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The Implications of Downsizing for the Workforce, the Organizations, and the Society

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The Implications of Downsizing for the Workforce, the Organizations, and the Society
INTRODUCTION

Downsizing
Downsizing is described as a strategy that targets to increase business results by dropping the resources of a business, adjusting the organizational structure to the new strategy and environment. This tendency is observed in industrial and service zones (Littler, 1998; Gandolfi, 2007) and is present generally in the U.S., Europe, Asia (Morris, Cascio & Young, 1999; Dahl and Neshheim, 1998; Suarez, 2000). At this project I will explain the psychological and economical impacts of downsizing for the organizations, the workforce and the society.

MAIN BODY
IMPLICATIONS OF DOWNSIZING FOR THE WORKFORCE

DOWNSIZING STRATEGIES
Primary, employee cut down tactics, which are intended to decrease headcount frequently through joblessness. Another, work reforms tactics, which contain reformatting roles organization structures and hours. Work reform includes reducing functions, hierarchical levels, divisions, or products, consolidating and merging units, and cutting the working hours, while systematic changes involve replacing the organization’s internal and external systems such as communication, production chains, values in terms of suppliers and customers (Bleuel, 2001). Third, systemic change strategies, which contains redefining downsizing as ongoing process, as a base for continuous improvement, rather than as a programme or target (Cameron, 1994).

IMPACT ON SURVIVORS
According to K. Jeffrey, both leavers and survivors also suffer negatively after downsizing has followed. Most survivors weren’t sure of their position in the new structures of the company, expected performance standards, the important people in current networks who were either leaving the organization or changing their positions, additional work demands, and the worth of their expertise to the new organization. These factors are further compounded by job insecurity. (Jeffrey, K. 2011).

According to Kumar, N., & Pranjal, B.
Potential Reactions to Survival of
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