CASE STUDY ”DOWNSIZING & BUSINESS REORGANISATION” 1. Why might downsizing fail to improve the economic position of a business? Downsizing is a deliberate organizational decision to reduce the workforce that is intended to improve organizational performance. The Companies do downsizing because of falling profits & they feels that if they break the business in to smaller units then company will be more flexible & efficient. They do downsizing to reduce cost & increase productivity
Premium Economics Employment Strategic management
Challenges of Downsizing 5 Images of Change 6 Pressures to Change 6 Market Decline Pressure 6 Fashion Pressures 7 Mandated Pressures 7 Result of Change 7 Conclusion 8 References 9 Abstract This paper explores the change that General Motors faced after the economic recession and credit crisis that began in 2007. This pushed GM to request assistance from the U.S. Treasury which resulted in the restructuring of their US operations. The start of this restructuring change involved downsizing GM’s operations
Premium Automotive industry General Motors
Downsizing There is a well known issue in corporations when it comes down to downsizing. Corporate downsizing is that act of corporations cutting workers usually by closing whole plants or divisions to increase profits. This practice is often used today and is thought by some to be a moral practice to improve economy overall. On the other hand‚ some think that it causes the workers great suffrage from unemployment‚ which leads to loss of homes‚ depression‚ and crimes. Furthermore‚ it affects the
Premium Fiduciary Layoff Termination of employment
FACTA UNIVERSITATIS Series: Economics and Organization Vol. 5‚ No 1‚ 2008‚ pp. 51 - 62 THE IMPACT OF DOWNSIZING ON THE CORPORATE REPUTATION UDC 005.32 ∗ Biljana Djordjević‚ Suzana Djukić Faculty of Economics‚ University of Niš‚ Serbia Abstract. This paper deals with the downsizing influences on the corporate reputation. In this paper we stress the importance of the corporate reputation as one of the most important firm ’s intangible assets. This kind of resources could be a significant
Premium Organizational studies Management Organizational studies and human resource management
INTRUDUCTION Downsizing is a permanent reduction of workforce through layoffs and other means. Organizations usually downsize to save payroll costs and prevent bankruptcy during tight economic conditions. Downsizing‚ when done right‚ makes the organization more efficient‚ lean‚ and mean .On the other side‚ a faulty approach to downsizing can cause the organization to run the risk of losing key talent and intellectual capital‚ and becoming dysfunctional by breakdown of hierarchies and systems. The
Premium Layoff Employment Termination of employment
Solution to the problems of Downsizing and Redundancy Time is changed. Trends are modified in almost every aspect of life. There was a time‚ when the person who lost his job due to downsizing found him helpless in finding the new one. He used to immediately approach the local unemployment office and start finding jobs on web or in newspapers. He is totally on his own in finding a new job. But now things are modified. Organizational restructuring has made it easier for the employees who are fired
Premium Layoff Employment Termination of employment
Downsizing: The Financial and Human Implications This essay examines the effects of downsizing with regard to the human and financial implications. Since the mid to late 1980s‚ downsizing has “transformed the corporate landscape and changed the lives of hundreds of millions of individuals around the world” (Gandolfi‚ 2008‚ p.3). For the purposes of this essay‚ downsizing is defined as the planned elimination of jobs‚ involving redundancies‚ and is designed to improve financial performance (Macky
Premium Layoff Management
Downsizing Impacts Organizational Commitment The article‚ “Survivors and Victims‚ a Meta-analytical Review of Fairness and Organizational Commitment after Downsizing” by Dirk Van Dierendonck and Gabriele Jacobs‚ analyzes the effects of downsizing on employee commitment. The authors explain that downsizing has a serious effect on everyone involved‚ including the victims and survivors. Although downsizing provides a short term solution‚ it ultimately results in lowered organizational commitment
Premium Management Organization Victim
division | subject: | RE: downsizing program | | | I appreciate the personal time and effort you have spent in thinking about the deep across-the-board-reduction. You have my support in the efforts of controlling costs to gain back investor confidence and bring the company back to becoming a sound investment. However‚ I do not wish to give my support blindly and so I have a few other ideas that you might have overlooked that I hope you would consider. Also‚ downsizing may be required to an extent
Premium Management Economics Layoff
Employee Morale After Downsizing Downsizing has become a significant idea in today ’s economy and maintaining the trust of employees when something like this takes place has also become very serious business (Brockner‚ Konovsky‚ Cooper-Schneider‚ Folger‚ Martin‚ & Bies‚ 1994). The question is not whether a company should downsize their employees but how to do the downsizing properly so that as few employees as possible are injured (Brockner‚ Konovsky‚ Cooper-Schneider‚ Folger‚ Martin‚ & Bies
Premium Layoff Roman numerals