HomeHome  PortalPortal  CalendarCalendar  FAQFAQ  SearchSearch  MemberlistMemberlist  UsergroupsUsergroups  RegisterRegister  Log inLog in  

Share | 
 

 Assignment 5 (Due: August 17, 2009, 13:00hrs)

View previous topic View next topic Go down 
Go to page : 1, 2  Next
AuthorMessage
eyesee

avatar

Posts : 182
Points : 447
Join date : 2009-06-18

PostSubject: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Sun Aug 09, 2009 9:26 pm

Visit and identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes. (1500words)
Back to top Go down
View user profile
Marlie E. Sisneros

avatar

Posts : 42
Points : 45
Join date : 2009-06-22
Age : 28
Location : Obrero,Davao city

PostSubject: Assignment 5 :: HRM   Fri Aug 14, 2009 3:45 pm

MARLIE's PAGE Razz !

this is my comprehension of the given assignment NO.5

[still waiting for correction Sir]

Cost reductions, downsizing-related layoffs, and HR practices.

Introduction

Organizational decimation, or downsizing, has been a pervasive managerial practice for the past three decades. If a firm finds itself in financial difficulties, the widely accepted corporate panacea has been to cut personnel. While strong empirical evidence suggests that reduction-in-force (RIF) activities rarely return the anticipated economic and organizational gains (Cascio, Young, and Morris, 1997), there is increased understanding and awareness that downsized companies are forced to deal with the human and societal after-effects, also known as secondary effects, in a post-downsizing phase (Gandolfi, 2007). Research shows that the human consequences of layoffs are costly and devastating for individuals, their families, and entire communities (Macky, 2004). While workforce reductions cannot always be completely avoided, downsizing-related layoffs must be a managerial tool of absolute last rather than first resort (Gandolfi, 2006).

During an economic downturn, a company must carefully consider its options and assess the feasibility and applicability of cost-reduction alternatives prior to adopting RIF-related layoffs. While a large body of research presenting and discussing the alternatives to downsizing has emerged (Littler, 1998; Mirabal and DeYoung, 2005), there is still a lack of conceptual understanding of downsizing-related layoffs as part of an organization's cost-reduction stages (Gandolfi, 2008). It is vital for a firm to factor in the concept of cost-reduction and recognize the specific cost-reduction stage that characterizes the firms' current business position and environment. Ideally, a company should be in a position to determine the expected duration and severity of the business downturn as accurately as possible. To perform that task successfully, the executives need to know the cost-cutting phase that the firm is currently in (Vernon, 2003). A firm's cost-reduction stage refers to the timeframe the organization requires to be able to reduce operational expenditures (George, 2004). In reality, however, accurately forecasting a business downturn can be extremely difficult. Thus, firms have a natural tendency to react to rather than anticipate economic declines (Gandolfi, 2006).

The primary objective of this paper is to present a methodology enabling firms to minimize, defer, or avoid the adoption of RIF, layoffs, and downsizing-related activities. The research introduces and showcases a conceptual framework presenting the cost-reduction stages of a firm coupled with a brief introduction of contemporary human resources (HR) practices that some firms have adopted. Fundamentally, the paper builds upon Vernon's (2003), George's (2004), and Gandolfi's (2008) work of three cost-reduction stages: short-range, mid-range, and long-range phases. Technically speaking, the article constitutes a review and extension of previously published work. The underlying conceptual framework of the cost-reduction stages is depicted in Figure 1.

Cost-reduction Stages

The conceptual framework shown in Figure 1 encompasses three timeframe-related phases commanding several internal cost adjustments that have produced a variety of stage-related HR practices. It is important to note that the HR practices are cumulative. In other words, the practices in each stage are not unique to the actual phase, but applicable in subsequent phases in a cumulative fashion.

First stage: Short-range cost adjustments

The first stage of the cost-reduction framework represents short-range cost adjustments in response to a short, temporary decline in business activities (Vernon, 2003). These business slowdowns are expected to last less than six months (Gandolfi, 2008). Most likely, the firm resorts to minor, moderate cost-reduction measures in this stage. These preliminary adjustments should enable the firm to shun RIF-related layoffs and involuntary cutbacks and return to normal business activity within four to six months (Gandolfi, 2008). Typically, this phase originates with an unexpected drop in sales or a decline in sales forecast. It is characterized by short-term expenditure adjustments to prevent a medium-range downturn or a more lasting, long-range decline. The immediate recognition of a temporary business slip and the resolute engagement in preliminary cost-reduction methods should allow the firm to focus its operations in a cost-sensitive mode for a quick recovery (Vernon, 2003).

[FIGURE 1 OMITTED]

The probability of success for the short-range cost adjustments hinges on a number of factors: First, senior management must be able to articulate the business necessity for the cost-adjustment measures effectively and stress the short timeframe of the strategy. A firm's ability to convey the message that preliminary cost-reduction measures at the present time will likely prevent RIF-related layoffs in the future is critical. Second, the HR's role is to communicate decisions made by the board of directors to the entire workforce promptly and to implement the cost-reduction methods swiftly. Third, the employees' flexibility in allowing the firm to modify cost structures increases the chance of success for the planned cost alterations. Therefore, a firm's capacity to overcome a business downturn in the first stage will depend to a large degree on its organization's ability to respond to the new environment by immediately and resolutely modifying expenditures (Vernon, 2003).

Suggested HR practices for short-range cost adjustments. A review of the literature and the popular press reveals several HR-related practices that firms have implemented for preliminary cost reductions. The following is a non-exhaustive overview and explanation of some of the approaches suggested by scholars and implemented by firms in the global corporate landscape.

* Hiring freeze

A hiring freeze is a mild form of downsizing that reduces labor costs in the short term (Littler, 1998). However, a hiring freeze does not imply that there is no hiring activity at all. Some firms hire new employees while cutting jobs at the same time (Vernon, 2003). While this practice may make sense in terms of supplying the firm with key personnel, it tends to send a confusing message to the workforce. As an example, in its latest attempt to fight rising jet fuel costs and a deteriorating U.S. economy, American Airlines imposed an immediate hiring freeze on all management and support staff (Maxon, 2008).

* Mandatory vacation

Mandatory vacation involves requiring employees to use their accrued vacation days or requiring them to take a number of unpaid vacation days during a certain time period. While employees might not want to be told when and how to use their entitlements, they will nonetheless appreciate the reaffirmed job security (Vernon, 2003). At the time of writing, Chrysler plans a corporate-wide shutdown of its U.S. operations during two weeks in July 2008 to improve the automaker's efficiency and boost productivity (Govreau, 2008).

* Reduced workweek

Firms sometimes resort to a reduced workweek. This may translate into a reduction from 40 to 35 or fewer hours, thereby reducing short-term payroll expenditures. While most employees appreciate being able to spend more time with their families, a reduced paycheck is not always welcomed. Also, employees may find that the same amount of work still needs to be performed while they spend less time on the job (Gandolfi, 2008). Nucor Steel Corporation in South Carolina has avoided layoffs for 35 years by resorting to two and three workdays for its employees during downturns (George, 2004). In a similar vein, in 2008, workers at a St. Thomas automotive parts plant in the U.K. voted a reduction in their workweek rather than see 200 employees leave permanently (De Bono, 2008).

* Cut in overtime pay

Minimizing or abolishing overtime pay for employees can be a powerful technique of reducing operational costs in the short term (Vernon, 2003). Firms may institute an across-the-board (i.e., all employees) abolition or confine the cut to selected categories, such as nonmanagerial, blue-collar, or salaried employees (Gandolfi, 2008). In 2004, GM and Ford and car-supplier Visteon Corporation slashed overtime pay for most employees indefinitely (Dybis and Garsten, 2004).

* Salary reduction

Salary reduction methods have been standard practice for firms experiencing unexpected financial pressure. Whereas salary reductions mitigate financial concerns in the short run, extended salary reductions can negatively affect employee morale and loyalty. Also, while companywide salary reductions prevent layoffs, there is a clear risk that top performers will be encouraged to leave for competitors that dangle superior compensation (Gandolfi, 2008). In 2006, White Electronics Designs introduced salary reductions of 5% for salaried employees and 10% for management, while the hourly workers remained unaffected. In 2006, a collation of Intel managers agreed to take a temporary 100% pay cut to avoid permanent layoffs. Prior to that, Intel announced that it had planned to cut 10,000 employees, including 1,000 managers (Paul, 2006).

* Temporary facility shutdown

Temporary facility shutdowns occur when a work site closes for a designated period of time, while some administrative functions still perform (Vernon, 2003). A shutdown allows employees to have time off without using their vacation days. While overall company production decreases, the firm can achieve considerable costs savings, thereby avoiding layoffs. In early 2008, Aleris International shut down its rolling mill production in Virginia to align production with demand. As a consequence, production for customers was phased out and transferred to other facilities within the U.S. (Aleris, 2008).

* Soliciting cost-reduction ideas from employees

Employees appreciate the opportunity to make a positive impact on their workplace and environment. Firms frequently solicit cost-reduction ideas from employees, who are often creative in producing such solutions. This HR practice has proven to be most effective when employees are able to make suggestions in the early stages of cost cutting (Vernon, 2003). At Martin Heyman Associates, all professional construction consultants are encouraged to contribute cost-reduction ideas. Unfortunately, many executives still do not realize that employees are the best source of such ideas because workers on the job are in a prime position to identify and recognize waste (Yorke, 2005).

This overview has shown that there are numerous HR tools at an executive's disposal to reduce short-term expenditures. While some firms have come up with innovative ideas, others have used layoffs as a very first resort. Again, it must be understood that the techniques introduced in this stage are cumulative and applicable in other stages. Moreover, the utilization of each HR practice is unique in that each selected tool will have certain consequences that need to be carefully considered by management prior to adoption.

Second stage: Medium-range cost adjustments

The second stage of the cost-reduction framework comprises medium-term cost adjustments in response to a medium-range business downturn exceeding six months (Vernon, 2003) and up to 12 months (Gandolfi, 2008). These secondary cost-reduction adjustments are frequently signaled through extended company-wide or industry-wide forecasts of diminished sales activity. If properly recognized and executed, the firm may be able to transition to mid-range cost adjustments and thus prevent long-term, RIF-related layoffs and forced downsizing. In this phase constituencies need to recognize that deeper cost-reduction strategies may be required to avert downsizing-related layoffs. Senior management must be able to present the purpose and objectives of the expenditure adjustments convincingly to the entire workforce. This should ensure employee buy-in and commitment. Adopting HR practices in this stage could potentially alter employees' work environment. Therefore, the HR department will play an essential role in the conduct and transition of these practices (Gandolfi, 2008).

Suggested HR practices for medium-range cost adjustments. A review of the literature and the popular press reveals several HR-related practices that corporations have used trying to obtain secondary cost reductions. The following is a non-exhaustive summary of practices recommended by scholars and introduced in the corporate landscape.

website: http://goliath.ecnext.com/coms2/gi_0199-9040542/Cost-reductions-downsizing-related-layoffs.html





PAGE 1

[kindly view the continuatiuon on PAGE 2]


Last edited by Marlie E. Sisneros on Sat Aug 15, 2009 10:28 pm; edited 6 times in total
Back to top Go down
View user profile http://msisneros.blogspot.com/
Shiela Marie P. Nara

avatar

Posts : 62
Points : 63
Join date : 2009-06-22
Location : Davao City

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Fri Aug 14, 2009 6:00 pm

This assignment says we have to Visit and identify a company website that has undergone Human Resource downsizing. Identify the cause of downsizing and describe its processes.

