Although it's difficult to be the bearer of bad news, laying off employees doesn't have to be a nightmare you relive over and over. There will be challenges, and there may be reverberating effects of layoffs and downsizing, but you'll only prove your strengths as a manager if you handle the situation gracefully, as Rosalyn did.

Rosalyn learned in September that her company would reduce its workforce by 30 percent in February. As a manager, Rosalyn had to assess her staff to determine how the skills and strengths of each employee would fit within the new structure. These assessments would determine who would stay and who would be let go. Knowing so far in advance also gave Rosalyn time to think through her decisions and frame the decidedly negative situation in the most supportive way possible.

When the day finally arrived for Rosalyn to issue pink slips, people were understandably upset — even those who didn't lose their jobs. Rosalyn talked individually with each employee being laid off, explaining that it was purely economics and had nothing to do with performance. Even so, the employees, both surviving and laid off, felt the company and Rosalyn, their manager, had betrayed them.

After the laid-off employees left, Rosalyn called a meeting with the survivors. She explained that she understood and accepted their perceptions of the situation but wanted the opportunity to explain her actions. She told each remaining employee that she was very sorry to see each laid-off employee leave, but there had been no choice about cutbacks if the company itself was going to survive.

Then Rosalyn pulled out some charts and reports and started talking about the company's economic status. She showed employees what the company had to produce in terms of billable days just to cover operating costs and make a minimal profit. Everyone was surprised at what it took to keep the company running. The meeting gave them a greater understanding of the challenges the company faced and also an appreciation for the careful way in which the company had approached the downsizing.

Another dimension of the downsizing was restructuring. Several other departments that had also laid off employees were consolidating, which meant Rosalyn's department was gaining employees and functions from other parts of the company. Rosalyn discussed how these employees would fit into the department and allowed her employees to help decide how to reorganize the department to accommodate them. Rosalyn concluded the meeting by thanking the employees for the good work they'd done and expressing her confidence that their strong performance would continue.

Rosalyn handled a bad situation with grace and honesty. Everyone could see that though the situation was beyond individual control, Rosalyn made informed decisions that matched the company's changing needs with the abilities of the employees in her department. Though everyone was angry about the situation, they could not fault Rosalyn for the way she handled it. As a manager, you will undoubtedly face such unpleasant challenges yourself. No one likes shattering another person's world. But everyone has the capacity to handle such a task with professionalism and compassion, as Rosalyn did.