Managing Growth and Downsizing

Managing Growth and Downsizing

Introduction

Organizational downsizing refers to a disorderly procedure that has a major influence on the existing employees, approaches and insights of existing employees. The residual employees may negatively or positively distinguish the downsizing depending on their growth or failure of associations to system resources they view as precious just as the employees are dismissed from a work milieu. Downsizing within an organization is a crucial issue for the employees and for the organization management at the same time. The aim and objective of this paper is to talk about the alternative options available for downsizing in the scenario of an organization.

Discussion

The layoffs, reorganizations and contractions have become the daily bread in companies today, who are forced to compete in an ever changing and dynamic. The staffs cuts are no longer reserved only for process times of economic recession, by contrast, tend to occur most often that an organization does not meet its revenue expectations. If you do not devote the necessary time to evaluate the objectives of a dismissal and determine the criteria to be applied to cuts, firms run the risk of ending illegal action turned against them. Furthermore, it is essential that such criteria clearly communicated to managers involved in the process, as well as to review the plan with corporate counsel, according to Warren (Mellahi, 2004).

There is a danger, for example, that staff reductions have an adverse effect on some protected groups such as older workers or minority employees. If personnel decisions are taken without adequate support, one can infer that it is a system of intentional discrimination rather than a simple attempt to cut costs. This will create unnecessary tension and it is probably reason of subsequent lawsuits.

Sometimes when companies are under severe economic pressure, often have the feeling of not having time to think how to manage a staff reduction and review the plan with your corporate counsel before executing it. When economic pressure is intense, managers tend to make hasty decisions that may cause them after many headaches. It is essential, therefore; first of all, resist the temptation to rush things.

Alternative Options

In order to avoid the layoffs and downsizing there are a number of options that the organization can take through which they can reduce the cost. First of all the organization should look for the options of cost reduction by performing analysis of their expenditures ...