Organizational Downsizing a Review of Literature for Planning And Research Text

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Published: 23, march 2015 in 1998 the pia have downsized their employees, which was a very disturbing situation and experience by the employees, most of the employees who were the survivors feel insecure and their trust, commitment towards the organization were also decline. To motivate the remaining employees they used human resource interventions and training programs to cope up the hallow situation. In current situation pia is in financial crises, pia has loss of more than 42.6 billion. The government is tried to assign more and more people without any need, they are just doing for their party popularity, but this action may take them to uncontrollable dilemma. This situation may lead to downsizing and made employees insecure about their jobs and to cover up this situation they have training programs to assists the remaining employees.

In current situation there is a need of downsizing not to assigning people if pia has to handle their financial crises. Who wrote this essay request removal example essays 2.1.2 historic review of downsizing since in 1980s, about 10 million jobs have been eliminated in a downsizing as the organizations or companies hope to cut costs and improve performance. Now the downsizing becomes a part of management strategy whether it is a profitable or non profitable organization gandolfi amp neck, 2003. Due to the dynamic changes in the modern world, organizations need more skill full workers which can be used as multi task workers who can do one or more task than a single worker. To handle the economic crises and to make the organization efficient and productive so there is a need of downsizing of those worker or employees who are inefficient. Downsizing is often used to reduce the number of employees and levels of management in an organization reynolds, 1993, p.68.

Changes are because of technological advancement, globalization and sophisticated customers are the examples of shifts in the business environment carter, 19. Internal changes come from the downsizing, as there is emphasis on quality levels in product and service output, more educated the top management has some expectations from the skilled employees. Some people thought that they are not going to come again for work and others had to be hospitalized with heart attacks like symptoms. The survivor programs can to motivate the employees to engaged in their new mission and vision of the organization and they can build in employees professionalism and self confidence, as well as making employees more employable. The study offered this conclusion that: training will be challenge for the organization.

After downsizing the survivors feels that how the management would be dealing with them. Survivors have better attitude towards their mission and vision when organizational efforts are made to assists them zick, 1998. Littler, dunford, bramble, and hede 1997 assert that the after effects of a downsizing effect the whole organization and its workforce. Researchers founded that most of the organization do downsizing without planning, policies and programs apllem, delage, labibb, amp gualt, 1997. The ongoing popularity of downsizing harrison, 20 gandolfi, 2003 , and most of the scholars says that downsizing is still regarded as an understudied business phenomena luthans amp sommer, 19. Training has been identified as an example of human resource management practice that contributes to gain in competitive advantage schuler and macmillan 1984. Most of the researchers says that training of employees would extend their skills and they can be able to work more than ones job tannenbaun, mathieu,salas, amp canon bowers, 1991.

2.1.4 management theories most of the theories from the management say that training will change the attitude of the employees willingness to stay within the company. In most of the organizations human resource development system personnel training is cornerstone nordhuag, 1989. In notable times the organization changes its policies and procedures related to training. Studies of human resource development practices, including training have an influence organizational commitment iies etal, 1990 meyer and smith 20 the reason why retaining critical talent employees is so important, the company will need them to help in stabilize and recovery efforts to get the business back on track in terms of performance and profitability. And so to let these employees go would be the same as giving away one of your organizations most competitive weapons.

The use of downsizing as management's strategic response to environmental and institutional changes is prevalent in all u.s. The popular and research literature is inundated with reports on companies undergoing various stages of restructuring, which often include one or more staff reductions. This article provides a review of downsizing literature published from 1985 to 2002.

Although the findings and conclusions of these articles are generally inconsistent, the prevailing opinion is that for downsizing to be successful, effective planning must occur long before, during, and after downsizing. Additionally, a downsizing plan should be included in the strategic management plan of all organizations, regardless of whether they plan to downsize or not. By including such a plan, the organization will be better prepared to begin the staff reduction process should it be forced to do so in response to environmental changes.

Finally, providing ample support and protection for staff is key to the organization's recovery and growth. The lessons provided in this literature review should assist healthcare managers in deciding how to plan and structure potential staff reductions. A television commercial for the online career network monster.com features children expressing the unspoken feelings some employees have about organizational downsizing.

One child captures one such negative view as she says, i want to be laid off on a whim. This statement succinctly reflects the beliefs of the public given the seemingly impulsive nature of organizational downsizing. Confirming this image of spontaneous staff reduction is the increasing number of companies that use layoffs as a strategic method and the increasing number of studies that indicate little or no long term benefits to the organization. Without substantive evidence of the financial or competitive advantages of downsizing, onlookers may assume that the process is a knee jerk reaction to either internal or external pressures fisher and white 20. To date, no one has chronicled the history and use of downsizing within the healthcare industry. The purpose of this article is to provide a literature review of downsizing in healthcare organizations. Attention is paid to literature that is focused on providing a framework for conceptualizing this salient trend.

For many businesses, including those in healthcare, downsizing means the loss of employees, positions, departments, or product lines. Its goal is to cut waste improve profitability gertz and baptista 1995 increase productivity mckinley, sanchez, and schick 1995 and enhance local, national, or international competitiveness cameron 1994. Facilities that are struggling financially may undergo one or more stages of downsizing to regain or retain competitiveness. The facility may experience loss of institutional expertise and memory fisher and white 20 , an increase in personnel problems such as absenteeism and lowered morale kivimaki et al. 20 laabs 19 , and greater potential for decreased quality murphy and murphy 1996. To refocus attention toward the anticipated goal, downsizing is often called different names such as productivity improvement, right sizing, cost reduction cash 1993 , growth in reverse cascio 1995 , restructuring, or reengineering, to name a few see cameron 1994 for an exhaustive list.

For the purposes of this article, downsizing is defined as a reduction in personnel through position elimination cascio 1993. In this article, we present theories explaining why organizations use downsizing and highlight the shortcomings of these theories for prescribing action. We also explore industry trends and offer some practical explanations of why downsizing continues to be viewed as a viable strategic option. Theoretical perspectives to meet environmental demands, the organization may make changes to its structure, strategy, and products and services. Population ecology hannan and freeman 1977 and institutional theories dimaggio and powell 1983 provide alternative perspectives on organizational change. The former theory emphasizes the significance of environmental pressures, highlighting how these pressures affect survival.