsizing. Also, teams where members have positive interaction, exchange information, and cooperate with each other will survive a leader layoff better than teams that don’t behave. In other words, create teams that are emotionally stable and extroverted and they may better withstand the loss of a team leader.

Source: DeRue, D. S., Hollenbeck, J. R., Johnson, M. D., Ilgen, D. R., & Jundt, D.K. 2008. How different team downsizing approaches influence team-level adaptation and performance. Academy of Management Journal, 51, 182-196.