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 “American mana gement adopted quality concepts in order to cut costs and regain. international.

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Hammer, Michael, and James Champy. Employees who are laid off tend to suffer from depression, anxiety, insomnia, high blood pressure, marital discord, and a host of other problems. Therefore, some executives and economists see downsizing as a necessary albeit painful task, and one that ultimately saves the larger number of jobs that would be lost if a company went out business. While companies frequently implement downsizing plans to increase profitability and productivity, downsizing does not always yield these results.

Only a small percentage of this cost difference 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.

The aftermath of downsizing also places greater demands on managers to make do with less. Department of Labor, Bureau of Labor Statistics. Economists point out that despite the downsizing that has become commonplace since the s, overall U.


The Lull Will Linger. They reason that without downsizing, companies would not remain profitable and hence would go bankrupt when there is fierce competition and slow growth.

The jobs and responsibilities that are not considered part of the primary revenue-generating functions are the ones that are frequently downsized. These jobs rightsizjng then be outsourced or handled by outside consultants and workers on a contract basis. 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.

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.


This process also enables companies with growing competitive advantages to maintain rightsziing positions in the market in the face of greater domestic and global competition, and it is the difficult but necessary result of the transition toward a global economy.

Type the code shown: These jobs are not actually eliminated, but instead moved out of reach of the employees who lose their rightzizing to outsourcing. Hence, displaced workers are able find new jobs relatively easily, especially if those workers have skills that enhance the technological competence of prospective employers. Analysts of downsized companies argue that managers should take steps immediately after workforce reductions to provide the remaining workers with the support and guidance they need.

This includes taking the time to allow dismissed employees to air their thoughts, instead of laying them off quickly and impersonally, and providing assistance in finding new jobs. Since downsizing often brings about a flatter corporate structure, the flow of information and communication no longer requires the effort needed prior to restructuring.

By studying particular tasks and determining their essential components, managers can get downiszing of unnecessary tasks and eliminate unnecessary jobs altogether. Advocates of downsizing counter critics’ claims by arguing that, through downsizing, the United States has maintained its position as one of the world’s leading economies.

For example, governments must sometimes enact programs to help displaced workers obtain training and receive job placement assistance.

Karl Heil Revised by Scott B. Downsizing generally accompanies some kind of restructuring and reorganizing, either as part of the downsizing plan or as a consequence of downsizing. Suggested alternatives to downsizing include early retirement packages and voluntary severance programs.

In addition, managers should encourage employee initiative and communication and provide employees with rewards for excellent work. 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 on company competitiveness and profitability in some cases.

This dkwnsizing providing employees with clear indications of what is expected of them and how they can meet increased productivity goals.

Downsizing refers to the permanent reduction of a company’s workforce and is generally associated with corporate reorganization, or creating a “leaner, meaner” company.



Labor groups have reacted to the frequency and magnitude of downsizing, and unions have taken tougher stances in negotiations because of it. Eliminating non-core aspects of a business may also include the reduction of bureaucracy and the number of corporate layers.

Chemical plant and system operators.

Unemployed Workers by Month Adapted from: A Manifesto for Business Revolution. Consequently, downsizing often accompanies corporate calls for concentration on “core capabilities” or “core businesses,” which refers to the interest in focusing on the downsiizng revenue-generating aspects of a business.

However, economists remain optimistic about downsizing and the effects of downsizing on the economy when the rate of overall job growth outpaces the rate of job elimination.

In other words, managers must strive to maintain or increase productivity and quality levels despite having a smaller workforce. For some sectors, this trend is projected to be particularly prevalent throughas shown in Table 2.

Downsizing y Rightsizing by carla peña on Prezi

Since dense bureaucracy frequently causes delays in communication and decision-making, the reduction of bureaucracy may help bring about a more efficient and responsive corporate structure that can implement new ideas more quickly. Show my email publicly. In other words, despite the admitted discomfort and difficulties that downsizing has on displaced workers, some workers are able to locate new jobs and companies are able to achieve greater efficiency, competitiveness, and profitability.

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.

A trend toward outsourcing jobs overseas to countries with lower labor costs is a form of downsizing that affects some U. Downsizing affects most sectors of the labor market, including retail, industrial, managerial, and office jobs, impacting workers in a wide range of income levels. Revised by Scott B.