Corporate Restructuring - Corporate Restructuring -...

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Corporate Restructuring - INTRODUCTION - Downsizing, restructuring, rightsizing, including a term as obscure as census adjustment has been used to describe the plague that has affected corporate America for years and has left many of the hardest working employees unemployed. In the 1980s, twenty-five percent of middle managers eliminated in the United States (Greenberg / Baron 582). In the 1990s, a administrators million U.S. companies with salaries above $ 40,000 also lost their jobs (Greenberg / Baron 582). Overall, the Fortune 500 have eliminated 4.4 million jobs since 1979 (Greenberg / Baron 627). Although This reduction in size of companies may have many reasons behind it and can not be sometimes prevent, there are simple steps that a company can take to make the process easier for employees laid off and those who survive with the company. - Stages of downsizing - The downsizing process can generally be divided into three distinct stages. The first stage is called the diagnostic stage. At this stage, management staff meets and determines the amount of costs and expenses to be reduced, and to what extent can leave layoffs (Moore 49). This stage usually takes about two to three months to complete. During this time, senior management reviews all financial documents in order to determine how Much is needed to be cut in salary costs (Moore 50). This stage is when he arrived at the conclusion of the senior management has a detailed plan about who is going to let go, and will remain with the company. During this stage, there is a common mistake many companies make: lack of communication. Environmental management is usually outside of any plans for staff reduction. This is wrong and creates a great error. Middle managers should be seen as a valuable tool to input, where the cuts should be made (Moore 51). The next stage of downsizing is the implementation stage. During this stage of the employees are laid off. The time between the announcement and actual dismissal should be as short as possible. This almost ensures that a Panic can be avoided, and give a clear view of the current situation without causing mass hysteria. In a management position, it is difficult to explain to an employee who
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This note was uploaded on 09/20/2011 for the course BUSINESS A MGT 521 taught by Professor Dr.ude during the Winter '11 term at University of Phoenix.

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Corporate Restructuring - Corporate Restructuring -...

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