LEIDY JOHANNA ANGEL HERRERA. Updated 26 October Transcript. BENCHMARKING,DOWNSIZING Y RIGHTSIZING. Right-sizing, downsizing and improving the employee and employer In my experience, the following four considerations will set you and your. Downsizing, Rightsizing or Dumbsizing?: Quality and Human “American mana gement adopted quality concepts in order to cut costs and regain. international.

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Companies may lay off a percentage of their employees in response to these changes: Companies in these industries, like those in the auto industry, suffered from higher per-unit costs and greater overhead than their Japanese counterparts due to lower labor productivity and a glut of white-collar workers in many U.

In other words, despite the admitted discomfort and difficulties that downsizing has on displaced workers, some workers are able to locate new jobs and companies are able to achieve greater efficiency, competitiveness, and profitability. Downsizing is certainly not limited to the U.

Karl Heil Revised by Scott B. Employees who are laid off tend to suffer from depression, anxiety, insomnia, high blood pressure, marital discord, and a host of other problems. However, economists remain optimistic about downsizing and the effects of downsizing on the economy when the rate of overall job growth outpaces the rate of job elimination. Downsizing poses the immediate managerial problem of dismissing a large number of employees in a dignified manner in downsizong to help minimize the trauma associated with downsizing.

For example, the introduction of the personal computer into the office has facilitated instantaneous communication and downsizign thus reduced the need for office support positions, such as secretaries. Occupations with the Largest Job Decline, Although critics of downsizing do not rule out the benefits in all cases, they contend that downsizing is over-applied and often used as a quick fix without sufficient planning to bring about long-term benefits.

Economists point out that despite the downsizing that has rightizing commonplace since the s, overall U. Downsizing refers to the permanent reduction of a company’s workforce and is generally associated with corporate reorganization, or creating a “leaner, meaner” company. This involves providing employees with clear indications of what is expected of them and how they can meet increased productivity goals. Downsizing has repercussions that extend beyond the companies and their employees.

Downsizing affects most sectors of the labor market, including retail, industrial, managerial, and office jobs, impacting workers in a wide range of income levels.

In essence, restructuring efforts attempt to increase the amount of work output relative to the amount of work input. Reports of executive salaries growing in the face of downsizing and stagnant wages for retained employees only fan the flames of this criticism.


These jobs are not actually eliminated, but instead moved out of reach of the employees who lose their jobs to outsourcing. Downsizing and reengineering programs may result from the implementation of new, labor-saving technology. In addition, advocates of downsizing contend that staff-reduction efforts help move workers from mature, moribund, and obsolete industries to emerging and growing industries, where they are needed.

Therefore, some executives and economists see downsizing as a necessary albeit painful task, and one that ultimately saves the larger number of jobs that would be lost if a company went out business. Besides laying off workers, restructuring efforts may involve closing plants, selling non-core operations, acquiring or merging with related companies, and over-hauling the internal structure of a company.

Because of the possible negative effects that occur after downsizing, managers may have to implement measures to counteract employee apathy, improve customer service, and restore employee trust. Advocates of downsizing counter critics’ claims by arguing that, through downsizing, the United States has maintained its position as one of the world’s leading economies.


In other words, managers must strive to maintain or increase productivity and quality levels despite having a smaller workforce. Eliminating non-core aspects of a business may also include the reduction of bureaucracy and the number of corporate layers.

This includes taking the time to allow dismissed employees to air their thoughts, instead of laying them off quickly and impersonally, and providing assistance in finding new jobs. In contrast to their major competitors—Japanese manufacturers—U.

Chemical plant and system operators. While companies frequently implement downsizing plans to increase profitability and productivity, downsizing does not always yield these results. Labor groups have reacted to the frequency and magnitude of downsizing, and unions have taken tougher stances in negotiations because of it. For example, governments must sometimes enact programs to help displaced workers obtain training and receive job placement assistance.

Regardless of whether downsizing is good or bad for downsizimg national economy, companies continue to downsize and the trend shows few signs of slowing down. Thus, when companies decide that downsizing is the best course of fightsizing, managers should do so in a way that does the least downsizijg to employees and their families. Laying workers off to improve competitiveness often fails to produce the intended results because downsizing can lead to the following unforeseen problems and difficulties:.

Top managers with responsibility for making downsizing decisions are in a difficult predicament. As a major trend among U.


Downsizing y Rightsizing by carla peña on Prezi

These jobs might then be outsourced or handled by outside consultants and workers on a contract basis. Corporate downsizing results from both poor economic conditions and company decisions to eliminate jobs in order righfsizing cut costs and maintain or achieve specific levels of profitability. By promoting employee initiative and even employee involvement in rigghtsizing, managers can help restore downsizimg trust and commitment and help increase employee motivation.

In essence, they downsized because they lacked new products that would have stimulated growth and because their existing product markets were decreasing. Since downsizing often brings about a flatter corporate structure, the flow of information and communication no longer requires the effort needed prior to restructuring.

Moreover, downsizing can lead to additional problems, such as poor customer service, low employee morale, and bad employee attitudes. Table 1 Number of U. A trend toward outsourcing jobs overseas to countries with lower labor costs is a form of downsizing that affects some U. In addition, downsizing may stem from restructuring efforts to maximize efficiency, doqnsizing cut corporate bureaucracy and hierarchy and thereby reduce costs, to focus on core business functions and outsource non-core functions, and to rihhtsizing part-time and temporary workers to complete tasks previously performed by full-time workers in order to trim payroll costs.

Moreover, even though downsizing may not solve all of a company’s competitive problems or bolster a company’s profits indefinitely, downsizing can help reduce costs, which can lead to greater short-term profitability. While layoffs are a customary measure for companies to help compensate for the effects of recessions, downsizing also occurs during periods of economic prosperity, even when companies themselves are doing well.

Economists argue that this process strengthens the economy and helps it grow. Unemployed Persons by Reason of Unemployment. Type the code shown: To remedy these problems, U. Some studies have indicated that the economic advantages of downsizing have failed to come about in many cases, and that downsizing may have had a negative impact on company competitiveness and profitability in some cases.


This process also enables companies with growing competitive advantages to maintain their righrsizing in the market in the face of greater domestic and global competition, and it is the difficult but necessary result of the transition toward a global economy.