Five Factors and Downsizing

Topics: Management, Human resource management, Layoff Pages: 10 (2589 words) Published: March 5, 2009
Assignment - 2 (Individual)
Five Factors and Downsizing

Which two of the five HR factors listed by the authors of your course do you consider the most important for your organization? (Explain your organization and its nature of business briefly). Justify your choice, and discuss these two factors in detail.

Assuming that the U.S. sub-prime crisis of the present day is now affecting the Asian economies and your organization is feeling the effects of slowing sales as well as rising raw materials cost. Downsizing is a real possibility and one of the most challenging aspects of human resources management. Discuss some of the approaches to use, and describe how you would go about downsizing 20% of your work force if you are eventually forced to do so.

Give an example of another organization where downsizing has evidently not benefited that company. Elaborate in detail.



To analyze the business strategy, the best known benchmark for general framework is Porter’s Five Forces. 1. The External Environment: Social, Political, Legal, and Economic 2. The Workforce
3. The Organization’s Culture
4. The Organization’s Strategy and
5. The Technology of Production and Organization of work

Among the above factors, I prefer Workforce and the Organization’s Culture as important factors for my company that I worked.

Organization Background
The company that I worked in was KG Information and Systems Limited (KGISL). [pic]
Name: KG Information and Systems Limited (KGISL)
Tagline: We make IT happen
Industry: Information Technology Services
Employees: 983
Certification: SEI CMM Level – 4, ISO 9001:2000
Divisions: IT Services, Business Process Outsourcing (BPO) Homepage:

The Organization that I worked in was an Information Technology Enabled Services (ITES) company. It is located in Coimbatore, South India. Our company had both Software development and Business Process Outsourcing (BPO) divisions. The Business Process Outsourcing division had both Voice-based services (Call centre) and non-voice based services (Medical & Business Transcription). Due to globalization, our company received a lot of overseas projects, especially from the United States and Europe.

The project that I worked in was Business Transcription under the Business Process Outsourcing division. The work was always in the night daily since there is a 12 hour time difference between India and the United States. Because of this change in work timings and the heavy competition from other rival outsourcing companies from throughout the world, both the efficiency levels of our employees as well as their English language proficiency had to be improved and sustained.

Workforce - Justification
Workforce demographics play an important part because, the right mix of age and skill demographics will decide how well the company is equipped to meet its mission and vision. Our company always preferred to recruit younger employees not just because they have a high drive to perform but they also show least resistance to change. Only young people can adapt themselves well to work night-shifts. Employees were recruited through an interview that made sure that only the best of among the rest were chosen. The first one month was a probationary period for all newly recruited employees. In the first one month, the employees were given on-the-job training (OJT). Employees were clearly made aware that they had to perform well to go into the next level (mainstream production). In the Voice-based department (Call center), there were more female employees than males. This was because, women were considered more suitable for customer care services. Traditionally, women are considered polite, considerate and soft-spoken – the qualities that are...
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