The management of this small manufacturer needs to focus on specific ideas to improve morale. First, I would suggest that management let those remaining know they are appreciated. Managers need to keep open lines of communication; inspire confidence in the company's future and make it clear that hard work and ideas pay off.
The management staff needs to be candid and straightforward about problems and turmoil within the company. Once the remaining employees understand the company's position, set goals that apply to this new direction. …