Preview

The Impact of Downsizing on Human Resource Management

Better Essays
Open Document
Open Document
1880 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Impact of Downsizing on Human Resource Management
The Impact of Downsizing on Human Resource Management

The workplace is constantly changing each day and the job of the Human Resource Manager is constantly changing to keep up with these changes. It is important for the Human Resource Manager to stay attuned to the various changes and make sure the corporation is productive during the changes as this can affect the profits and profitability of the company. One of the major problems in the workforce today is downsizing and the impact that downsizing has on Human Resource Managers and the programs they must implement and communicate to the employees of the corporation and follow any legal requirements that are in place at the time of the downsizing. The Human Resource Manager must make hard decisions that not only affect the employee but also the corporation and the reputation of the corporation.
Downsizing has risen dramatically since the early 1980’s because of many extenuating factors such as innovation, technology, the weather, the economy, and globalization. These factors have increased the amount of individuals that the company either no longer needs or can no longer afford to pay. Downsizing for a company can be an extension of the strategy that they developed to maintain competitive advantage in the workplace. They are replacing workers that no longer have the skill sets that the job needed in prior years for workers who have the skill sets needed in today’s technological and advanced markets. This makes sense in the end but the employee who lost their job through elimination suffers from the loss of their job and can cause adverse reactions within the company.
Human Resource Managers have the tough job of determining who will be the individuals, departments, or divisions and the jobs that they are eliminating. This is a tough decision and handling these decisions should center on the employees, employers, and the laws governing layoffs from corporations. The Human Resource Manager has to



Cited: Cascio, W. F. (2010, December 24). If You Must Downsize, Do It Right. Retrieved from Employment Policy Research Network: http://www.employmentpolicy.org/topic/21/research/if-you-must-downsize-do-it-right Human Resources Articles. (2012, October 3). Downsizing Can Raise Legal Issues. Retrieved October 13, 2012, from CPEhr: http://www.cpehr.com/hr-articles/downsizing-can-raise-legal-issues.html Tzafrir, S. S., Mano-Negrin, R., Harel, G. H., & Rom-Nagy, D. (2006). Downsizing and the impact of job counseling and retraining on effective employee responses. Career Development International, 11(2), 125-144. doi:10-1108/13620430610651886 Uhlig, D. K. (20112, October 6). How Does Downsizing Impact the Role of Human Resource Management. Retrieved from SmallBusiness: http://smallbusiness.chron.com/downsizing-impact-role-human-resource-management-38669.html Young, S., & Brown, H. N. (1998). Effects of hospital downsizing on surviving staff. Nursing Economic, 16(5), 258-262. Retrieved from http://search.proquest.com/docview/236928160?accountid=9770

You May Also Find These Documents Helpful

  • Good Essays

    Downsizing, no matter how it is done, creates stress and corporate discontent for employees, and proper human resources planning attempts to limit this negative impact. Employees who are discontent can display negative behaviours and performance issues may begin to arise. With issues in performance within the organization, productivity may begin to decrease, which means that the cost to produce goods once again increases, threatening the benefits that may have come from downsizing.…

    • 1015 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Possible solutions at managing layoffs would include considering alternatives to reducing staff, properly training managers how to handle layoffs, or implementing a hiring freeze. Companies should consider whether job losses are in fact necessary. Too often organizations result to downsizing and don’t even consider the alternatives because they want to show shareholders they are trimming costs. Alternatives to layoffs include cutting wages in management as well as lower level positions, transferring employees to other departments, and using fewer contract workers. Also, training managers on the different type of…

    • 333 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    This individual assignment paper will be discussing briefly about Human resource management, the responsibilities and what are the primary functions of Human resource management. Lastly, this individual assignment paper will discuss about the different roles of what human resources management does in an organization's strategic plan.…

