Get Full Essay Get access to this section to get all help you need with your essay and educational issues.
In total, Fortune companies have eliminated 4.
Although this downsizing of companies can have many reasons behind it and cannot be avoided at times, there are simple measures a company can take to make the process easier on the laid-off employees and those who survive with the company.
The first stage is called the diagnostic stage. In this stage, management staff pulls together and determines the amount of costs and expenses that need to be reduced, and how much can come out of layoffs Moore This stage usually takes about two to three months to complete.
During this time, the upper management reviews all financial records in order to determine how much must be cut from salary expenditures Moore This stage is concluded when the senior management has a detailed plan on who will be let go, and who will remain with the company.
During this stage, there is one common mistake many companies make: The middle management is usually left out of all downsizing plans.
This is wrong and creates a big mistake. Middle management should be looked upon as a valuable tool for giving input where cuts should be made Moore The next stage of downsizing is the implementation stage. During this stage the employees are laid off.
The time between an announcement and the actual layoff should be as short as possible. This will almost insure that a panic will be avoided, and give a clear view of the situation at hand without causing mass-hysteria. In a managerial position, it is difficult to explain to an employee that he or she is being laid off, but Terrence Moore gives a guideline on how it should be done.
Small talk should be avoided. Management should clearly explain that the employee is being laid off and be prepared to answer questions directly; avoid beating around the bush. It is extremely important to detail all employee benefits and severance pay, also the employee should be encouraged to come back with any questions that he or she may have Moore An important note is that the employee should not be given false hope.
The final stage is the post-implementation stage. This is dealing with the survivor syndrome and helping displaced employees find jobs throughout placement sources.Essay on Effects of Downsizing - Effects of Downsizing Downsizing has been known by several different names, in the late 's and the early 's it was called reduction-in-force, as of late it has been called restructuring government, privatization, contracting out and last but not least downsizing.
Effects of Downsizing Downsizing has been known by several different names, in the late 's and the early 's it was called reduction-in-force, as of late it has been called restructuring government, privatization, contracting out and last but not least downsizing. Downsizing or layoff is a widespread strategic decision and change practice since ’s and during the economic downturn in the year it became a more common phenomenon.
In alone fortune companies reportedly cut a total of jobs and one predicts that by a further Downsizing: Corporate Restructuring Strategy. Print Reference this.
Published: 23rd For example the subcultures of the firm may be broken down by restructuring and downsizing and disruption of informal networks may occur.
If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays. Restructuring can lead to changes of ownership, radical changes in the internal management structure, mergers, acquisitions and significant downsizing or hiring trends.
Internal factors can also include the addition or removal of a major product or service, addition . Downsizing Essay Downsizing refers to the reduction of employees in a business enterprise for economic or business reasons. In contrast to being fired, to be downsized is usually not strictly related to personal performance but rather to economic cycles or a company’s need to restructure itself.