...Dealing with a Management Issue An Assignment Submitted by Name of Student Name of Establishment Class XXXX, Section XXXX, Summer 2012 Table of Contents Purpose 3 The background of the issue 4 Research procedure used to make the decision 6 The process chosen to resolve the problem: downsizing 7 Undertaking the decision to downsize 8 Planning downsizing 9 Announcing the downsizing 9 Implementing the downsizing at Hp 10 Proposed evaluation system to assess the effectiveness of downsizing 11 Conclusion 12 References 13 Purpose The purpose of this paper is to describe and analyze an issue, experienced by your organization, which requires, required, or will require a resolution to be determined through the decision-making process. Accordingly, the paper will describe and analyze the issue of downsizing within Hp. Introduction Employee downsizing is usually undertaken by companies during economic recession such the recent global financial recession as a reactive and tactical decision. However, some successful organizations apply downsizing as a strategic move aimed at restructuring their entire human resource strategy. Downsizing is just one of the alternatives available for an organization to improve its performance. Some companies use downsizing as a way of improving their medium and long term competency through well structured coaching and career management. Hp Company that downsized 25,000 employees in 2008 again faces the issue of downsizing this year (Thibodeau...
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...No, Companies should not use personality tests as a screening tool in hiring! Personality tests are very limited. They do not test how people see things. While someone might be a brilliant person they might not be able to paint a simple picture well. They might be able to postulate the theories of the universe but are so inarticulate that they can't carry on a conversation for more than a few seconds. Their mind maybe a fantastic place for formulas and ingenious plans but if they are unable to convey it. There are quite a large number of arguments that there is little to gain from an objective exam if the goal is not behavioral. Gaining an understanding of motives or the dynamics of personality are virtually impossible using most objective assessment since the questions are generally "behavioral in nature". Meaning, several different interpretations may be made as to why different people do the same thing. For example, two people may mark that they drink more than 3 glasses of alcohol a night. Does this mean that they both drink for the same reason? Not at all! One may drink in order to get to sleep, one may drink because they are depressed, and another may party every night. There are so many possibilities as to what the motives for one's actions are, and this is the aspect of personality that objective tests tend to miss. Next, some tests offer only one score for a range of different questions. Questions based on behavior, cognitions, and needs all receive only a single score...
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...U.S. Department of Labor showed that in 2002 there were about 15,000 mass layoffs consisting of 50 or more personnel, affecting almost two million employees. There were similar results the prior year. It was reported that 85 % of the Fortune 500 firms downsized between 1989 and 1994 and 100 % were planning to do so in the following five years (Cameron, 1994). Reasons for Downsizing There are a number of reasons that organizations decide to downsize. According to Kirschner, (1996), “Globalization, consolidations, computerization, and divestment have resulted in dramatic changes in employment.” These factors created a new workforce and employment mindsets. Global business added additional competition for organizations. The continuing developments in technology allow higher production rates for companies and global business can run more efficiently. Downsizing is the result of workforce decline or the threat of competition. If competitor downsizes, a company may decide to downsize in order to stay competitive. Companies downsize to try to meet their financial goals in producing larger revenues. Another reason that downsizing may be done is to raise a company’s stock price or after a merger. (Devan, 2007)....
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...thesis statement of this research paper is “The impact of corporate America downsizing for banks on corporate ethical strategy”. The paper shall cover issues such as the causes of downsizing, how to go about the downsizing process, impacts of downsizing and measures that can be put in place to curb such adverse impacts to the downsized and those employees left behind at large and ethical issues that relate to downsizing. INTRODUCTION Downsizing is the process whereby companies reduce the number of employees for a short while or for an unknown period of time. Companies downsize due to radical changes in the external and internal environment of the organization such as restructuring of the organization, poor performance of businesses and business processes reengineering .Globalization and collapsing of trade barriers within nations and the cropping up of technology and computerization has compelled companies to downsize. Several steps are necessary for successful downsizing: education, fortifying of the organizations goals and values, trustworthiness and pride every time, designing, and communication. Other vital points to note when conducting downsizing, including putting in place a clear vision and goals, achieving the transition successfully, planning, joint effort, concern and skills. Downsizing has shown to cause family breakup, lowering of self-esteem, trauma, involvement in crime and also death to those that have been downsized. This raises ethical issues on the impact of...
