Proposal for a Downsizing Program Essay

* Downsizing: Reduction of the business portfolio by eliminating products and businesses units that aren’t profitable.

The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies

In order to stay competitive in an industry with an increasing number of players, companies have to be

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

In order to make the process effective and smooth as possible we will plan effectively to make the process as quick and painless for both parts as possible. This plan will include firstly, since we have already identified that the effected employees will be five out of the twenty call centre operators, offering those who choose this option, a voluntary redundancy package that will be increased by 10% of the statutory redundancy payment package in order to encourage them to accept the redundancy conditions with ease.

To maintain the excellent services and infrastructure enjoyed by the City of Urbanopolis, it is vital to ensure that the budget meets the demands of these services and infrastructure. Since most of the budget is tied up within labor payments, this should be the first focus of restructuring in terms of budget. It is therefore important to find a way to better balance the budget so that vital equipment and infrastructure requirements can be met. The request for new computer equipment, for example, has been denied, and the department is obliged to work with second-hand and/or outdated equipment. This, in turn, affects the way in which the department is able to function, which is not effective or acceptable in the long run. Several positions have been identified for elimination in the new financial year. However, my policy for restructuring human resources budgets is to match the skills and enthusiasm for each job description with the potential elimination of the position. Hence, my policy will be to change the description and statuses of some positions to maintain employees who have shown themselves to be worthy of their positions while either negotiating with or eliminating the positions of those employees who have not.

A formal notification document, distributed from the Manager, by the way of an email to all employees of the business, is to distil an honest and concise rationale for the need of restructuring, and for the layoff of some staff to occur. This document will consist of the detailed reasoning, and include the history behind the current restructure. Also included will be the business vision, goals & objectives, and the outlook towards redevelopment and future growth. It provides an explanation on, how all efforts to prevent staff reduction were exhausted, and shows a positive perspective for the remaining staff to value. There is a statement included, of the time for the anticipated changes to occur, and notification of the resources made available to the affected staff for implementing support. Furthermore provided, are contact details for any staff queries and for more information as required.

The globalized business environment has determined companies to develop complex strategies intended to address the challenges determined by these factors. The increased competition in most business fields requires that companies develop flexible strategies that are able to address the changing conditions of the environment. The same situation applies to the telecommunication industry.

New technology has lead to our customers handling their claims via the internet and by contacting our national call centres. Some areas of work have been contracted out to private industry in order to cut costs and provide a more bespoke service to customers. This has all resulted in a reduction of staff headcount in frontline offices and redeployment of employees to other departments or more recently the offer of redundancy packages.

As technology continue to refine how products and services are delivered to consumers, competition among industry participants becomes more refined. Organizations that are able to keep up with changing technologies become leaders while those that are not fall behind. Mergers and acquisitions are increasing while causing small businesses to sell out or seek partnerships and cooperatives in order to remain competitive and relevant.

     In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,

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

As a XXXX for XXXX and other small XXXX style products, the increase in technology and electronic forms of XXXX products has resulted in significant decline in volumes and sales orders from the major customer. Statistical decline in the vicinity of XXXX on pagination and total order value over the period Aug 10 – Aug 11 has already provided the business case to reduce XXXX production from a 12 hour, 6 day a week operation to an 8 hour, 6 day a week cycle resulting in redundancies across all areas of the operation. The projection from the customer, and internal commercial projections have forecast that a similar decline over the next 2 – 4 years will result in further downsizing within the business, with a focus on retaining the skilled trades’ positions within the organisation due to the specialist nature of the product. The organisation currently plans the workforce around the Enterprise Agreement (EBA) in operation which has manning levels mandated for minimum requirements to run. At the present moment it is allowing continuous operation without the presence of observable shortages; however a more in depth review of the workforce has uncovered a predicted shortage which will impact the business’ ability to meet production demands in the future. Analysis has shown that the workforce is currently populated by almost a third of its workers being over 55 years of age

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.

|companies adopt practices that eliminate or reduce potential problems, including open communications, fair severance |