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Impact of Downsizing

In: Business and Management

Submitted By waqastariq47
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Pages 7
Introduction to the topic

Topic: impact of downsizing:-
WHAT IS DOWNSIZING?
Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees. When the market is tight, downsizing is extremely common, as companies fight to survive in a hostile climate while competing with other companies in the same sector. For employees, downsizing can be very unnerving and upsetting.

Type of downsizing
Reduce workweek:
Firms sometimes resort to a reduced workweek. This may translate into the reduction from 40 to 35 or fewer hours and thereby reduce the short-term payroll expenditures. While most employees appreciate the idea of being able to spend more time with their families, they may not always welcome a reduced pay check. Also, employees may find that the same amount of work still needs to be performed while they spend less time on the job. Nucor Steel Corporation in South Carolina has avoided layoffs for 35 years by reducing to two- and three-workday weeks for its employees during downturns (George, 2004). Recently, workers at a St. Thomas automotive parts plant in the UK have voted to reduce their work week rather than see 200 employees leave permanently (De Bono, 2008).
Firing:
Due to non-performance is difficult; laying off employees due to poor business performance is harder. The effects of downsizing are significant; understand employee rights termination practices. No one likes firing employees or laying off employees due to a work slowdown. No one. It is an emotional time for the employee and even for the employer.
Before you fire or lay off employees staff in your employ, make sure it is the right decision.

Transfer: Employer offers to transfer the employee to a different location that is within a reasonable commuting distance
Job…...

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