Downsizing And Its Effects Essay

5261 words - 22 pages


Corporate Downsizing and Its Effects on Middle Management Employee Morale
[Name of the Writer]
[Name of the Institution]

This report analyses the reasons of downsizing and its future prospects as well as the impact on the employee’s motivation and the effectiveness. Here we will discuss about the factors influencing the downsizing decision and the types of scenarios where the downsizing is necessary. There are many situations where despite of the good performance by the employee he gets laid off and that’s the only option left with the organization. People at the organizations do know the situation of the company and the ...view middle of the document...

Why do most scholars, not only in the process of downsizing the organization with the size reduction process is common, they are also downsizing the organization, knowing that (something that is undertaken by the acceptance Burros 2009; Cameron, 2004b; Casco, 2003; De Meuse et al, 2004;. Freeman and Cameron, 2003, 2004, McKinley et al, 2005 However, it is important to note that we are an equal employment downsizing. Larger decrease in the other levels of analysis, this is only a concept applied level, while the layoffs, just at the individual level of analysis is the difference between layoffs and downsizing of the individual. In addition, the shrinking job downsizing strategy used to implement the operational mechanism of a strategic decision. Strategic objective is not an involuntary loss of resources to be a highlight by the organization. There been distinguished four factors and decrease shrinkage, the shrinkage distinguish between other related concepts. First, downsizing is a deliberate effort. Second, downsizing, and usually include but are not limited to staff reductions. Third, downsizing in the organization is to improve the efficiency or effectiveness. Finally, business processes, conscious or unconscious, is likely to be affected. Another difference between literature on downsizing and downsizing activities drop or fall regardless of whether the organization is growing is applied (Cameron et al., 2001) .

Officers at middle management are the key player in any organization as they are the link between the top management and the junior level officers. As we all know that the recent financial crunch has forced almost every sector to cut down the number of employees and it has made every employee worried. Normally what we see is that the middle management has a lot more additional responsibilities then the original job descriptions.
Downsizing, or lying off some of the workforce, will always have a negative impact on employee morale. Those left behind will lose mentors, friends and skilled colleagues. The remaining staff will wonder when the next wave is coming and if they, too, will be left unemployed. Top management, however, can take numerous precautions to minimize the impact of this unpleasant business decision on the workforce and overcome the tough times as quickly as possible.

Interpersonal Relationships
In our modern society, most people spend more time with their coworkers than with their families. To suddenly see some of these coworkers go, usually on short notice, can be heartbreaking.
The sense of familiarity and the support network that workers depend on to go through tough times at work, takes a serious hit during a downsizing. The trust that has been built between different departments and regions of the firm over many years will often have to be redeveloped, at least to some extent. Once the interpersonal relationships that are the backbone of this trust are severed, the ice has to be...

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