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Include the belief that Productivity can occur by identifying a function).Productivity improvements are based upon the belief that fewer levels of management result in an increase in feelings of. Ownership in achieving organizational, goals (Gandolfi
.2008) with the belief that the enhancement of productivity can be achieved by specifying a function.2008)
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There are a number of advantages. The major reported benefit is to cut costs during times of decreased business, income. Other advantages include the belief that an increase in productivity can occur by eliminating functions identifies as redundant.These productivity improvements are based upon the belief that fewer levels of management result in an increase in feelings. Of ownership in achieving organizational, goals (Gandolfi
2008). A related advantage is that communication improves with. Fewer layers in the, organization (Roth
1993). By, eliminating employees it is believed that, expenses decrease resulting. In permanent reductions in
.Fixed costs (Gandolfi 2008; Gilson, et al, 2004; Cascio 2002). Some, firms have experienced other
advantages such as altering. The skill mix to implement new business, strategies (Cascio 2002). Another
advantage is to reduce costs by replacing full. Time permanent with, temporary or contract workers (Cascio
2002, Dating back, to 1993).There have been notable failures of many downsizing initiatives to deliver these
benefits, (Cascio 2002)
Why downsizing?? Environmental forces constantly affect society and organizations alike. On the
one hand organizations can, create a cycle. Whereby they can influence or control the circumstances in which they operate through the changes they make and the way. In which they make them (IJAM)
.Negative effects than the survivors. In light, of that
the following conclusions can be made:
ï Downsizing produces considerable. Human
consequences the so-called, side or
aftereffects of downsizing;
ï Downsizing impacts the entire workforce
survivors,,, ,, victims and executors in a most
profound manner;
ï Survivors generally find themselves with
increased workloads and job. Responsibilities
.While frequently receiving few or no
resources training and,, support;
ï Victims commonly obtain outplacement
services. And financial packages when exiting
the downsized firms;
ï Survivors suffer from a range of sicknesses
during the process. Of downsizing;
ï Executors suffer from similar effects as
victims and survivors. (Gandolfi 2008)
.The primary advantages associated with debureaucratization downsizing is that organizations are purportedly freed from. The stifling "iron shackles" that restrain organizational creativity communication and flexibility (,,, Donnellon and Scully. 1994). Ivancevich and Donnelly (1975), for example found that, flatter organizations were associated with, less stress greater. Employee, satisfactionAnd increased employee performance.
While these arguments represent potential advantages of downsizing for, the organization. There are also arguments for potential employee-level advantages of downsizing. Related to debureaucratization for example,,, It has been asserted that individuals in delayered organizations are freer to, be creativeExperience more personal responsibility and satisfaction from their, enriched work and are able better to understand the. Workings of the entire organization (Pinchot, and Pinchot 1994).
, Additionally communication is thought to be faster and. More direct in this sort of environment thereby encouraging intraorganizational communication processes and, Also outcomes.Because an important feature of bureaucratization is to eliminate "meritocracies" (Donnellon, and Scully 1995), it has. Been suggested that employees are freer to work in teams concentrating on essential organizational functions. In, such environments. It, is argued because employees are not held accountable for short-term individual performance,,They may likely contribute toward long-term organizational goals (DOnnellon, and Scully 1995).
There are also arguments. That organizational downsizing can be liberating and empowering for employees. While it is clear that downsizing comes at. A risk some promote, the idea that employees stand to gain considerably as organizations downsize. The remaining work will. Be, more rewardingMore responsibilities will, be shared and the opportunities for personal growth and development will be increased, Additionally,. Workers in such environments may be encouraged to acquire new skills to perform different tasks containing possibilities,, For increased educational and career advancements. Thus the underlying, idea advanced here, is thatAlthough there may be fewer workers following a downsizing the work, remaining represents more opportunity for the remaining. Employees and these employees have a greater chance of controlling their own destiny.
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