Effects of Downsizing in the Field of Information Technology

that are relevant to the practice of management. They describe two contrasting models of workforce

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

Lerman, R.I. & Schmidt, R.S. (2011). An Overview of Economic, Social, and Demographic Trends Affecting the United States Labor Market. Retrieved April 19, 2016, From http://www.dol.gov/dol/aboutdol/history/herman/reports/futurework/conference/trends/trendsI.htm

When companies train their employees well, they equip their employees with the necessary skills to perform well in their roles. This in turn translates into higher productivity because employees will be able to complete tasks more efficiently and effectively. The quality of work that employees create will also be higher because the training programs will teach employees how to perform well and fine-tune their skills and accuracy. For example, IBM's e-learning program for new managers, Basic Blue, costs $8,708 per manager. The company has measured an improvement in each new manager's performance worth $415,000. For every $1 that IBM invests in Basic Blue, it receives almost $47 (HRM 154). Therefore, if businesses want to gain a high return on investment, it is imperative that they also invest in training their employees. In our simulation, we had hired and promoted roughly 50-75 workers in each quarter of our first three quarters. However, we decreased the training budget each quarter, despite our increase in workers hired and promoted. This decrease in training investment led to a high accident rate and low quality index. When we spent larger amounts in training workers, and in the different training programs, there were direct correlations between increased training costs and the different outcomes intended of the

In the midst of the current economic downturn, dubbed the “Great Recession”, it is natural to look for one, singular entity or person to blame. Managers of large banks, professional investors and federal regulators have all been named as potential creators of the recession, with varying degrees of guilt. No matter who is to blame, the fallout from the mistakes that were made that led to the current crisis is clear. According to the Bureau of Labor Statistics, the current unemployment rate is 9.7%, with 9.3 million Americans out of work (Bureau of Labor Statistics). Compared to a normal economic rate of two or three percent, it is clear that the decisions of one group of people have had a profound affect on the lives of millions of

The authors have done a good job supporting their claims by providing statistics and facts that prove them to be right. When discussing the impact of technology on the economy, they discussed GPT (General Purpose Technology). GPT is a term economist’s use for a small group of technological innovations that are so powerful that they interrupt and accelerate the normal march of economic progress. An example of a GPT is the computer. Something as profound and important as the computer has only gotten better and more valuable to people with time. Over time, the use of computers has enhanced tremendously. It is now used for anything and everything. Not just inside the home, but in businesses, in healthcare, in classrooms…the list goes on and on. Because of the impact the computer has had on society, it has driven people to further invest and make the computer even more powerful. That would be why it is considered a GPT. Brynjolfsson and McAfee continue on to discuss the impact of technology on today’s current economy, productivity and employment. It is mentioned that digital

Technology: advancements of technological adaptation has made employment obsolete. No longer is there a need to educate and train employees for positions that Artificial Intelligence (AI) can do. Companies are paying more for research and development (R&D) into technological advances to increase their bottom line as employee salaries are a company’s highest expense (American Sociological Association, 2013).

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

Computerization is not necessary destroying jobs, but rather degrading the quality of jobs and creating a substantial division of labor force. The demand for highly skilled employees who perform well in intellectual tasks is strong, but the middle of the labor market, where the routine task-intensive jobs lie, is sagging. The labor force without the technological training required therefore concentrate in manual task-intensive jobs — like food services, cleaning and security — which are numerous but offer low wages, precarious job security and few prospects for upward mobility. This bifurcation of job opportunities has contributed to the historic rise in income inequality. (Autor, Dorn) It’s is becoming more difficult to overlook the fact that technology is widening the income gap between the tech-savvy and everyone else. All this changes in the labor force market and technology are signs that the economy is going through a period of transition, alike to those it’s experienced

The recent fall of the United States economy has created a society of fear, insecurity, and doubtful investors, retirees, and consumers world-wide. Economists from around the world have come together to solve world-wide economic issues and bring stability back to businesses, households, and the government. Economics teaches you how to approach problems; it does not provide what is right or what is wrong, nor does it provide you with a definitive answer. Consistent evaluation of economic factors like unemployment, economic expectations, consumer income, and interest rates, can prove to be highly effective.

By the very nature of its business model, the United Parcel Service of America (UPS) is task- and process-intensive, relying on its employees as the catalysts of delivering excellent service. While nearly every CEO at one time or another has said that their people are their most important assets, UPS lives by this mantra and has the financial figures on their investments in training and intensive programs to prove it (UPS, 2013). In a typical year UPS will spend nearly $300M on training including customized courseware and distance learning programs, many of them oriented towards giving their employees a more solid base for personal and professional development (Emmons, 1995). In conjunction with intensive training programs and high levels of investment in education, UPS also has one of the most advanced and thoroughly subscribed-to employee ownership programs in the Fortune 1,000 today. Their employee ownership program is designed to provide every employee with a very strong foundation of autonomy, mastery and purpose in their jobs, which are the building blocks of long-term learning and motivation (Dwortzan, 1982). The combination of the training programs and employee ownership give each employee a very clear sense of how valuable they are to the company and how critical their role is to daily profitability. The intent of this analysis is to evaluate why the UPS employee reward system is the best

When initiating a cost/benefits analysis the writer finds the benefits of industrialization far outweigh the associated costs. For example, the smartphone has revolutionized telecommunications and the easy transmission of voice and data at a cost effective manner. Computers and the internet has also played a major role in revolutionizing the American culture

The economy of the United States had gone through a tremendous change as even employees’ salaries had been increased by a 25 % increase even those who were not working for the investment banks (Ehrman, 143). The employees working for the investment banks saw a 150% increment in their salary (Cynamon, Steven & Mark, 67). The

Breakings through the chains of corporate slavery is in full affect. In other words, nobody wants to work for a heartless corporation that does not value their staff. Individuals are educated and ready to make a career change if necessary. The overwhelming feeling of being imprisoned by a job is dreadful. Even the most loyal captive will seek an opportunity to break free from a dreadful organization. The sensation of being confined within an organization with no room to grow or expand is a daunting feeling. When individuals are treated as if they do not matter, it raises the question; why stay here? If employers are naïve enough to think that there are no other options for hard working people, they are wrong. The information being

Keeping employees motivated in addition to creating incentives and/or additional ways for employees to receive more compensation will create better performance overall within an organization. Contrary if company B gives their employees incentives to perform, without any motivational tactics they probably will not have as many top performances as company A, in addition the company may only seek short term rewards verses have long term success. Lack of motivation for employees within an organization, can cause long term damage for the company’s success. Different things motivate everyone; therefore there should be a system in place to keep employees motivated for the long term success of the company. In the MBM textbook under the concept of incentives, compensation, and motivation, there are a couple of different views of how it should be applied within an organization. We will discuss The Social Role of Profit, Personal Profit and Losses, and the way Market-Based Management view how incentives, compensation, and motivation should be applied and the things that effectively drive employees’ actions while at work.