Overview of Corporate DownsOverview of Corporate Downsizing.
Corporate downsizing has been the forerunner to the loss of millions of jobs. While corporate downsizing is an indication of recession, employers are laying off more and more in spite of the fact that overall unemployment is at an historical low. Although downsizing is typically the last sought alternative for companies, it can occur for several reasons. Research illustrates that downsizing commonly transpires because of mergers, acquisitions, corporate restructuring, lack of strategic planning, and a decline in economic growth. The cut back in job occupancy produces adverse reactions for employees being terminated; in addition, it can be the foundation of an unfavorable change in employee morale for the employees who are sustained. Restructuring a company entails many complications: legal considerations, the cost of separation, and the lingering doubt of whether it is really effective or the best alternative. Each of these factors plays a role in the process of cutting back employment. In the case that downsizing is not the greatest decision companies may take into account that there are substitutions for reducing employment that are not as undesirable.
Reasons for Corporate Downsizing.
Mergers, acquisitions, and corporate restructuring are key motives for declines in employment for companies. Mergers take place when dual workforce and management teams combine and their efforts are redirected toward a common objective. Unification of businesses usually produces a redundancy in the workforce. Therefore, it becomes necessary for the venture to layoff employees. Acquisitions, on the other hand, take place when one business takes over or acquires another business. During a merger/acquisition the employees being downsized are generally forewarned once the merger/acquisition takes place. Subordinates are sometimes given the opportunity to remain at their job for up to ninety days, after which if no other employment is found a letter of recommendation is made available.
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Downsizing means more than passing out pink slips. ... "Sometimes downsizing is a management tool. ... We won't mention the other costs of downsizing. ... Most companies just announce downsizing, they never tell you why they are downsizing. ... Downsizing should be planned carefully. ...
DOWNSIZING INTRODUCTION Definition In a business enterprise, downsizing is reducing the number of employees on the operating payroll. ... The basic GOAL for a successful downsizing is "work better and cost less". ... Effect of downsizing on employee morale Organizations have seen the negative affects of downsizing. ... Downsizing can threaten employees" sense of well being in several ways. ... Communicating with employees during downsizing is vital. ...
DOWNSIZING INTRODUCTION Definition In a business enterprise, downsizing is reducing the number of employees on the operating payroll. ... The basic GOAL for a successful downsizing is "work better and cost less". ... Effect of downsizing on employee morale Organizations have seen the negative affects of downsizing. ... Downsizing can threaten employees" sense of well being in several ways. ... Communicating with employees during downsizing is vital. ...
Before the downsizing project came into play I did not have to operate a vehicle. ... In conclusion there is no foolproof way for me to protect myself from the downsizing efforts. The impact of downsizing is felt by all, and not only by the employees that loose their jobs. Downsizing has become a common occurance at my company. ... There will always be a negative outcome when downsizing any company without a plan. ...
A lot of organizations invest their efforts in helping the downsized employees to move on. ... To truly benefit from the layoffs and downsizing you experienced, however, you need to invest even more energy in the people who remain behind after downsizing and layoffs. ... A part of these productive capabilities will be lost when a company chooses to downsize. ... Downsizing must consider both the economic aspect and the socio-psychological aspect. ... People experience personal distress during changes such as downsizing. ...
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