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Downsizing

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             Effect of downsizing on employee morale.
             Organizations have seen the negative affects of downsizing. Morale suffers which equates to lower productivity and profits for the organization. low morale creates anxiety and paralysis within their companies to the subsequent detriment of productivity. When an individual loses his/her job, confusion and anxiety sets in. "Many of them are thrown into unexpected transitions with extended middle periods characterized by confusion and a lack of ability to move forward. According to a research 10 percent reduction in personnel resulted in only a 1.5 percent reduction in costs. Their research also found that the employee trust and empowerment were shattered after the downsizing. This caused the employees left after the downsizing to show less initiative in getting the work done. Their feeling was that they would be the ones terminated next, so their attitude is one of "Why try to do the job since I am going to be the next one laid off".
             Downsizing can threaten employees" sense of well being in several ways. They may see the company as having behaved unjustly or unfairly. They obviously feel less secure. They may also lose the belief that their contribution to the business will be rewarded in future. .
             These responses may easily threaten business performance. Survivors of downsizing can become unduly risk averse and narrowly focused, and therefore less creative and open to change. .
             A number of "risk factors" were identified as indicating circumstances in which downsizing was most likely to hit morale. They included: .
            
             • Failure to convince the workforce that job reductions were necessary .
            
             • Apparent lack of clarity or unfairness in deciding on individual redundancies .
            
             • Lack of care over redundant staff .
            
             • Lack of alternative career development options if promotion becomes unlikely .
            
             • Changes which leave survivors unclear of what is expected of them, or how they will acquire the new skills they may need .


Essays Related to Downsizing

1. Downsizing

... to ninety days, after which if no other employment is found a letter of recommendation is made available. Similar to mergers, corporate restructuring is also an explanation for organizational downsizing. During corporate restructuring, companies make an effort to improve efficiency, productivity and lower cost. Reformation of an industry usually requires that some portion of the company be eliminated. ... A lack of strategic planning within organizations makes cut backs inevitable. Poor strategic planning deals with the way top managers supervise the determinants of business profit. Thi...

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  • Approx Pages: 15
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2. Downsizing

... help to cover the volume of new customers. Increased spending will be focused on hiring back all of the people they just downsized. It is a vicious cycle. "Sometimes downsizing is a management tool. For example, managers may change corporate culture to improve competitiveness or to shake out complacency. But this sword must be wielded carefully, especially during a slowing ... economy. Management studies have pointed out the fallacy that layoffs or downsizing actually help a company. The American Association of Management, for example, found that about 60 percent of companies that downs...

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3. Downsizing and its effects

... level of human capital from individual workers since they need to deal effectively with increased uncertainty and responsibility. People experience personal distress during changes such as downsizing. This distress can include illness, defensiveness, low energy, lack of motivation, difficulty with concentrating, accidents, and interpersonal conflict. Individuals often blame themselves ... Alain. (1994) "La face cachÉe des rationalisations d'effectifs."" INFO Ressources Humaines: 7-8. Gowing, Marilyn K., Kraft, John D., Quick, James C. (1998) The New Organizational Reality: downsizing, r...

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4. Downsizing

... are doing, even when you feel battered yourself. A positive, optimistic outlook must be demonstrated by key leaders, decisionmakers, and attitude leaders or key communicators. During and following a downsizing, focus on interactive, visible leadership that re-emphasizes vision, mission, values, and goals. Foster open communication and emphasize actions that increase your organization's competitiveness. Pay attention to the ... target interventions with any precision to influence morale. However, the participating organisations identified several broad kinds of action which they saw as ...

  • Word Count: 2011
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5. Downsizing efforts

... restructuring. However, this event in our small professional world is unique, and it is important to remember that the event affects not only the "downsized," but also those who remain. Downsizing at Okee has left the remaining employees with increased workloads, lack of loyalty, and low productivity levels. After OF decided to downsize, the other employees and I at the work site ... of the groups. I also have to get up out of bed at 4:30am in order to pick up the consumers and have them arrive on time for group. Before the downsizing project came into play I did not have to operate a v...

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6. Economics and Export Commodities

... greatly benefited by the US ban (Shaw & Barry, 2010, p. 266) As a developed country the US has the obligation to be a moral role model. 3. Downsize in the Face of Economic Difficulty Downsizing just to increase profits is obviously wrong. However, if it is in order to save the company and the majority of jobs then ... downsizing is of course acceptable. Downsizing has numerous negative side effects and thus should be used as last result. According to some studies, fifteen percent of downsized workers lose their homes, and the suicide rate increases ... thirty times. Furthermore, lost ...

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7. Company Business Analysis - Fonterra

... financial) and after that we can increase the payout to the owners of that business, which are the farmers themselves. Main plan is to downsizing the business, decreasing labour cost without layoff, reduce Marketing budget and travel expense, investment to increase Profit and defer some capital expenditure also create ... MOST analysis Mission: Cut the cost or regroup assets and How to do it? Objectives: Increase sales and gain more profit Strategies: Downsizing and decrease labour cost Tactics: after cut the costs then do investing in next stage to improve the company's performance Answ...

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8. Restructuring

... management and why restructuring is important for human resource managers to manage their employees during the period of restructuring. "Restructuring involves a major change to an organization via downsizing, flattening, elimination of departments and so on" (Stone, 1998, P.835). Restructuring is basically changing the organizational systems. It can be in the various forms but ... the most familiar term is downsizing. "Downsizing or restructuring aims to achieve greater organization efficiency by job elimination" (Stone, 1998, P.585). The corporate restructuring of organizations divide...

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9. Cafe Standards

... car, came a growing concern for safety. The National Highway Traffic Safety Administration (NHTSA) issued a comprehensive safety study that showed that with downsizing of cars came an increase in death and risk of injury. The NHTSA warned the government against further downsizing and higher CAFÉ standards. In 1992, the National Academy of Sciences (NAS) released a study on fuel economy that confirmed that ... , farmers and others opposing CAFÉ standards increases. The CVC also launched newspaper and TV ads that demonstrated government crash tests with a large and small car, to warn abo...

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  • Has Bibliography
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