Advantages Of Downsizing

Layoffs are tough for both the employee being laid off and the company for which he/she worked. The situation causes so much uncertainty amongst the remaining employees. The feeling among the employees is; if this happened to them this could happen to me as well. According to Johnson (n.d.), “There is a major disruption in the status quo; relationships are severed, work is redistributed with a probable increase in everyone’s

The “lean and mean” organization resulting from downsizing has given way to emerging management concepts such as employee empowerment and self-managed work teams. These characteristics of the current workplace, in combination with a rise in the use of contingent labour, signify a serious cultural shift away from the traditional “pre-downsizing-era” workplace. Hierarchical, bureaucratic organizations which offered employment for life

Layoffs are not always the best solution for a decline in company profits. A business must resolve the conflict that exists between their responsibility to meet economic targets and the ethical responsibility of non-maleficence. Furthermore, it must be determined if the layoffs would even maximize stakeholder welfare from a utilitarian perspective (Arce & Xin Li, 2011).

* Downsizing: Reduction of the business portfolio by eliminating products and businesses units that aren’t profitable.

Downsizing refers to the voluntary actions on the part of organizations to reduce the overall size of their workforce, generally to reduce costs. The disadvantages of downsizing in a survey by the American Society of

Using the indirect and direct communication approach towards downsizing of the business, has allowed the establishment of the following communication plan, for management to notify employees of job role terminations, due to a financial hardship.

The effect of mismanaged LAYOFFs on the remaining workforce and the effects, lack of management preparation, the human condition, and lack of mitigation strategies. We think that the problem with this article is that not enough managers or HR personal, know how to let a person go from their employment effectively. They sometimes don't realize the impact that it has on the other employees morals. Also, that sometimes companies don't take a closer look to make sure downsizing will be the answer to cutting costs like they think that it will. Every HR or manager should be let go in their lifetime so

During the time that an organization is downsizing the supervisor and the managers has to be compassionate, respectful, and honest. They also have to be organized and continue to talk about the progress they are making (Quast, 2014). The regulatory guideline states that if there would be more than 50 employees that were being laid off all at the same time, the Federal Worker Adjustment and Retraining Notification (WARN) Act has to be performed. Under the WARN Act, it “protects workers, their families, and communities by requiring employers to provide notification 60 calendar days in advance of plant closings and mass layoffs”(United States Department of Labor, 2009). If the organization does not give the workers the 60 days notice then

Employees will be able to cope with layoffs as the management has provided prior necessary information such as sharing of market data and competitive information. All information should be made available to the workers instead of the management, acting as if all things are ok. Offer information as it is instead of sparing the staffs the bad news. Most employees want the bad news first rather than explaining to them issues about competition, market forces, or the financial environment (Rothaermel, 2015). The organization should not delegate the pain in the human resource office; instead, all managers should be mandated to handle the situation as most employees are loyal to their managers first then the company. The managers will be able to deliver the information in person. This will create a sense of respect to the

‘You are the owner of small editing company. You have ten employees working for you. Business has been slow and the bills are piling up. You have done just about everything you can to cut costs but you are still unable to pay the bills. You do not want to close the business. You have done some number crunching and you found that by reducing your workforce from 10 to 6 you can pay your bills and remain profitable.’

Challenges faced by HR management when significant staff cutbacks occur and how they should be addressed

A corporation needs to have a strategic plan in place in order for them to be able to implement a downsizing. There are many pros and cons to downsizing and it has a ripple effect on everyone in the corporation. Depending on the planning of the downsizing, one of the big issues to decide on is how to choose who will be terminated. For example, do you go by seniority, a percentage from all departments, an entire department, or by job level or position? These are major options that need to be addressed before anything happens. Most corporations today exist less for the well being of employees than they

Downsizing has become a commonplace strategy for organizations to adopt in an effort to cut costs, eliminate redundancies, and streamline organizational systems. Over the last 15 years, many organizations have engaged in downsizing more than once. Most companies have learned from the mistakes of the past, but some companies are still trying to use the same tactics today that were used in the mid 1980s, that leave employees reeling.

The reenergizing employees after a downsizing case study, explains the potential effects of downsizing a company, on both employees and the manager. Andrea Zuckerman is the editor in chief of Blaze and the person who must relay the message to the entire company. It is made clear throughout the case that Andrea does not agree with this downsizing and feels that it is wrong. However, due to the newspaper industry dwindling away and many people now reading the news from a mobile device, it must be done. Andrea’s biggest conflict is figuring out how to properly explain this downsizing to employees, as this is no easy task. The “new normal” that will be implemented consists of merging the five areas of reporting into either two or three. As said, explaining this situation to employees in a reasonable and understanding manner will be a complex task.

Downsizing, restructuring, rightsizing, even a term as obscure as census readjustment has been used to describe the plague that has been affecting corporate America for years and has left many of its hardest working employees without work. In the year 2001 we had nearly 1.8 million jub cuts, that’s almost three times as much as the year 2000(Matthew Benz). In the 1990's, one million managers of American corporations with salaries over $40,000 also lost their jobs. In total, Fortune 500 companies have eliminated 4.4 million positions since 1979 including the 65,000 positions cut in February of 2002 (Ellen Florian). Although this downsizing of companies can have many reasons behind it and cannot be