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

Introduction downsizing 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 bout 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 agency becoming everyday news for us. Recent retrenchment of employees in Indian aviation sector, though rolled behind at a later date, poses an cardinal question to be pondered by the managers of today: Does downsizing real results in the promised financial gains? The paper tries to delve into this explodeicular question, and through big pedantic research on the topic develops a charm of critical lessons to be understood by organizations and managers contemplating downsizing. Understanding Downsizing and its implications agree to Freeman & Cameron, (1993) downsizing constitutes a se t of activities undertaken on the part of the management of an system designed to improve giving medication efficiency, productiveness and competitiveness. It represents a strategy implemented by managers that affects the size of the soakeds workforce and the work processes used.

Further, downsizing may be implemented by delayering and cost containment strategies (Cascio, 1993). Clearly, the key shank that emerges from the supra points is that downsizing involves a complete re-appraisal of compositions design, the allocation of roles and responsibilities, and relationships with interior/ remote customers. (Cascio, 1993). It is useful to make a distinction among the concepts of do wnsizing and decline as there is a dip 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 ask of the out-of-door markets. Reasons for decline range...If you want to get a to the full essay, parade it on our website: OrderEssay.net

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