Downsizing is the act of reducing the number of employees in an organization to achieve a specific objective. Companies reduce employees: the need to cut expenses costs when relocating a company to a different region or country and adopting new technology that will replace human labour (“Definition of Downsizing – Gartner Human Resources Glossary”, 2022). The paper will discuss the article “Downsizing with dignity”, its considerations, impacts on the remaining employee, and the experimental process of downsizing.
It is a problematic method even during monetary strains in an organization. The legal management of the organization does it. Most organizations assume the symptoms of early retirement until it is too late that they act rapidly to reduce the monetary drain of many workers. Moreover, less attention is given to the workers to be discharged, the amount of compensation, and the extent to which the firm will help them find other jobs. Furthermore, the afterlife of the laid-off workers is as important as the firm’s future. Choices are made by the lawful sector, whose primary goal is to minimize the probability of the action.
Further, the process is done rapidly, leaving those laid off annoyed and the existing ones vulnerable and discouraged. Lastly, vulnerability is the opposition to high accomplishment because it leads to a lot of blame shifting and reduced morale. It, therefore, acts as an encouragement to collapse the organization rather than a motivation to succeed (Downs, 2011. pp.1).
In addition, the ineffective method that an organization uses during downsizing is permitting lawful interest to plan early retirement in that most management piece of advice is that the organization should use the last employed first dismissed strategy covering all the departments. So, no worker can say they were discriminated against during the process, and the management is told not to promise the workers anything since they may not fulfil it. The strategy may be successful and lawful but not organizational since they need to consider the areas that need more workers than others to implement. Furthermore, not all departments need the same number of workers, so the organization should countercheck for the departments that will need the necessary number of workers that can work in the meantime. Secondly, granting as little awareness as possible in that most management fear that when employees are told in advance, they will be dismissed, demoralized, and sabotage the company; hence most of them give hints or rather keep quiet about the information. The strategy reduces the trust between the existing employees and the management. Lastly, after the early retirement, most management acts as if nothing has happened, but employees should be given time to talk about it freely (Downs,2011, pp.1-2).
Furthermore, an effective way of downsizing is to determine the state of the problem between the profit and the employees. In that, laying off people depending on the headcount is not a solution. If the problem is workers, the firm should find a strategic plan that will work out for both the company and the employees. What strategy will help cut costs and retain talented workers? Next, how the company will be after early retirement should be considered by identifying its end goal through having a clear vision of the new organization? Furthermore, for the dismissal to be successful, one has to treat employees with respect by informing them early and respectfully. In addition, while laying off the employees, one should consider the necessary laws, like the employees’ rights and work adjustments (Downs,2011, pp.2-4).
The considerations of the downsizing process are being transparent with employees, telling them in advance, and using a strategy that will consider the work distribution and not the date of employment. Furthermore, let the existing employees freely discuss the discharge of other employees, consider the state of the issue, people or profit, and find a suitable solution. In addition, have a clear plan on how the company will look after the dismissed employees are gone and be respectful of handling the employees being laid off. Lastly, one should consider the necessary laws when dismissing employees. The above considerations are essential to building trust between the employees and the management and improving the existing worker’s working morale (Downs,2011, pp.1-4).
The impact of downsizing on remaining employees is that some feel helpless when the firm cannot embrace what has occurred. Furthermore, they are demoralized to work and have mistrust depending on how late the firm delivers the information to their fellow laid-off workers (Downs,2011, pp.1-4). In addition, they might also have difficulty accepting and adjusting to the situation; some need to talk about it while others avoid the topic. Furthermore, some have a different stress level, while others deal with it through interpersonal conflict, sickness, and accidents (Heathfield,2019).
The requirements of effective downsizing determine the state of the problems if it is people the organization wants to eliminate by eliminating or finding ways of making more profits while retaining the workers. Next, the firm should have a vision of how the company will be after the laying-off period, and respecting the remaining and the discharged employees also matters which should be done by treating them well. Further, considering the various laws when laying off workers can also be productive (Downs,2011, pp.2-3). Additionally, the organization must develop a strategic transition plan to help them throughout the process and ensure their managers know their inspiring responsibility. They also have to involve the Human resource personnel for further consultation and develop the best communication strategy. They should ensure that the laying off information is communicated early and in the right way and be empathetic when communicating the message (“Seven Steps to Smoother Downsizing, 1992).
In conclusion, when laying off employees, the organization should consider the work distribution and not employed date and communicate early and correctly. Furthermore, they should also address the matter accordingly with the remaining employees and consider a more effective strategy between employees and profit to deal with. They should also be respectful to both employees, consider necessary laws, plan how the company will be after the laying-off period and be transparent with the employees on the information. The consideration builds trust among the employees and the management and motivates them. Demoralization, helplessness, mistrust, interpersonal conflict, and sickness impact the remaining employees after downsizing.
References
Downs, A. (2011). Downsizing with dignity. In J. Law, Business: the ultimate resource (3rd ed.). A&C Black. Credo Reference: https://search-credoreference-com.ezproxy.snhu.edu/content/entry/ultimatebusiness/downsizing_with_dignity/0?
Definition of Downsizing – Gartner Human Resources Glossary. Gartner. (2022). Retrieved 23 July 2022, from https://www.gartner.com/en/human-resources/glossary/downsizing.
HeathField, S. (2019). The Effects of Downsizing on Employees Who Survive the Layoffs. The Balance Careers. Retrieved 23 July 2022, from https://www.thebalancecareers.com/how-employees-respond-to-change-after-layoffs-1918585.
Seven Steps to Smoother Downsizing. Government Executive. (1992). Retrieved 23 July 2022, from https://www.govexec.com/magazine/1992/02/seven-steps-to-smoother-downsizing/7440/.
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