Honestly, I don't know if I misunderstood the topic or what.However I came with this understanding.So, this article is subject to corrections and editions...Smile

Beforehand, let’s first define the terms Human Resource (HR) and downsizing.

HR is simply defined as the discipline of managing people in an organization, the people themselves, the personnel and the employees in the organization.

DOWNSIZING

Downsizing (rightsizing for a more optimistic approach) I a technical name for the shrinkage cycle of the organizational growth, layoffs (human jetsam) and the reduction in force. (Church, Allan).

It is part of the rationalization process or organizational restructuring which involves the reduction of levels within the organizational hierarchy or closure of other departments in the company, replacement of permanent staff with contract employees or even laying off staffs.

Its primary goal is for the organization to be more flexible, efficient and responsive to its environment as a consequence of the organization’s strategic review.

In the current situation, this process is somewhat a trend in the organizations. It has become so widespread that even the giant industries and corporations go with its flow. This strategy was adopted by almost all major industries such as banking, automobiles, chemical, information technology, FMCG, air transportation and petroleum.

Some of the firms that has undergone HR downsizing are:

Sears- “our dramatic downsizing certainly attracted a lot of attention over the last 18 months”
IBM- “to right size the company as quickly as we could”
Boeing- “to take the steps necessary to adjust to the market downturn”
- due to its merger with the McDonnell Douglas (1994, April, TIME, 143(16))
Kodak-“ to reduce cost base”
GE-“to increase productivity and efficiency, optimize resources and survive competition and eliminate duplication of work”
Mobil- due to the acquisition of Exxon
Deutsche Bank- due to its merger with Bankers Trust
Hoescht AG- due to its merger with Rhone- Doulenc
WedTech USA- “to reduce operating costs because the business ha not expected revenue levels ” (Tulsa World, Okla, Business Brief Column, Part 2)
AT & T

And several others;

THE HEIGHT OF DOWNSIZING

During the 1980s, there are only limited firms that adopted the concept of downsizing but it dramatically changed in the early 1990s.

By the mid-1990s, the need for downsizing decreases as factors such as increased investor, awareness, stronger economies and decreases in level of unemployment were met.

Its trend seemed to grow in the late 1990s. the study of the US government found that the formulation and communication of a proper planning and downsizing strategy , the support of the senior leader, incentives and compensation, and planning and effective monitoring systems were the key factors for a successful downsizing.

During the early 21st century, many firms is in advent of having flexible work arrangement to their employees to avoid negative impact of downsizing. Flexible work results to an increased morale and productivity, decreased absenteeism and employee turnover and retain supervisor quality employees improved service to clients.

CAUSES

To sum it up, the aforementioned companies including those several that have not mentioned but also having the downsizing strategy, falls to some of the following causes which forces them to adopt the concept:

• Cut costs
• Optimize resources
• Survive slumps
• Survive the downturns of economy
• Threatened by imminent collapse
• Manage short term profits
• ‘me-too’ strategy- just go with the flow even if not really needed
• Compensation system- the bigger the department, the more the manager makes
• Increase global competitiveness
• Pervasive management that is shattering the confidence and heightening the fears of the workers.


EFFECTS

Analyst commented that downsizing results to more damage than good to the companies as it results in:

• Increased centralization of decision making
• the adoption of a short-term, crisis mentality
• loss of innovations
• increased resistance to change
• decreased employee morale, commitment and loyalty
• the escalation of politicized special interest groups and political infighting
• risk-aversion and conservatism in decision making,
• loss of trust among customers and employees,
• increased interpersonal conflict,
• restricted communication flows and less information sharing
• lack of teamwork, and
• loss of accessible, forward-thinking, aggressive leaders


PROCESSES

In Case of IBM;
“In IBM, HR is right there at the table whatever the issues are- shutting a plant down, hiring workers, downsizing, we work with the management on the decision, help craft the action plan, and then implement it with the line management,” says Laura Russell, program director, resource program at IBM Headquarters in Armonk, New York.

In Case of Boeing Commercial Airplane;
Boeing downsized its air traffic business unit, ATM, etc. In agreement with QinetiQ, it decided to join with the R&D collaboration. Also, the company plans to cut more jobs through attrition and lay offs.

"The economy is lagging, people aren’t flying, carriers aren’t buying, so we’re losing jobs,” says Mark Blondin, president of Machinists Union District 75.

“Boeing is reducing its staff so much; it’s jeopardizing the company’s ability to develop its proposed new jet, the 707.” “We don’t think they know what they are doing,” says Bill Dugovich, spokesman for the society of Professional Engineering employees in Aerospace.

Because of downsize, 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 transition of their specialized workforce into alternative forms of employment.

If downsizing becomes really necessary, there are many options to choose from:
• Voluntary plans that offer incentives for employees who choose to leave or retire : (considered as the best option)
• Strategic cuts that eliminate less important products, branches or services
• Involuntary departures based on the competence
• Or hybrid of the above mentioned options

We have to know the truth that we are in a paradigm shift which means that employees are all ‘temps’ or temporary in an organization. You can’t have the lifetime assurance in the company. The company cannot afford to offer their employees such as 40-50 years of being with them.

PERSPECTIVES
By Kim Cameron,
professor of Organizational Behavior and Human Resource Management in the Graduate School of Business Administration at the University of Michigan,

o Approach

• Approach downsizing as a long-term strategy and a way of life rather than as a single program or target to be completed and abandoned.
• Approach downsizing as an opportunity for improvement rather than as merely a reaction to a threat or crisis.
• Approach the human resources in the organization as assets rather than as liabilities, and plan to invest in their development and ideas.

o Involvement

• Involve employees in identifying what needs to change through downsizing and in implementing those changes rather than driving downsizing from the top down.
• Hold everyone accountable for downsizing goals rather than treating it as only top management's responsibility.
• Involve customers and suppliers in designing and suggesting improvements in downsizing strategies rather than focusing entirely internally.

o Leadership

• Ensure that the leader(s) is visible, accessible, and interacting freely with those affected by the downsizing instead of succumbing to the temptation to avoid confrontation, pain, and discomfort associated with managing downsizing.
• Associate downsizing with a clearly articulated vision of a desired future for the organization, not merely as an escape from the past.
• Project positive energy and initiative from the leader(s) in order to motivate the workforce in a downsizing organization instead of adopting a defensive or paranoid perspective.

o Communication

• Ensure that everyone is fully informed of the purposes of downsizing, the strategies to be pursued, the costs involved, the time frame, and so on, rather than revealing only "need to know" information and keeping sensitive information at the top.
• Overcommunicate as the downsizing process unfolds so that information is provided frequently, consistently, and honestly to all employees on the progress and processes in downsizing rather than reporting only decisions and results or allowing rumors and ambiguity to flourish.
• Generate on-going analyses and feedback from participants in the downsizing process rather than completing the process before an evaluation is done.

o Preparation

• Prepare for the downsizing before it is mandated or crucial for survival rather than waiting until time for advanced analysis is gone and a "ready- fire-aim" approach is required.
• Identify the future mission of the organization, its core competencies, and an organizational structure that will most effectively accomplish the mission via the core competencies as the way to develop downsizing strategies, as opposed to formulating strategy based merely on headcount targets.
• . Establish targets, deadlines, and objectives for downsizing independent of the mandated downsizing goals from parent organizations in order to prepare the organization to view downsizing as an improvement strategy rather than as the cause of a loss of discretion.

o Support

• Provide equal attention to and support for those who stay in the organization and those who leave the organization rather than focusing all benefits on leavers.
• . Provide safety nets (adequate lead time, financial benefits, counseling, retraining, outplacement services, etc.) for those who leave the organization in order to smooth the transition to another position, rather than letting people go without the required severance pay and advanced notice.
• . Provide training, cross-training, and retraining in advance of downsizing in order to help individuals adapt to downsizing rather than relying merely on post hoc on-the-job training.

o Cost Cutting

• Institute a variety of cost-cutting activities (such as restricting overtime, providing leave without pay, eliminating redundancies) rather than limiting downsizing to headcount reductions.
• Focus on attacking sources of fat in the organization that often go unnoticed and unmeasured, such as data fat (excess information), procedure fat (excess meetings), time fat (excess response time), and launch fat (excess new programs) rather than on cutting only the noticeable and measured features of the organization.
• Map and analyze all processes in the organization to eliminate inefficiencies, redundancies, non-value-added steps and resources, and to redesign work, rather than assuming that old processes must be maintained.

o Measurement

• Measure speed and time use in the organization, not merely headcount, in looking for ways to downsize.
• Develop specific measures of all activities and processes that directly relate to the key products and services provided by the organization in order to determine how improvements can be made, rather than measuring only outputs.
• Assess the skills, experience, and relevant attributes of all human resources to help improve decision making regarding personnel and assignments when downsizing and restructuring occur.

Implementation

• Implement a broad array of downsizing strategies, including redesign strategies and systemic strategies (e.g., culture change), instead of relying narrowly on headcount reduction strategies.
• Administer downsizing equitably and fairly by ensuring that adverse impacts are not experienced unevenly by unempowered people (e.g., minorities, certain age groups) rather than implementing strategies based on power.
• Provide opportunities for personal growth and development for individuals in the midst of downsizing rather than ignoring everything except profits and the financial bottom line.
• Form cross-level and cross-functional teams to plan and implement downsizing with no required hand-offs, rather than implementing downsizing using only a chain of command.
• Change the appraisal, reward, selection, development, and communication systems to reflect the new goals and objectives of the downsized organization rather than keeping those systems that reflect the old, larger organizational form. Implement downsizing by beginning with small wins--i.e., changing things that can be changed quickly and easily--that, when celebrated, create inertia toward desired results rather than attacking downsizing as a large, complex, indivisible task."

REFERENCES:

http://dictionary.bnet.com/definition/Human+Resources.html?tag=col1;rbDictionary
http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/Employee%20Downsizing-HRM-Case%20Studies.htm
http://www.questia.com/googleScholar.qst;jsessionid=KQhQgRMdrgB2vpJ4chJvpr6qpTVvfCVrHFHry1GQxTl2vLLL24GX!1506827602!456235400?docId=5001503240
http://resources.bnet.com/topic/boeing+co.+and+downsizing.html
http://faculty.css.edu/dswenson/web/dnsize5.htm
http://findarticles.com/p/articles/mi_hb6671/is_200405/ai_n26139051/
http://www.allbusiness.com/human-resources/workforce-management-hiring/555511-1.html



Back to top Go down
View user profile
Chris Romarate



Posts : 54
Points : 55
Join date : 2009-06-20
Age : 26
Location : Tagum City

PostSubject: Assignment 5   Sat Aug 15, 2009 6:13 pm

Due to the recent world financial crisis, many business firms and corporations closed becase they cannot sustain anymore the high inflation of high prices through low income and high expenses such as in labor expense, ect. because of the stiff competition of many companies. The only solution found out by the management of different firms is to have a recession and decrease their manpower so that the company can sustain and survive.

There are companies were affected last 2008 global financial crisis and one of these companies is the FedEx Corporation (Global). FedEx is well known because of its global services such as the FedEx Express in which it delivers cargoes and baggages of customers throughout the world. Here is an online magazine (ProcurementAsia Mag) which covers about the huge loss of FedEx,


Quote :
FedEx Post Huge Loss, Outlook Gloomy

By: Jerrel Yun, Singapore
Global - FedEx announced a huge loss in the previous quarter, as consumers and businesses downsized shipments and the company took over approximately US$1.2 billion in one-time charges.

FedEx lost US$876 million, in the three month period ending in May, compared to a US$241 million loss a year ago.

