...Worldwide Downsizing as a management tool was first introduced in the US during the mid-20th century. It refers to the process of reducing the number of employees on the operating payroll by way of terminations, retirements or spin-offs. The process essentially involves the dismissal of a large portion of a company's workforce within a very short span of time. From the management's point of view, downsizing can be defined as 'a set of organizational activities undertaken by the management, designed to improve organizational efficiency, productivity, and/or competitiveness.' This definition places downsizing in the category of management tools such as reengineering and rightsizing. Downsizing is not the same as traditional layoffs. In traditional layoffs, employees are asked to leave temporarily and return when the market situation improves. But in downsizing, employees are asked to leave permanently. Both strategies share one common feature: employees are dismissed not for incompetence but because management decided to reduce the overall work force. In late 1990s and early 2000s, different organizations adopted different kinds of downsizing techniques and strategies (Refer Table II). TABLE II MAJOR TECHNIQUES AND STRATEGIES OF DOWNSIZING |- Attrition: Natural reduction of workforce that occurs when employees leave the organization due to retirement, death or resignation. | |It is a normal Human Resources (HR) practice of a downsizing company to freeze hiring totally/partially...
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...Mismanaged Layoffs April Auld Cheryl Oaks John Curtis Phillip Bradshaw PHL/320 November 23, 2015 Mathew Hazlett Mismanaged Layoffs To summarize our teams discussion this week. We narrowed the discussion down to the way layoffs are executed within any company for the most part. We already agree that there are far too many layoffs in today’s economy. Therefore, the traumatic effects this will cause on the company. Including the individual’s and the workers that are left behind, is the real issue at hand. The aggressiveness or empathy levels of the situation never help. Larger companies have a better finesse about the separations from the company it is well planned with severance packages for the employees. No Matter how well planned it is still a shock to the system. Including all that is involved families and so forth. The fact is that there is no great way to separate anyone from their position. However, we all had our opinions on the solutions for this, using fewer contract workers, transferring staff from one department to another, hiring temp staff seasonally, offering pay cuts over termination. Setting up an alternative plan of employment, job fairs, offer classes in the severance...
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...Re-organization and Layoff Summary PHL/320 March 31, 2016 Timothy Woods Re-organization and Layoff Summary Being the manger or the supervisor in HR that is in charge of hiring and firing people can be really tough. When doing this job many try take personal emotions out of it, but for some the thought of ending another’s career, or the means of taking care of a family could be a tough pill to swallow. In reviewing this all team, A has come to many conclusions and slowly coming up with answers to the “hard questions” that must be solved… Summarizing the Issue The issue and the matter at hand is how to deal with downsizing from an organizations perception. A company or a business must deal with the difficult task of having to let go of certain employees but the question is, how? How do they implement a strategy about letting someone go when they have to be confronted with different reactions and different personalities? Being that all situations are different, there must be a variety of strategies that can be used in the downsizing process. What is the Problem? The underlying problem is not downsizing because after all a business will do whatever they feel is best for themselves. The underlying problem is what happens after the downsizing occurs. Our group acknowledged that downsizing can have a negative effect on employees and their morale. It can also have an effect on the employees depending on the organization’s methods of handling the situation. It is...
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...Alternatives to Layoffs The Great Recession of 2007-2009 had unemployment rates increase from 5.0 percent in December 2007 to 9.5 percent in June 2000. California saw some of the highest unemployment rates in the country at over 10 percent. This included one of the highest mass layoff events in history. There were 3,059 layoff actions in February 2009 involving 326,392 workers according to the U.S. Bureau of Labor Statistics. With this recent history of mass layoffs business, government, educators, and even students have started to take a closer look at layoffs. An article in Newsweek (The Case Against Layoffs: They Often Backfire) illustrates how layoffs often backfire on businesses and can actually incur big costs due to severance, outplacement, toll on morale, and productivity. Studies have also shown that there are negative stock returns after companies announced layoffs. The article continues to say “a study of 122 companies found that downsizing reduced subsequent profitability and that the negative consequences of downsizing were particularly evident”. Also, when a layoff is announced companies often lose their best employees. These are the top performers who weren’t going to be laid off, but feel insecure with their current employer so they look for a more stable situation. Layoffs are not reliable in cost cutting, they are not good for employees, they are not good for employers, and they are not good for the economy and society. Other methods to layoffs need...
