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Downsizing has a direct impact on the financial and human resources The Effects of Downsizing
The adoption of downsizing has profound. Financial and human consequences
The primary advantages associated with debureaucratization downsizing is that organizations. Are purportedly freed from the stifling "iron shackles" that restrain, organizational creativityCommunication and, flexibility (Donnellon, and Scully 1994). Ivancevich and Donnelly (1975), for example found that, flatter. Organizations were associated with less stress greater employee, satisfaction and increased, employee performance.
While. These arguments represent potential advantages of downsizing for, the organizationThere 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 creative experience more personal responsibility. And satisfaction from their enriched work and are, able better to understand the workings of the entire organization (Pinchot. And, Pinchot1994).
, Additionally communication is thought to be faster and more direct in this sort of environment thereby encouraging. Intraorganizational communication processes and outcomes. Also 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 rewarding more responsibilities, will, be sharedAnd 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 that although there, may be fewer workers following, a downsizingThe 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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