An Organization That Has Changed The Business For Long Time Essay

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).

The layoffs are at the heart of the problem affecting the hospital. From the CEO’s perspective, the layoffs are a response to decreased revenues where the facility has to reduce its expenses to stay in operation. In the case of the operations director, the layoffs are a cost-cutting measure and an appropriate response to reduced activity in the hospital. However, the employees are likely to interpret the situation as a lack of proper management or concern for their welfare (Sobieralski & Nordstrom, 2012).

In this simulation exercise I will be discussing about the companies starting layoffs. The situation below will be highlighting the perspective of employees who are working in an environment where people are being focused to leave their jobs for company’s benefit. Company’s inability to afford the employees, start of new venture or change in management can be the reason behind layoff.

When considering downsizing, one of the most vital questions to consider is whether downsizing will improve organizational efficiency, productivity, and performance. If so, Stonewall must then consider what practices of downsizing to implement – workforce reduction, work redesign, or systematic change (Belcourt & McBey, p. 263). If reducing the size of the workforce, things to consider are whether cuts will be either targeted or across the board, and whether the cuts will be carried out all at once or staged over a period of time. Although, downsizing strives to improve

Swatridge realizes the company is not being as efficient as they could be and downsizing is a strategy to keep costs down. Employees throughout the company are aware of this possibility and are constantly concerned about their job security. The uneasiness about not knowing whether layoffs are coming or not has younger employees worried about losing their jobs, older employees wanting to take early retirement, and skilled employees thinking about switching jobs. With the threat of downsizing looming throughout the company, employees are worried about job security, especially ones who have no other skills and would be hard for them to find a new job. There is a lack of communication between managers and workers which is affecting employee morale.

Opposition from Unions in different subsidiaries against the layoff could cause serious problems like high severance package and possible strikes

The first collective employee reaction management will see, whether the entire reduction in force plan is revealed, would be that of the union(s) being up in arms that there will be any employees getting the pink slip. The on the job efficiencies and reduction in productiveness could occur if employees become disenfranchised and are left wondering on whether they have a job tomorrow. Managers and employees who generally have a minor trust issue normally will withdraw from each other, which will result in work team dysfunctional behaviors and creativity will stalemate. If left to its own devices, strikes, walkouts, or employee sabotage could become the extreme results of poorly constructed philosophy, policies, and management approaches.

If management follows the steps outlined in the companies established process, it should greatly reduce their risk. The company would also need to have a legitimate business reason to conduct a layoff such as a decline in sales, decline in foot traffic or to reduce an overage in payroll by reducing the number of employees. Things in the background that should be in their plan could be items such as, having human resources check employment contracts for those being considered for the lay off. Does the company need to deal with union rules or collective bargaining agreements? Are the laid off employees going to receive severance packages? All of these things should be considered when establishing a company plan for

After reviewing and researching the literature with respect to organizational changes, I have come to the conclusion that organizations have always changed. When everything in the world is changing, organization cannot remain islands. They must change to face new challenges. Bolman and Deal (2008) claim organizations have changed about as much as in past few decades as in the preceding century. Bolman and Deal (2008) claim means that the change organizations have experienced in the last decade are almost similar to those they experience in at the end of the twentieth century.

In today's business world, corporations have become more complex and more unpredictable, in fact it is considered almost "healthy" that a corporation experience change and transformation. Companies need to be susceptible and ready to acknowledge the challenges that change presents with and try to overcome these for the benefit of the company as a whole. Due to the ever-changing business and social environments caused strongly by globalizations, this has meant that companies must keep themselves up-to-date, whether it is through using the latest form of technology or through the latest management fad. There are many factors involved with change and the successful management of it which can often be a difficult time for

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.

Many companies look to salaries and benefits as the first places to cut back when looking to make changes that involve cost-saving. When this happens, it is inevitable that some employees will leave the company to seek employment elsewhere. The employees that remain, whether they stay voluntarily or because they could not find employment elsewhere, are often resentful. Motivation decreases, taking job performance along with it. Employees lose their company loyalty and may even become angry enough to purposefully sabotage the company.

A need for growth in any organization to stay a viable entity must occur. Organizational change is inevitable. Just like anything in life, markets and cultures change which require constant attention and preparation. In order to be successful in any market, an organization has to be able transform itself to the needs for the market. CrysTel is no stranger to change. CrysTel is a telecommunication company with over 2500 employees and a gross income of approximately $200 million a year. Products included in there list of services include data cables, wireless solutions, and network development. The product profile is data cables, wireless solutions and network development. Because of the nature of

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