organizational restructuring involving outsourcing activities, replacing permanent staff with contract employees, and reducing the number of levels within the organizational hierarchy, with the intention of making the organization more flexible, efficient, and responsive to its environment
the reduction of the size of a business, especially by laying staff off. Downsizing may be part of a rationalization process, or corporate restructuring, with the removal of hierarchies or the closure of departments or functions either after a period of unsatisfactory results or as a consequence of strategic review. The terms upsizing and resizing are applied when an organization increases the number of staff employed.
The downsizing trend has been prevalent in the corporate sector for the past few years. However, researches reveal that the companies resorting to downsizing techniques fail considerably. Downsizing fails to improve a company’s performance, productivity, and overall profits. A company must recognize the negative consequences of downsizing. Thus, it is...
In the contemporary business era, where the emphasis is on cost-effectiveness and ‘lean’ organizations, downsizing has emerged as a prominent activity of relieving employees from their jobs. There are several reasons due to which organizations follow the downsizing strategy. The paper examines the same. The history of downsizing is also...
This overview focuses both on downsizing in the narrow sense workforce reduction and on related, generally broader or more fundamental strategies such as rightsizing and rethinking. The document defines key terms, discusses why downsizing is important, highlights implementation approaches, tools, and results and lessons, and suggests next generation issues. It...
To avoid downsizing and lay-offs, it is imperative for organizations to concentrate on hiring the ‘right’ candidate for the ‘right’ job. The perfect ‘match’ between the candidate and the job at hand should be established. It is, often, seen that downsizing does not work in the long-run as it is...
Over the past few years, the concept of downsizing has become commonplace among large and small enterprises. Downsizing for cutting expenses and reducing employees decreases the operating expenses. Most companies initially feel the positive impact of downsizing technique, but in the long-run, downsizing proves to be a big headache. Thus,...
In the contemporary business era, with the emphasis being on cost-effectiveness and ‘lean’ organizations, downsizing has emerged as a prominent strategy for reducing the workforce of an organization. For the workers living in foreign countries, downsizing poses some immigration issues. On the other hand, organizations have to address these issues...
Downsizing and layoffs, once phenomena associated mainly with individual company distress or larger economic downturns, have become permanent features of the global business landscape. Leadership companies recognize the myriad implications of downsizing and take any of a variety of approaches to what has become known as "responsible restructuring." Many companies...
Downsizing is a reduction in the staffing requirements of businesses which can follow after privatisation for a variety of reasons such as competitive pressures or the need to increase the profitability of the business by cutting costs. This template can be used as a termination letter to communicate the employee...
Cutting employees is often necessary, but it's a risky process. Sizable work force reductions always carry big risks. This article describes the various risks that are involved with employee downsizing and how to keep these risks in line. It classifies the risks inherent in decisions to cut staffing into three...
Downsizing differs from traditional layoffs in that the job cuts do not appear to result from drops in demand, but instead seem to be driven by a desire for operating efficiencies, In "Examining the Incidence of Downsizing and its Effect on Establishment Performance," (NBER Working Paper 7742), Peter Cappelli of...
From the executive summary ‘Downsizing is a legitimate business tool. When it works, it can lead to cost savings, increased productivity, and higher profits. When it does not work, it can leave the company foundering. The difference between a downsizing failure and success is not just, what upper management plans...
In the contemporary business era, where the emphasis is on cost-effectiveness and ‘lean’ organizations, corporate downsizing has gained prominence. The employees actually responsible for carrying out organizational process endure the most of corporate downsizing. It is imperative to exercise caution and prudence in making the decision to downsize the organization....
Ultimately, the importance of downsizing from a social policy point of view depends upon its long-term impact on workers. Arguments holding that downsizing has a special extra impact net of preexisting labor market characteristics include several different possibilities. It could be that the process of being forced out of one's...
Research showed their R&D groups' creative performance to be in a prolonged slump following a corporate downsizing therefore these ill effects have to be countered. If downsizing is a necessity, managers must understand the long-term impact on creative output and do everything possible to expedite the process and return the...
How to Boost Morale After DownsizingLessons from a corporate downsizingReaders interested in recovering after downsizing might find the chapter on "Practicing spirit-centered leadership: Lessons from a corporate layoff" of interest. It can be found at http://www.trafford.com/06-1721 , http://arcleadershipgroup.net/publications.html , or on a number of other sites such as Amazon ....There...
During layoffs and downsizing is not the time for organization leaders to retreat to board rooms and private offices to plan the future. After a downsizing, or following any major change, for that matter, leaders must be visible and accessible. Layoff survivors need to interact with their supervisor and the...
The Department of Defense DoD has seen dramatic changes since the "fall of the wall." Our enemy is being redefined, our deficit is getting bigger, technology is maturing at a much faster pace, and the DoD budget is shrinking. Downsizing is "in." Although downsizing is often called by many other...
Most companies’ resort to downsizing for achieving increased profitability. The organizations apply downsizing techniques by cutting down the expenses and increasing employee layoffs. However, experts suggest that an organization must recognize the real problem within the organization before going on a layoff spree. Moreover, even if an organization is determined...
The aim of this paper is to investigate downsizing approaches and their employment implications across several industries in Belgium. Therefore, a categorization scheme of different downsizing approaches was theoretically developed and validated with a sample of 19 downsizing cases in Belgium-based organizations across different industries. The categorization scheme represents a...
Most organizations invest their efforts in helping the downsized employees move on. This is ethical, reasonable and positive. Plus, survivors are watching. To truly benefit from the layoffs and downsizing that one experienced, however, one needs to invest even more energy in the people who remain after downsizing and layoffs....
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