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The factors affecting the human resource management in the enterprise is divided into internal factors and external factors. The case study shows the external factors that affect the human resource management in the enterprise.What are the downsizing driving forces? Why do firms resort to downsizing in the first place? While downsizing is viewed. As a complicated multifaceted phenomenon (,, Gandolfi 2006), it has
generally been adopted either reactively or proactively. (Macky 2004). To, put a single downsizing cause forward is problematic and underrates its inherent complexity. Each
.Downsizing decision is likely to constitute a combination of company-specific industryspecific
and macroeconomic factors,,, (Drew 1994). Firms, frequently justify downsizing through the
emergence of deregulation globalization merger and acquisition,,, (M & A) activities global
competition technological innovation,,,And a shift in business strategies in order to achieve and retain competitive advantages (Sahdev 2003;
Zyglidopoulos,,, 2003).
How do organizations implement downsizing?
Three forms of implementation strategies have
been identified; workforce. Reduction organization
Volume, 8 Number 1, ï April 2008 5
redesign and systemic, strategies (Farell &
Mavondo 2004). First,,, The workforce reduction
.Strategy concentrates on the reduction of the
overall number of employees including layoffs,,,, natural attritions, retrenchments
Early retirements
hiring, freezes golden parachutes and,, buyout
packages. This strategy is commonly implemented
in a reactive. Manner as a cost-cutting measure
(Ryan, & Macky 1998), yet has shown to be rarely
successful. Second the organization, redesign
.Strategy focuses on eliminating work and includes
activities such as, abolishing functions eliminating
hierarchical levels,,, Redesigning, tasks and
consolidating units (Farell, & Mavondo 2004).
Third the systemic, strategy assumes a more
holistic. And macro view focusing on changing the
organization í s intrinsic culture and the attitudes and
values of its employees (Luthans. &, Sommer
1999).Studies have shown that most firms have
resorted to workforce reduction strategies.
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