Abstract In this review of Steven H. Appelbaum and Nadia Labib's article "Strategic Downsizing: A Human Resources Perspective," the writer examines the various impacts of layoffs in an organization. These include the effect on the employees who have lost their jobs, families of terminated employees and the employees that remain with the company. The reviewer highlights the article's suggestions for human resources managers in dealing with downsizing.
From the Paper "The authors indicate that downsizing is a problematic issue. Its failure and success are both debatable since the human cost is vaguely discussed when employees are suddenly robbed of their means of livelihood. Since firms do not take into account the "psychological, social, and financial effects" of downsizing, they fail to take appropriate measures for human resource support and building hence lending seriously negative connotations to the phenomenon. And it is not only the terminated employees who suffer, the authors feel that "downsizing has a major impact on surviving employees as well as on the organization itself, both strategically and operationally." "
Abstract This paper examines business/corporate downsizing by taking a closer look at transition plans, targeted change and morale and motivation.
From the Paper "History has shown American businesses that a rush into downsizing their workforce often achieves moderate success in the short-term followed by negative results and decreased efficiencies in the long run. Downsizing is often forced upon companies in order to stay competitive in the global economy. Or, it could be a voluntary decision by a company to reduce costs and overhead in order to increase shareholder value. Regardless of the rationale behind a company's decision to downsize, there are certain guidelines or tips that companies can follow to increase the chances of success. These guidelines have been learned over history by researching companies that have been successful in downsizing their workforce. Three guidelines that I believe are important to a successful downsizing are: 1) Companies should have a transition plan in place to help fill gaps, 2) The downsizing should be a systematic, targeted change that reduces inefficiencies, and 3) Employee morale and motivation should be addressed head on."
Abstract This paper proposes a study to examine the effects of hospital downsizing on the performance of registered nurses with regard to their morale and their care of patients. It evaluates how an understanding of the effects of hospital downsizing on registered nurses' morale and patient care will assist with an understanding of how to help mitigate these effects, as well as future directions for the health care system.
Outline
Statement of the Problem
Study Purpose
Research Hypotheses
Definition of Terms
Delimitations
Assumptions
Limitations
Significance of the Study
Literature Review
Downsizing Effects of Downsizing Effects of Downsizing on Nurses
From the Paper "Downsizing has been a response to cost-cutting pressures and technological advances. In the last ten years downsizing has been prevalent and it is estimated that 60% of companies plan to continue downsizing (Mishra & Spreitzer, 1998, p. 567). For example, health care plans have lost money and as a result been forced to lay off employees. Prudential HealthCare of Florida has lost over $50 million since 1995 and has cut costs by $250 to $500 million by laying off at least 161 employees statewide. Blame for financial problems is placed largely on the SeniorCare Medicare HMO benefits (Shepherd, 1997). These cuts have effected the health care system."
Abstract This paper takes a look at some of the problems of downsizing, a common trend among organizations all over the world since the early 80s. The paper points out that downsizing, also known as, layoffs, rightsizing, or restructuring, has many names, but has a clear meaning, which is, the loss of employment for some select employees in organizations. Mergers, acquisitions, technological changes and global competition contribute to the organization's decision to downsize which forces employees to be the survivors or the victims of this process. This paper explores the problems faced by post-downsizing victims and survivors, and how the management of an organization can help the employees work through this phase. It concludes that downsizing is a constant trend that is thought to bring in some benefits to the organizations, however, cutting back on job positions leaves a negative impact on both victims and survivors.
From the Paper "In the post-downsizing phase, the management of an organization needs to deal with victims and survivors in a very tactful way, as employees are one of the most important elements which contribute to an organization's productivity, competitiveness, effectiveness and efficiency (Manfred et. al, 1997). When employees are faced with job insecurity, it is said that the "psychological contract" between the employer and employee has been broken. This contract ensures the employees job satisfaction and security, and when this is broken, it is very difficult for management to win back the trust of its employees. Organizations have different ways of helping the victims and survivors of downsizing, but there are a few which are more efficient than the others."
Abstract Downsizing has become a significant idea in today's economy, and maintaining the trust of employees when something like this takes place has also become very serious business. This paper examines the question of whether a company should downsize their employees and how to do the downsizing properly so that as few employees as possible are injured. It discusses and analyzes the several ways that companies can downsize that will help retain much of the loyalty of the workers that remain.
From the Paper "Companies who downsize through attrition and buyouts, those companies that work to help downsized employees find new jobs, and companies that are willing to provide outplacement services to those individuals often end up in positions that are much better than companies that simply fire workers due to downsizing (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). These companies who show that they care about the workers that they have to remove through downsizing have a much greater chance of retaining a lot of the loyalty originally given to them by the workers that survived the downsizing (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994)."
