DOWNSIZING AND ITS EFFECTS

Corporate Downsizing and Its Effects on Middle Management Employee Morale



Abstract

This report analyses the reasons of downsizing and its future prospects as well as the impact on the employee's motivation and the effectiveness. Here we will discuss about the factors influencing the downsizing decision and the types of scenarios where the downsizing is necessary. There are many situations where despite of the good performance by the employee he gets laid off and that's the only option left with the organization. People at the organizations do know the situation of the company and the external pressures and they are well aware of the fact that in coming time someone will lose the job but whom? That's always the question remain unanswered until the person gets the notice. In downsizing it's not necessary that if you are doing good job then you won't be laid off and that's the only factor which reduces the motivation level and moral of the employee.



Introduction

Downsizing or "downsizing" is a strategy that has been used more regularly in recent years to respond to different situations organizational. The "downsizing" is a form of reorganization or restructuring companies through which conducts and improvement in work systems organizational redesign and proper establishment of human resources maintain business competitiveness. One of the main objectives strategies is pursued to achieve optimal organizational size ("Rightsizing") and rethink the organization ("Rethinking").

We have reduced the definition of organization proposed by Burros(2009, p. 70), which determines the reduction as "the conscious use of the organization of permanent staff reductions in an attempt to improve the efficiency and / or efficiency. " Includes the determination of reduction is to reduce the number of employees, reducing the use of consciousness.

Why do most scholars, not only in the process of downsizing the organization with the size reduction process is common, they are also downsizing the organization, knowing that (something that is undertaken by the acceptance Burros 2009; Cameron, 2004b; Casco, 2003; De Meuse et al, 2004;. Freeman and Cameron, 2003, 2004, McKinley et al, 2005 However, it is important to note that we are an equal employment downsizing. Larger decrease in the other levels of analysis, this is only a concept applied level, while the layoffs, just at the individual level of analysis is the difference between layoffs and downsizing of the individual. In addition, the shrinking job downsizing strategy used to implement the operational mechanism of a strategic decision. Strategic objective is not an involuntary loss of resources to be a highlight by the organization. There been distinguished four factors and decrease shrinkage, the shrinkage distinguish between other related concepts. First, downsizing is a deliberate effort. Second, downsizing, and usually include but are not limited to staff reductions. Third, downsizing in the organization is to improve the efficiency or effectiveness. Finally, business processes, conscious or unconscious, is likely to be affected. Another difference between literature on downsizing and downsizing activities drop or fall regardless of whether the organization is growing is applied (Cameron et ...