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...Motivational Methods Jessica Evans HCS 325 January 13, 2014 Michelle Crumby Motivational Methods In this paper I will be discussing the different types of motivational methods that managers could use when an organization is downsizing. Aside from downsizing another change to be addressed involves motivational techniques. As manager, I must research and understand various motivational methods to lead and implement change within my area. As a manager I believe the key process to motivating my area would be effective communication. As a health care manager, the strength of your communication skills directly connects to your overall performance effectiveness. Managers can improve communications by focusing on shared benefit, modifying their messages, actively listening, and using effective communication techniques (Cheeseboro & Rios, 2010). Managers have a variety of techniques and tools to motivate others. The term motivation is used in management theory to describe forces within individuals that account for the level, direction, and persistence of effort they expend at work (Lombardi & Schermerhorn, 2007). Managers can utilize external factors, like positive reinforcement and punishment to affect how staff works. Health care managers who lead teams and staff with motivation create conditions where their employees feel inspired to work hard and perform to the best of their abilities. Workplace conflict may be inevitable, but proactive managers can respond...
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...Safety and Health are going to be affected, and employee and labor relations. Staffing is going to be greatly affected at the fact that he is being forced to let 30% of the workforce go. Yes it typically starts from the lowest seniority up, however with some of the employees being union members it makes it harder to let go of those employees because the union will fight for them. That can cost the company a lot of money, there might lead to strikes with the union works. If that does happen you can threaten the employees that are not union members that if they participate in the strike they could lose their job regardless of seniority. However, going that route will give people a bad taste in their mouth regarding the company. With the downsize there is going to have to be job analysis’s done due to people having to learn new jobs or move around to fill the void of those that were let go. So the HR manager is going to have to look at what employees know and what they do and see where he can put people to fill the voids. Human resource planning is going to be affected in the since that he will have to look at the internal supply of employees and find and anticipate what jobs are going to be need to be filled with the employees that were...
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...Downsizing * Downsizing refers to the reduction of a company's labor force….Companies pursuing different markets or customers also downsize departments or specialties if employees' skill sets are seen as obsolete. (http://work.chron.com/meaning-downsizing-6715.html) * Rightsizing is downsizing in the belief that an enterprise really should operate with fewer people. Dumbsizing is downsizing that, in retrospect, failed to achieve the desired effect. (http://whatis.techtarget.com/definition/downsizing) Are restaurants downsizing? * According to foodbusinessnews.net, downsizing is one of the restaurant trends to tap for 2015. “Restaurant operators are downsizing dishes and whittling menus to appeal to consumer tastes for petite portions and quality over quantity.” (http://www.foodbusinessnews.net/articles/news_home/Food-Service-Retail/2014/10/Slideshow_Restaurant_trends_on.aspx?ID={B2B6A2A5-54AA-483E-90DC-23E4B1D02FA9}&cck=1) * "People are willing to downsize, but you have to ask them do it,” (Based from the article, Does Offering Smaller Portions At Restaurants Help People Eat Less? http://www.npr.org/sections/thesalt/2012/02/08/146578665/does-offering-smaller-portions-at-restaurants-help-people-eat-less) * In an article by frugalconfessions.com, it is argued that “restaurants seem to be taking the consumer’s needs to heart and downsizing products while also decreasing the price”. It gave several examples such as DQ, Chipotle, TGIFs, Quiznos, and The...
