Downsizing: Financial and human implications and lessons to do it successfully

Introduction lay off though not new to organizations and managers, has taken a much more searing position today in the wake of global monetary meltdown. When organizations worldwide are hold with declining top lines and dwindling profits, employee retrenchment has become one of the a good deal used measures to cut costs. The meltdown has resulted in global furlough intelligence service becoming everyday news for us. Recent retrenchment of employees in Indian aviation sector, though rolled behind at a later date, poses an authoritative question to be pondered by the managers of today: Does downsizing really results in the promised financial gains? The paper tries to delve into this explodeicular question, and through extensive pedantic research on the topic develops a exhibition of critical lessons to be understood by organizations and managers contemplating downsizing. Understanding Downsizing and its implications agree to Freeman & Cameron, (1993) downsizing c onstitutes a set of activities undertaken on the part of the management of an system designed to improve system of rules efficiency, productiveness and competitiveness. It represents a strategy implemented by managers that affects the size of it of the soakeds workforce and the work processes used.

Further, downsizing whitethorn be implemented by delayering and cost containment strategies (Cascio, 1993). Clearly, the key bow that emerges from the supra points is that downsizing involves a complete re-appraisal of systems design, the allocation of roles and responsibilities, and relationships with inhering/ remote customers. (Cascio, 1993). It is useful to make a distinction ! between the concepts of downsizing and decline as there is a temperament to pretend that reduction in size is an indication of the non-competitiveness of the organisation (Freeman & Cameron, 1993). An organisation is said to be in decline when it is no lasting in a position to respond to the inescapably of the out-of-door markets. Reasons for decline range...If you want to get a just essay, parade it on our website: BestEssayCheap.com

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