UNIVERSITY OF DAR ES SALAAM

COLLEGE OF NATURAL AND APPLIED SCIENCES (CoNAS)
DEPARTMENT OF AQUATIC SCIENCE AND FISHERIES (DASF)

FISHERIES MANAGEMENT AND CONSERVATION; AF 305

NAME OF STUDENT: NZOWA DENIS C.
REGISTRATION NUMBER; 2010-04-04726.
DEGREE PROGRAMME; BSC. IN AESC.
COURSE INSTRUCTOR; DR. NDARO
SUBMISSION; 19th APRIL 2013.

ASSIGNMENT 3.
Owing to the likelihood of occurrence of fishery collapse in near future, a fishery authority decided to carry out downsizing for the fishing company. Discuss the effects of such step on the welfare of the fishery community in the area.

INTRODUCTION Downsizing refers to the permanent reduction of a company's workforce and is generally associated with corporate reorganization, or creating a "leaner, meaner" company. Downsizings such as these are also commonly called reorganizing, reengineering, restructuring, or rightsizing. Regardless of the label applied, however, downsizing essentially refers to layoffs that may or may not be accompanied by systematic restructuring programs, such as staff reductions, departmental consolidations, plant or office closings, or other forms of reducing payroll expenses. In essence, restructuring efforts attempt to increase the amount of work output relative to the amount of work input.
Downsizings such as these are also commonly called reorganizing, reengineering, restructuring, or rightsizing. Regardless of the label applied, however, downsizing essentially refers to layoffs that may or may not be accompanied by systematic restructuring programs, such as staff reductions, departmental consolidations, plant or office closings, or other forms of reducing payroll expenses. Corporate downsizing results from both poor economic conditions and company decisions to eliminate jobs in order to cut costs and maintain or achieve specific levels of profitability.
Positive and Negative effects of downsizing fishing companies
Stock regeneration Among the positive effect of downsizing fishery companies is to give a better room for the remaining stock to regenerate and restore to its maximum population size. This will make better sustainable utilization of the resources for the future time to come since the stock will have yet been restored.
Minimal utilization of fisheries resources The amount of fisheries of resources taken from the fishery will be small as compared to when all the companies were operating. This will give a chance for the remaining stock reproduce and restore to it’s previously status.
Reorganization and Opportunity to change fishery for the better Following downsizing the fishery company, fisheries authority will have an opportunity to reorganize and change the fishery system to a good manner which will allow sustainable utilization of fisheries resources.
Employees structuring Another positive effect of downsizing fishery companies are to provide opportunities for remaining employees to show initiative, perform higher level tasks and to be rewarded due to their effectiveness in working.
Loss of employment Following the downfall of fishery companies, the employees will be left unemployed and so they will have to seek for the other alternatives of surviving. They have to engage themselves in other production activities which will make them pull through and afford to manage their daily life.
Decrease in workers morale to the left employees Downsizing, or laying off some of the workforce, will always have a negative impact on employee morale. Those left behind will lose mentors, friends and skilled colleagues. The remaining staff will wonder when the next wave is coming and if they, too, will be left unemployed.
Interpersonal Relationships In our modern society, most people spend more time with their coworkers than with their families. To suddenly see some of these coworkers go, usually on short notice, can be heartbreaking. The sense of familiarity and the support network that workers depend on to go through tough times at work, takes a serious hit during a downsizing. The trust that has been built between different departments and regions of the firm over many years will often be lost.
Fear of job Security In addition to the loss of key colleagues, downsizing also creates the fear that the next round of layoffs may be around the corner. Unfortunately, experience shows that layoffs come in waves, as management tends to wait between each round of workforce reduction to gauge the effect of the change. This fear that you may be the next to go leads many employees to the left companies to search for another job and sometimes leave the firm for a competitor, even if their jobs were secure.
Confidence in Employees Even if the downsizing occurs in a fair and orderly fashion, it sends a bad message to all employees; no company downsizes when business is good and demand is growing. Downsizing is almost always a sign that things aren't going very well. While further cuts in the workforce may be avoided, workers will know that additional austerity measures will inevitably follow
Increasing inflationary pressure.
As the result of downsizing fisheries company, there will be an increase in the supply of currency or credit relative to the availability of goods and services, resulting in higher prices and a decrease in the purchasing power of money. The supply of fisheries resources will fall leading to the increase in demand of those products and so the price will automatically rise due to shortage in supply of fisheries resources.

Increasing teenage crime rates as a result of higher unemployment

This is one among the negative effect of downsizing fishery companies to overcome the problem of fishery collapse. Some of those people left unemployed might engage in lubberly and thieving activities so as to master their daily life.

Economic crisis
Most of the communities living around the fishery companies rely on fisheries activities on the livelihood of their daily life. Their economic also depends on fishing activity conducted in a particular area. Following the downsizing of fishery companies, the community around will experience economic crisis due to the fact that most of them will be left unemployed.

Decrease of foreign currency
Fisheries sector is among the most important sectors which contribute a lot to the economy of most of the developing countries by earning the foreign currency and maximizing the economy of the country. Due to downsizing of fishery companies in preventing fishery collapse in the near future, the revenue obtained from fisheries sector will be reduced depending on the scale of downsizing and so, the economy of a particular state.
Shortage of supply
There will be shortage in supply of fisheries resources as the result of downsizing the fishery companies in escaping the fishery collapse. The supply will not meet the demand of the market and so leading to the rise in price of a particular resource and so affecting the livelihood of a particular society around the place..
An increase in the number of lawsuits and disability claims, which tends to occur after downsizing episodes.
Restructuring programs sometimes take years to bear fruit because of ensuing employee confusion and the amount of time it takes for employees to adjust to their new roles and responsibilities.

References;
New York Times (1996). The downsizing of America. New York: Times Books.

Greengard, S. (November 1993). "Don’t rush downsizing: Plan, plan, plan," Personnel Journal 72(11), 64-76.

Armstrong-Stassen, M. (1993). "Survivors’ reactions to a workforce reduction

Cascio, W. (1993). "Downsizing: What do we know? What have we learned?" Academy of Management Executive 7(1), pp. 95-104.