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When the employees hear about the change from using manual labour to introducing technology to transport the final product to the warehouse, which is reducing the cycle time, producing cost savings and ultimately increasing the productivity of the organisation, makes employees to be suspicious of management’s motives to layoff jobs.
Examples of organisations include those in the service sector, such as financial organisations (e.g. banks) and professionals (e.g. lawyers, accountants), as well as government and manufacturing companies.
Though organisations differ, managers of organisations are continuously seeking to attain set targets and improve quality with a reduced labour force.