Abstract This paper examines the dramatic restructuring and downsizing initiative currently gripping Ford Canada. The paper looks at the factors which made such moves inevitable, and also examines what the company is doing to both soften the impact of downsizing upon its employees and what it is doing to see to it that this sort of downsizing leads to greater success in the future. In the end, while the challenges facing Ford of Canada are considerable (and not things which can be rectified via quick fixes), this writer believes that cautious optimism about Ford's future in Canada is well-warranted.
Abstract The paper discusses the effects of downsizing on employee morale and overall organizational performance. The author comments on the approaches that management should adopt to overcome the negative effects of downsizing.
From the Paper "Due to the recent slump in overall business, many organizations are considering to downsize their operations in order to minimize their losses and save themselves from further losses in future. However, the top management of any company must consider the consequences of shutting down its several operations and lying off employees, on the employee moral and the motivation to work among employees. Companies not only downsize at the time of recession but they usually lay off employees for several others reasons as well. It is usually claimed that downsizing is done in order to quickly improve profits, a company in trouble identifies its largest expenses, which is in most of the cases payroll and starts laying off. The reasons mostly used as a basis for downsizing by companies are organizational restructuring, a slump in business and business process reengineering.'
Abstract This paper explains that downsizing takes several forms: (1) Companies reorganize and restructure to increase efficiencies or economics of scale, (2) de-layer to eliminate layers of bureaucracy and reduce payroll expenses, (3) outsource certain functions to focus more resources on key competencies and (4) use contingent workers to meet demand increases and help keep payroll costs down. The author points out that the old paradigm that institutions will take care of their employees has been shattered as managers, who are often impervious to these changes, recklessly disregard the human consequences, which accompany massive reorganization. The paper relates that retained employees often suffer from post-downsizing stress syndrome, a psychological response that may surface after a series of layoffs; these employees demonstrate a sense of hopelessness about their situation resulting in increased anxiety about work-related issues, which eventually affects their health, personal life and attitudes toward work.
From the Paper "The ongoing practice of job elimination usually has another unintended and often unforeseen consequence: a rise in both discrimination lawsuits by minorities, women, and older workers, and occupational and non-occupational disability claims. The disability claims affect the organization's bottom line directly by increasing disability benefit costs, and indirectly through the loss of key employees' contributions. Furthermore, many managers are suing for wrongful discharge and quite often are collecting, which, together with discrimination lawsuits, have a negative impact on the firm's bottom line. Thus, "job massacres" may help to undercut the very cost and productivity advantages they are supposed to create."
This informative paper details the mitigating factors of downsizing at NASA's Office of Education. The writer of this paper also examines employees' reactions to the cutbacks while questioning if impending layoffs automatically decrease employee loyalty.
Abstract This well-researched paper details the fiscal and budgetary reasons for the substantial downsizing at Global Science & Technology, a subsidiary of NASA's Office of Education, as well as three additional companies contracted by NASA's Peer Review Services. This paper, written from the writer's personal point of view, contains insightful research that proves downsizing and layoffs produce decreased loyalties among employees. This in-depth paper contains a proactive solution and implementation plan to regain employee loyalty and trust which include developing human resource programs and creating avenues for promotion. Topics covered in this report include: Introduction Problem Statement Literature Review Causes Solutions and Implementation Plan Developing Human Resources Programs Establish Avenues for Promotion References Reflection
From the Paper "The process by which personnel were selected explains the vehement reaction. When the time came to select staff for termination, the manager held a series of closed-door meetings at which employees were discussed and ranked. His first mistake was not communicating the criteria that would be used to make the selections. Many employees felt that seniority would factor into play, but when the first three names identified staff who had been with the company the longest, confusion and anger began to surface. Rumors about "the list" began to circulate, and staff members, who never did receive any kind of meaningful communication, thought the worst. The layoff timing and methodology also demoralized personnel. Three people were laid off one week, two the next, and three the next. The first batch found that they had been locked out of their computers when they came back from lunch."
Abstract This paper discusses whether downsizing of an organization has a significant impact on its employees and, therefore, present and future company health, as well as profitability and culture within the organization. The paper specifically analyzes the effects that downsizing has on an organization's employees from the point of view of the management and human resources.
Table of Contents:
Hypothesis
Literature Review
Methodology
Data Collection Methods
Study Subjects
Analysis of Data
Conclusions and Suggestions for Future Research
From the Paper " A study by Nantaporn & Kleiner (March 2003) noted that downsizing "often creates more problems than it solves - only rarely achieving its original financial objectives" (p. 52). This article also discusses three main types of downsizing workforce reduction; organizational redesign; and systematic strategies, and negative impacts, from downsizing, on morale of staff left behind, who are called "survivors", and also on the now displaced (or jobless) workers. The article also discusses better and worse (e.g., more or less painful) procedures for company downsizing."
