Corporate Downsizing

Paper Summary:

This paper examines how the use of "downsizing," defined as an organization's conscious use of permanent personal reductions in an attempt to improve its efficiency and/or effectiveness (Budros 1999), affects an organization's human resources costs, structure, and competitiveness in its market.

From the Paper:

"Corporate downsizing by reducing human resource expense is a clinical way of saying a company is reducing its workforce in order to contain costs, with the results that those left still in the corporation are expected in increase their overall productivity, filling the vacuum left by their co-workers removal. It is hoped by companies that containing the human resource costs while pushing productivity rises in the remaining workforce will lead to either increased profits and thus happy shareholders or in more drastic circumstances, staunch the flow of red ink that occurs during severe economic times or competitive pressures."

More papers on Corporate Downsizing:

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