The company took a US$900 million write-down for its 2004 purchase of Kinko's Inc - now known as FedEx Office - and US$90 million in charges for the acquisition of Watkins Motor Lines in September 2006. It also took charges for employee severance and facility cutbacks.

In addition, FedEx's operating performance continued to be restrained by the global recession, which resulted in lower shipment volumes at FedEx Express and FedEx Freight, the company said.

Revenue for the fourth-quarter fell 20% year-on-year from US$9.87 billion to US$7.85 billion.

The company foresees difficult operating conditions in the near future.

"The operating environment for our first two quarters in fiscal 2010 is expected to be extremely difficult," Alan Graf, executive VP and CFO of FedEx said.

The company said Q408 revenue at the company's Express arm fell 25% due to a contraction in freight volumes and a rise in fuel prices. In the freight segment, revenue dropped 28%. However the company's ground segment did comparably well, with revenue dipping approximately 1% year-on-year.

FedEx said that international package volumes improved in the fourth-quarter compared to the quarter before, which could signal that the financial slowdown is levelling off.

"There are signs that the worst of the recession is behind us and we remain optimistic that we will see quarter-over-quarter economic improvement later this calendar year," said Frederick W. Smith, chairman, president and CEO, FedEx Corp.

In a conference call with analysts, Graf said the company hasn't yet decided whether it will have to layoff more workers or make further cut backs because of economic conditions, reported AP.

"That is a question that's going to play out during the year," Graf said. "We have hiring and wage freezes, basically across the board. We have suspended our 401(k) contributions. If the economy turns up and we start to see the growth that we think we will get, we will start to repair those reductions," said Graf.


And because of this huge loss happened to the FedEx Corporation, at first they downsize their human resource but time came the CEO of the FedEx decided to close their company. Last year, the FedEx-Philippines had their last cargo flight to China and had their farewell party.


There are many reasons why an organization may need to lay off employees in the current business environment that includes mergers and acquisitions, outsourcing key operations, and eliminating less-than-optimal business lines are just a few. However, at the heart of any layoff decision is the need to remain financially viable and competitive both now and in the future. It can therefore be tempting to continue the cost-saving measures as you select an outplacement services provider for your downsized employees. However, the choices you make can seriously impact your company’s reputation and profitability in the future, warns Sharon Winston, regional senior vice president and general manager of leading career services company Lee Hecht Harrison’s San Jose office.

Winston notes that in outplacement, there are no real shortcuts. "There are many paths, but they are each a climb, and anyone who tries to convey something different is misleading you."


Winston recommends that human resources professionals and senior management teams develop a system for evaluating potential outplacement providers that takes into consideration the quality of the program and the overall capabilities of the provider company. "Management teams need to realize that every former employee will likely talk to at least six people about the experience," says Winston. "That’s a lot of exposure. And if just one of those former employees feels badly enough to sue you, it will be a costly event. Taking the time up front to select the right outplacement provider can save money in the long run."


With that in mind, the experts at Lee Hecht Harrison suggest five criteria to consider when choosing an outplacement services provider:

BUSINESS BACKGROUND

Look for a firm with solid business experience and a proven track record. Be sure that the people who will service your account have experience working in the business world. If you are looking at a boutique firm or a company that focuses only on the local market, consider whether or not they have the depth and breadth of experience to handle candidates who may need to pursue a national job search.

CONTINUITY
Your employees are all business people; therefore, it makes sense that the outplacement package you purchase should be based on project management principles, like milestones, team meetings and individual accountability. This will allow each employee to jump into the job search quickly, without having to take the time to learn how the program itself works. It’s also important to ensure that each employee will be assigned a job search counselor who will remain with him or her throughout the process. Be cautious of the "bait and switch." The team you meet during the selection process should be comprised of the people who will actually provide services to your employees.

NOTIFICATION TRAINING
A good outplacement provider can help managers craft both the specific message and the tone in which news of the layoff should be delivered. Notification training ensures that all managers follow the same process and have the opportunity to ask questions before, rather than during, the event. This can help reduce the company¹s legal exposure. Don¹t assume that your managers know how to conduct themselves during a layoff. Managing a downsizing isn¹t a repetitive task, and your leadership team may not have extensive experience delivering the news.

ONSITE ORIENTATION
Your outplacement provider must be able to provide initial onsite services to downsized employees immediately after the notification. These employees need an opportunity to vent and assistance in formulating their next steps, including how to notify their families. A good outplacement provider can offer a highly facilitated opportunity for employees to express their feelings and give options to deal with the situation in a positive way. Without this guidance, it’s impossible to gauge how individuals will handle the time between the notification and leaving the property.

LEADERSHIP DEVELOPMENT
After a layoff, business doesn’t slow down to accommodate the smaller workforce. Instead, organizations must quickly regroup, re-identify themselves, shift key management roles and find new ways to move forward. An outplacement provider should be able to work with individuals and management teams within an organization to help them assimilate into the new corporate structure and develop key leadership competencies. This kind of coaching can have a tremendous impact on the company’s ability to remain productive after a downsizing.


[i]
Back to top Go down
View user profile
Marlie E. Sisneros

avatar

Posts : 42
Points : 45
Join date : 2009-06-22
Age : 28
Location : Obrero,Davao city

PostSubject: continuation on Marlie's PAGE 1.   Sat Aug 15, 2009 10:24 pm

Marlie's page.


Top 10 Ways To Survive An HR Downsizing




In tough times, it’s not unusual for an HR downsizing to occur in many organizations. Cost pressures, lack of profitability, competitiveness issues, and organizations restructurings happen every single day and impacts thousands of people. And HR is not exempt from this ax.

Losing your job in an HR downsizing can be a traumatic experience. If the ax does drop on you, you’re likely to feel angry, discouraged and disoriented. And while these emotions are natural, it’s important that you don’t stay in that place for long.

Losing your job is just like any loss — your body and your emotions need some time to adjust to this new type of change that you’ve just experienced. It’s important that you take time to work through your thoughts and feeling and then get back on track quickly.

If you’ve lost your job or about to lose it, here’s what you can do right now, in order to get back on track quickly….

1. Realize that downsizing isn’t personal. There is a great possibility that the downsizing happened for reasons outside of your control If that’s the case then it’s important to understand that it’s not your fault or a reflection on you. You’re just getting caught in the middle of business fact of life that impacts just about everyone at some point in their career. There no one to blame.

2. Don’t take the victim mindset. Adopt the perspective that you are the same great HR person that you were before downsizing. It’s important that you take on the frame of mind that you as a person, are always bigger and more important than any job or career that you’ll ever have….and that your unique set of HR skills and experience are valuable.

3. Reach out and spend time with others in your organization, especially other HR folks, who have also been downsized. You’ll get job and career ideas from them if you stick together, network and support each other. Resist the urge to think that you’re in competition with each other. There is power in numbers.

4. Stay in touch with your HR colleagues who are still working at the company. Candidly, some may uncomfortable talking with you since you’re now moving on. However, don’t let them feel awkward and be sure to bury your own ego. The next job opening or career opportunity usually comes from someone you already know, not from an ad or a headhunter. If you’ve done a great job of building relationships and networking, don’t be surprised if you get a call from a former colleague or boss about a different opportunity.

5. Form your own Career Advisory Board of your 5-7 smartest friends and family members who know you well. Why not use this as an opportunity for getting input from people around you who care? Get together twice a week to toss around ideas for how to handle the current situation and let them challenge you to look beyond the problem and consider new possibilities. They may know you better than you do and may provide options you’ve not thought about.

6. If you need to, reduce your spending right away to give you extra time to sort things out. Don’t assume that you’ll land the right HR job immediately. Cut your personal expenses by at least 40-70%, if needed. Don’t be afraid to take brutal, even radical steps. Often, this type of self-imposed ‘jolt’ will encourage a different type of thinking, which is critical during this time for you. And, frankly, who needs the stress of worrying about money? You need to be thinking clearly at this time about your next career steps.

7. Start thinking about the kind of work that is personally rewarding to you. You may find out it’s not HR work. If you’re an HR generalist, do you want to stay a generalist? If you’re doing labor relations work, are you tired of wrestling with unions or do you want to chance your career direction entirely. Too many people are not in jobs or careers which fulfill or satisfy them. And life’s too short to suffer in silence. So, use this break as an excuse to get real selfish and discover what makes you the happiest. When you’re happy doing what you’re doing, the money will usually take care of itself.

8. Invest in strengthening your towering skills. No one else will. The HR job market is hungry for highly skilled individuals in any field – generalists, specialists, consultants, coaches, mentors, part-timers, or contractors. If you’ve got a specialized skill or natural aptitude, invest in expanding that skill and making it even stronger. The best skills take time to develop into a well-paid profession, career or business. It’s never too late to invest in your self.

9. Treat the downsizing experience like a treasure hunt where getting your next job is the prize. Get out paper and pen or jump on your laptop and begin creating a plan for yourself. Identify where you are. What resources and skills you have. Who you know who can help – consider doing anything you can do keep yourself motivated until you land the next job. Turn it into a game.

10. Get some coaching and counseling. Many firms who are downsizing provide outplacement counseling and resources. Take full advantage of this benefit.

Going through an HR downsizing can be a painful experience. However, following these ten steps can enable you to cope this trauma and quickly get your career back on track.

website: http://www.successinhr.com/human-resources-downsizing

PAGE 2

~FIN~ king king
Back to top Go down
View user profile http://msisneros.blogspot.com/
Maria Theresa F. Rulete

avatar

Posts : 66
Points : 75
Join date : 2009-06-20
Age : 26
Location : Obrero, Davao City

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Sun Aug 16, 2009 12:36 pm

The following are the articles I’ve found on the internet about the HR downsizing of the Hewlett-Packard Corporation.


Thursday, June 20, 2002

HP's downsizing gearing up

Silicon Valley / San Jose Business Journal

High-tech manufacturer Hewlett-Packard Co. will lay off its roughly 4,000 North American information technology contract workers for three weeks and then may fire as many as 1,000 of them, according to CBS Marketwatch.com, which cited unnamed sources. There has been no comment from the Palo Alto-based company about the terminations. Earlier this year HP CEO Carly Fiorina said as many as 15,000 employees will lose their jobs as a result of the acquisition of Compaq Computer Corp.

A company spokesman confirmed the three-week furloughs to "evaluate those contracts and services," the Internet news service says.

In another HP labor development, the San Francisco Chronicle reported Thursday that the company has lowered the age to qualify for buy-out offers from 55 to 50.

http://www.bizjournals.com/sanjose/stories/2002/06/17/daily54.html

HP drops 4 research groups in downsizing

Benjamin Pimentel, Chronicle Staff Writer

Friday, July 22, 2005

Hewlett-Packard has dismantled four research groups at HP Labs, including one led by a world-renowned scientist, as the company begins its latest downsizing initiative that will eliminate 14,500 jobs.

The technology giant has shelved a team based in Palo Alto focused on advanced software research led by Alan Kay, a respected computing pioneer, according to HP Labs spokesman Dave Berman.

HP also dissolved two Palo Alto labs that dealt with emerging technologies and consumer applications and a group in Cambridge, Mass., that handled research on health care and medical issues.

The company also consolidated the HP Labs organization by eliminating a level of management that ran three separate research centers for printing and imaging research, Internet and computing platforms, and information technology services, Berman said.

Kay is considered one of the pioneers of personal computing who also helped design the ARPAnet, the forerunner of the Internet.

He has received two of the computing industry's highest honors, the Association for Computing Machinery Turing Award and the National Academy of Engineering Charles Stark Draper Prize.

