Downsizing Plan
In review of the literature, there exists a great deal of research regarding best downsizing models, practices and prescriptions. The most common themes across reviewed articles are 1) Participating employees in the decision making process; 2) Planning ahead of official announcement; 3) Extending open, direct and honest communication; 4) Considering all downsizing alternatives other than layoffs and 5) Providing economic, psychological and career-related support to both victims and survivors of downsizing. We will discuss these and more in the context of some of the major articles on this topic.
Feldman and Leana (1994) present fourteen principles for managing layoffs. Their main focus is on early identification of layoffs, open communication as well as economic and psychological assistance to victims and survivors. Additionally, they recommend participatory job redesign for survivors and personalized trainings. One major focus of this article is the importance of setting up an early identification system to monitor the industry in order that management is made aware of possible future layoffs and can plan and prepare ahead of time.
Mishra, K.E., Spreitzer, G.M. and Mishra, A.K. (1998) focus on trust and empowerment as the two most critical elements of employee morale which the organization should strive to preserve. They subsequently present a four-stage model for successful downsizing. We will discuss each and incorporate similar findings from other
Butcher, D. (2008, November 13). 5 Strategies for managing employees after layoffs. Industry market trends. Industry market trends rss. Retrieved from http://news.thomasnet.com/IMT/2008/11/13/5-strategies-for-employers-managing-surviving-employees-after-layoffs/
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).
This paper will provide information about three motivational methods I as a manager will apply to my organizational department which must be downsized. This information will include motivational techniques used to implement the change within my department. It will also include theoretical concepts from the textbook, Health Care Management and outside resources to support the theories used. Last the paper will conclude with highlights of the information provided to introduce the change within the organization.
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
The first step when discussing a downsize is to avoid layoffs if at all possible. With that being said, the first step I would take would be to get rid of all of my temporary employees. While in most cases, this will not make up the fifteen percent that we need, it will be a decent start. The next step I would take is to look across the board and ensure we do not hire any new employees (Fallon & McConnell, n.d.). Hiring new people during a downsize is not only counter productive, but also stressful. The next step I would take is to offer some termination incentives such as early retirement (Fallon & McConnell, n.d.). This could also get a couple of people to volunteer and move us a little closer to the fifteen percent we are
Downsizing is never easy on the Human Resource department. In fact, if not handled properly, it could be detrimental to the overall organization. Here are some challenges that come along with downsizing: Addressing the shifting morale and needs of the surviving employees, maintaining the productivity and profitability of the organization, and retaining skilled, and qualified employees.
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
Given the increase in organizational downsizings, layoffs, asset write-offs and executive bailouts, how important is the trust factor in defining a good leader? Without an established trust relationship a leader is unable to be effective. The problem to be investigated is the value of trustworthiness and ethical stewardship in the construct of the organizational leadership model. This paper shall explore the co-functions of trust and ethical stewardship and its impact on leadership effectiveness.
Another reason that it is difficult to draw a specific link between downsizing and organizational culture is that there are many different variations and approaches to downsizing. A distinction has been made between proactive downsizing, which is planned in advance and usually integrated with a larger set of objectives, and reactive downsizing, which would be typified by cost-cutting as a last resort after a prolonged period of inattention to looming problems by management5. Work force reductions can range from forceful in nature, i.e., involuntary reductions, to the milder approaches, such as resignation incentives and job sharing 6. There are different ways of deciding "who stays, who goes" from the outwardly arbitrary to criterion-based 7. There are different modes of planning, ranging from secretive sessions to open discussions and solicitation of ideas from employees. There are different standards of notice of terminations, including relatively harsh same day terminations as well as more generous 90 day or longer notices. There are even differences in intentionality, i.e., reductions can be planned to present employees with as little a break
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 job market today is difficult for both employees and employers. It hurts emotionally and financially to lose a job, and it is equally painful to have to terminate someone. Both sides struggle. If you work for an organization that may be facing layoffs, being prepared helps. Below are some tips
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.
The downsizing of a company can affect employees before, during and after it occurs. Employees usually know of a possible downsizing, care of the almighty grapevine, months before it is supposed to happen. Thus, employees may become paranoid and self-absorbed, and their top priority is their own career rather than the bottom line of their employer. This causes them to be unfocused and prevents them from performing their jobs efficiently. Many workers would also be perfectly willing to stab their peers in the back in hopes of keeping their job. Usually when a downsizing is complete, the company is at an all-time low. This is due to the fact that in almost every merger, acquisition or downsize, employees are faced with uncertainty about their jobs before and after the restructure. After a large percentage of downsizes, ten percent of the remaining workforce will easily adapt to the change, while another ten percent will never adapt. Workers who survive the downsize often have feelings of anger, fear or distrust. Further internal problems result from employees who survive with the company, but cannot adapt to their new settings and expectations, and eventually quit their job.