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...manufacturing community. In order to cut costs and maintain its position as a globally competitive organization, Elan Corporation had faced the prospects that need to downsize and restructure the organization. In this scenario, Elan Corporation’s used communication practice that violate ethical behave and result as the distrust atmosphere within the corporation. In August, the company had implement their initial step of its downsizing- the Voluntary Separation Program (VSP). This program provides employees who volunteers to leave an attractive severance package. The goal that the company didn’t announced to their employees is they want to eliminate 200 positions before December 3. On October 20, two months after implying the VSP program, Elan Corporation had its second downsize plan announced- the Quality Based Selection. Differ from VSP, this program will not be voluntary, but will require all employees to participate by reapplying for their own job or lower-level jobs again to the company, and basis on their candidacies, the employees will either be retained or fired. Basically the QBS program was use as a stimulus for VSP participation, the manager’s hope was to use QBS as a thrust for employees to participate the VSP. The supervisor has provide each employee the information of both downsize plan in one-on-one and face-to-face discussion, ask them to decide opt to participate either one of the program. But there was an important information that has...
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...<Southwest Airline> Buyer power: - The power of buyers is very high because many other airlines are present for which passengers can opt for instead of Southwest airlines. Suppliers include those who provide service or products necessary for Southwest Airlines to their business function. For Southwest Airlines, suppliers include mechanics (and other maintenance people), providers of fuel, food (the snacks that are offered). The suppliers do not have much bargaining power. Customers include both residential and commercial sectors. There is no bargaining power for customers, as there is no threat of backward integration; it is unlikely that customers of Southwest Airlines are going to build their own airplanes and fly themselves. Supplier power: - The supplier's power is low for Southwest airlines because they have to charge the premium according to the strategy of competitors otherwise the passengers can switch off to the other airlines where he can have maximum benefits in terms of quality of service and the monetary value. Threats of entrants: - The threat of new entrants is low, the demand is not high. On top of that, there are hurdles, not necessarily the greatest; the FAA. Government regulations and restrictions imposed on those involved in this industry. Such would be government sanctions consequent of international issues. Threats of substitutes: - Threats of substitutes is very high because many other form of transportation such as high speed trains, video conferencing...
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...Positive impact of Downsizing Perhaps the greatest advantage of downsizing is to make your business "leaner and meaner," able to effectively compete in your marketplace by cutting costs and increasing profits. You can do this in a way that will be more advantageous to your employees and, ultimately, to your business. To accomplish this, you must plan for the layoff before executing it and then follow the plan during and after the downsizing process, according to findings from a review of literature on staff reductions reported in the May/June 2003 issue of the "Journal of Healthcare Management" Increases Morale Once you downsize to save your business, the employees you keep might experience low morale and might not want to stay with you if they are now overworked. When you downsize, protect the employees that you keep to help ensure your success. For instance, make sure that you discharge low-performing employees and let the employees who you retain know that they were not part of the downsizing because of the quality of their work. This helps to increase employee morale, according to a 2000 study reported in the "Journal of Healthcare Management." Builds Teamwork Make sure you are not overworking your remaining employees and are able to retain them by opening communication channels between management and staff and by being willing to work with staff to solve problems. Including your employees in rebuilding your business helps build loyalty and empowers your staff. Once you have...
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...taken place through-out different organizations. The study shows how the downsizing of the employees, that have direct customer interaction, has a negative impact on the customers as a whole. It is thought by the managers within the businesses, that this can be improved by having open communication with the customers. The first study is a manager study. The study is an executive survey that is based on the downsizing of more than 100 different projects. The study is conducted in order to try and get a better understanding of the failures of downsizing. Many feel that when down-sizing takes place, the customer gets an instant negative thought and starts to question the business and product/service as a whole and as blame on having to downsize. The hypothesis is that the communication or lack thereof between the manager and customer could have prevented a further negative impact on sales during the downsizing. The manager study was based on industries that had drastically reduced their workforce in sales and sales related areas within the last 5 years. Due to the availability of this type of data, a multi-step sampling approach was taken. During the database searched over 2500 different firms were identified as reducing their staff by at least 5%, over the last 5 years. Next step was to identify the ones that were directly related to sales positions within those industries. The ones that were identified as sales members were sent a survey. The participants were told to only...
