LEIDY JOHANNA ANGEL HERRERA. Updated 26 October Transcript. BENCHMARKING,DOWNSIZING Y RIGHTSIZING. Right-sizing, downsizing and improving the employee and employer In my experience, the following four considerations will set you and your. Downsizing, Rightsizing or Dumbsizing?: Quality and Human ÔÇťAmerican mana gement adopted quality concepts in order to cut costs and regain. international.

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Downsizing appears to be an ongoing practice for the foreseeable future. In the twenty-first century, downsizing continued after a sharp decline in the stock market early in the century and followed by continued pressure on corporate earnings in the aftermath of the September 11,terrorist attacks.

Nevertheless, some companies began simply to cut their workforce without determining whether or not it was necessary and without any kind of accompanying strategy. As a major trend among U. The following sections discuss trends in downsizing, the growth of downsizing, downsizing and restructuring, criticisms of downsizing, support for downsizing, and downsizing and management.

The Lull Will Linger. These jobs might then be outsourced or handled by outside consultants and workers on a contract basis.

Labor groups have reacted to the frequency and magnitude of downsizing, and unions have taken tougher stances in negotiations because of it. Thus, when companies decide that downsizing is the best course of action, managers should do so in a way that does the least harm to employees and their families.

Auto workers were among the first to be laid off during the initial wave of downsizing. Eliminating non-core aspects of a business may also include the reduction of bureaucracy and the number of corporate layers. Downsizing and reengineering programs may result from the implementation of new, labor-saving technology.

Downsizing affects most sectors of the labor market, including retail, industrial, managerial, and office jobs, impacting workers in a wide range of income levels. Finding the balance between these outcomes is the primary challenge facing these managers. Dowmsizing of executive salaries growing in the face of downsizing and stagnant wages for retained employees only fan the flames of this criticism.


DOWNSIZING Y RIGHTSIZING by Ronal grajales gronal83 on Prezi

Downsizing poses the immediate managerial problem of dismissing a large number of employees in a dignified manner in order to help minimize the trauma associated with downsizing.

Occupations with the Largest Job Decline, Since downsizing often brings about a flatter corporate structure, the flow of information and communication no longer requires the effort needed prior to restructuring.

Some studies have indicated that the economic advantages of downsizing have failed to come about in many cases, and that downsizing may have had a negative impact downsizingg company competitiveness and profitability in some cases. Consequently, downsizing is a controversial corporate practice that receives support and even praise from executives, shareholders, and some economists, and criticism from employees, unions, and community activists.

Table 1 Number of U. These downsizjng are not actually eliminated, but instead moved j of reach of the employees who lose their jobs to outsourcing.

This involves providing employees with clear indications of what is expected of them and how they can meet increased productivity goals. In downsozing, advocates of downsizing contend that staff-reduction efforts help move workers from mature, moribund, and obsolete industries to emerging and growing industries, where they are needed.

Show my email publicly. Comment about this article, ask questions, or add new information about this topic: However, economists remain optimistic about downsizing and the effects of downsizing on the economy when the rate of overall job growth outpaces downnsizing rate of job elimination. For example, the introduction of the personal computer into the office has facilitated instantaneous communication and has thus reduced the need for office support positions, such as secretaries.


Furthermore, some analysts suggest that companies can improve their efficiency, productivity, and competitiveness through quality initiatives such as Six Sigma, empowering employees through progressive human resource strategies that encourage employee loyalty and stability, and other such techniques.


In other words, managers must strive to maintain or increase productivity and quality levels despite having a smaller workforce. Downsizing refers to the permanent reduction of a company’s workforce and is generally associated with corporate reorganization, or creating a “leaner, meaner” company.

In essence, they downsized because they lacked new products rlghtsizing would have stimulated growth and because their existing product markets were decreasing. Moreover, downsizing can lead to additional problems, such as poor customer service, low employee morale, and bad employee attitudes. Only a small percentage of this cost downsjzing could be attributed to labor costs, however, but labor costs were among the first to be cut despite other costs associated with the general structure of the auto companies and their oversupply of middle managers and engineers.

By studying particular tasks and determining their essential components, managers can get rid of unnecessary tasks and eliminate unnecessary jobs altogether.


The aftermath of downsizing also places greater demands on managers to make do u less. Therefore, reports used for communication between layers of the old corporate hierarchy, for example, can be eliminated. It is not uncommon for a company’s stock value to rise following a downsizing announcement.