QUESTION: (a) Define "downsizing" and explain the three types of downsizing strategies;

(b) Briefly discuss the three (3) main behaviours that have been identified by survivors of downsizing.

 

 

Downsizing is a business strategy employed by some organizations in order to boost their financial position by minimizing and reorganizing its workforce.

Types of Downsizing Strategies.

Workforce reduction.

These is the most common strategy of downsizing since it is relatively the easiest to execute meaning its implementation is short term. It is where a number of employees are dismissed from their jobs through layoffs, buyout packages, retirement incentives, transfers among other ways.

Organizational reduction.

It is normally a process and not a one time event. It begins with reducing the work that is currently been done and ends up necessitating layoffs.

Systematic redesign.

Its main aim is to change the culture of an organization . Its implementation takes quite a long time since it involve changing an organizations culture.

Behaviors of survivors of downsizing.

Survivors in this case are those employees who have not been touched by downsizing, they have not lost their jobs in the course of downsizing. Some of their behaviors after downsizing include;

Lack of motivation due to increased workload that causes them to be exhausted and tired of work and the work place.

They develop fear of the unknown and uncertainty of their future in the workplace. It is said that some survivors voluntarily quit their jobs because they no longer feel that their futures are secure with their employer.

They develop tendencies of reduced willingness to take risks and lack commitment as before.