UJIAN AKHIR SEMESTER

Semester Gasal - 2020/2021 - TEKNIK LOGISTIK

Manajemen dan Organisasi Logistik – LG3105

DESEMBER 2020 – LG 2018

Submission Deadline:
Take home test

Gita Kurnia, S.T., M.Sc.

ANSWER SHEETS

NAMA REZA KHARISMA ANSHARI

1
NIM 102418002
NAMA HERMAWAN DAVIED KUSUMA
2
NIM 102418010

1. Definition
In general, survivor syndrome is a report that appears on the downsizing policy of the number of
workers carried out by the company which will affect the mental condition and behavior of the
remaining workforce so that it will affect the company's performance and sustainability.

In addition, according to (Horsted, 1995)this syndrome of survivor is defined by some human

resource professionals as a collection of behaviors and emotions often exhibited by employees who
remain after downsizing the organization.

2. The company case : Compaq Computers and Patagonia

3. The overview of the situation/the case on each company

Compaq Computers
Compaq was founded by Joseph R, James M. Harris, Canion, and William H. Murto. This company
has a vision of building a computer that uses all software and hardware but facilitates the flexibility
and portability of users aimed at Personal Computers (PCs).

In 1991 Compaq Computer Texas laid off (downsized) as much as 10% of the worldwide workforce
or about 1,000 employees, in order to effectively increase with other companies who have lower
cost products on their markets. In the LA Times magazine it said that (Associated Press, 1992)
"Compaq lost $ 70 million, or 82 cents per share, in the third quarter of 1991, competitive
competition in a market environment making workforce reductions indispensable".

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Knowing this, employees will feel surprised by the downsizing and there is potential for survivor
syndrome. A comprehensive communication campaign about layoffs before downsizing was carried
out by the company's HR department before it happened. In addition, this campaign aims to provide
credible and accountable information. What's more, the company held a press conference and
answered all questions raised by employees as the aggrieved party in this case.

Patagonia
Pantagonia is a company engaged in outdoor clothing based in venture, California. in 1973 it was
founded by Yvon Chounard. This company has a mission to produce the best and highest quality
products supported by a certified B-corporation. This brings an advantage from the consumer's point
of view because it has an environmentally friendly business core so that it can inspire many people
and environmental pollution solutions. In 1992, (Caudron, 1996) Patagonia Inc., an outerwear
manufacturer based in Ventura, California, laid off 125 employees - 20% of its workforce - in an
attempt to correct inefficiencies caused by aggressive and uncontrolled growth.

In addition, quoted from the LA Times magazine in 1992 (Searles, 1992) “we want this company to
be here 100 years from now, to ensure that, we have to keep it small. From now on, I don't want our
overhead, including our staff, to increase a little, unless, perhaps, to offset inflation. "Said Chounard,
a director of Patagonia. After that, Patagonia reduced the number of retails and reduced about 40%
of its product lines and only 263 types of models were left that are products of pride of their fans.

This step was taken because the company was struggling to get out of the financial crisis which was
supported and closely monitored by all stake holders.

4. The impacts on each of the companies and the employees

Compaq Computers
After downsizing, Compaq experienced a bad condition for eight months, moreover, these layoffs
worsened the company's condition getting worse. “While second rounds of layoffs usually
exacerbate already detrimental survivor conditions, at Compaq the experience was commendably
quite different " (Donia, 2001).

At this time, the company made various improvements in each of its divisions. After eight months,
Compaq computer has managed to rise as evidenced by the increase in sales and profit from its
products. This is evidenced by a quote from (citation) “eight months after the downsizing, the
company announced a slew of new products and Even though the company had a second layoff just
three months later, employees had received so much information about Compaq's new direction that
they knew the layoff was inevitable and were able to gear up for the changes. Since then, there have
been no additional work-force cuts, and sales have grown from $ 4 billion in 1992 to almost $ 11
billion [in 1995]. (Donia, 2001)

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Patagonia
After Patagonia went downsizing in 1992, the company experienced a reduction in the production
of its superior products. This is evidenced by a quote from the LA Times magazine (Goodman, 1991)
which says that “The reduction will reduce the size of the company by about two Last year, about
55% of the company's clothing was made in the United States, he said, but none was made in
Ventura. Patagonia had projected a 51% increase in sales last fall, but growth was only 31%. "Said
Sweeney. In that year, Pantagonia still experienced a financial crisis coupled with the failure to reach
its sales target, one of the factors being the reduced effectiveness of employees who worked after
the downsizing process.

