Corporate Downsizing Corporate Downsizing Organizations in every segment of business, industry, government, and education are downsizing. Downsizing is and has been a controversial phenomenon in the last few years. The controversy that surrounds downsizing may be better described as a debate in organizational theory about whether change is adaptive or disruptive. The issues which establish the outcome of the controversy include why the downsizing is taking affect, how it is implemented, and what
Downsizing has become an extremely popular strategy in today’s business environment. Companies began downsizing in the late 1970’s to cut costs and improve the bottom line (Mishra et al., 1998). The term “downsizing” was coined to describe the action of dismissing a large portion of a company’s workforce in a very short period of time. According to online encyclopedia http://en.wikipedia.org downsizing refers to “layoffs initiated by a company in order to cut labor costs by reducing the size of the
The Personal Impact of Corporate Downsizing Demoralization is the result of a corporate downsizing and if not handled well by the officers of the corporation, the corporation can expect a decrease in; worker efficiency, production, teamwork, and cooperation. Adding to this and equally negative would be increases in; absenteeism, tardiness, mistakes and additional job loss. None of these create a positive work environment. Downsizing also places a large amount of stress on the individual's
An introduction to corporate downsizing. II. The reasons behind a company downsizing. A. Cash flow, profits, and profit margins. B. Organizational structure and procedures. III. Planning the downsizing. A. Pro and con factors. B. Identifying the options. IV. Implementing the downsizing. A. Announcing the action. B. Communicate. C. Staff Stability. V. Conclusion Corporate Downsizing: A Profitable Benefit
Downsizing and Organizational Culture Table of Contents Chapter 1........................................................................................................................1 Chapter 2........................................................................................................................2 Organizational Culture Defined........................................................................2 Downsizing Defined.....................
by the American Management Association (AMA), the most often claimed reasons for downsizing are “organizational restructuring,” “business downturn,” and “reengineering of business processes.” Downsizing has adversely affected 43 million jobs since 1980. Many organizations are realizing that downsizing may not be the best solution for reducing costs. The time and money it takes to train employees often make downsizing a wasteful procedure. By changing their business strategy, companies can find ways
Employee Morale After Downsizing Downsizing has become a significant idea in today's economy and maintaining the trust of employees when something like this takes place has also become very serious business (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). The question is not whether a company should downsize their employees but how to do the downsizing properly so that as few employees as possible are injured (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994)
“Less Is Not Always More” Downsizing; everyone has heard about it, talked about it, been a victim of it, or even had to implement it. Reports of downsizing occur frequently. I have repeatedly read the newspaper, watched the news on television, or listened to the radio and heard about mass lay-offs. There have been times that I have felt pity for the various people who lost their jobs, and there have been instances that I have not given it a moment’s consideration. I just thought, “I’m so glad it
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. In the 1980’s, twenty-five percent of middle management was eliminated in the United States (Greenberg/Baron 582). In the 1990’s, one million managers of American corporations with salaries over $40,000 also lost their
people think of it simply as downsizing. In my opinion it means much more. Downsizing is definitely one way that businesses act unethically. People are viewed as dispensable and replaceable. Companies also do not care much about their customers, they only care about how much money they can get from them. Companies like Ford and Microsoft are two companies that have also placed profits above people and ethics. I'm going to discuss the ethical issues as related to downsizing, Ford and Microsoft. I will
Excel Spreadsheet Use and the Strategic Corporate Plan Introduction In years past, every well-run corporation undoubtedly had a written business plan. Oftentimes, these plans were considered by many to be an exercise in frustration, as they were laboriously considered, written, then stored on the company's library shelf until the next business planning cycle. The last few decades have seen a radical change in the way companies do their planning. More often than not, the "old" business
Strategies can be formulated on three different levels: · Corporate level, · Business unit level, and · Functional or departmental level Strategy may be about competing and surviving as a firm, products are developed by business units. The role of the corporation is to mange its business units and products so that each is competitive and so that each contributes to corporate purposes. Corporate Level Strategy Corporate level strategy fundamentally is concerned with the selection
A Corporate Dystopia Our children are being brainwashed. Not overtly, mind you, and not in any way that would be so violent as to cause alarm with most parents, but subtly and persistently, powerful entities are programming and transforming the next generation of American citizens into obedient attendants and mindless drones. Without the necessary steps taken to prevent it, our future will lie in the hands of men and women who, instead of using a well-cultivated intellect, will feign attack
Corporate Bankruptcy Building a successful business is very difficult and when doing so some may encounter financial hardship. The law has established a process that can help rescue businesses. This is called bankruptcy. What is bankruptcy to a company? How does bankruptcy rescue businesses? The reader will understand the meaning of bankruptcy to a corporation, be familiarized with types of proceedings, and identify with businesses that have been rescued by bankruptcy proceedings. Bankruptcy
After news of the scandal of Enron, one of the hottest items on e-Bay was a 64-page copy of Enron’s corporate code of ethics. One seller/former employee proclaimed it had “never been opened.” In the forward Kenneth L. Lay, CEO of Enron stated, “We want to be proud of Enron and to know that it enjoys a reputation for fairness and honesty and that it is respected (Enron 2).” For a company with such an extensive code of ethics and a CEO who seemed to want the company to be respected for that, there
Corporate Manslaughter What is corporate manslaughter? Corporate manslaughter is a crime that can be committed by a company in relation to a work-related death. The offence is intrinsically linked to whether a director or senior manager - a "controlling mind and will" of the company - is guilty of manslaughter. If the director or manager is found guilty, the company is guilty; if the director or manager is found innocent, the company is innocent. Is it difficult to prosecute?
Corporate Interests and Their Impact on News Coverage Hypothesis There is no denying that news media is big business. The complete coverage of stories and investigative reports are certainly at risk with the rise of media as a business, rather than strictly a service to the public. Over the past few years, there have been a number of cases where television stations or news publications have killed news stories or forced reporters to slant stories due to pressure from advertisers or those
Corporate Wellness Programs Corporate wellness programs are critical to the fiscal fitness of organizations in the United States today. Corporate wellness programs vary in their methods, but the end goals are the same: decrease medical costs and increase employee productivity. Healthcare costs now consume over 50% of corporate profits and continue to increase at nearly 12% a year (Powell, 1999, p.15). This dramatic rise in costs has caused employers to look for innovative ways to combat the costs
Re-engineering the Corporation by Michael Hammer and James Champy Michael Hammer and James Champy became the uncontested "experts" to the corporate world for their blueprint of re-engineering. Why? What magical formula did these two individuals profess would make America great again? This essay will take a critical look at Hammer and Champy's book, Re-engineering the Corporation. Does this book have merit? Is it based on sound principles? It does not matter whether you agree or not, it only matters
ORGANIZING Askari Bank’s Organizational Design is bureaucratic because it is principally owned by the army and its working methods are directed by the board members of the bank. COMMENTS ON ASKARI BANK’S STRUCTURE Askari Bank 's structure is straightforward yet tall. The organization is predominant in this structure as it is owned by the armed force. All the power lies with the Board of Directors who dwell at the highest point of the structure. The level of formalization and work specialization