Downsizing in Organizational Change

Executive Summary

All organizations face an environment of continuous limiting. An increasing response to this change is most form of curtailment. Many of these actions reach into the ranks of white blast and middle management positions; in the past, layoffs were generally limited to low-level, unskilled, or blue collar labor.

Downsizing is defined as a overbearing reduction of a workforce by an employer which can foreshorten a variety of forms. Techniques used include hiring freezes, early retirement, transfers, and layoffs (Appelbaum, Simpson & amp; Shapiro, 1987). Key attributes of curtailment be that: (1) curtailment is intentional; (2) lay off usually involves, although is not limited to, reductions in personnel; (3) downsizing is focused on improving efficiency of the organization; and (4) downsizing affects work processes knowingly or unknowingly (Huber & Glick, 1993). likely negative outcomes atomic number 18 overload, inefficiency, conflict, and low moral. Possible positive outcomes are increased profitability and productivity.

This paper ordain examine some of the causes, and outcomes of corporate downsizing. Special attention will be position on the mortal and organization levels of downsizing. Additionally, recommendations for effective downsizing strategies will be presented.

Assessment/Diagnosis

Downsizing can be approached from two different perspectives: an individual level, and an organization or system level (Cameron, 1994).



From an individual stage of view, discussions of downsizing focus on individual stress associated with hire out loss, psychological coping strategies, and the attitudinal effects of downsizing. Organization or strategy issues in downsizing relate mainly to whether and how to implement downsizing and what the effects of downsizing are on the organizations performance (Cameron, 1994).

There are various strategic reasons for organizations to downsize. They include: eruditenesss and mergers, to avoid bankruptcy, and to reduce be to remain competitive (Labib & Appelbaum 1994).

Acquisitions and Mergers

Downsizing usually results following an acquisition or merger. Duplicate and redundant functions...

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