Abstract This paper explains that, when downsizing in order to cut costs is considered necessary by a company's management, older employees and managers tend to be targeted for termination of employment in far greater percentages than younger employees and managers. The paper then points out that proving there is a connection between downsizing and age discrimination can be difficult to achieve in a court of law. The paper also explains that age discrimination can be concealed by offering other justifications for terminating employment. Examples of age discrimination law cases are cited with the paper.
From the Paper "It requires courage, but older workers have to stand up for themselves when they are discriminated against. The worst thing to do is to remain silent. Remaining silent just condones age discrimination and encourages employers to discriminate in the future against other older workers who deserve better than to be cast aside. Workers who believe they have lost their jobs because of age discrimination should get in touch with the nearest office of the Equal Employment Opportunity Commission within one-hundred and eighty days."
Abstract Top management often resorts to the most effective and immediate means of recovery which include cutting down cost through downsizing. This paper looks at the use by companies of encouraging employees to take early retirement for financial gains and discusses its feasibility
Table of Contents
Chapter 1 - Definition of the problem
-Background of the problem
-Purpose of the study
-Problem Statement
-Research Questions
-Definition of terms-alphabetical order
-Limitations of the study
CHAPTER II- LITERATURE REVIEW
Health and security
Tax deferral
Financial targeting
Institutional Rationale
Employees Impacted
CHAPTER III- METHODOLOGY
- Variables
-Data collection
-Data analysis
-Research questions
CHAPTER IV- DATA ANALYSIS
- Introduction
-Analysis relevant to research question 1
-Analysis relevant to research question 2
-Analysis relevant to research question 3
CHAPTER 5- SUMMARY, CONCLUSIONS, RECOMMENDATIONS
-Summary
-Conclusion
-Recommendation
REFERENCES
From the Paper "The process of early retirement, a strategy adopted by many companies serves to save them from paying more to retirees. Retirement plans like 401(K) and Social Security all aim towards savings for the working individuals. They are the allowance that they can utilize once they leave the professional field. In the last decade or so, the rate of savings have dipped, turned up again and dipped again several times. With this pattern, organizations are concerned whether they can sustain retirement funding. In turn they try to equip themselves with strategies to minimize long term financial risks by inducing workers to retire early. These incentives include bonuses, stocks options, bonds etc. "
Abstract 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."
Abstract This paper discusses the issue of downsizing through corporate layoffs, plant closures and mergers that relinquish small businesses. According to this paper, this changes the face of the American nation which ultimately serves to harm employees. The American Dream used to encompass promoting the interests of workers and employees interested in realizing financial opportunities and long term employment.
From the Paper "Hornsby, Mueller & Van Deusen (1998) however, suggest that loyalty can still retain a place in modern corporations. Companies can for example, promote reemployment programs in situations where downsizing is inevitable due to economic restraints. Many times downsizing occurs as companies outsource or subcontract jobs on the domestic and international level (Hornsby, Mueller & Van Deusen, 1998). Clearly this helps reduce corporate overhead (Hornsby et al. 1998). To help reestablish an environment of loyalty however, companies can look to other methods to help reduce costs, including early retirement, voluntary time off among employees and increased use of "part time workers" rather than downsizing and outsourcing jobs internationally to save money (Hornsby et al. 1998). Such actions may re-instill the ideals of corporate loyalty among employees and employees in modern society. "
This paper is a case study exploring organizational and management problems relating to the close integration of People's Insurance Company of Canada (PICC) with its parent company, People's Bank.
Abstract This paper explains that problems began at People's Insurance Company of Canada (PICC) when its originally organic and non-hierarchical organizational structure was integrated into the more traditional hierarchical structure of People's Bank, resulting in a highly mechanistic structure at the insurance company. The author of the paper recommends that, given the biases of the bank and the insurance company, the problems regarding the decision-making process must be evaluated by an outside, independent auditor/consultant. The paper stresses that one of the key ironies of downsizing as a cost saving strategy is that, while costs obviously may be reduced by downsizing a company's labor force, in general, downsized companies do not meet either their productivity or profitability goals.
From the Paper "In the case of PICC, this is a particular issue with respect to friction between the insurance company and the bank, as various bank staff have noted that people occupying comparable levels in the insurance company are rewarded with company cars and other perks while they themselves are not. The PICC management have defended these differences on the grounds that higher salary levels etc. were necessary to attract skilled employees within the insurance industry. As a start-up instead of an established institution, this need to attract and motivate staff with perks is a prime concern."
Tags: compromise, downsizing, motivational, hierarchical, communication
