The Problems Of Downsizing Is Cost Reductions

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

In the medical field or especially, in the health care administration RIF is defined as Reduction in force. Reduction in force is separation from employment due to lack of funds, lack of work, redesign or elimination of a position or reorganization because employee itself is eliminated. Losing your job because of RIF or budget cuts can be extremely demoralizing. RIF may be necessary or appropriate when there is redundancy in roles, or excess capacity within a work group or across work groups. As it is the 10% RIF these might be very minor reduction in the organization which we can take an example of a case where I have to redesign my organization. For example, if I am an administrator of a female garment manufacturing company in which, most of the employees

5. Firing this member is impossible, organizational context making it impossible to hire new member, and there should be at least 4 members in the team to handle the work load.

Mike Smith, a 34-year-old Asian male, according to this case, he is a model employee. He has an above average track record, and even though employees have a hard time understanding him because of his thick accent, it does not change the fact that his productivity level is high. He also has a Bachelor 's degree in Information Systems and has had no absenteeism. The course of action I would take for Mike is that I would terminate him because his services will not

The first part of this essay will introduce the theoretical synthesis of why employees resign from their jobs based on the Eight Motivational Forces (Jr & Griffeth 2004). The second part of this essay will discuss the consequences to the organisation left behind by the employee. The third part will then focus on strategies for organisations to retain their highly talented and motivated employees.

Another reason is that advances in technology influence the way jobs are performed. For example, Tesco now have self-service machines so fewer employees will be recruited to work on the tills and instead they are able to stock the shelves and increase sales. Also, another reason is that there may be staff being promoted internally which means somebody already working for a company gets a promotion to a higher job. Therefore, their former role will need to be filled by recruiting someone new.

The third alternative was to perform a job analysis of the less competent employee to determine their place in the practice. The use of job analysis to determine if the job duties assigned to the employee are above their competency levels. I will also assess their ability to perform their job duties. Once the analysis is perform it can be questioned whether the person can be moved to another appropriate position to decrease the workload of other employees.

Fast Serve Inc. is a 25 million company, which employs more than 350 people involved in the direct marketing of branded sports apparel. The company decided to open two online marketing and 10% of the workplace was moved to manage the online distribution. After several months, the company noted that they were being affected by this last measure and was going to have to take steps to ensure that the Company is not affected. I am the senior manager in human resources department and was given the task of having to choose three of six employees for layoffs. As responsible leaders and

Cons: Direct access to cash flow stops and the family members work future is jeopardized.

Let's put this into perspective. IF..... you were the employer or manager of a company: the person in charge of hiring and firing, which person would you hire? Person 1 or Person 2 ?

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.

To the extent it affects them varies on the company. The products manufactured by companies can become non-useful or not as in-demand as they were before. The lack of productivity is another reason for downsizing. A last few deciding factors are the government deregulating certain industries and excessive overhead costs. Based on a 1997 survey by the American Management Association, the most often claimed reasons for downsizing are “organizational restructuring, business downturn, and reengineering of business processes.” However, downsizing basically comes down to one issue that all of these factors stem from, money. When a company does not have any money or not enough, it causes problems in the company. In Downsizing Without Disaster, Lynn Tylczak states that everything takes money, and without it a company cannot survive (4-7).

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

Many companies look to salaries and benefits as the first places to cut back when looking to make changes that involve cost-saving. When this happens, it is inevitable that some employees will leave the company to seek employment elsewhere. The employees that remain, whether they stay voluntarily or because they could not find employment elsewhere, are often resentful. Motivation decreases, taking job performance along with it. Employees lose their company loyalty and may even become angry enough to purposefully sabotage the company.

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.