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Factors that affect human resources management action in the Organization are divided into internal and external factors, from which the case studies reflect external factors that affect human resources management in the organization. The external factors that affect human resources management in the University are as follows: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 hasgenerally been adopted either reactively or proactively (Macky, 2004). To put a single downsizing cause forward is problematic and underrates its inherent complexity. Eachdownsizing decision is likely to constitute a combination of company-specific, industryspecific,and macroeconomic factors (Drew, 1994).Firms frequently justify downsizing through theemergence of deregulation, globalization, merger and acquisition (M&A) activities, globalcompetition, 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 havebeen identified; workforce reduction, organizationVolume 8, Number 1 ï April 2008 5redesign, and systemic strategies (Farell &Mavondo, 2004). First, the workforce reductionstrategy concentrates on the reduction of theoverall number of employees, including layoffs,retrenchments, natural attritions, early retirements,hiring freezes, golden parachutes, and buyoutpackages. This strategy is commonly implementedin a reactive manner as a cost-cutting measure(Ryan & Macky, 1998), yet has shown to be rarelysuccessful. Second, the organization redesignstrategy focuses on eliminating work and includesactivities, such as abolishing functions, eliminatinghierarchical levels, redesigning tasks, andconsolidating units (Farell & Mavondo, 2004).Third, the systemic strategy assumes a moreholistic and macro view focusing on changing theorganizationís intrinsic culture and the attitudes andvalues of its employees (Luthans & Sommer,1999). Studies have shown that most firms haveresorted to workforce reduction strategies
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