ASSIGNMENT # 2
MANAGEMENT THEORY AND PRACTICE (8506)
IMPACT OF DOWNSIZING
First and foremost, I thank ALLAH (subhanawataala) for endowing me with health, patience, and knowledge to complete this work. After ALLAH.is the last phophet Muhammad S.A.W) who brought for us exposure and unlimited knowledge. I would like to take opportunity to express my humble gratitude to my teacher Pro.ImranAshiq whom I executed this project. His constant guidance and willingness to share his vast knowledge made me understand this project and its manifestations in great depths and helped us to complete the assigned tasks and secondly I am bound to thank all staff of Technimen Agha (pvt) Ltd. Adil Firdous(Financial Manager), munawarhussain(Receiving Incharge)Tasadduq Husssain Cheema (cashier) and others their inspiring guidance, remarkable suggestion. Constant encouragement, keen interest .and friendly discussion helps me to learn and enable me to accomplish my report in a good way.
TABLE OF CONTENT
2. EXECUTIVE SUMMARY
3. INTRODUCTION TO TOPIC
i) TYPE OF DOWNSIZING
ii) REASON OF DOWNSIZING
iii) ALTERNATIVE STRATIGIES FOR DOWNSIZING
4. PRACTICAL STUDY OF ORGANIZATION
i) WHAT HAPPEN IN TECHNIMEN AGHA (PVT) LTD.
11 ii) REASON OF DOWNSIZING IN TECHNIMEN AGHA (PVT) LTD. 11 iii) EFFECTS OF DOWNSIZING
iv) SWOT ANALYSIS
According to my roll no. my topic is “Impact of Downsizing”. For practical study I select Technimen Agha (Pvt.) Ltd. Company. Technimen is manufacturer of surgical instruments and have good fame in quality surgical instruments. From last 3 years there is trend of downsizing. Economic crisis, outsourcing really effecting. Inflation is day by day increasingand They want to earn more and more profit,scheme are not very effective,tough competition and demand decreasing are the main reason of downsizing. Because of downsizing Firms reputation suffers, Rethinking of employment strategy because Lifelong employment policies not credible after a downsizing, Change in employment behaviour, Early Retirements and Best Employees leaving organization.
Introduction to the topic
Topic: impact of downsizing:-
WHAT IS DOWNSIZING?
Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees. When the market is tight, downsizing is extremely common, as companies fight to survive in a hostile climate while competing with other companies in the same sector. For employees, downsizing can be very unnerving and upsetting.
Type of downsizing
Firms sometimes resort to a reduced workweek. This may translate into the reduction from 40 to 35 or fewer hours and thereby reduce the short-term payroll expenditures. While most employees appreciate the idea of being able to spend more time with their families, they may not always welcome a reduced pay check. Also, employees may find that the same amount of work still needs to be performed while they spend less time on the job. Nucor Steel Corporation in South Carolina has avoided layoffs for 35 years by reducing to two- and three-workday weeks for its employees during downturns (George, 2004). Recently, workers at a St. Thomas automotive parts plant in the UK have voted to reduce their work week rather than see 200 employees leave permanently (De Bono, 2008). Firing:
Due to non-performance is difficult; laying off employees due to poor business performance is harder. The...
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