The Downside Of Downsizing Analysis

Layoffs are tough for both the employee being laid off and the company for which he/she worked. The situation causes so much uncertainty amongst the remaining employees. The feeling among the employees is; if this happened to them this could happen to me as well. According to Johnson (n.d.), “There is a major disruption in the status quo; relationships are severed, work is redistributed with a probable increase in everyone’s

Question 1: What are the challenges faced by Right when the downsizing effort no longer is a popular human resource strategy?

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

On the other hand, the success of the company is in large part due to the hard work of the staff who would lose their employment. In addition, it must be determined who would perform the work of the dismissed employees and if the company would be able to function without them. Moreover, the morale and productivity

Small businesses are generally left with no choice to dismiss a specific amount of employees from their company, so they can meet

• If a large number of resignations are from one department, then it may mean that the manager needs more training and guidance from the HR department.

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.

The past several decades have seen waves of downsizing, restructuring and business reengineering as companies of all sizes and types struggle to remain competitive in an increasingly competitive and globalized marketplace. During downsizing initiatives, companies not only lose the tacit knowledge of the terminated employees, they also run the risk of demoralizing the remaining staff who will naturally wonder if they are next. This paper provides a review of the relevant peer-reviewed literature to develop a background and overview of these issues, and to determine how servant leadership and situational leadership can help address the inevitable problems that are typically associated with downsizing initiatives. Finally, a description of three important values that are needed by leaders today to effectively address these downsizing-related problems is followed by a summary of the research and important findings in the conclusion.

P & Barnwell, N. 2006). In an investigation conducted by two Australian researchers, Peter Dawkins & Craig Littler, about the consequences of downsizing, concluded that as the organisation undergoes elimination of staff, the probability of losing honed staff and knowledge is unavoidable. Further, it may lead to unqualified staff and tyros to get promoted, which is certainly vile for the welfare of organisation (Robbins, S.P. & Barnwell, N. 2006). In relation to healthcare system, healthcare organisations require skill and honed individual day-in and day-out for the sterling progress of the organisation and deliver standard and prompt service to the patients. Curtail of such health workforce from the organisation unquestionably creates an obstacle in the services and productivity of the organisation which certainly tarnish the culture and the value it embodies.

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

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

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.

In relation to operations and innovation, Ghemawat calls for companies to, “be more ruthless about terminating loss makers”. A key focus area here is in the operations and the supply chain. Organizations who realized the practice of offshoring were more than just sending products overseas to be created, they were able to build relationships and foster true lines of leadership. They created opportunities for meaningful measurement and the capability to further innovate and streamline across their supply chain.

There is a well known issue in corporations when it comes down to downsizing. Corporate downsizing is that act of corporations cutting workers usually by closing whole plants or divisions to increase profits. This practice is often used today and is thought by some to be a moral practice to improve economy overall. On the other hand, some think that it causes the workers great suffrage from unemployment, which leads to loss of homes, depression, and crimes. Furthermore, it affects the economy by the decrease in money flow.  Many believe that the people who invest their money in the corporation (shareholders) deserve to have the most interest from the managers to maximize their profits. One method of maximizing their profits is

Many people also become unemployed involuntarily because of their company downsizing the operation. The downsizing strategies of many firms for whatever reason, has led to increased unemployment levels whereby, the company can no longer afford to produce at the optimal level they once were able to, and would no longer require the services of some of their employees.