DOWNSIZING

Downsizing

Downsizing

Introduction

The organizational downsizing is a set of activities undertaken by management levels, to improve efficiency, productivity and competitiveness of the organization. It represents a strategy that affects the size of the workforce of the company and, consequently, its processes. This trend affects all types of organizations, regardless of size, money and nature

The current global economic crisis has led many organizations to downsize in an effort to cut costs quickly and increase productivity. Organizations' ability to reap the intended benefits of downsizing, however, is dubious.

Purpose of Downsizing

The downsizing, as opposed to job loss in the past, with enough force is affecting labor sectors that had been considered more stable holders. Moreover, the consequences for the displaced are also different from those we were accustomed. Consequently, safety at work is presented with much more fragile than in the past, even for staff polite, efficient, and experienced or management level. Its most representative are:

Highest paid workers

Until the eighties, according to Labor Department analysis of the U.S., while the higher the income level of employees, layoffs were less frequent, whereas now technology has allowed staff without office and middle managers.

Executives and office workers

Employee's skilled technicians, professionals and general management personnel, including middle management levels and above, are frequent victims of this approach. Traditionally these positions enjoyed greater stability.

Career employees

Career staffs, i.e. those who have spent many years in the organization, generally have higher levels of salary and benefits remain an important source of cost reduction. When the company cut these positions, whether by eliminating middle management, introduce automation, outsourcing services, etc. Organization hires younger staff at lower wages and greater capacity to handle new technologies.



Employees of larger companies

Large companies have traditionally been considered a major source of job security compared to the smaller ones. However, layoffs have become common in large companies ...