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Downsizing Can be the consequence of a Management Practice or Strategy
downsizing the structure of the organization to a smaller less complex Many of the assumed advantages to downsizing have not been empirically substantiated. The Financial stability that is expected when organizations have downsized has not been realized (. tsai & Yen, the 2,008th; Guthrie & Datta, 2 008; Tsai, Yen, Huang & Huang, two thousand and seven; Gilson et al., 2,004; Casio, 2002nd; Roth, one thousand nine hundred ninety-three). Employees Who remain with the Company, termed survivors, have not. been provided with the needed Support to take on the additional Work that comes from the reduced WorkForce. Several researchers Found that there was a Series of physical and Mental Health conditions that are referred to as the "Survivor's Syndrome. "The condition includes anxiety, low. Morale, less Productivity, High levels of Distrust and excessive cautiousness (Schiro & Baker, the 2,009th). At a time when there Needs to have more open Communication, employees Move to "hoarding" information in the hopes that it Will Secure their position (Gandolfi. , 2008). Furthermore, survivors of organizational downsizing also Concern themselves with issues related to Justice not to mention their own Feelings of job insecurity (Chipunza & Samuel, in 2013). In Summary, organizational downsizing has not been unequivocally shown to Achieve its intended outcomes. . However, it has been argued that the downsizing harms Organization (Guthrie & Datta, 2002nd). Lower overhead costs, less bureaucracy, Decisionmaking Faster, smoother Communication, Greater entrepreneurship, and Productivity Increased levels of employee (Burke & Cooper, two thousand). Downsizing generates negative performance outcomes, such as the failure to reduce costs, the lack of significant increase in return on assets and return on common stock (Cascio, 1991, 1993; Cascio, Young, & Morris, 1997), decreased levels of worker commitment. (Cameron et al., 1993) and commitment (Zatzick & Iverson, 2006), and the emergence of the 'dirty dozen' - a list of negative attributes associated with organizational decline (Cameron, 1994). A number of downsizing studies address the. 'survivor syndrome' as a cluster of negative workforce outcomes (Brockner, Davy, & Carter, 1985; Brockner et al., 1986a, 1986b; Brockner, Greenberg, & Grover, 1988a). Downsizing research reports decreased employee efforts and adaptability, increased. propensity to leave, and increased resistance to change (Brockner, 1992; Brockner, Grover, & Blonder, 1988b; Greenhalgh & Rosenblatt, 1984; Littler, Wiesner, & Dunford, 2003). Further, studies on the financial consequences of downsizing raise problematic. costs associated with downsizing activities (Atwood, Coke, Cooper, & Loria, 1995). These include deteriorating shareholder value (Appelbaum, Everard, & Hung, 1999a), effects of severance payments (Barker & Duhaime, 1997; Barker & Mone, 1994. ; Downs, 1995; Robbins & Pearce, 1992), failure in reducing costs (Gandolfi & Hansson, 2010), and decreasing returns on assets and return on common stock (Cascio, 1991, 1993; Cascio et al., 1997). (Galdofi. the 2011th) How Challenge Consulting helps You successfully Lead Change initiatives Wythe approach Step 1: Long-Term Strategy long-term corporate strategy that is committed to a long-term strategy for the expected changes are likely to achieve returns. The following financial downsizing. As seen in Figure 2, when downsizing is not a strategic management or left unmanaged negative effect of the changes more pronounced and long-lasting. Prepare your senior leaders with the skills to set long-term strategy is vital to the success of which is expected to shrink. Counseling challenging work with senior leaders of your monitor: the risks and benefits of change strategies different in your organization ROI and the business case for reducing the size. Compared to the alternatives to downsizing long term strategies for growth in the future for organizations challenged Consulting has worked with senior leaders to develop a plan that will take your organization forward to. including planning counseling - consultation and participation in the process of change - that is what it should be part of the staff? communication plan - inside, outside, start and continued engagement plan - steps to ensure that employee engagement has a long-term vision and strategy for change.
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