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...Re-organization and Layoff Team Discussion & Summary Team B PHL/320 2/23/2015 Wayne Moore Mismanaged layoffs can go 'horribly wrong.' The effect of mismanaged LAYOFFs on the remaining workforce and the effects, lack of management preparation, the human condition, and lack of mitigation strategies. We think that the problem with this article is that not enough managers or HR personal, know how to let a person go from their employment effectively. They sometimes don't realize the impact that it has on the other employees morals. Also, that sometimes companies don't take a closer look to make sure downsizing will be the answer to cutting costs like they think that it will. Every HR or manager should be let go in their lifetime so that they know what it feels like. I believe that this statement holds tremendous merit because the best lessons in life are learned through personal experience. In order to adequately communicate life changing messages of sorts, it should be done by a seasoned manager. I will be very surprised if any company has a potential layoff learning path that will coach and train the management staff for these kinds of things. It is imperative to be sensitive to the individual being laid off as this will impact their livelihood significantly. I do agree that other options much is explored such as relocating or wage cuts before making the decision to lay off people. The Problem Layoffs create uncertainty in the workforce causing loss of productivity...
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...Persuasive Essay: Layoffs within a Company Prudence Blackman COMM/215 October-13, 2014 Dr. Stephanie Lyncheski Persuasive Essay: Layoffs within a Company The decision to lay off employees cannot be the easiest for companies. There is a variety of different reasons why employers layoff their employees, and the laws in many states allow them to at any time as long as the reason does not contravene state or federal law. Being let go from your job can happen by firing or layoff, and though neither is, usually, desired, the layoff is typically the method that carries less of a stigma. Firing occurs with one worker for any reason that, usually, involves job performance, unethical behavior or personality differences. Meanwhile, a layoff, usually, occurs with more than one worker for more impersonal reasons involving business or economic decisions. Regardless of the reason, companies must take great care in the way they conduct a layoff to avoid legal ramifications. Even though, layoffs can cause low morale amongst employees, companies have to use layoffs, as a way to optimize labor costs, staff reduction, and relocation. In addition, it is also necessary for the event of mergers or buyouts but it is necessary to aid in the restructuring of the company in hopes to regain financial stability. Cutting Costs The most common reason for being laid off is the company needing to cut costs in some way. This need could stem from debts that have to be paid off or lack of profits, because...
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...Re-organization and Layoff: Issue and Problem Identification April 3, 2016 According to Bouw’s article (2013), she discusses the issues of improper managing and administration in the event of a company layoff. Mismanaged cutbacks begin with the Human Resources Department themselves. The article states their lack of education, training, and company knowledge, is the reasoning for these incidents. When a manager isn’t properly prepared for a cutback, it can possibly affect the company as a whole. "It's traumatic to the remaining staff - the survivors - and can create fear and resentment"- Mr. Swartz. The company needs to look at all options before they decide to do layoffs or terminate employment. The cut backs can be done in different ways other than treating an employee like they are commodities. The business problem starts with the lack of training the managers receive on how to handle a layoff in the company or termination of an employee. Termination of employees can cause negative results for the company if the management team does not handle the situation properly. Businesses do not focus on how to approach different scenarios and emotions in the event of a termination. Managers often times let their personal emotions get in the way when terminating an employee. They tend to ramble on, and sugar coat the reasoning why their decision was so hard to let them go. Managers are not being straightforward and honest with the employee. Employees that do not understand...