    • 784 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Hrm 300 Week 1

    • 789 Words
    • 4 Pages

    Human Resource Management (HRM) is a division in practically every organization, however over the years the role of HRM has experienced significant changes. According to the business dictionary, HRM is defined as “Administrative activities associated with human resources planning, recruitment, selection, orientation, appraisal, motivation, remuneration, etc. HRM aims at developing people through work.” In past times HRM were considered responsible for simply hiring and firing and at one point in time were labeled event coordinators and planners. Due to the numerous legal changes and advancements in technology the HRM responsibilities have changed drastically and are essential to maintaining a successful organization. The HRM today is responsible for all aspects of employee development from recruitment to training and beyond in addition to impacting the organizations strategic plan.…

    • 789 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Throughout corporate America, downsizing is a common practice. The concept of downsizing as a strategic tool wasn 't introduced until the 1980 's, and today it is a well known system. This has been caused by the accelerated growth of international and global competition throughout the past two decades. Increasing competition is forcing companies to drive their costs as low as possible, and the quickest, easiest way to cut costs is to cut jobs. Top management within corporations is most worried about the impact downsizing will have on their costs, and they are usually less apprehensive about the influence on the employees affected. Two views on this topic are presented in Marc Street 's Taking Sides. The first will argue against downsizing for…

    • 1409 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    WK 1 DB

    • 491 Words
    • 2 Pages

    Human resource managers have strategic and functional responsibilities for all of the HR disciplines and overseeing department functions and managing employees and entails planning, implementing, and managing recruitment, as well as selection, training, career, and organizational development initiatives within an organization and to promote personal development, employee satisfaction, and compliance with employment-related laws and other things they are responsible for besides the legal and clerical duties, can be classified by individual, organizational, and career areas. Individual management entails helping employees identify their strengths and weaknesses, correct their shortcomings, and then make their best contribution to the…

    • 491 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Academic Advisor

    • 1566 Words
    • 7 Pages

    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…

    • 1566 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Chyn & Kaliannan (2011) believe that “the function of human resource (HR) department in an organization has been evolving from personnel management to human resource management (HRM). Over time, the focus shifted from managing people to creating strategic contributions.”…

    • 1420 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    This article discusses how corporations should aim to be responsible for more than just profit maximization. The author goes into the discussion of how downsizing a company violates the psychological and social contracts in the employer-employee relationship. The author seems to support the idea that employees should have a since of security in their job as long as he or she is productively advancing the goals of the organization. Downsizing productive employees harms the moral of the company and violates the trust that hard work makes an employee valuable.…

    • 2483 Words
    • 10 Pages
    Satisfactory Essays
  • Good Essays

    The euphemism, downsizing describes the involuntary termination of a number of employees based on an employer’s decision to reduce staff or to cease operations all together (Walsh, 2013). Employers are often faced with tough decisions to reduce staff in response to many different factors. There are important legal issues that need to be considered as they will impact business owners if not addressed.…

    • 815 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    HR Focus. (2008, October). How Downsizings May Help Erase the Glass Ceiling for Women. HR Focus, p. 9.…

    • 1875 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Mayhew, R. (2013). The Strategic Role of Human Resource Managers. Demand Media. Retrieved from www.smallbusiness.chron.com…

    • 1020 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Human resource management (HRM, or simply HR) is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizationalleadership and culture, and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company's primary liaison with the employees' representatives (usually a labor union).…

    • 1700 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Omm 618

    • 777 Words
    • 4 Pages

    Human resources departments face significant challenges as their roles become broader and more strategic in the early 21st century. HR is more than a basic function that involves hiring, training and retaining employees. It is a key element in developing a workforce that aligns with the mission and vision of a business. With increased relevance come increased obstacles.…

    • 777 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Downsizing Case Study

    • 722 Words
    • 3 Pages

    Numerous amount of people once thought that downsizing is an indicator of organizational decline, instead it is now accepted as a legitimate restructuring strategy. Downsizing is known as reducing the number of employees in the company, sometimes it could be the number of operating business units (Ireland, Hoskisson and Hitt, 2009). As mentioned earlier, Hewlett Packard incorporates downsizing strategy for its corporate restructuring. HP Chief Executive Meg Whitman also mentioned that in order to enable a more competitive and sustainable cost structure, job cuts is one of the way to do it for the new company (Egan, 2015). Downsizing have its advantages and disadvantages as well, the advantage is of course a reduced of…

    • 722 Words
    • 3 Pages
    Good Essays