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Is it time to thin out your management pool?

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This story appears in the January 2004 issue of Entrepreneur. Subscribe »

During the economic downturn, you gave employees promotions to keep them around in lieu of the raises you couldn't afford. Now you have an overabundance of managers negatively affecting morale, because either you don't have enough work to go around, or some employees have to report to too many "chiefs."

If you've got too many managers, you need to face the hard facts-if you're not planning to ramp back up and use these people's skills, it's better to let them go, says Cynthia Shapiro, an HR consultant in Sammamish, Washington. You could also try offering your managers a part-time schedule or a few months of unpaid leave-they might appreciate the time off to recharge their batteries, says Shapiro.

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