The moves follow HP's announcement on Tuesday of a restructuring plan that will eliminate about 10 percent of its global workforce of 151,000.

Berman said the reductions in HP Labs will be consistent with that goal, although he declined to discuss details. HP Labs has about 700 employees, including 400 in Palo Alto.

Berman stressed that HP remains committed to innovation through research and development, citing HP Labs' continuing work in the fields of nanotechnology and quantum computing.

"The message is (that) we are trying to refocus our research into the areas of greatest promise and our core strength and those areas which are most important to HP in the medium and long term," Berman said.

"Despite these cuts, we still have a rich and varied research agenda," he added. "We're still doing a lot of interesting and very important work. There just comes a time when you have to set priorities."

Analyst Crawford Del Prete of International Data Corp. said HP is redirecting its research to areas that could help generate revenue in the foreseeable future.

"It sounds like they're doing some pruning and refocusing of the research centers," he said. "I think the longer-term risk for HP is doing innovation that they can't" profit from.

But analyst Michael Dortch of the Robert Frances Group said the cuts, particularly the elimination of a group led by a highly respected scientist like Kay, could backfire.

"How many times in a lifetime does a company like HP get access to a mind like Alan Kay's?" he said in an e-mail.

"To eliminate his group by saying its efforts are outside of HP's primary business focus seems incredibly disingenuous and risky, happening as it does precisely at a time when HP could use all the loyalty, support and vision its management team can muster," he added.


The cause of HP’s downsizing:

• HP has lay off its roughly 4,000 North American information technology contract workers for three weeks and then may fire as many as 1,000 of them.
• 15,000 employees of HP will lose their jobs as a result of the acquisition of Compaq Computer Corp.
• Hewlett-Packard has dismantled four research groups at HP Labs.
• HP has shelved a team based in Palo Alto focused on advanced software research led by Alan Kay, a respected computing pioneer.
• HP has dissolved two Palo Alto labs that dealt with emerging technologies and consumer applications and a group in Cambridge, Mass., that handled research on health care and medical issues.
• The company has consolidated the HP Labs organization by eliminating a level of management that ran three separate research centers for printing and imaging research, Internet and computing platforms, and information technology services.

The process:

HP has lay off its roughly 4,000 North American information technology contract workers for three weeks and then may fire as many as 1,000 of them. 15,000 employees of HP will lose their jobs as a result of the acquisition of Compaq Computer Corp. Hewlett-Packard has dismantled four research groups at HP Labs. It has shelved a team based in Palo Alto focused on advanced software research led by Alan Kay, a respected computing pioneer. And because of that, it has dissolved two Palo Alto labs that dealt with emerging technologies and consumer applications and a group in Cambridge, Mass., that handled research on health care and medical issues and has consolidated the HP Labs organization by eliminating a level of management that ran three separate research centers for printing and imaging research, Internet and computing platforms, and information technology services. All the reductions in HP Labs will be consistent with that goal. But still HP remains committed to innovation through research and development, citing HP Labs' continuing work in the fields of nanotechnology and quantum computing and they are also trying to refocus their research into the areas of greatest promise and their core strength and those areas which are most important to HP in the medium and long term. Despite those cuts, they still have a rich and varied research agenda and still doing a lot of interesting and very important work. But as of now, there just comes a time when someone has to set priorities, right? Many of it’s employees will suffer but HP is just redirecting its research to areas that could help generate revenue in the foreseeable future that could give more benefits to the people.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/07/22/BUGVRDRPHI1.DTL

My Blog: http://etelur.blogspot.com/2009/08/hps-hr-downsizing.html




Last edited by tere_etelur on Sun Oct 04, 2009 4:06 pm; edited 3 times in total
Back to top Go down
View user profile
Ariel Serenado

avatar

Posts : 58
Points : 66
Join date : 2009-06-20
Age : 26
Location : Hinatuan, Surigao del Sur

PostSubject: HRM Assignment 5: HR Downsizing   Sun Aug 16, 2009 1:16 pm

HRM Assignment 5

For this assignment we are tasked to visit a company website that has undergone HR downsizing.

Human resource downsizing for me implies massive employee’s left to fend for themselves. It is a systematic reduction of a workforce by an employer, usually as a result of financial losses, cash flow difficulties, and loss of government contracts, technological changes, or international competition. Companies downsize by terminating or transferring employees, offering early retirements, or imposing hiring freezes, to name a few approaches. Even though unemployment rates have been dropped in recent years, companies still are dealing with the scenario of human resource downsizing. When a certain company is on the scenario of downsizing of course it is never a good thing for the employees for each and every employee has its initiative to protect the job he/she is holding. The least that these employees can do is to seek another position vacancy for them to cover up the lost job. First of all an employee may hurt and angry after being downsized. Remember that there are some companies who have its resiliency plan to offer some assistance in helping the employee move on.

For this entire scenario I think that the most common advantage that one should acquire is job security. HR downsizing is never an option to the employees but in recent cases many companies are choosing the option of downsizing its employees these days. Everywhere you look big companies are letting go of hundreds of people. In my own opinion I think that amidst the scenario there’s a bit intervention of the innovation of technology why there is downsizing of human resources. Consider this example; years ago you had experience people answer some telephone calls asking your significant queries, now all you get is an answering machine, an automated computer prompting voice in the other end. This is just an instance or maybe one of a million reasons why there appear to have Human Resource downsizing.

However as I review over the internet, I have come to browsed some companies who had undergone massive human resource downsizing. Also, articles discussing the downsizing of the companies.

General Motors (GM)
Website link: http://www.gm.com

Some experts predicted that the company might choose to restructure and eliminate nine factories with 30,000 employees over three years.

Just this April 2009 General Motors has laid off close to 3,400 salaried employee, moving individual employees from their desks and out of the door in a half-hour’s time. May 1 marked the soft deadline for accomplishing the first round of layoffs. It also marked the beginning of a pay cut 3 to 10 percent, depending on a person’s rank for many of the remaining 26,250 salaried workers in the U.S. GM also noted in their statement that it is expected to add manpower reductions among its salaried workforce. The company also said it would trim its hourly workforce by 7,000 more than it had outlined in its first restructuring plan submitted in February 17. These layoffs are being done as part of the cost cutting exercise. In some reports, that the latest reports that GM needs to eliminate about 31,500 hourly and salaried employee as part of the restructuring.

Telecommunication and high technology companies are also facing downsizing these days. Three companies, the Newark Telecommunications and Entertainment Company (IDT), British cable giant NTL Incorporated and AOL one after another, they shutdown their call centers and laid off thousands of employees. The main reason was to cut and move call center jobs to sites in South Africa and India.

MCI Incorporated
Website link: http://www.mci.com

MCI, Inc. is an American telecommunications subsidiary of Verizon Communications that is headquartered in Ashburn, Virginia. The corporation was originally formed as a result of the merger of WorldCom (formerly known as LDDS followed by LDDS WorldCom). In the year 2004 MCI announced it is cutting 4,000 jobs—cutting pressures and fallout from the national Do-Not-Call registry. The company had announced in January 2004 that it was expecting to reduce overall costs by 15 to 20 percent, but did not mention specifically that jobs would be cut. Company officials said increased use of cell phones; industry competition and effects from the national Do-Not-Call legislation have all contributed to the decline.

Nokia Siemens Networks
Website link: http://nokiasiemensnetwors.com

20 November 2008, Telecommunications solution provider Nokia Siemens Networks said it will slash around 1,800 jobs as part of its restructuring efforts. The company is a 50:50 joint venture of Finish cell phone maker Nokia and German firm Siemens. Nokia Siemens plans to cut about 750 jobs in Finland. It will also close its site in Munich, Germany which will affect nearly 750 jobs in Finland. In addition, the company has planned reduction of headcount by about 50 in Egypt and by 20 in the United States.

The Volvo group
Website link: http://www.volvo.com

20 November 2008, Swedish truck and bus maker Volvo AB has said it will lay off 1,000 staff at its power train unit in Sweden and the United States as the global financial crisis continues to affect the demand for heavy vehicles. The Volvo group has previously announced layoffs of 2,000 workers at their truck plants in Belgium and Sweden and 1,350 workers at its subsidiaries Renault Trucks, Mack Trucks and Nissan Diesel.


Deutsche Post
Website link: http://www.dh-dhl.com

Deutsche Post, Germany’s only universal provider of postal services is part of Deutsche Post DHL, the world’s leading mail and logistics Group. This german logistic giant announced it would slash 9,500 jobs at its DHL US Express business and shut all service centres following the economic downturn. DHL US Express will also close all ground hubs and reduce the number of stations from 412 to 103, said a company statement.

Some other companies in the technology and communication sector also experience the same scenario as experienced by General Motors, MCI Incorporated, Nokia Siemens, The Volvo group and Deutsche Post. Some of these giants in communication sector that undergone workforce reduction includes the following:

1. Lucent
2. Nortel
3. Motorola
4. Xerox
5. Compaq
6. Cisco
7. Dell.


In addition, other companies outside of the high-tech industry that have recently announced their workforce cutbacks, such as the following:

1. Ford
2. Air
3. Canada
4. Bombardier

In times of this economic slowdown and uncertainty, many companies are quick to respond by scaling their operations. Workforce reduction can have both negative and positive consequences for an organization and the economy in general. As noticed in the companies mentioned above, the common thing that serves as the reason why these companies resort to downsizing is that the RESTRUCTURING of the whole business model that associates internet facilities to make transactions faster and easily be managed under less supervision.

There are two circumstances why there appear to have downsizing. 1.) when a company need to increase its profits by generating the same revenue with a smaller number of employees and 2.) when the company faces a situation where workers cannot produce goods profitable at current markets prices. The result of downsizing is the vast loss of intellectual capital that was built for many years, intellectual capital brought by the constant lending of hands by the employees and the supervision of the heads. When layoffs are repeated without a thoughtful and strategic approach it may destroy the company’s effectiveness in holding the job security. News of frequent HR downsizing is much alarming for it will rally destroy the motivation and harm the productivity as employees who are much effected of the downsizing. What makes it alarming also is that when there are massive downsizing it’s not the company that is affected but also the community and the economic status of the country as well. Especially here in the Philippines which unemployment rate is very high the more layoffs would occur the more the economy fails to cover up. Moreover, the scenario is also bad for the organizational structure of the company. After downsizing, the surviving employees will talk about what was happened and furthermore, it will dramatically increase mistrust of management for they know for the fact they will experience same thing as experienced with the laid off workers.

Above all this negative things brought by HR downsizing there is still economic impact on having workforce reduction. Today, regardless of the economic slowdown, consumer spending remains high, indicating that consumers continue to be optimistic.

In terms of the process, dealing with problem on downsizing is the right way to manage your workforce during a recession. One of the key factors to your success will be how you handle the people who work for you- especially if you are considering laying off staff. Here are some of the processes how to handle the scenario of downsizing:

1. Increase communication. Share both what you know and what you don’t know about the economy is affecting your business.
2. Invest in training. Continuing to plan for the future, take advantage of the opportunities. Encourage employees to join trade sessions.
3. Involve your employees in decision-making. Involve your employees in major decisions like layoffs or salary cuts.
4. Staying positive. A good attitude is infectious. Try to maintain a positive outlook and remember to share good news widely.
5. Try to keep the little things. When budgets get tight, the first impulse is to cut everything that seems non-essential.

As mentioned above, that some of the causes of downsizing are as follows:

1. financial losses
2. cash flow difficulties, and;
3. loss of government contracts

As a result of these major causes, massive workforce reduction or downsizing is experienced.

