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Downsizing

In: Business and Management

Submitted By Johnlee
Words 1961
Pages 8
Employment Downsizing and Society
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Abstract The purpose of this research paper is to present the implications of the downsizing to the former employees and the social environment around this individual. The author presents the theoretical implementations of the downsizing and provides the implications to the laid of employee, his/ her family, and the employee who kept his/ her work. Later, the author discusses about ethical questions related to the downsizing. Keywords: downsizing, social impact, business ethics

Studying Business Ethics and examining real life situation an individual starts to see the world from a different angle. The one starts to see the other side of a dilemma and begins to realize that sometimes decision made might affect both his/ her life and the environment around them. Most of the times, the decision is like a scale of wrong and right. Therefore, understanding the consequences – both negative and positive – is an essential part of decision making process where personal benefit or strong relationship might contradict individual’s worldview or belief. In my paper, I will discuss the problem of making decision of the top managers to pursue economic benefits when restructuring the organizations and potential ramifications, such as impact of employment downsizing on employees, communities, and families of the employees. To start with, employment “downsizing refers to a company's decision to reduce its workforce for reasons other than poor performance, criminal conduct, or unethical behavior on the part of those being let go”(Weinstein, 2008, Para 2). The main reason for downsizing is to reduce cost of operation and improve organizational performance. Another positive side of downsizing leads to increase of the stock price of the organization and there is a short-term profit...

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