Downsizing

Downsizing occurs when a company permanently reduces its workforce. Corporate downsizing is often the result of poor economic conditions or the company’s need to cut jobs in order to lower costs or maintain profitability. Downsizing may occur when one company merges with another, a product or service is cut, or the economy falters. Downsizing also occurs when employers want to “streamline” a company – this refers to corporate restructuring in order to increase profit and maximize efficiency. Downsizing

Effects of Downsizing The impact of the Army downsizing is nothing new. This rapid demobilization of forces has transpired after every major conflict. The most recent downsizing effort was from the Persian Gulf. The Army was an incredibly powerful force around 730,000 in 1990 and rapidly downsized to 508,000 in 1995. Once again, the Army is repeating itself, projecting to shrink the active force from 566,000 during the height in 2011 to a speculated 420,000 reaching this in the fiscal year 2017

Downsizing During a company’s lifecycle downsizing may be a necessary and unavoidable. Downsizing is defined as “the planned elimination of positions and jobs” (Cascio, 1993, p. 96). Economic downturns, changes in the business environment, and increased levels of competition can all lead to employee layoffs and ultimately downsizing. At least two mechanisms, recessions and changes in product demand, lead to reductions in a firm’s demand for labor (Blau, & Kahn, 1981). In the long-run a layoff

with dire consequences. The following report includes expected reactions by employees who continue to work within an organization after a company downsizing. The report is further directed towards management efforts to repair the torn work atmosphere, as it includes cases that both convey ineffective downsizing practices and outline successful downsizing strategies. The extent of the research was conducted through many secondary sources, with the main content heavily based on previous academic

“Less Is Not Always More” Downsizing; everyone has heard about it, talked about it, been a victim of it, or even had to implement it. Reports of downsizing occur frequently. I have repeatedly read the newspaper, watched the news on television, or listened to the radio and heard about mass lay-offs. There have been times that I have felt pity for the various people who lost their jobs, and there have been instances that I have not given it a moment’s consideration. I just thought, “I’m so glad it

by the American Management Association (AMA), the most often claimed reasons for downsizing are “organizational restructuring,” “business downturn,” and “reengineering of business processes.” Downsizing has adversely affected 43 million jobs since 1980. Many organizations are realizing that downsizing may not be the best solution for reducing costs. The time and money it takes to train employees often make downsizing a wasteful procedure. By changing their business strategy, companies can find ways

use of downsizing by corporations to manage costs. In the case of high-technology workers, the direct cost of downsizing is so expensive because of employees’ compensations and other benefits. This type of compensation is typically comprised of some combination of the following: benefits payouts, costs of administrative-processing amongst others. On the other hand indirect costs include law cases from affected employees, loss of productivity by employees’ low morale for survivors of downsizing and others

Effects of Downsizing Downsizing has been known by several different names, in the late 1970's and the early 1980's it was called reduction-in-force, as of late it has been called restructuring government, privatization, contracting out and last but not least downsizing. "In the public sector it is called "privatization". In business it is called "downsizing. Otherwise it's known as "contracting out." Code words change but the intent is the same." (DIAF 99) Public governments seem to think that

Factors and Downsizing Which two of the five HR factors listed by the authors of your course do you consider the most important for your organization? (Explain your organization and its nature of business briefly). Justify your choice, and discuss these two factors in detail. Assuming that the U.S. sub-prime crisis of the present day is now affecting the Asian economies and your organization is feeling the effects of slowing sales as well as rising raw materials cost. Downsizing is a real possibility

maintaining high production. Downsizing History and Trends "By 1980, over 90 percent of the nation 's work-force was counted as employees; a complete reversal from the early 1900 's when over 80 percent were self-employed.” (Atwood, Coke, Cooper & Loria, 1996) During the 80’s, with the introduction of newer technological changes this provided organizations with opportunities to substitute capital for labor or to restructure jobs in new ways. This was the start of downsizing practises in America.