In conducting layoffs it should be planned well to make sure that laying off of employees is in a manner that reflects well on the planner and the company. It comes down into four basic principles:

1. Plan layoffs carefully. Take the time to ensure your layoff plan and your business plans are in synchronized manner.
2. Be prepared. You will make things easier to both for yourself and the people you are laying off if you are well prepared.
3. Know the law. There are also certain rules that apply when laying off groups of individuals, but again, the laws are different depending on the province.
4. Treat people with dignity and respect. Be kind and compassionate. Losing ones job can be humiliating experience, so give people the respect.


References:

http://www.servicecanada.gc.ca/eng/work sharing/index.shtml
http://www.councils.org/resources-and-publications/trends-and-issues-articles/Dealing with downsizing/
http://www.workforce.com/section/00/article/26/39/95.php
http://www.invest-n-trade.blogspot.com/2009/03/gm-general-motors-layoffs-
http://www.allbusiness.com/sales/customer-service/157031-1.html
http://www.commentoanything.blogspot.com/2008 11 01 archive.html
Back to top Go down
View user profile
Alfredo V. Ala-an

avatar

Posts : 52
Points : 55
Join date : 2009-06-21
Age : 26
Location : Obrero Davao City

PostSubject: ASSIGNMENT 5   Sun Aug 16, 2009 5:48 pm

Visit and identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes.

So first let's just give some meaning to those words that I am not familiar.(hehehe)

WHAT IS DOWNSIZING?

MEANING:

Downsizing is the ‘conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness’ (Budros 1999, p. 70). Since the 1980s, downsizing has gained strategic legitimacy. Indeed, recent research on downsizing in the US (Baumol et al. 2003, see also the American Management Association annual surveys since 1990), UK (Sahdev et al. 1999; Chorely 2002; Mason 2002; Rogers 2002), and Japan (Mroczkowski and Hanaoka 1997; Ahmakjian and Robinson 2001) suggests that downsizing is being regarded by management as one of the preferred routes to turning around declining organisations, cutting cost and improving organisational performance (Mellahi and Wilkinson 2004 )most often as a cost-cutting measure.


resources: http://en.wikipedia.org/wiki/Layoff

Overview: This overview focuses both on downsizing in the narrow sense (workforce reduction) and on related, generally broader or more fundamental strategies such as rightsizing and rethinking. The document defines key terms, discusses why downsizing is important, highlights implementation approaches, tools, and results and lessons, and suggests next generation issues. It includes a selected, annotated bibliography; examples of experts and resources in downsizing; and illustrative examples of the various approaches (e.g, downsizing, rightsizing, rethinking). Because most lessons of experience suggest that workforce reductions are rarely effective undertaken in isolation (i.e., downsizing for the sake of downsizing is increasingly regarded as a highly ineffective strategy), the overview attempts to weave together themes pertinent to downsizing, to rightsizing, and to some extent to rethinking.


resources: http://jobfunctions.bnet.com/abstract.aspx?docid=60772&tag=content;col1

WHY DO FIRM DOWNSIZE?

*Reduce Costs
*Reduce layers of management to increase decision making speed and get closer to the customer.
*Sharpen focuses on more competencies of the firm and outsource peripheral activities.
*Generate positive reactions from shareholders in order to improve valuation of stock price.
*Increase Productivity.

Effects to downsize: Overall

*Mixed effects on firms performance; some cause short savings, but long term profitability and valuation not strongly affected.
*Firm's reputation as good employers suffers.
Ex. Apple computer reputation as good employer declined after several layoffs in 1990's.
*Downsizing rethinking of employment strategy. Lifelong policies not credible after downsizing.
Ex. IBM abandoned lifelo9ng policy after several layoffs in early 1990's.

Effects to downsize: Employees Morale

*Employee motivation disrupted: increase in political behaviors,anger, fear - which is likely to negatively impact quality of customer service.
*Violation of psychological contract,leads to cynicism, lowered work commitment, fewer random acts of good will.
*survivors experience more stress due to longer work hours with the re-deisgn jobs, and increased uncertainely regarding future downsizing.

Effects to downsize: Workforce Quality

*Many senior employees leave due to application of early retirement incentives: result is loss of institutional memory.
*The use of the voluntary workforce reductions (buyouts) results in the most marketable employees leaving (stars)-- difficult to control since all the employees must be legally eligible to qualify.
*Early retirements & voluntary reduction often result in too many people quitting and some are hired back as consultants at higher cost to firm.

Downsizing Effects

Downsizing works best when:

*Changes in strategy,Organization structure and culture accompany job cuts of downsizing.
*Weak business units and plant closures are used as basis of reductions, rather than across the board cuts affecting all the units (including healthy one).

Downsizing

Critical Thinking Questions:

1. Which is better criteria to use as the basis for downsizing employees: seniority or performance?

- for me, it is the performance. Because dealing with a company is not a joke business it is very real and there are lots sacrifices of what you have. In order to run a company it should deal with the "performance."

2. Should employers give future notice to downsized employees, or to tell them on the they they are expected to leave the firm ?

- o,yes!It should be so that the employee can get ready to search for another jobs.

3.Separation pay is voluntary. What benefits do firms gets when they give separation pay to employees in downsizing?

- ***

4. Is there a set of best practices to let an employee know he/she been downsized?

- If there, well i think it's a challenge to him/her to work better.

5. Under what circumstances might company's managers prefer to use layoffs instead of early retirements or voluntary severance plans as the way to downsized the workforce?

- ***

resources: http://www.authorstream.com/presentation/edwinlee-111819-downsizing-hr-business-finance-ppt-powerpoint/

Example of company undergone hr downsizing:

History Progress


1890s–1937-Early Ambitions

A merger of three 19th-century companies—the Tabulating Machine Company, the International Time Recording Company and the Computing Scale Company of America—creates the Computing-Tabulating-Recording Company (CTR) on June 16, 1911. CTR is the precursor to IBM. Thomas J. Watson Sr. joins CTR in 1914 and over the next two decades transforms it into a growing leader of innovation and technology and a prototype for the newly emergent multinational corporation. This shift is signaled in 1924, when the company’s name changes to International Business Machines Corporation (IBM). From the beginning, IBM defines itself not by strategies or products—which range from commercial scales to punch card tabulators—but by forward-thinking culture and management practices grounded in core values. By adhering to its vision and values throughout the Depression—providing continued employment, even adding engineers and other staff in order to sustain its production output—IBM is able to play a pivotal role in enabling the U.S. government’s Social Security Act of 1935, “the biggest accounting operation of all time.”


1938–1951-Growing Influence

Although international commerce is brought to a halt by the Second World War, IBM expands its manufacturing capacity to meet wartime demands—adding to its Endicott, New York plant, and opening new facilities in Poughkeepsie, New York, Washington, D.C., and San Jose, California. Following the war, the company accelerates its international growth, and in 1949, it forms the World Trade Corporation to manage its foreign operations. In the span of two decades, the new organization will generate more than half of IBM’s bottom line. Business innovation works hand in hand with social innovation during this period, as IBM promotes diversity and corporate philanthropy in its policies. The company begins to focus on opportunities for women, minorities and the disabled—years before such considerations would become the norm.


1952–1963-Foundations of Modern Computing

The ascension of Thomas J. Watson Jr. to IBM’s presidency in 1952 marks the beginning of the company’s transition to a modern corporation. During the first decade of his tenure, Watson Jr.—later labeled by Fortune as the “most successful capitalist who ever lived”—begins to transform IBM from a leading industry player into a business behemoth that spans the globe. He refocuses IBM toward the development and commercialization of electronic computer technologies, creates and institutionalizes professional corporate management practices, and codifies unwritten IBM philosophy and behaviors into formal policies and programs. These technological, business and social innovations propel IBM into the 1960s as the world’s leading high-technology firm.


1964–1970-The 360 Revolution

In the early 1960s, IBM sees its marketplace lead threatened by a series of worthy challengers. In a bold business move—Thomas J. Watson Jr.’s legendary “bet the company” decision—IBM develops the revolutionary System/360™️ family of mainframe computers. Sparked in part by the triumph of the System/360, IBM experiences a nearly fivefold increase in revenues and earnings over the course of the decade. The organization wears its mantle of success well, adopting a host of progressive new employee and social programs that make it one of the world’s most admired companies. If IBM ended the 1950s as a technology leader, it ends the 1960s as a global business icon.


1971–1992-Computing Gets Personal

Building on its success in the 1960s, IBM solidifies its position as the IT industry’s—and the business world’s—most profitable, admired and iconic corporation, and continues to develop innovative new products throughout the 1970s. From the magnetic-stripe technology used on credit cards, to floppy disks, to the Consumer Transaction Facility (an early form of today’s ATM), IBM’s ingenuity is felt everywhere. As a new era of computing begins to take hold in the 1980s, the company creates standards that legitimize the PC, turning it from a hobbyist device into an indispensable tool of modern life—in homes, businesses and schools around the world. The company also continues to push the boundaries of scientific discovery, with five IBM researchers sharing three Nobel Prizes in Physics. However, despite its depth and breadth of innovation, by the late 1980s IBM finds itself thrown into turmoil by the very revolutions it helped launch—initiating a downturn and period of unrest for the company that will persist into the following decade.


1993–2002-The Birth of e-business

Entering the 1990s, IBM confronts its most significant strategic challenges since the Depression and successfully undertakes one of the great turnarounds in business history. It moves into major new growth businesses, principally services and software, and embraces open standards for computing. The company also fundamentally reshapes its culture to refocus on clients and to be more agile, responsive and collaborative. This transformation coincides with the advent of the Internet, and IBM is a pioneer in helping clients capitalize on the new possibilities of global networked computing and business—what it dubs “e-business.” As the 20th century comes to a close, IBM stands, once again, at the forefront of global technology and business.


resources: http://www-03.ibm.com/ibm/history/interactive/index.html


Last edited by Alfredo V. Ala-an on Fri Aug 28, 2009 3:58 am; edited 3 times in total
Back to top Go down
View user profile
juvilynconsejo

avatar

Posts : 40
Points : 42
Join date : 2009-06-22
Age : 26
Location : Tagum City

PostSubject: drownsizing of the company   Sun Aug 16, 2009 7:36 pm

As i understand from the word downsizing is that it simply reducing a number of employees in such an organization. Other term for this is also known as layoff. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.

Also known as layoff and it is the temporary suspension or permanent termination of employment of an employee or (more commonly) a group of employees for business reasons, such as the decision that certain positions are no longer necessary or a business slow-down or interruption in work. Originally the term "layoff" referred exclusively to a temporary interruption in work, as when factory work cyclically falls off. However, in recent times the term can also refer to the permanent elimination of a position.

Downsizing is the ‘conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness’ (Budros 1999, p. 70). Since the 1980s, downsizing has gained strategic legitimacy. Indeed, recent research on downsizing in the US (Baumol et al. 2003, see also the American Management Association annual surveys since 1990), UK (Sahdev et al. 1999; Chorely 2002; Mason 2002; Rogers 2002), and Japan (Mroczkowski and Hanaoka 1997; Ahmakjian and Robinson 2001) suggests that downsizing is being regarded by management as one of the preferred routes to turning around declining organisations, cutting cost and improving organisational performance (Mellahi and Wilkinson 2004 )most often as a cost-cutting measure.