Employees
Impact on workers caused by survivor syndrome according to (Noer, 1993),

(source : Healing the wounds )

There are workers who still live and live in the company having disturbances of emotion / concerns.
In addition, this will cause several other disturbances, such as in the picture, namely:
1. Job Insecurity
2. depression, Stess and fatigue
3. Unfairness
4. Distrust and betrayal
5. Lack of strategic direction
6. Anger over redundancy process
7. Lack of reciprocal commitment
8. Dissatisfaction with planning and communication
9. Lack of management credibility
10. Risk aversion and reduced motivation

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5. The prevent of the case

Compaq Computers
Before layoffs actually took place, (Appelbaum, 1999) Compaq Computer conducted a campaign
by communicating information about this to ward off negative rumors and educating employees so
they could understand the vision Compaq was aiming for and the strategies that would be taken to
achieve it.

In this case, the manager has an important role to communicate information about layoffs to
employees so that it provides two Managers are responsible for communicating layoff information
to their employees. This provides two benefits. First, managers are a more credible source of
information for employees. Second, when employees have questions about downsizing, a manager
will immediately answer them. This four-hour press conference for employees was held in
conjunction with a training seminar. In addition, the opportunity for question and answer is also
given to the supervisor and all questions can be answered properly. At the end of the session, an
explanation was made that emphasized how the employees laid off are treated, including the benefits
to be given. The company believes that communication is important for all stakeholders, including
employees. The survivors still know how the role of the company in the fate of a co-worker who
was fired. So that all stake holders will see the whole downsizing process from a good point of view.

Patagonia
Before doing employee layyoff, pantagonia has several ways to reduce the negative impact that will
carry over. This company conducted extensive communication with employees some time before.
This is evidenced by a quote on Workforce News which says that (Caudron, 1996) " Patagonia Inc.
With the extensive communications program in place before and during downsizing, employees who
remained can focus their energies on rebuilding the company. This communication resulted in all
employees being able to understand the strategic policies taken by the company and several reasons
why downsizing was necessary.

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6. References

Appelbaum, S. (1999). Downsizing: An Ecamination of some Successes and more failures.

Management Decision. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.618.1
200&rep=rep1&type=pdf
Associated Press. (1992). Compaq COmputer to Lay Off 1.000 Worker.
https://www.latimes.com/archives/la-xpm-1992-10-08-fi-1019-story.html, accessed on
Desember, 16 2020 07.00 PM.
Caudron, S. (1996). Teach Downsizing Survivors How To Thrive.
https://www.workforce.com/news/teach-downsizing-survivors-how-to-thrive, Accessed on
Desember, 16 2020 07.15 PM.
Donia, S. H. (2001). The Realistic Downsizing Preview. Academic Papers, 5-19.
Goodman, A. (1991). Patagonia Lays Off 81 Employees in Ventura.
https://www.latimes.com/archives/la-xpm-1991-07-03-me-1527-story.html, Accessed on
Desember 16, 2020 07.45 PM.
Horsted, D. a. (1995). Helping Survivor to Stay On Board. People Management, pp. 26-31.
Noer, D. M. (1993). Healing the wounds — overcoming the trauma. San Francisco: Josey Bass.
Searles, J. (1992). Big Patagonia Thinking Small . https://www.latimes.com/archives/la-xpm-1992-06-
23-fi-930-story.html, Accessed On Desember 16, 2020 07.30 PM.

Segala bentuk kecurangan akademik (termasuk pelanggaran tata tertib ujian) dalam setiap proses pembelajaran
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