Downsizing And Reengineering The American Public And Private Sector

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Downsizing And Reengineering The American Public And Private Sector Wheels of Industry Over the past decade, more and more American organizations are downsizing and reengineering as a means of eliminating excesses in corporate staffing, bureaucracy, and expenditures. This is true today whether it’s a for-profit company or not-for-profit company. Constant change is a new way of life as companies strive to meet customers needs and the ability to successfully innovate, time after time to achieve competitive advantages. Moreover, American companies are facing a fierce global environment and are downsizing to achieve cost-lowering efficiencies to render their firm more fit to combat tenacious global competitors. American organizations are…show more content…
Downsizing is a type of reorganization or restructuring. Downsizing or workforce reduction is a strategy to streamline, tighten, and shrink the organizational structure with respect to the number of personnel the organization employs.3 As downsizing has become more prevalent, the term has lost its original precision (i.e., workforce reduction). Today, the term downsizing is used both to refer to a narrow effort to reduce the workforce and also to broaden efforts to improve work systems or redesign the total organization. A term that is mistakenly used for downsizing is the term rightsizing. Rightsizing, which can involve reducing the workforce (downsizing) as well as eliminating functions, is reducing expenses, and redesigning systems and policies (e.g., to reduce costs or reduce organizational size). It can also require upsizing (increasing the workforce) in certain areas. Rightsizing eliminates unnecessary work and improves and prioritizes the most important work. It is a multifaceted attempt to reshape the total organization. Some adherents also give rightsizing a strong humanistic orientation, such as a lean organization, revitalization, renewal, reinvention, total organizational performance and organizational design. The term "reengineering" means that there are changes in the way work processes are carried out to better serve the customer, client, or citizen.

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