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...Layoff the Sadness for Layoffs Do layoffs make people happier in the long run? Do they give people the opportunity to finding the meaning of true happiness? All of these questions that don’t typically come up in our heads we hear of people bring laid off. Our initial reaction is to feel sad and solemn for whoever was laid off, but what if it isn’t the end of the world? Of coarse it sets you back, especially if you aren’t expecting the layoff. You don’t know what to do in the moment, because you’ve relied so much on this singular career. However, getting laid off gives you the chance to open brand new doors that you never knew existed. Closing old doors always gives the opportunity of opening new ones and possibly even better ones. Sometimes you never knew that your new door was a better possibility and option for yourself....
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...Re-organization and Layoff: Issue and Problem Identification Team B Damairus Logan PHL/320 In any career aspect, when there are new positions, there is always some type of training involved. Whether it is something simple as cashiering or something more advanced like managing. There will always be something new to learn, most of what you need to know is taught to you through an orientation or the training. There are some things that you will learn along the journey in your new position. For managers they are not specifically trained on how to lay-off or terminate an employee. Terminating or laying off an employee is not as easy as it may seem. The employees that are being let go are human beings and they will have emotions towards the decision that was made. This can be a devastation or even leave the former employee feeling betrayed. These are all real problems, if the manager has not handled this type of situation before, the situation can turn out horribly wrong. If the managers were properly trained it could save time and money on the terminating process. It could also save the company’s reputation. If a layoff or termination goes wrong there can be bitterness towards the company and this could potentially leave both parties on bad terms. And the former employee may have animosity towards the company and their opinion can spread and potential consumers or even employers could be in jeopardy. Not to mention the threat of lawsuits and civil action. Corporates and...
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...Comcast Unexpected Layoffs in 2011 Terrica L. Brown COMM 215 May 10, 2013 Charlotte McInnisd Curtis, PhD Comcast Unexpected Lay-offs in 2011 Comcast unexpected layoffs in 2011 were a bad impact on several of my co-works. Imagine coming to work on a Monday morning not knowing that your life would be changed without any prior notice from that day forward. We were not aware of this layoffs and it caught us all by surprise. The layoff left over 30 of my co-workers without a job in 2011. Comcast unexpected lay-offs in 2011 impacted all of their employees lives. We learn about the unexpected layoff two weeks before the company transition from billing and repair to retention. At the beginning of the unexpected layoff, we were all scheduled a meeting with management. Each employee was e-mailed a certain date, time frame, and location to meet with management. When we all sat down to discuss the guidelines, procedures, and the process of the new department, we were all advised that we all had to submit a resume and an application to apply for the new position. The company decided to change our department from Billing and Repair to Retention. The management advised us to prepare an updated resume and to go online internally to apply for the new position. If there were any employees who were currently on a corrective action, that employee would not be eligible to apply for the position, unless the corrective action was about to expire. We were all devastated...
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...Re-organization and Layoff: Issue and Problem Identification Paper Team D: Keshia Simpson, Shaquia Brewer, Lamar Vargas, Lynne G. PHL/320 November 2, 2015 Professor Greg Reeves Re-organization and Layoff: Issue and Problem Identification There's always a problem in an organization that must be resolved. This paper will identify the problem, explain why this is an underlying problem, reflect on my groups collaboration process in defining the problem, and explain how a clearly defined problem can help find a solution. Collaboration Defining the Problem As we begin to collaborate on this article we tossed around several ideas of what we believe the problem is. One of the initial problems that we discussed was the lack of actual managers. It was discussed that there was not enough managers to properly manage companies, a lot of the problems were going unrecognized, and were unsolved therefore eventually leading to the company being forced to lay off due to the lack of business or other issues. After a company had been forced into layoff’s, the managers did not help the employee’s understand why. The improper handling of these issues can have a negative impact on the company overall. After we carefully examined this as an issue, we discovered that no matter how many managers a company has, the managers should be properly trained to identify issues, overcome problems, and in case of layoff’s they should be able to keep the company’s morale intact....
