Academic Advisor
TABLE OF CONTENTS
INTRODUCTION 2
ORGANIZATIONAL DOWNSIZING – A LITERATURE OVERVIEW 2
WHY DO COMPANIES DOWNSIZING? 2
STAGES OF DOWNSIZING 3
THE IMPACT OF DOWNSIZING PRACTICES ON THE PERFORMANCE 4
ALTERNATIVES TO LAYOFF 5
EARLY RETIREMENT 5
DOWNSIZING AND THE LEGAL ISSUES 6
REFERENCES: 6
INTRODUCTION
Over the past decade, corporations have been under economic pressures for a long term. Consequently, some of them were eliminated from the local market, the survivors have been driven to reorganize, redesign and restructure their organization with the intention of maintaining their place in the market. According to the decision maker, downsizing can be a solution to many organizations to reduce their budgeting issues and to increase their productivities. ( Labib & Appelbaum,1994)
This essay will focus on organizational downsizing. Part one present the downsizing concept, particular attention is paid to downsizing reasoning and stages, its impact on the performance and the legal issues. Part two focus on the early retirement.
ORGANIZATIONAL DOWNSIZING – A LITERATURE OVERVIEW
The term downsizing refers to an "elaborate decision to reduce the size of the workforce in an organization" to improve the organization performance and decrease cost. (Kozlowski et al., 1993, p. 267). Layoff and early retirement are methods of downsizing; in fact layoff is an immediate act of discharging an employee due a decline, while the early retirement is a personal decision to leave a job voluntary before the retirement age. (http://www.answers.com)
There are two terms of downsizing: downsizing by need and downsizing by preference. On the first case the company is obliged to reduce number of its employee without previous planning due sudden challenges like financial crisis, new technology revelation and market changes, In this case employees can lose there jobs permanently. On the second case, organizations have a stable situation in the market and there is no
INTRODUCTION 2
ORGANIZATIONAL DOWNSIZING – A LITERATURE OVERVIEW 2
WHY DO COMPANIES DOWNSIZING? 2
STAGES OF DOWNSIZING 3
THE IMPACT OF DOWNSIZING PRACTICES ON THE PERFORMANCE 4
ALTERNATIVES TO LAYOFF 5
EARLY RETIREMENT 5
DOWNSIZING AND THE LEGAL ISSUES 6
REFERENCES: 6
INTRODUCTION
Over the past decade, corporations have been under economic pressures for a long term. Consequently, some of them were eliminated from the local market, the survivors have been driven to reorganize, redesign and restructure their organization with the intention of maintaining their place in the market. According to the decision maker, downsizing can be a solution to many organizations to reduce their budgeting issues and to increase their productivities. ( Labib & Appelbaum,1994)
This essay will focus on organizational downsizing. Part one present the downsizing concept, particular attention is paid to downsizing reasoning and stages, its impact on the performance and the legal issues. Part two focus on the early retirement.
ORGANIZATIONAL DOWNSIZING – A LITERATURE OVERVIEW
The term downsizing refers to an "elaborate decision to reduce the size of the workforce in an organization" to improve the organization performance and decrease cost. (Kozlowski et al., 1993, p. 267). Layoff and early retirement are methods of downsizing; in fact layoff is an immediate act of discharging an employee due a decline, while the early retirement is a personal decision to leave a job voluntary before the retirement age. (http://www.answers.com)
There are two terms of downsizing: downsizing by need and downsizing by preference. On the first case the company is obliged to reduce number of its employee without previous planning due sudden challenges like financial crisis, new technology revelation and market changes, In this case employees can lose there jobs permanently. On the second case, organizations have a stable situation in the market and there is no
References: 3. Rabin.J.(1999) Organizational Downsizing:An Introduction. Pennsylvania State University-Harrisburg School of Public Affairs, Vol. 2, No, pp.39-43 4. Band.D and Tustin.C(1995)Strategic downsizing 5. Labib.N and Appelbaum.S (1994) The Impact of Downsizing Practices on Corporate Success. Journal of Management Development, Vol. 13, No 7, pp.59-84. 6. Stallworth.O and Kleiner.B (2002) Recent Trends in Downsizing Legally. Managerial Law, Volume 44, pp 69-74. 7. Age discrimination and downsizing (20 December 2009) http://www.lotsofessays.com/viewpaper/1691804.html 8. Makawatsakul.N and Kleiner.B (2003) The Effect of Downsizing on Morale and Attrition 11. Impact of Downsizing 20 December 2009) http://www.directessays.com/viewpaper/200502.html