MANAGEMENT AUDIT

Management Audit



Management Audit

Introduction

The corporation ' Phil Corporation Ltd. ' (Phil) was incorporated in the year 1984 and had been a chief performer in the field of the business of photography. The company wants to undergo a vast downsizing course in which it has to take main steps to cut its surplus workforce and thus reorganize the corporation.By the end of this month, by the identification of the surplus amount of workforce in each department, the company believes to start the downsizing process. The company has identified 140 surplus employees out of the total of 425 from the two plants. It is believed that when the news will start spreading and making rounds of the corporation it would be generating an immense deal of disturbances amongst the workers and would be distressing their moral (Phil Corporation, 2010). This would be the time when the labor union would be starting to strengthen to oppose the prejudice, if any, caused by the administration towards them. As the sales of the company are declining therefore the company needs to downsize its excess employees from the company. But the downsizing would have adverse impact if the decision is not made efficiently. Economic Change

From variety of different settings a change in organizational can be seen. On this topic, thousands of articles were researched by Van De Ven and Poole (2005, p. 510) and as many as twenty different theoretical points of view were identified. Nevertheless, researchers from the organization in general have characterized that the occurring of change is in two primary ways: the evolution form and revolution form (Gersick, 2001, p. 10; Haveman, 2003, p. 20; & Tushman, 1991, p. 439). The analysis of a continuous process that requires over time and the evolution of small change were in the viewpoint of the local amplification of the theme. Tushman (1991, p. 439) is that it is the initial phase. An order continuous evolutionary change in a reasonable and stable place, and as in the organizational structure, environment, standards and resources, step by step, the results change. Much of this industry's history is portrayed by the organization in its first order to make incremental changes, although comparatively constant and retain their present composition, structure and cultural change. According to other researchers, this change is seen as a revolutionary process, interspersed between sporadic events stable, long-term inertia, and involve relatively few changes were based. This process is known as the second phase of transition or change. Second-order changes are mostly and usually for internal or external influences, as well as in rooms for far-reaching changes in organizational structure, environment, norms and resources results (Gersick, 2001, p. 10; Haveman, et al., 2003, p. 20). Overview of Downsizing

The historical perspective and the development of this industry that has encouraged the development of large and complex is the integration, standardization organizations, leaders of the characteristics and development trend of the structures, bureaucratic procedures (Wilkinson, 2004, p. 221). They are relatively insulated from, such as economic recession, competition and market pressures ...