Downsizing Essay

1286 Words Jul 20th, 2013 6 Pages
Downsizing- modern cost cutting art

Though generally referring to an overall reduction in the size of a firm’s work force, downsizing is a term that has come to have an almost generic meaning. Accordingly, a wide range of actions, such as rightsizing, resizing, restructuring, delaying, and reengineering, have been addressed under the general rubric of downsizing. Regardless of the terminology used, however, the desire to be leaner, more flexible, and more responsive has made downsizing the most pervasive form of organizational change. There are many reasons why a company might need to downsize. In today's corporate America, it is a plain fact that far fewer employees are necessary to maintain a successful operation. Many
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In addition, since there is often resistance to change, companies often wait until financial conditions deteriorate substantially before making large-scale layoffs. Furthermore, the fear that disgruntled employees will turn to equal employment opportunity or age discrimination suits to challenge layoffs, appears to lead organizations to carry out reduction in mass, which offer some defense for their actions, since it is more difficult to make a charge of discrimination stand when so many other people and many others with similar demographic or personal attributes are simultaneously being laid off (Alan, 1997). While employers appear to be generally satisfied with the outcomes produced by downsizing, employees are quite disturbed by these events. Employer satisfaction with downsizing is evident as well as in the frequency with which companies have adapted downsizing. Downsizing not only affects workers that have been terminated, but also affects the survivors. This is commonly referred to as the survivor syndrome. Many people who survive as a result of downsizing often live with the fear that they too will be terminated. They are often shell shocked and distrustful. They are mentally scared survivors of an economic restructuring that they have never seen before. In this constant climate of economic insecurity, their jobs are constantly being redefined. They are forced to meet new levels of production criteria requiring them

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