Read the case study titled “A Successful Downsizing: Developing a Culture of Trust and Responsibility” before starting this assignment. Many downsizing have faltered due to the mismatch between Context and Content and implementation malfunction. Although the company downsized approximately 55,000 people over a five-year period. (1998) proposes that a successful downsizing process requires planning that begins long before the formal announcement. Next, the outcomes that organizations expect when undertaking downsizing are described. While all three play a role in the success of a downsizing project, this business case focused on the financial perspective. A successful approach would involve careful analysis of the possible gains from downsizing; buy in of TU (in case of unionized setup), adequate compensation, management of anxiety and successful outplacement initiatives. I think that Larry Putterman’s post, “10 Lessons Learned From Downsizing a Business” is an excellent guide … KEYS TO SUCCESSFUL DOWNSIZING: • Planning, formulation and communication of a proper downsizing strategy. they include restructuring, closing or selling of a business unit, cost reduction, cost savings, increased productivity through greater efficiency and effectiveness and coping with external pressure including recessions … They're not intended to be submitted as your own work, so we don't waste time removing every error. By cutting out superfluous operations, you can put yourself in a position to focus on what truly matters to your organization. Introduction Downsizing is the process of “reducing employment to improve efficiency, productivity, and competitiveness” (Schwind et al., p 538). A. When citing an essay from our library, you can use "Kibin" as the author. to view the complete essay. Section 2: Communications 3. “Downsizing and letting go of all the things you had can be liberating,” says Claire Clarke of By Dezign, who recently moved into a smaller house closer to her office. Executive Summary Introduction 1. Write a seven to ten (7-10) page paper in which you: Describe specific practices that successful project managers… The manager delegates duties and downsizes the organization to create room … This preview is partially blurred. Section 3: Advance Planning and Preparation 4. Prepare Your Employees for the Impact Management wants a quick cut that protects he company’s assets, yet it wants to be gentle and compassionate to those who are let go. After all, downsizing a business is often a necessary step to growth. Downsizing should be used as a last resort once all other avenues have been explored by the organization as a means to cut costs or generate budgetary savings. Section 7: Performance Evaluation And Reporting 1. For example, the worker who used to put onions on the hot dogs was put in charge of onions, relish and sauerkraut. Essays may be lightly modified for readability or to protect the anonymity of contributors, but we do not edit essay examples prior to publication. For example, firms downsize to cut costs, to remain competitive, to adjust to the increas-ing technological advancements, and to re-spond to social pressures. The company laid-off around three percent of its workforce after … Order Details or Assignment Requirements Read the weekly assigned chapters and view the lectures before beginning the assignment. Mary Strain's first byline appeared in "Scholastic Scope Magazine" in 1978. Example of Downsizing To understand the way downsizing helps an organization, let us take an example of a Chipmaker Company named as Taiwan Semiconductor Manufacturing Co. (TSMC). The reasons for the firm to undertake such approaches also varies. Her work has appeared in "Seventeen Magazine," "The War Cry," "Young Salvationist," "Fireside Companion," "Leaders for Today" and "Creation Illustrated." The example essays in Kibin's library were written by real students for real classes. - Alfredo Alvarez, student @ Miami University. Downsizing began as the strategy of sickly corporations shedding workers in the face of weak demand, but soon strong firms looking to boost shareholder value even further adopted the policy. DOWNSIZING APPROACHES. Good downsizing plans also gave the retained staff confidence to continue working without any form of fear. What makes you cringe? To protect the anonymity of contributors, we've removed their names and personal information from the essays. The concept reviews the key benefits of this strategy and outlines the four driving forces behind the decision to downsize. The Wall Street Journal attributes Borders' downfall to too much debt and Internet competitors. The strategies helped a great deal to protect not only those dismissed but their survivors too. Section 4: External and Internal Information 5. (And nope, we don't source our examples from our editing service! Here are four tips on how to effectively communicate your decision to downsize to your employees. Learn what works (and what doesn't) from the reader's perspective. This allows our team to focus on improving the library and adding new essays. Successful Downsizing: The Case of the Boeing Reemployment Program Carolyn B. Mueller, Cheryl Van Deusen, and Jeffrey S. Hornsby Journal of Leadership Studies 1999 5 : 3 , 152-161 Kibin does not guarantee the accuracy, timeliness, or completeness of the essays in the library; essay content should not be construed as advice. Here are some ways our essay examples library can help you with your assignment: Read our Academic Honor Code for more information on how to use (and how not to use) our library. The process of downsizing often involves dwindling resources and letting staff go. FINANCIAL “Managing this well will protect our balance sheet”. She earned her Bachelor of Arts in English from Oglethorpe University in Atlanta. Follow it and minimize the pain of downsizing. Sign up In this case, a typical investment in an outplacement program is $39,900 or 3% of the total cost of redundancy. The essays in our library are intended to serve as content examples to inspire you as you write your own essay. Reading example essays works the same way! Downsizing and layoffs are part and parcel of any business since economic and business conditions are cyclical meaning that hiring and firing are part of capitalist systems. Deciding where you want to live. Borders, the bookstore chain that was formerly the biggest bookseller in the nation, went bankrupt in 2011 and plans to close 400 stores and lay off 10,700 employees, states the Business Insider website. Check out our Privacy and Content Sharing policies for more information.). The successful companies ensured that they had proper schedules to be followed and well defined operational arrangement. Although she was authorized by the Pentagon to proceed with the downsizing and knew fully well how to achieve it, she also knew that downsizing alone was a necessary, but insufficient, condition for lasting success. For more information on choosing credible sources for your paper, check out this blog post. … We'll take a look right away. Downsizing can sometimes seem to be about creating victims and displacing blame rather than accepting responsibility and choosing moral and ethical ways to implement the outcome. •support of senior leaders and their active involvement • incentive and compensation planning • effective monitoring systems • encourageing employee participation • continuous motivation to boost employee morale 12. According to The Street.com, during his first seven years at GE, he fired or laid off more than 100,000 employees. 