Management Theory and Layoffs

Paper Summary:

In this article, the writer discusses that, according to Carol Hymowitz of the Wall Street Journal, a fundamental paradigmatic shift is being forced upon human resource departments in terms of the way they operate during economic slowdowns. The writer notes that Hymowitz's January 28, 2008 article "They Ponder Layoffs, But Executives Still Face Gaps in Talent" states that companies are experiencing a dearth of talented people to fill vacant positions because aging top managers are retiring in record numbers. The writer discusses issues raised in the article and notes that to cut costs during economic slowdowns, traditionally companies let go even some promotable employees, and did not look for new or additional workers. The writer points out that as mentioned in the article, in 2008, despite the fact that recession seems on the horizon, many companies are embarking upon job searches to fill critical management positions because of inadequate training of current employees.

Outline:
Descriptive Summary
General Analysis
Critical/Comparative Analysis
Management Application

From the Paper:

"When employees leave, companies must divert valuable revenue to head-hunting and orientation of new hires. Under-training and under-promoting of in-house staff can actually cost the company more in the long--and short run. This is exactly what companies do not want during a recession, when companies want to focus their finances on remaining economically afloat. Companies want current employees familiar with operations to give advice on how to begin cutting costs in other areas.
"The phenomena described in the article highlights what management theorists have always counseled--that financial compensation alone is not enough to ensure that individuals stay at a company. The company must invest in the employee's future by taking worker suggestions, and giving future managers exposure to a variety of new educational and training experiences."

Sample of Sources Used:

• Hymowitz, Carol. (2008, January 28). "They Ponder Layoffs, But Executives Still Face Gaps in Talent." Wall Street Journal (Eastern Edition), B.1. Retrieved February 1, 2008, from ABI/INFORM Global database. (Document ID: 1419438441).
• Lanzoni, Gene. (2001, November 14). "Despite Soft Economy, MetLife Study Shows that Employee Retention Tops List of Employers' Benefits Concerns." Business Wire. Retrieved February 1, 2008, from AllBusniess database http://www.allbusiness.com/labor-employment/human-resources-personnel- management/6146299-1.html

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