Here are some company website that had been undergone downsizing:

* Coca Cola- http://www.thecoca-colacompany.com/
*Kodak- http://www.kodak.com/eknec/PageQuerier.jhtml?pq-path=2/6868&pq-locale=en_GB&_requestid=7626

Processes of Downsizing

6.1 Recognizing that low income people's need for legal services far exceeds the Employer's resources, the parties agree that the Employer needs flexible discretion when matching program and client needs with its limited resources including its human resources. With this in mind, the Employer agrees that it shall not layoff employees covered by this Agreement unless it is necessary to reduce the workforce because of position defunding, budget restrictions, project defunding, important program needs or priorities, revenue reductions, or unless the layoff occurs with the mutual consent of the Employer and the employee.

If the Employer contemplates turning down or favoring the redirection of any of its funding to other organizations in a way or to an extent that would result in layoffs under this Article, to the extent practicable and feasible, the Employer shall make a good faith effort to consult with WLW through the Labor-Management Committee in advance of any final decision to do so. If advanced consultation is not practicable and feasible, the Employer will consult with WLW as soon as possible afterward to explain the basis for the decision. In that consultation, the Employer shall fully share with WLW all information pertinent to the funding in question.

The provisions of this article shall apply to demotions, except where an employee is demoted for good cause. Demotion shall mean any reduction in an employee's wages or hours, unless such reduction occurs with the mutual consent of the Employer and the employee.

6.2 The Employer shall initiate discussion with the Labor-Management Committee concerning the purchase of new equipment or the implementation of new processes which may result in the layoff or demotion of bargaining unit employees prior to such purchase or implementation.

If, following discussion, there is disagreement as to whether the contemplated action is advantageous to the program as a whole and/or there is disagreement as to whether the contemplated action may result in layoffs or demotions, the unresolved issues shall be subject to the provisions of Article 22.

If it is determined by mutual agreement between the Employer and the Labor-Management Committee or through the process in Article 22 that the contemplated action is advantageous to the program as a whole and may result in layoffs or demotions, any such layoffs or demotions shall be subject to the remaining provisions of Article 6.

6.3 If it determines that layoffs and/or demotions are necessary, the Employer agrees that no job classification, in or out of the bargaining unit, shall automatically be excluded from consideration for layoff.

6.4 If the Employer intends to lay off and/or demote bargaining unit employees or close or relocate offices, it shall notify WLW at least sixty (60) days prior to any such layoffs and/or demotions or office closures or relocations, or as soon as possible in the case of a financial emergency that is unforeseen in nature, scope or timing, of its intent to lay off and/or demote or close or relocate offices, the relevant financial information, the number, classification and location of potential layoffs and/or demotions or office closures or relocations, and the composition of the layoff and/or demotion pool.

6.5 During the first four (4) weeks after notification and provision of the information specified in paragraph 6.4 to WLW, unless otherwise agreed or unless it is not possible due to financial or other emergency, the Labor-Management Committee shall hold meetings to consider in good faith every reasonable alternative to the potential layoffs and/or demotions or office closures or relocations. If, after these discussions, the Employer determines that layoffs and/or demotions and/or office closures or relocations are still necessary, it shall consider in good faith all criteria offered by WLW on the number, location and composition of the lay-off and/or demotion pool or the location of the office closure or relocation.

6.6 At least four weeks prior to the effective date of any layoffs, demotions or office closures or relocations, the Employer shall inform WLW how the Employer plans to restructure the affected office(s) or projects after the layoff and/or demotion takes effect. This information will be provided to facilitate appropriate adjustment in workloads, to assure that clients are informed as necessary of the changes, and to insure generally the continuity of quality service to clients by the smoothest possible transition to the post-layoff and/or demotion structure.

6.7 The Employer shall designate the employee(s) to be laid off and/or demoted, giving substantial though not necessarily controlling weight to the employee's relative total length of service with the Employer and with other programs providing legal services to low income people. The Employer may also consider the skills, abilities, and qualifications of the employee, the needs of the program, the needs of the affected office(s) or project(s), the ability to transfer the employee, the possibilities of job sharing and/or hours reduction, the need for bilingual skills in specific positions, and the equal opportunity, access and diversity policies of the program. Upon request, any employee selected for layoff or demotion shall be given in writing the reasons why he/she was selected.

6.8 Before a new employee is hired, all employees who have been laid off or demoted pursuant to the terms of this Article shall be offered reinstatement if, within one (1) year from the date the employee was laid off or demoted, a position for which the employee is qualified becomes available in the same classification in which the employee was formerly employed or in a comparable newly-created classification. In determining whether the employee is qualified for the position, the Employer may consider the needs of the program and whether those needs have changed as a result of layoffs or restructuring. In determining the order of recall, the Employer shall give substantial though not necessarily controlling weight to the employee's relative total length of service with the Employer and with other programs providing legal services to low income people. In determining whether the employee is qualified for the position, the Employer must also consider the factors listed in paragraph 6.7. The Employer may not fill an available position with an applicant who is not on layoff or in a demoted position unless there is no qualified individual on layoff or in a demoted position to fill the position, or unless available individuals do not possess bilingual skills required in the position. A laid-off or demoted employee shall have at least ten (10) working days from the date of the offer to accept a recall offer and at least fifteen (15) working days from the date of the offer to return to work. An employee's refusal of an offer of reinstatement shall not affect her/his standing on the recall list. A laid-off or demoted employee wishing to exercise recall rights shall keep the Employer informed of her/his current address. Laid-off employees shall not accrue benefits or experience credit while on lay-off status. Upon request, laid-off or demoted employees who are not selected for the vacant position shall be given the reasons in writing why someone else was selected.

6.9 When it is mutually agreeable between the Employer and employee, an employee selected for a layoff or demotion can be transferred to a vacant position in the same or another office.

6.10 An employee who is laid off for more than one year has no rights under this article.

6.11 At least three (3) weeks notice of layoff or demotion shall be given to each affected individual prior to the date of their layoff or demotion.

6.12 Laid-off employees shall receive one (1) week of severance pay for each year of service as denoted by their position on the salary scale up to a maximum of six (6) weeks severance pay in addition to payment for accrued vacation leave. The amount of a week's severance pay shall be equal to the amount of a week's pay at the time of the layoff; provided that the Employer shall not be obligated to pay severance pay to an employee who, without substantial loss of time worked, obtains a position with substantially comparable benefits and the same or better salary. For up to four (4) months from the date of lay-off or until such time as the laid-off employee is eligible for coverage under a different group plan, whichever shall first occur, the Employer shall pay the costs of any COBRA coverage for the employee, subject to the limitation on Employer costs and contributions in Article 14.

6.12 Whenever an employee's job classification is changed as a result of an office consolidation or a transfer incident to layoff, such employee shall not have his or her pay reduced during the term of this Agreement.

References:
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html
http://business.inquirer.net/money/features/view/20090308-193032/Managing-downsizing-in-troubled-companies
http://www.lawhelp.org/Program/1878/RTF1.cfm?pagename=Policies+on+Layoff+Process


Last edited by juvilynconsejo on Thu Oct 01, 2009 12:41 am; edited 3 times in total
Back to top Go down
View user profile http://juvilyn-juvilyn.blogspot.com/
Russel John Serrano

avatar

Posts : 34
Points : 36
Join date : 2009-06-21
Age : 26
Location : Apokon, Tagum City

PostSubject: ::HRM::   Mon Aug 17, 2009 12:27 am



DOWNSIZING....


Reducing the size of the organization or reducing number of employees in the organization is called downsizing. Downsizing is a critical decision take by organization and human resource management have important role to play in this context.

This pattern seems to represent a “churning” of employees. Organizations were laying off employees with outdated skills or cutting whole businesses that were in declining markets while simultaneously building businesses and employee bases in newer, higher-growth markets.
Reasons of Downsizing

Organization take downsizing decision due to several reasons some of them are mention below.


Arrow Mergers


When two organization in same industry take the decision to combine their resources for exploiting opportunities and reduce their cost.Downsizing take place in mergers because their are more than one person for the single position, so company have to take rational decision to layoff some employees.

Arrow Acquisition

One organization purchase other results in change management. Mostly stakeholders take decision to layoff employees to cut the cost and Increase revenues and profits.

Arrow Economics crisis

Recession or depression lead to the financial crises in the organization. To avoid losses organization have to reduce the number of employees.

Arrow Change management

Processes,procedure or higher management change can also result in downsizing.
Human resource management role in downsizing

All employees should be informed why the downsizing is necessary, what costs are to be cut, how long the downsizing will last, and what strategies the organization intends to pursue.

Human resource management play vital role in downsizing to communicate the message in a right way that it will not harm organization image and employees have positive perception after leaving the organization.

Downsizing also impact on the mind of employees working in the organization they feel insecure about their job. HR managers should tell all the employees that their job are secure.

Human resource department should assist the layoff employees in finding other job.
Alternatives of downsizing

Organization to avoid downsizing can take the following step.

Arrow Part time Job


Cut the number of job hours and pay employee on hourly basis to engaged him with the company. During his free time he can do any other work for earnings.

Arrow Work at home

Give access to the employees to work at home rather then coming at office. This step will reduce the operational cost of the organization.

Arrow Shift of department

One business unit of the organization is not doing well, organization can shift the employees to other business unit.

Arrow Outsource Employees

Organization can provide outsourcing services is specialized domain so their employees can work on other company projects.


Continue Arrow

bounce http://www.soopertutorials.com/business/human-resource-management/2255-downsizing.html



Last edited by Russel John Serrano on Mon Aug 17, 2009 1:23 am; edited 6 times in total
Back to top Go down
View user profile
Russel John Serrano

avatar

Posts : 34
Points : 36
Join date : 2009-06-21
Age : 26
Location : Apokon, Tagum City

PostSubject: ::HRM::   Mon Aug 17, 2009 12:29 am

Companies that are having HR Downsizing:





Google Downsizes Its HR Department

Not even Google is exempt from the effects of the recession. The search engine giant is downsizing its staff by a hundred, but none of the technical positions are affected. The powers that be have decided that since they won't be hiring as much people as before, they might as well trim down those who are doing the hiring. Ouch. Excerpts:

Our first step to address this was to wind down almost all our contracts with external contractors and vendors providing recruiting services for Google. However, after much consideration, we have with great regret decided that we need to go further and reduce the overall size of our recruiting organization by approximately 100 positions.

The message was posted on Google's blog by Laszlo Bock, Vice President of People Operations. Guess everyone's feeling the crunch, including Google. The company is open to transfers though, so if those who were laid off happen to fit in another posts within the company, they can go for it. The wording is vague on whether they'll have to go through a re-application process though.

http://www.gadget.ca/Google-Downsizes-Its-HR-Department-028425.php


-Posted by Laszlo Bock, Vice President, People Operations

Changes to recruiting

As we made clear during our last quarterly earnings call in October, Google is still hiring but at a reduced rate. Given the state of the economy, we recognized that we needed fewer people focused on hiring.

Our first step to address this was to wind down almost all our contracts with external contractors and vendors providing recruiting services for Google. However, after much consideration, we have with great regret decided that we need to go further and reduce the overall size of our recruiting organization by approximately 100 positions.

We know this change will be very difficult for the people concerned, and we hope that many of them will be able to find new roles at Google. They helped build this company, new hire by new hire, and we are enormously grateful for everything they have done.

http://googleblog.blogspot.com/2009/01/changes-to-recruiting.html

+----------------------------------------------------------------------------------------------------------------------------------+





Business Services Industry

HR Goes Flat at Coca-Cola

News of The Coca-Cola Co.'s impending downsizing in January upset the stomachs of a number of HR professionals, who noted that HR would be among the first departments to fizzle among the over 3,000 U.S. employees to be cut from the payroll.

