The Pros and Cons of Corporate Downsizing Essay

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

The recent job growth is impressive with an increase in 3.4% though the unemployment rate is still at 10% (U.S. average is 5.2%). With this recent increase, there is

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

As mentioned, the U.S. economy has seen a positive shift in the last few years. According to Janet Yellen (the Chairman of the Fed), "the private sector has created 7.8 million jobs since the post-crisis low for employment in 2010." Additionally, housing seems to have turned a corner in which construction, home prices are all up significantly, and as I mentioned earlier, housing was a large sector that was impacted during the Great Recession and the loss was staggering ("The U.S. Economy"). Another area that we are seeing tremendous growth is within the auto industry. The auto industry has made an incredible comeback with domestic production and sales back to near pre Great Recession levels. Our economy today is showing the unemployment levels down from a peak of ten percent, and has reached the point of full employment once again. According to Jared Bernstein of the New York Times, "Last month the national unemployment rate fell from 5.9 to 5.8 percent" thus showing that we are back to full employment according to what I have been taught in class, though I am finding some dispute over what numbers should be considered full employment. Nevertheless, our economy is showing a real growth in helping fellow Americans get back to work. In addition to unemployment decreasing we are also seeing a decrease in inflation. According

Over the past couple of years we have seen a huge surge in stock markets (Chart#1). The main reason for such moves is Quantitative Easing monetary policy provided by Federal Reserve System since late 2008. Purchases were halted on 29 October 2014 after accumulating $4.5 trillion in assets or 26% of GDP. The key outlook is tend to be consumer behavior, because households’ spending represents two thirds of GDP, which is broadest measure of economic activity. The job market is considerably stronger right now. Since June last year, payroll employments expanded by $2.2 million jobs (Chart#2), which represents 2.4 percent annual rate of increase. As a result, incomes are rising rapidly. For the same period real

Americans have been bombarded by new worries in recent days with the war in Libya, unrest in much of the Middle East, and the seemingly endless series of catastrophes in Japan as reported by a recent Gallup poll measuring economic confidence. Added to that, there is a weak job market, increasing fuel prices, and fierce budget battles in Congress, obviously, it is clear the U.S. economy still faces

The unemployment rate rose from 4.9% to 5%. This is usually indicative of the return of employees to the job market. This is a positive sign.

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

All over the globe retaining employees is a most critical factor for the organisations. High employee turnover is more common in private sector as compared to public. In construction industry, to reduce employee turnover and to improve the productivity of an organisation, organisations have to be aware of the reasons why an employees quit the organisation?. Employee turnover can be explained as the expenses, in term of money, time, and quality of work, that an organisation bear while replacing an employee. If an organisation fails to satisfy the needs of its employees then it is obvious that the employees will look forward to fulfill their necessities. This chapter discuss the reasons why employees quit their jobs.

1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why?

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.

Large corporations such as Wal-Mart or Home Depot often come under criticism for putting mom-and-pop shops out of business. While this may be a valid criticism, the consumers neglect to realize that they play the biggest part in shutting these businesses down. Consumers across the country are always looking for the best deals or the lowest prices, and in most cases the larger corporations are where products can be found at the lowest price. Many small business owners and the populations of small towns dislike large corporations moving into the area because they believe it negatively effects the local

International trade deficits occur when a nation imports more then it exports. The Decline of Smokestack America is when there is a change from an industrial to a post-industrial economy. Finally, the conservation of energy is so that there are a sufficient amount of natural resources necessary to produce goods. General economic growth or stagnation also has an important influence on business within our society. Many factors can affect it's condition, such as war, new inventions and technology, political assassinations, the discovery of physical and natural resources, labor negotiations, government action, and many others. When the economy is strong and the demand is high, businesses can prosper. Regardless of how great the economy may become, businesses still must compete with other firms for scarce raw materials and labor.

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.

Downsizing, restructuring, rightsizing, even a term as obscure as census readjustment has been used to describe the plague that has been affecting corporate America for years and has left many of its hardest working employees without work. In the year 2001 we had nearly 1.8 million jub cuts, that’s almost three times as much as the year 2000(Matthew Benz). In the 1990's, one million managers of American corporations with salaries over $40,000 also lost their jobs. In total, Fortune 500 companies have eliminated 4.4 million positions since 1979 including the 65,000 positions cut in February of 2002 (Ellen Florian). Although this downsizing of companies can have many reasons behind it and cannot be