ImpactofDownsizing - Downsizing 1 Course Project Downsizing...

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Downsizing 1 Course Project Downsizing HR587: Managing Organizational Change Professor Gary McGrath April 25, 2010.
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Downsizing 2 Table of Contents I. Introduction & Statement of the Problem…………………………………………………3 II. Summary of the Facts……………………………………………………………………. .3 III. Analysis…………………………………………………………………………… ………4 IV. Recommendations………………………………………………………………… ……. .13 V. Conclusions………………………………………………………………………… ……14
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Downsizing 3 Downsizing Introduction & Statement of the Problem Downsizing, rightsizing, resizing, layoff, reduction. A downsizing by any other name is still painful for both laid off and survival employees alike. No matter what label a company gives the process; there is the task of implementing the reduction in workforce while impacting the production and morale of the remaining employees. This article is going to analyze the impact of downsizing using Jay Galbraith’s Star Model. In the Star Model design policies fall into five categories: The first is strategy , which determines direction. The second is structure, which determines the location of decision-making power. The third is processes, which have to do with the flow of information; they are the means of responding to information technologies. The fourth is rewards and reward systems, which influence the motivation of people to perform and address organizational goals. The fifth category of the model is made up of policies relating to people, who influence and frequently define the employees’ mind-sets and skills. Summary of the Facts Downsizing may occur by reducing work not just employees as well as by eliminating functions, hierarchical levels, or units. Downsizing, which involves reducing the workforce but also eliminates functions, and redesigns systems and policies to contain costs, is becoming more common in U.S. companies (Cameron, Freeman, & Mishra, 1991). The fundamental reason to resize the organization is to improve organizational performance and to reduce the costs of operation. Downsizing is the intentional process of permanently reducing staff numbers in an organization (Palmer, Dunford, & Akin, 2009). Downsizing, the planned elimination of positions or jobs, is a phenomenon that has affected hundreds of companies and millions of workers since
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Downsizing 4 the late 1980s (Cascio, 1993). Downsizing will continue as long as overhead costs remain noncompetitive with domestic and international rivals (Cascio, 1993). Analysis
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This note was uploaded on 11/02/2010 for the course MISM is535 taught by Professor Lam during the Spring '10 term at Keller Graduate School of Management.

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ImpactofDownsizing - Downsizing 1 Course Project Downsizing...

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