Downsizing History and Trends

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Employment patterns in USA During World War I (1914-1918) and World War II 1939-1945) businesses were mass hiring for production workers to keep with the demands for manufactured goods. Post World War II 1946-1964 nearly 75 million American children were born; it was the start of the “baby boom” generation. By the 1970’s the demands for goods was at an all-time high and organizations were in need of employees. demands for manufactured goods was not as high, but it created new demands for supply that would create new jobs in road-building, real estate development, etc. By the 1980s demand for goods had leveled off and firms were looking for ways to control costs, earn more profits, while maintaining high production.
Downsizing History
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Organizations started to focus on core capabilities and focused on outsourcing non-core capabilities to other companies across the world. The access to information gave organizations to buy anything from vendors across the globe, which affected many companies. (Turner, F. (2000).
Recent research shows that organizations are not simply focusing on the benefit of a quick remedy to control costs, by rather at creating strategic plans for implementation. Implementation can contribute to the many factors regarding the outcomes of downsizing. Organizations take proper precautions while downsizing, minimalizing potential risks that can occur. Trends show that firms try to announce downsizing activities well in advance and offer buyouts or retirement packages. Others try to reinvent positions and eliminate old meaningless positions. They attempt to eliminate a comparable amount of positions in all levels to keep a good balance and lean model. These practices are considered aspects of good downsizing strategies. However there are still firms that use mass layoffs and the sale of company assets to cover losses in an attempt to become more effective and efficient.
Today’s research information shows that this short term thinking can hinder your organization, creating unhappy employees leading to lower levels of productivity, causing the organization to be less efficient which is the exact opposite what you were

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