Coca-Cola employees don't like to discuss the downsizing, which company president and CEO Douglas Daft says is a way of making sure Coca-Cola is "optimally positioned for a changing world."

But the downsizing occasioned plenty of high-octane discussion at a recent WORKFORCE.COM poll of 1,160 HR professionals during the first week of February. The poll asked why HR often seems so dispensable to downsizing companies. Nearly a third of respondents--29 percent--said that the main reason is because it's hard to quantify HR's worth to organizations. In fact, 75 percent of respondents gave answers related to quantifying HR, namely that HR tends not to align itself with business priorities, nor does the profession market its services well.

Francene Taylor, a staffing manager at the Atlanta-based Integrated Facility Division of Johnson Controls Inc. and a participant in the poll, believes "Senior management focuses almost exclusively on shoring up short-term profit while downsizing, and frequently the quickest way to do this is by cutting HR." However, she adds, "You can argue that if HR can prove it provides value-added services, then the department is less likely to be reduced."

Another participant, Ronald M. Katz, president of Penguin Human Resource Consulting in New Rochelle, New York, says, "An HR function that is not aligned with the business or can't quantify its contribution should suffer the same fate that we'd apply to any other department. However, one would hope that we have learned how to avoid those pitfalls as we set an example for other departments in our organizations. I think our main problem is we don't ensure that other parts of our companies, especially senior management, understand HR and our contribution."

Roger Selbert, principal of Los Angeles-based Growth Strategies Group and editor and publisher of Growth Strategies, an HR trend newsletter based in Santa Monica, agrees. "I'm a proponent of HR becoming an integral part of strategic planning in top-level management," he says. "HR needs to be involved from the get-go, not only in you corporate planning, but in making those plans happen." To build long-range viability, says Selbert, HR must assume the role of facilitator, educating the organization about the importance of people in a way that fits with the organization's objectives.

Poll participant Steven R. Burns, assistant director, HR for Cincinnati-based The Health Alliance, points out that, "Unfortunately, HR knows the long-term impact on morale and recruiting that results from deep cuts in the organization." As such, HR should make its role apparent as a leader in fulfilling the organization's long- and short-term goals.

Says Growth Strategies' Selbert, "HR's importance in fulfilling the strategic role of the organization is imperative for long-range viability. HR must actively facilitate the process, making their contribution a win-win for everyone."

Impact: To quantify its worth to organizations. HR's contributions must be visible to upper management and compatible with business priorities.



+GODBLESS+



Last edited by Russel John Serrano on Tue Aug 18, 2009 12:15 am; edited 4 times in total
Back to top Go down
View user profile
shane sacramento

avatar

Posts : 58
Points : 60
Join date : 2009-06-19
Age : 26
Location : davao city

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 12:49 am

Downsizing may be described as reducing the scope or scale of a certain company or an organization. The very known way to downsize is deducting the workforce or simply called human resource.This is to improve its performance and profitability as well as to reduce its financial costs.

AT&T Corp. is a based telecommunications giant which had undergone downsizing.The steps they have taken in consideration to be able to reduce their scope:

* Workforce Planning

This plan is a system, in which employees are graded or evaluated by their managers. Employees are ranked accordingly with regards to their performance. This is done so that when downsizing comes, the employees would be able to have perceptions or would be able to know the possibility of them being laid off. This way, employees would give their best to stay on the job.

Employees are given chance to move out of the bottom bracket. Each employee will have a grade of A, B or C. Grade A workers are carefully handled and can possibly be promoted so that when downsizing happens they do not jump ship, as the top talent in other companies often do. Grade B workers, however, are counseled on what they need to do to keep up with those A's or better be one of them. Grade C workers needs to improve, then make a move to be better. HR monitors the ranking and grading system to make sure that employees are evaluated fairly and consistently. HR also checks that managers are keeping the A players challenged and satisfied.


* Training and Skills Assessment


This process lets the company know what other things can their employee do. This training program can develop an employee's skill. Retraining and outplacement assistance programs are an effective way for HR to risk itself into the planning of a downsizing effort. A good skills-training program may even open opportunities within the company to downsized workers. Human resource managers can reassess workers' skills so they will not lose hard working and/or motivated employees in this type of situation. But this doesn't mean that workers who are not doing their job well will be unqualified to do other jobs.

Another benefit of having training and skills assessment program is the increase of participation, thus, considering extended access to the programs until well after workers are laid off, will be given time to recover from the emotional blow of being laid off. This way a company would be able to gain back the trust of both survivors and non-survivors.

* Open Communication

Communication is defined as the process of transferring information from one entity to another. A from what we all know, it is very important to keep the good relation ship between two or more entities.

Communication is the key when it comes to downsizing. Employees tend to look and find signs that the management is hiding information from them. Workers worry less when management is open, honest and generous.

* The Future

Thinking of the future, with regards to the question, "Will downsizing happen again?"

An honest answer to this question would be a help to the company as long as it is stressed that every workers or employees should work for the companies goals.

Straightforward answers or responses is a big help to prepare employees for the possibility of future workforce cuts or lay offs.

http://findarticles.com/p/articles/mi_m3495/is_6_44/ai_54994203/pg_3/?tag=content;col1

Downsize can be caused by one or all of the following:

* Reduce costs

To reduce cost may talk of financial issues of a certain organization. In which, the said company couldn't sustain or it does not have the power to pay for its people and liabilities. In shortest term bankruptcy.

* Decision making

Organizations tend to reduce the level or layers of management, in order to speed up its decision making. Instead of having too much numbers of manager,a company will choose to have lesser number of them. So, an organization would be able to speed up and less time would be used in decision making.

* Focus

This means that the company would be able to put their whole time on developing the products or services they are good at.

Let us take for example, the Philippines, it is a tropical country, thus, producing tropical fruits such as bananas is the best way to increase its profit with regards to exporting. Since, Philippines can have full profit in producing bananas, why would it risk on trying to produce non-tropical fruits like apple or strawberries.

* Positive response

Since the company is already focused on producing products or providing services their good at, stock holders would give their full trust on the said company, thus, ensuring them that their investment would not just slip away like the wind.

* Better Productivity

Increasing a company's productivity may var from the costs that's been decreased and controlled. Another view would be, when an organization had already identified where the focus should be and stock holders have given their trust then the company would be able to start the business or increase the productivity thus, increasing its profit.

Now, that we have discussed about the cause or causes of downsizing. Let us talk about its effect. Effects can either be bad or good, but it is expected to be good on the company all in all. The effects are divided into two:

1. Employee Morale

* Reputation

The organizations reputation as good employer will suffer. This is because of having to reduce employees, that may be or may not be a good employee. When a company have already undergone downsizing and is starting to grow again, of course they would need new employees. Since, they have already fired employees before, applicants would fear that downsizing would happen again then they would have to leave the job.

* Policies

Change in policies will of course occur, due to change of scope or scale. Those policies that can only be applied to large scopes are omitted and new policies will be implemented for those employee who have survived and keep their jobs.

* Motivation

Motivation will be disrupted. This effect can apply for those who were able to keep their job or simply called survivors. This disruption may range from political behaviors such as anger and fear, in which may lead to poor quality of customer service.

* Psychological Contract

Laying off of employees will violate the psychological contract between employers and employees. Psychological contract is described as mutual beliefs of the employer and employees obligations, it is not a formal contract therefore it is not a violation of a certain country bill. But it still is a bad effect, because the trust of a certain employee will be destroyed.

* Stress

Due to adjustment in longer working hours, the re-designed jobs and the uneasiness of thinking and fear of future downsizing, survivors will tend to experience stress.

1. Workforce Quality

* Lost of skilled employees

Because of voluntary resign or early retirement, chances are, good employees, which is usually marketable employees, tend to leave or give up the job. Even worse is, the organization would have to hire them back, which may lead to a much higher cost.

http://www.authorstream.com/presentation/edwinlee-111819-downsizing-hr-business-finance-ppt-powerpoint/
Back to top Go down
View user profile
jerald jean pullos

avatar

Posts : 52
Points : 57
Join date : 2009-06-21
Age : 26
Location : davao city

PostSubject: ass5   Mon Aug 17, 2009 6:34 am

A company or organization is the term used to describe a group of people working together to achieve common goals and objectives. To achieve those, the very important ingredient is the strong workforce where all the individuals exert effort in their job in the organization that is coordinated and directed properly by the appoint personnel. Each of the managers and other supervisors of an organization have their own area of responsibility that makes them understand how their people work together and enables him to use this understanding in directing and facilitating the efforts of their people.

The one who are responsible in the personnel management was the Human Resource Management.
The HRM has own functions. These functions were very essential for the company to be uplifted in the business industry. Because in the HRM starts the operation of the organization were the people used their skill or enhance their skill and knowledge that helps a lot in the strong foundation of company.
There is also an essential role of the HR and is to have good human relations to work comfortably and for you as an employee to show and share your knowledge and skills should have a good relation. And also for both of the employee and employer to be satisfied with the achievements of the company and to work on your workplace harmoniously.

The HRM consist of those management functions and activities prior to the development and maintenance of human resources in an working organization.
But what if the HR didn’t perform well?

Downsizing means:

• organizational restructuring involving outsourcing activities, replacing permanent staff with contract employees, and reducing the number of levels within the organizational hierarchy, with the intention of making the organization more flexible, efficient, and responsive to its environment
• the reduction of the size of a business, especially by laying staff off. Downsizing may be part of a rationalization process, or corporate restructuring, with the removal of hierarchies or the closure of departments or functions either after a period of unsatisfactory results or as a consequence of strategic review. The terms upsizing and resizing are applied when an organization increases the number of staff employed.

I have read an article which discuss the downsizing of a foreign company, the Elaine Construction corporation.
You can visit their website @ www.elaine.com