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...Re-organization and Layoff- Issue and Problem Identification May 25, 2015 Re-organization and Layoff- Issue and Problem Identification Layoffs can come about in a number of ways, but the form of layoffs that policymakers have shown they are most concerned about occurs when businesses displace employees. Layoffs are the forward and backward movement within the business cycle, but involuntary job loss is ever-present because firms remove workers for reasons other than temporarily weak demand of goods and services. Employers also conduct layoffs for reasons specific to them or their industry (Levine, 2005). According to Linda Levine, a specialist in labor economics, “the term "downsizing" is describing a practice that became prevalent during the 1980s of typically "old economy" manufacturers restructuring their operations through large-scale layoffs to become more competitive in the global marketplace” (2005). Reorganizing work to improve competitive advantage has since spread to "new economy" manufacturers and to firms in the service sector. It also includes more than downsizing, such as sending work to facilities within and outside U.S. borders. By definition, restructuring achieved through downsizing produces a net loss of jobs at companies. (Levine, 2005). The main issues are that employers don't consider an alternative solution to laying off employees, nor do they dismiss employees in an appropriate way. What can be done instead of a lay off? Has the decision making...
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...they don't live in fear," he says (“Mismanaged layoffs can go 'horribly wrong',” 2013). Managers tend to come off a little rude when terminating or laying off employees. Another solution would be consider whether or not the loss of the employee is necessary. Instead of laying off employees companies can place that employee in another section of the company that he/she has the skills to do and the position is open. Doing this allows the company to have fewer contracts or cutting wages. Managers also tend to talk too much or not talk enough which can sometimes come off to an employee as uncaring. Knowing what to say and how to say it should also be something managers should think about when having to terminate or layoff employees. Employers must also follow the law when terminating or laying off employees. Sometimes managers terminate employees based off of emotions and feelings towards that individual being laid off or terminated. Under the Canada Labor Code, which covers federal employees, an employer has to provide at least two weeks' notice in writing or two weeks wages to terminated employees after three consecutive months of employment, according to Human Resources and Skills Development Canada. Workers with at least 12 consecutive months of continuous employment also qualify for severance pay. The rules vary by province for the rest of the work force, including whether or not the employee belongs to a union. (“Mismanaged layoffs can go...
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...average/outstanding performance Reviews. Unfortunately, with this decision we could face legal lawsuits if he accuses us of racial discrimination, age discrimination or another discrimination based on him currently looking for a new career and job. I would like to also suggest alternatives to laying off these two employee’s which may result in decrease in company expenses. These alternatives could be cutting unneeded resources in departments, hiring/pay/promotion freezes, elimination of overtime or offering employee’s option to cut hours. However, if these alternatives are not possible, I will do whatever I can do to assist the five employee’s in the following manners: I will offer the layoffs with the continuation of their benefits for one year with at least a week notice of their layoff. For the remaining employee’s, I will communicate with them so they feel safe with the company and to keep them motivated to maintain and sustain the current performance...
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...Re-Organization and Layoff: Decision Making SAMANTHA STINSON PHL/320 March 14, 2016 Jason Miller Re-Organization and Layoff: Decision Making Introduction When a company chooses to conduct a mass layoff, the employees are not the only ones affected, the ethical business environment and economy are also at threat. Handling a company’s finances can be very puzzling and companies that find it difficult to overcome this task, experience a downturn, weakening business, and when this occurs, the need to find solutions to relieve their financial issues become critical. The purpose of this paper is to provide a recommendation from the two solutions provided in Week 4, how this solution benefits the middle-income customer, business decisions involved in the process, and what resources a company would need to implement that decision. Employee Buyout When a company is enduring extreme financial hardships, they may be able to encourage their workers to resign or retire voluntarily. “A buyout typically includes an offer of severance pay for a particular length of time and the continuance of other fringe benefits.” (D. Sullivan, 2016). The employer is entitled to negotiate the terms so they are not only favorable to the company but the employee too. A positive side effect the company gains from offering buyouts instead of laying off or firing employees can minimize possible lawsuits and bad press. There are several laws and regulations that must be followed when pursuing the employee...
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