Effective Communication and Exit Support During Factory Closure: A Case Study in a Foreign Based Manufacturing Firm

HRMARS - This paper examines the communication approach and exits support implemented during a factory closure in a foreign-based manufacturing firm. A total of 200 employees were selected as respondents for the study. The research applied a quantitative approach using a questionnaire survey with a five-point Likert scale to evaluate employee agreement and perceptions regarding communication effectiveness and exit support during the closure process. The findings revealed that 14 out of 18 communication items were positively rated and generally satisfied by the respondents. However, two communication items received strong disagreement from employees, particularly regarding the closure announcement involving media presence and employee riots. The media were not directly involved during the announcement process due to the limited timeframe and controlled communication strategy adopted by the company. Only top management representatives communicated with the media, while published news articles were later displayed on notice boards as general information for employees. For exit support, most respondents selected “not sure,” mainly because they had never previously experienced a factory closure situation. In addition, many employees had spent most of their careers in their first manufacturing company, resulting in limited exposure to employment transition or career relocation support. The study provides valuable insights for organizations that may face factory closure situations in the future, particularly in improving preparedness strategies, communication management, and the effectiveness of HR interventions to reduce employee anxiety and uncertainty during organizational shutdowns.