ETHICAL DOWNSIZING IN BAIN AND COMPANY

Ethical Downsizing in Bain and Company

Ethical Downsizing in Bain and Company

Introduction

This paper highlights the issue of downsizing and its ethical impact on the employees of Bain and Company. The ethics of downsizing in Bain and Company is characterized by its universality and timelessness.

Downsizing is bad news especially for employees of an organization, because some of them are likely to lose jobs. At the time of reduced staff, executives, or external experts in some cases, conduct a detailed and rigorous cost-benefit each branch, every department and employee of the company (Godkin, 2002). The employees who are not their weight or not not seem feasible in the circumstances of the time are likely to be considered for termination. Thus, the reduction effective means of cutting efficiency to the bottom of society when drought business. It is intended to increase the quotient productivity and reduce cost of operation organization. The downsizing will also be taken into consideration when the organization embraces a different kind of effective technology to do all work in an organization as effective and less spending (De Meuse, 2004). The computerization of banks and other institutions a few decades earlier was a good example in this count. Several people lost their jobs when computers were introduced in offices.

Values at ??Bain and Company can be considered as part of ethics Bain and Company, as long as the values ??that are transmitted in accordance with universal ethical principles, and in this case to talk about moral values ??Bain and Company (Stone, 2004).

Downsizing within an organization is subject to much debate and raise concern of public opinion for many years. In the period recently, some closures have fueled spectacular facilities this concern. Offshoring is an important part of debate on de-industrialization (Dawkins, 2007). However, deindustrialization is a wider phenomenon that only one of downsizing: it is also explained by other factors, both internal and external. Internal factors such as productivity gains and outsourcing of certain functions towards the tertiary sector. External factors include the consequences of international openness, including downsizing are only aspect.

Conversely, downsizing does not only concern industry: they also affect services, including call centers and accounting activities or research. Relocations and international openness Offshoring is only one facet of openness of economies, often called "globalization." Thus, the problem of downsizing should not be confused with the broader, the international competition, nor with that of the location of units news (Cascio, 2007).

When production units are already on the national territory, fixed costs of implementation have already been paid and can not, for largely be recovered by the company (known as "sunk costs" or sunk costs). The movement of these production units towards low-wage countries would imply a second time to pay these implementation costs. It is not enough that the costs of production abroad are below costs of production on the territory a national downsizing takes place. On the other hand, produce abroad is expensive for companies, because of the remoteness of low-wage ...