Managing Growth and Downsizing



Managing Growth and Downsizing

Introduction

With globalization and increase in the advancement of technology, there is a major change in the pattern and strategies of business organizations. This change resulted in bringing major alterations to the business strategies in order to succeed in the competitive world. One major secret for the success of an industry or organization is to have best team and best work force available for the organization. Another major way to the success of any organization is an increase in profits, which can be done with an increase in products and decrease, in the labors or workers. This is the reason that most of the organizations follow the method of downsizing. This assures that there is no possibility of keeping employees if their performance is not good. As compared to the traditional system, downsizing involves various negative perspectives associated with unemployment. It not only effects country's economy, but also results in an increase in the unemployment. Downsizing involves termination of employees, who are not according to the needs of the organization. The process of downsizing is very common in most of the organizations these days, such as in Forbes.

Thesis Statement

Forbes Layoff Tracker provides that downsizing or layoffs involve a number of various important concerns such as patterns emerging from layoff trackers, issues in these areas in the near future, HR activities in downsizing and growth, and approaches for managing change.

Discussion

Patterns Emerging From the Layoff Tracker and Problems In The Near Future

There is a major increase in the number of layoffs during the 2000 many companies face recessions and during this time they shift towards the strategy of downsizing. According to the Forbes Layoff Tracker there are many companies that underwent downsizing such as General Motors, Pfizer, Merck, and many other companies (Hoium, 2011). After downsizing, there is a clear implication that these companies face problems with bankruptcy. In case if this pattern is followed by a number of many other companies, it will result in negative circumstances for organizations and State economy (United States, 1993). Apart from this, it will also result in unemployment and other economical and social problems due to the lack of jobs. It will also create a problem for the organization to hire new employees as it results in waste of cost, time, and efforts. It will also result in making negative image of the organization as employees will always remain ...