BUS610: Organizational Behavior
Organizational Change: Downsizing: Its’ Not Easy
There are a lot of different changes that can arise throughout the growth of a company. There can be changes to the structure, positions revised, hours cut and people losing their jobs. Organizational change can happen at the beginning of a business and even after a few years of success, change can happen. While building an organization to strengthen its products or services, organizational change will happen and the challenge will be to adapt to it. The following will cover the organizational change of corporate downsizing.
First, building an organization to strengthen its products or services, leadership in a company will need to implement the necessary changes to improve the organizations structure. A company usually downsize as a last resort because no one wants to let go, lay off or dismiss employees, whether it’s’ a few or a lot. When organizational change is needed and its best option is downsizing, it becomes part of the long term goals of keeping the company competitive in its industry and staying open to continue serving its customers and clients. There are organizational changes that can be small and some changes that require a major decision to be made and if management chooses to downsize, they need to prepare and when the announcement is made the appropriate actions are applied. If there are demands from customers or suppliers, downsizing could make the difference so that the company can expand or survive in its industry.
Organizational change whether, large or small, is undertaken to improve some process, procedure, product, service or outcome of interest to management. Because change involves learning and doing things differently, this stage entails providing employees with new information new behavioral models, new processes or procedures, new equipment, new technology or new ways of getting the job done (Kinicki, & Kreitner, 2009, p. 403)
Strategies for Downsizing
Marjory Pilley (2010), concedes that “To be effective, downsizing should follow strategic planning, goal-setting and be one part of a well-developed plan for moving forward.” It is not desirable as a repeated strategy because of the lack of trust that develops and the enormous resources necessary to manage the change. So, it must be done right the first time. Understanding the positive and negative effects of downsizing is important to setting up and managing a plan for future success (p. 1).
Once management has confirm the change is downsizing and has been informed of the what that change entails, then they will need to make sure that the process is appropriate for both groups, those that are going to be let go and those that will survive the change. Both groups should be informed of the change early in the process, so that everyone will be aware of that a change is being made and that there will be some re-organization of the business and how it will affect their position, roles and responsibilities of their job. Also having a strategic plan is needed so that making the proper changes can be adjusted if necessary and when downsizing, those that are released and those who remain will benefit in a positive manner, even if it is necessary for the growth of the company.
A strategic plan outlines an organization’s long term direction and the actions necessary to achieve planned results. Among other things, strategic plans are based on results from a SWOT (strengths, weaknesses, objectives and threats) analysis. This analysis aids in developing and organizational strategy to attain desired goals such as profits, customer satisfaction, quality, adequate return on investment, and acceptable levels of turnover and employee satisfaction and commitment (Kinicki & Kreitner, 2009, p. 406).
By applying a SWOT to the plan of downsizing, an organization...