Downsizing Essay Downsizing Essay Downsizing refers to the reduction of employees in a business enterprise for economic or business reasons. Downsizing is a permanent or large-scale workforce reduction and is distinguished from a layoff, which typically is a more individualized or temporary job loss.
English US Although my immediate family has been lucky enough not to fall victim to layoffs or downsizing, however, I have friends and relatives who have not been as lucky. My uncle is a good example. He had worked for a utility company for 25 years, rising through the ranks to become the head of the sales division.
However, inthe company was hit hard by the global financial crisis and one of the restructuring strategies adopted by the management was to outsource the sales department. Consequently, the entire sales team was laid off. In the months that followed, my uncle sent letters to numerous companies but very few bothered to reply.
The economy was in crisis and few firms were hiring. My uncle slumped into depression because his family had no roof over its head. He was so desperate that he had to pump gas at a local gas station owned by a friend for a whole 4 months.
His teenage son and daughter took part-time jobs to supplement the income of the family. The mother, hitherto a stay-at-home mom, registered with a number of online companies as a freelance online writer.
Indeed the layoff has caused psychological and financial anguish to my uncle and his family. This may have been occasioned by an economic recession, or even when the main products of an industry are no longer fashionable.
There have been claims that downsizing is inevitable for a firm. However, it is perhaps best to view this as an issue of perception, more than anything else. When top managers are about to make announcements about workforce reductions and layoffs, one of the common statements issued is that downsizing is inevitable, and that it is a natural law of globalization or capitalism.
Downsizing is a necessary activity to help organizations improve their profit margins. Consequently, they have to reduce their workforce as part of their restructuring exercise. Under such circumstances, downsizing is necessary especially when certain departments of a company have too many employees, thereby increasing their inefficiency Ayling Companies with unresponsive communication systems, duplication of efforts, and unresponsive administrative functions are also likely to downsize.
Under such circumstances, it makes sense for a company to downsize, at least to stay afloat. Job security is no longer guaranteed.
In fact, it is a thing of the past. An increasingly higher number of employees have come to accept it but it is creating a new problem at the workplace altogether.
Owing to the looming danger of unemployment occasioned by layoffs, employees have become quite suspicious because no one knows where the axe shall fall next. Consequently, this has also dampened employee loyalty to the company because their future is not guaranteed.
Also, the innovative spirit of the employees, their tendency to take risks and level of creativity are all likely to reduce, further adding to the woes of the company Baumol et al, With downsizing comes an increased load of work for the remaining employees.
On the other hand, downsizing can be a good thing for the remaining employees because they are forced to work hard and target high profile positions so that in the event of another downsizing activity, they do not fall victim.
Competition is a key feature of capitalism. Capitalism breeds a state of oligopoly in which we have a few firms in the industry characterized by concentrated economic power. Consequently, competition is eliminated and we have a few dominant firms in the market that sets the price of products in the industry.
As such, the market environment is dictated by these few firms. Capitalism has also helped to usher in a free market and automation.Downsizing in America - INTRODUCTION - Downsizing, restructuring, rightsizing, even a term as obscure as census readjustment has been used to describe the plague that has been affecting corporate America for years and has left many of its hardest working employees without work.
- INTRODUCTION - Downsizing, rebuilding, rightsizing, even a term as dark as evaluation correction has been utilized to depict the torment that has been influencing corporate America for quite a long time and has left a hefty portion of its most diligent representatives without work.
In the 's, twenty-five percent of center administration was dispensed with in the United States (Greenberg. Downsizing Essay Downsizing refers to the reduction of employees in a business enterprise for economic or business reasons.
In contrast to being fired, to be downsized is usually not strictly related to personal performance but rather to economic cycles or a company’s need to restructure itself. downsizing in america Top Tag’s jane eyre slaves animals rights the principle of population of mice and men to kill a mockingbird minimum wage compare and contrast personal experience honesty oedipus what it means to be an american into the wild poet human trafficking.
Downsizing is a necessary activity to help organizations improve their profit margins.
Consequently, they have to reduce their workforce as part of their restructuring exercise. Free Essay Examples and . - Employment Problems In The U.S.
Downsizing, restructuring, rightsizing, even a term as obscure as census readjustment has been used to describe the plague that has been affecting corporate America for years and has left many of .