Downsizing and Reengineering

Downsizing and Reengineering



Downsizing

The term DOWNSIZING was coined in 1987 to define the size reduction of cars by manufacturers. The term has been implemented on the process of downsizing s when firms and governments were beginning to restructure s based on employees in response to downturns in the economy. Downsizing is a type of restructuring or reorganization wickedly called "downsizing" as if it dismisses the actual s is the extra fat. It is a strategy to streamline, to tighten and shrink the organizational structure with emphasis on the number of employees. (Ahmadjian & Robinson, 2001)

The goals are well known: lower overhead, elimination of hierarchical levels, reduced bureaucracy, faster decision making. It uses general policies such as: - delete: this is to lay off staff in surplus and this according to performance criteria and future needs of the organization - Posting: In this strategy, company suggests voluntary departures of employees in return for severance pay; Survival strategies: they aim to cut costs while keeping the best employees. Therefore, the downsizing can be defined as a restructuring that results in most cases by a reduction of workforce.

Process of Downsizing Reduction in the number of employees is a very common way today to let workers go whose preservation in the state company is for any reason, inappropriate.

Despite the fact that it is very costly in time and finances the way most employers use it, since it could be considered the most humane and safe way to reduce staff, because when terminating an employment contract on this basis takes into account the interests of both parties.

"Reduction in staff numbers or" means that the staffing company to remove individual posts or entire subdivisions. It is possibly a complete change of organizational structure, which leads to the fact that the names of individual positions change with the change in functionality. Others posts have ceased to be relevant, to be liquidated.

In those cases where staffing changes are extensive enough, it makes sense to create a new staffing level. If the changes are of a single character, it is better to issue an order amending the current staffing levels. (Budros, 2004)

After the company's management decided to downsizing positions, the question of dismissal of specific employees. Such a question does not arise if the employee gets laid off, which occupies a unique staff position; however, if one posts a few people working, it ...