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“Reflecting on downsizing: what have managers learned?”

Article 20 Presented by: Delle Durr & Lauren Goddard. “Reflecting on downsizing: what have managers learned?”. Franco Gandolfi. Reduces a businesses number in size In business, the term means to fire employees

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“Reflecting on downsizing: what have managers learned?”

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  1. Article 20 Presented by: DelleDurr & Lauren Goddard “Reflecting on downsizing: what have managers learned?” Franco Gandolfi

  2. Reduces a businesses number in size In business, the term means to fire employees Firms view downsizing as a “reactive response to organizational bankruptcy or recession” What is downsizing?

  3. Decisions that the business chooses to make will effect these three areas: • Company-specific • Industry-specific • Macroeconomic- factors Forces that drive downsizing

  4. Survivors Victims Executioners http://www.youtube.com/watch?v=4nD40I4gGzQ Who is effected?

  5. Firms downsize as a response to organizational bankruptcy or recession • It has occurred on both private and public sectors • Statistics: • The U.S. Bureau of Labor Statistics reported that more than 4.3 million jobs were cut between 1985-1989. • The New York Times states that more than 43 million jobs had been eliminated between 1979-1996. Reflection

  6. Hennessy Honda provided a Human Resource plan to announce the companies downsizing preparations 1. Downsizing preparation

  7. Hennessy Honda wanted to ensure that the stress from the downsizing wouldn’t impact the employees physical and mental state therefore they gave them a free month to the neighboring gym to persuade a healthier lifestyle 2. Specific downsizing training

  8. Weekly Saturday meetings with manager • Reducing stress • Voicing opinions and concerns 3. Downsizing and the survivor syndrome

  9. Fixed cost vs. variable cost Outsourcing 4. Counting the downsizing cost

  10. How much downsizing is enough? 10-12 laid off out of 115 employees 5. Downsizing as a last resort

  11. Downsizing remains complex • Most firms adopting downsizing strategies do not reap economic and organizational benefits • There is no empirical evidence to suggest a correlation between downsizing and improved financial performance • Affects the entire workforce, survivors, victims, and executioners, in a most profound manner • Five lessons can help to strategize the downsizing process Conclusion

  12. Annual Editions Business Ethics 10/11 by Richardson Article 20 pg. 66-75 BNET Business Dictionary, http://dictionary.bnet.com/definition/human+resource+planning.html, Date Viewed: May 24, 2010 Hennessy Honda, http://www.hennessyhonda.com/new-inventory/index.htm?reset=InventoryListing&invType=new&SByear=2010&SBmake=Honda&SBmodel=Accord%20Crosstou, Date Viewed: May 24, 2010 Merriam-Webster, http://www.merriam-webster.com/, Date Viewed: May 21, 2010 YouTube, http://www.youtube.com/watch?v=4nD40I4gGzQ , Date Viewed: May 24, 2010 References

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