Employee Downsizing

Lessons from the 'Downsizing Best Practices' Companies Contd...

Training provided to managers to help them play their role effectively in the downsizing process mainly included formal classroom training and written guidance (on issues that managers were expected to deal with, when downsizing). The primary focus of these training sessions was on dealing with violence in the workplace during downsizing. According to best practice companies, periodic review of the implementation process and immediate identification and rectification of any deviations from the plan minimized the adverse effects of the downsizing process. In some organizations, the progress was reviewed quarterly and was published in order to help every manager monitor reductions by different categories.

These categories could be department, occupational group (clerical, administrative, secretarial, general labor), reason (early retirement, leave without pay, attrition), employment equity group (women, minorities, disabled class) and region.

Senior leaders were provided with key indicators (such as the effect of downsizing on the organizational culture) for their respective divisions. Some organizations tracked the progress and achievement of every division separately and emphasized the application of a different strategy for every department as reaction of employees to downsizing varied considerably from department to department. Though the above measures helped minimize the negative effects of downsizing, industry observers acknowledged the fact that the emotional trauma of the concerned people could never be eliminated.

The least the companies could do was to downsize in a manner that did not injure the dignity of the discharged employees or lower the morale of the survivors.

Exhibits

Exhibit I: Guidelines to Tide Over the Downsizing Phase
Exhibit II: Highlights of the Downsizing Study
Exhibit III: Assistance Offered to Downsized Employees & Survivors

Case Details

Case Code : HROB016
Themes: HR concepts and issues
Case Length : 09 Pages
Period : 1990-2001
Organization : Varied
Pub Date : 2001
Teaching Note : Available
Countries : USA, India, etc...
Industry : Varied

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