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...of actions, such as rightsizing, resizing, restructuring, delaying, and reengineering, have been addressed under the general rubric of downsizing. Regardless of the terminology used, however, the desire to be leaner, more flexible, and more responsive has made downsizing the most pervasive form of organizational change. There are many reasons why a company might need to downsize. In today's corporate America, it is a plain fact that far fewer employees are necessary to maintain a successful operation. Many times, it is the case where a technological advance or breakthrough makes it possible to replace a previously human job. It is also an all-too-common scenario that outside influences such as sudden shifts in the market or changed government policies force corporate executives to make coinciding decisions regarding their staff and these external changes. Downsizing began as the strategy of sickly corporations shedding workers in the face of weak demand, but soon strong firms looking to boost shareholder value even further adopted the policy. Downsizing- modern cost cutting art Why do corporations downsize so abruptly and discharge so many employees all at once? That might at first seem like a silly question, but it is justified by the fact that corporate growth, the opposite of downsizing, tends to occur in a very gradual manner. New employees are typically hired after deliberate screening in an incremental fashion. Why, then, do companies let go of thousands of employees...
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...What is the long term effect of these massive job cuts to our corporation employees? Will we need even longer time to recover from this emotional and morale crisis if the downsizing wasn’t done right?” In this paper, impacts of corporate restructuring on employees’ morale have been explored by reviewing several research papers. Figures were illustrated, strategies were suggested. It is not the question why companies have to downsize or cut jobs, it is how they should do it strategically right to reach the expected goal of benefit and continue to retain the trust and loyalty of the surviving workers. “Trust is one of the most valuable yet brittle assets in any enterprise. So over the long term, it’s far better for companies to downsize in a humane way.” - Robert Reich (Mishra and Spreizer, 1998) During the economic recession, many companies started to restructure their legal, ownership or operation structure in order to be more profitable, competitive and efficient. One common management strategy for restructuring is to downsize. As part of corporate life, downsizing began in late 1970s. Companies were trying to cut costs and improve productivities. In Mishra and Spreizer’s article (1998) preserving employee morale during downsizing, it was found that more than 3 million jobs eliminated each year since 1989, for a total loss of 43 million...
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...Introduction Faced with a downturn in the commercial aircraft business and reduced military spending, The Boeing Company was forced to downsize approximately 55,000 people over a five-year period. The company's management, organized labor, the local community, multiple levels of government, and community colleges collectively worked together to develop Reemployment Centers to assist in the transition of their specialized workforce into alternative forms of employment. The following is a description of how The Boeing Company successfully completed this effort at downsizing. Downsizing is thought to be an effective human resources strategy to increase global competitiveness. Labor costs, generally one of the largest costs for most organizations can be reduced through downsizing. In many cases the downsizing process includes outsourcing or subcontracting jobs previously performed within the organization. Although organizations often consider downsizing necessary in order to remain competitive, this strategy does not always result in increased organizational profitability and performance. One recent survey conducted by the Society for Human Resource Management reported that only 26% of firms reported productivity improvements while 58% said that productivity was flat or had declined after downsizing (The Washington Post, 1996). In addition, the study found that approximately 54% of companies surveyed cut jobs in 1994 but only 25% expected any further downsizing. Whatever the...
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...The Ethics of Corporate Downsizing In this reading, John Orlando discusses ethics when corporations deem it necessary for layoffs and cutbacks on personnel. The reasons why corporations downsize is because profit is low, which Orlando sees as being justified. However he views downsizing as unethical when corporations do it in an effort to increase profits. Cutbacks lead to a decline in employee earnings, widening of the gap between rich and poor America, psychological depression, drug abuse, homelessness, and even suicide. Ultimately, Orlando links downsizing as a dilemma between the worker and the shareholder that the corporate manager must work out. Shareholders are the legal owners of the corporation which would give them property right. But the corporation is not for personal use, it is used to conjure up profit. This creates a duty that the manager owes to the shareholder being that capital is invested and they (shareholders) are the ones taking a risk. Orlando believes that a risk and a sacrifice is made by the worker being that they have invested a lot of time and money in school to obtain this job that may not be secure. Shareholders do not view themselves as owners of the corporations, they see themselves as investors. But when an employee takes a job, it is a potential lifelong commitment. Both parties are taking a risk. Orlando argues that the employee is taking a greater risk because the shareholder can easily sell their share and invest in another company; the...
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