1. Uncover new sources by reviewing other students' references and bibliographies, Inspire new perspectives and arguments (or counterarguments) to address in your own essay. al. Borders had already closed "hundreds of locations," the site added. Section 1: Leadership Strategies 2. Subsequently, the actual consequences of downsizing in terms The most important thing about downsizing is maintaining the lifestyle you lead. The best advice gathered from research and practice. companies to downsize are examined. What hooks you? Let us know! A well-executed downsizing strategy, however, can put an organisation on the road to financial health and stability. In order to successfully downsize an organization, it … General Motors and rivals Ford and Chrysler comprise the "Big Three" American automakers. The site states that Welch purged 10 percent of GE's "underperforming" employees -- every year -- as part of a "strategy for maintaining excellence.". “But you have to be brutal about what’s going to work for you. The Journal of Leadership Studies cites aircraft manufacturer Boeing as an example of successful downsizing. You know how looking at a math problem similar to the one you're stuck on can help you get unstuck? General Electric CEO Jack Welch was dubbed "Neutron Jack" by stunned employees. Inventory is an expensive security blanket. HSBC Holdings has already shut down its operations in Russia and Poland, the site notes, and closed 195 branches, many in New York. Although some economists have questioned the long- and even the short-term benefits of this strategy -- the data suggest that downsizing often fails to save a struggling company, exposes it to the risk of employee lawsuits and puts remaining employees under stress -- many major corporations have downsized more than once in an effort to cut costs and remain competitive. She has written continually since then and has been a professional editor since 1994. One key to a successful downsizing plan lies in management’s ability to clearly convey to employees the purpose behind the cost-cutting efforts. Downsizing will be presented between 1997 and 2002, the company partnered with labor and government to create Reemployment Centers that helped retrain laid-off workers for new jobs. Hoarding Inventory. 1. Corporate downsizing, characterized by massive layoffs, has been an unfortunate reality in America for the past 20 years. The Street.com website cites various sources that calculate a GM layoff of between 75,000 and 100,000 workers in a 1 1/- year period between 2008 and 2010, depending on whether closed car dealerships were taken into account. The sweeping layoffs GM and other automakers implemented in response to a drop in sales were a devastating blow to their workers and to local economies. Section 6: Implementation: Translating Strategic Direction Into Action 7. Because of the cyclical nature of our industry, I have had to lead the organization through three downturns — each of which required significant downsizing. There are many kind of approaches in downsizing. This reduces pressure on the part of the contractors and leaves them at ease to decide the number of employees to work on each project, which project to start with and what time to dedicate to each project. They decide to end production of that model, which means they need to close the plant, which in turn requires a layoff of all of the production workers at that plant. There has been a surprisingly large amount of downsizing. As documented by Palmer et al,. However, there is a case to be made for professionally handling such exits lest improper and insensitive handling leads to allegations and legal and reputational problems for such organizations. Downsizing will be examined as a strategic option that management can exercise in order to boost equity value. According to the Business Insider website, HSBC Holdings, an international banking and financial services concern, laid off 5,000 people in 2011 and has plans to lay off 25,000 more. Downsizing – Relationship Between Downsizing and Rightsizing Do not hoard inventory; liquidate. On the other hand, companies may downsize in order to improve their attractiveness to potential acquirers, and their cost-cutting moves could result in a buyout offer. For example, say a car manufacturer decides to downsize based on sales numbers that show it's no longer profitable to produce one of their vehicle models. If stock price is any indication of whether a deal … Did you find something inaccurate, misleading, abusive, or otherwise problematic in this essay example? While the pain of downsizing-related layoffs can’t be avoided entirely, it can be mitigated. The Journal of Leadership Studies cites aircraft manufacturer Boeing as an example of successful downsizing. Partnership The downsizing was painful, both for many people in the base as well as for Judy herself. Anticipating the duration and depth of an industry downturn, for example, can definitely help a manager prepare and deploy HR practices that will, in turn, help both employees and firms adjust to difficult times. Section 5: Setting Strategic Direction 6. To help you get into the moving mind-set here are 10 tips for successful downsizing in retirement: 1. Social Networking Vs. Business Communication Platforms, Advantages & Disadvantages of a Multinational Firm, Strategic Management & Diversity in the Workplace, Harvard Business Review; The Tricky Truth About Downsizing; Freek Vermeulen; April 2009, Business Insider; Companies with the Biggest Layoffs in 2011; Vivian Giang; August 2011, Business Insider; How to Lay Off Employees and Not Get Sued; Nicholas Carlson; November 2008, The Street; 10 CEOs Who Became 'Job Killers'; Joe Mont; June 2011, The Wall Street Journal; Bookseller Borders Begins a New Chapter...11; By Jospeh Checkler and Jeffrey A. Trachtenberg; February 2011, The Evolution of the Labor-Management Relationship. Personalized Financial Plans for an Uncertain Market Spreitzer, et. newsworthy examples of downsizing.5 Companies that have reaped dramatic benefits from downsizing and redesigning business processes, such as General Electric and Procter & AB InBev and SABMiller merger (2015) - $107B. (3) What are downsizing's “best practices?” or, What are the differences between organizations that effectively downsize and those that do not?
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