Downsized, but still in the game
Layoffs at Elaine Construction Co. have been minimal, and there's work in the pipeline, but the firm's leaders aren't sitting tight.
After two field supervisors were let go from the staff of 50 last fall, top executives began more frequent visits to site employees who often don't see corporate folks for months. And Monday staff meetings at headquarters have changed. Now, everybody must report on project leads, rather than waiting for marketing to fill them in on new business. The aim: keep afloat and keep up "survivors' " morale.
"The general feeling is, 'Could I be next?' That's the level of uncertainty that you really have to combat," says Lori Stewart Coletti, director of client services at the Newton-based firm, which specializes in commercial and institutional renovations. Especially at a small business where everyone knows departing staff, says Coletti, layoffs are "traumatic" - fraught with guilt, lack of focus, and added work pressures.
Under such conditions, workplaces - big and small - often turn toxic, a growing body of research shows. "It shows up in a lot of bad behavior - hunkering down, hoarding information, every person for themselves, behaviors that are exactly the opposite of what companies want," says Laird Post, head of the US human capital management practice at the consulting firm Booz & Co.
For survivors of a layoff, the anger and grief they feel may lower productivity - making them candidates for the next round of pink slips. For managers, downsizings often lead to unhappy staff - who take the first chance they get to leave. A study published last spring found that companies that lay off as little as half a percent of staff experience a 13 percent turnover rate for at least the following year. That's 2.6 percent higher than average turnover at firms without layoffs.
"Downsizing is a shock to the system, and it leads employees to take a much closer look at what they have and what they may find elsewhere," says Charlie Trevor, the University of Wisconsin-Madison associate professor who led the study. Employees afraid to quit in this extremely tight labor market may jump ship later.
What to do? The good news is that workers and managers alike can take steps to quash survivor syndrome before it derails individual career paths and corporate bottom lines.
Start by staying focused on work, not the latest layoff gossip, says Mike, a Boston-area human resources executive with plentiful experience in corporate downsizings in various industries. This is a tall order, he admits. "You find yourself becoming all consumed by the process," says Mike, who did not want to use his last name due to the sensitivity of the topic. "You lose focus on your life, your family, and your work." To get on with business, Mike meets with staff individually and asks about their most important priority. "That's what gets lost or diverted, those higher aspirations," he says. Such meetings rejuvenate communications and help switch everyone's focus back to work. If your manager is too distracted to keep an eye on you, then be your own coach and revisit your work goals, short- and long-term.
Staying upbeat is crucial, too, for both employees and managers. At Elaine, executives have consciously tried to stay realistically optimistic, in part by stressing the positive during Monday staff meetings. "The way people behave in an uncertain time is pretty telling," says Coletti. "If your leadership team is complaining and moaning, that sets a tone."
Employees need to follow suit. Their jobs may depend on it, says Janet Banks, a Boston-based consultant who wrote about recession-proofing careers in the September Harvard Business Review. Imagine being on a life raft, "what kind of person would you want sitting beside you?" asks Banks. "If I'm your boss and you're in this pool of grief and anger and fear, I don't want you around me. You pull me down."
Staying on higher ground is an often-forgotten tool for troubled times, no matter whether you're chief executive or junior janitor. For employers, that means treating departing and surviving staff with fairness and dignity. "We have found enormous benefits when managers manage a downsizing process and the aftermath fairly," says Batia Wiesenfeld, a New York University associate business school professor who has studied the art and science of downsizings for 20 years.
When survivors of a downsizing felt employees were being treated fairly, they had higher commitment to the firm and lower absenteeism in the six months to a year after the layoffs, a series of 2007 studies by Wiesenfeld has shown.
Employees in turn can protect their jobs by showing flexibility and even humility, says Banks. Be willing to let go of your favorite project if it doesn't fit into a new cost-cutting effort. Take on added responsibilities - without a raise or promotion. Show that you're willing to help pull the company through the doldrums.
Finally, stay alert to your "plan B," advises Bob Kustka, a Norwell-based human resources consultant. Polish your resume and nurture a wide network of contacts. Keep thinking, "what do I need to do next, what courses do I need to take, what experience do I need," says Kustka.
But don't forget to take care of yourself, adds Janet Banks. During times of economic uncertainty, you have three jobs: making yourself relevant at work, staying on top of career opportunities, and managing your own well-being and life outside of work, says Banks. "The inability to predict what's going to happen next is very jarring to most people. Few can tolerate it for very long," she notes. "Preserving energy for the marathon, not the sprint, is important."


There are a number of reasons why a company downsizes its employee base.
Merging of two or more firms: When a certain firm combines its operations with another firm and operates as a single entity, in order to stay in profit or expand the market reach, it is called a merger. In case of a merger, certain positions become redundant. The same work is done by two different staff members. Usually in such a case, the company cuts staff to eliminate redundancy in work. It is characterized by some employees leaving an organization voluntarily, or by lay-offs, especially in case of higher management positions.
Acquisition: If one organization purchases another one, there is a definite change in the management and the acquired company staff has to face unemployment. The reason for this is the same as the earlier case, viz to cut costs and and increase the revenues.
Change in management: The change in the top brass of a company can also result in downsizing. The working methods and procedures vary with the management. Therefore, a significant change in the management roles may drastically affect the employee size to suit a particular style of working.
Economic crisis: This is the single biggest cause of downsizing. Often, it consists of huge lay-offs by a number of organizations across various domains. The recent economic recession facing the world, has triggered a number of lay-offs in many reputed and popular firms in the world. According to a survey conducted by the US Bureau of the Census, organizations consisting of higher percentage of managerial staff downsize more than the ones with higher percentage of production process employees.
Strategy changes: Some companies may reduce certain areas of operation and focus on other areas. For example, if a company is working on a project in which there are no assured returns, it may downsize it's employees working on that particular project. It focuses its resources on specific projects, which could be profitable ventures.
Excessive workforce: In a period of high growth, a company hires excess staff, to meet the needs of a growing business. However, in times of recession the business opportunities dwindle, leading to downsizing of the surplus staff that was hired.
Increase in efficient work flow and computerized services: If an organization work process is extremely fast and easily meets the requirements of the market, it may downsize some of its workforce. Similarly, if manual work can be done by a machine, in a much better and cost-efficient way, it also results in the reduction in the number of employees.
Outsourcing practice:Organizations catering to international markets require a huge and efficient employee base. If this labor can be obtained by 'exporting' the job to other countries, a huge downsizing takes place in the parent country. For instance, if a certain job can be done more effectively in India and is more viable economically there, than in the United States, the business is operated from that country.

http://www.boston.com/jobs/news/articles/2009/01/11/downsized_but_still_in_the_game/?page=2
http://www.boston.com/jobs/news/articles/2009/01/11/downsized_but_still_in_the_game/
http://www.buzzle.com/articles/reasons-for-downsizing.html

http://dictionary.bnet.com/definition/Downsizing.html


study ......still working..... study
Back to top Go down
View user profile http://jeraldjeanpullos.blogspot.com
Jevelyn Labor

avatar

Posts : 41
Points : 42
Join date : 2009-06-20
Age : 27

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 6:51 am

Layoffs==Downsizing==Reductions in Force

INTRODUCTION:
Whatever you want to call them - layoffs, downsizing, reductions in force - the global economic situation has resulted in more job losses and unemployment. Make no mistake: downsizing is extremely difficult. It taxes all of a management team's resources, including both business acumen and humanity. No one looks forward to downsizing. Perhaps this is why so many otherwise first-rate executives downsize so poorly. They ignore all the signs pointing to a layoff until it's too late to plan adequately; then action must be taken immediately to reduce the financial drain of excess staff.
The extremely difficult decisions of who must be laid off, how much notice they will be given, the amount of severance pay, and how far the company will go to help the laid-off employee find another job are given less than adequate attention. These are critical decisions that have as much to do with the future of the organization as they do with the future of the laid-off employees.
So what happens? These decisions are handed to the legal department, whose primary objective is to reduce the risk of litigation, not to protect the morale and intellectual capital of the organization. Consequently downsizing is often executed with a brisk, compassionless efficiency that leaves laid-off employees angry and surviving employees feeling helpless and demotivated.
Helplessness is the enemy of high achievement. It produces a work environment of withdrawal, risk-averse decisions, severely impaired morale, and excessive blaming. All of these put a stranglehold upon an organization that now desperately needs to excel.

As an assignment we are tasked to visit and identify a company website that has undergone HR downsizing. There are a lot of companies who had undergone unto HR downsizing, my preferred company to browse is 3M.

Minnesota Mining and Manufacturing
3M Company Company Profile
Loath to be stuck on one thing, 3M makes everything from masking tape to asthma inhalers. The company has six operating segments: display and graphics (specialty film, traffic control materials); health care (dental and medical supplies, and health IT); safety, security, and protection (commercial care, occupational health and safety products); electro and communications (connecting, splicing, and insulating products); industrial and transportation (filtration products, tapes, and adhesives); and consumer and office. Well-known brands include Scotchgard fabric protectors, Post-it Notes, Scotch-Brite scouring products, and Scotch tapes. Sales outside the US account for about two-thirds of 3M's sales.

THE ISSUE:
3M layoffs include 400 jobs in Twin Cities
by Martin Moylan, Minnesota Public Radio
December 8, 2008

Maplewood-based 3M plans to cut more jobs to offset sagging sales and profit margins. 3M said Monday it will slash another 500 jobs, on top of some 1,800 job cuts announced last week.
St. Paul, Minn. — 3M remains one of Minnesota's largest employers. Even with the latest round of job cuts, 3M's employment in Minnesota will total more than 15,000. But CEO George Buckley said the company won't hesitate to cut more costs, and jobs, if need be.
"If more is needed, then more will be done. Simple as that," Buckley said.
Buckley said 3M has closed about 15 plants around the world in the past 18 months, as the company tried to get a head start on whacking expenses.
"We've been going through a vigorous downsizing, better prioritization, deferring pay increases, eliminating temporary workers, taking furloughs [and] stopping some nice-to-do things," Buckley said.
But one thing will seemingly be shielded from the axe at 3M, spending on research and development. Buckley said R&D is the lifeblood of the company.
"We think we have to continue to innovate to survive, let alone prosper," Buckley said. "This has always been 3M's secret deadly weapon. Innovation.
The manufacturing giant, whose products include everything from cell phone circuits to Post-It notes, is lowering its profit outlook for this year and next. 3M could miss Wall Street's 2009 earnings expectations by more than 10 percent.
That's not so bad, of course, when many companies, in the auto, financial, newspaper and other sectors, are seeing their profits disappear.
CFO Patrick Campbell said the economic downturn is hitting 3M on all fronts, from the housing and automotive sectors to the dental and office supply market.
"Every business we have, every geography we have in November and December, volume is quite a bit below what our expectation was," Campbell said. "So, you're going to find that margins are going to go down proportionately for all the businesses."
3M expects its sales, excluding the impact of currency transactions, acquisitions and other factors, will fall 10 percent in the fourth quarter.
And next year, 3M expects sales to be down 3 to 7 percent by the same measure. In addition, unfavorable currency exchange rates also figure to eat into earnings.
3M execs signaled they think the recession will last longer than many economists believe it will. Buckley believes we probably haven't seen the worst of it.
"We all know the economy is bad today, that it is likely to be bad for some time," Buckley said. "And I think some of us have an inkling that in some segments of the economy it's going to get worse before it gets better."
Despite the sour economy, though, Buckley said he's hopeful about two environmental plays in 3M's portfolio. He believes its solar energy and waterworks infrastructure businesses could do well next year. He notes some cities may lose half of their water to leaks that 3M could plug.
Buckley sees a great opportunity for 3M to emerge as a stronger company after the economy recovers. He expects 3M will be able to enter new businesses and pick up market share as other companies stumble or die.
"The strong here are going to get stronger and the weak are going to get weaker," he said. "There are going to be huge dislocations in value and opportunities for acquisitions are going to pop up. Bankruptcies are going to happen. Consolidations are going to take place."
It's all very Darwinian, Buckley said. But as one of the biggest corporations in America -- and the world -- 3M would be a good bet to emerge from the current economic trials bigger and stronger.
But on Monday, investors focused on the downside as 3M shares sidestepped a strong rally on Wall Street and closed down 4 percent.


The legal issues concerning unto 3M lay-off process :
Every potential or planned layoff creates a number of critical, and possibly expensive, legal issues, including:
• Worker Adjustment and Retraining Notification Act (WARN Act). WARN is a federal law requiring employers of more than 100 employees to give written layoff notice at least 60 days before any plant closing or "mass layoff." A number of states also have WARN acts that may have even stricter requirements and apply to even smaller employers.
• Discrimination laws. Federal and state discrimination laws, such as the Age Discrimination in Employment Act (ADEA), prohibit workers in protected classes from suffering unlawful disparate impact or disparate treatement because of a reduction in force .
• Family and Medical Leave Act (FMLA). Employees on FMLA leave may be protected against a reduction in force unless it can be shown that they would have lost their positions even if the FMLA leave hadn't been taken.
• Uniformed Services Employment and Reemployment Rights Act (USERRA). USERRA requires employers to reinstate returning members of military services to the jobs they would have held had they not been serving. The law also might protect an employee from layoff unless the employer can show that "circumstances have so changed as to make such reemployment impossible or unreasonable . . . or such employment would impose an undue hardship on the employer."
• COBRA. This federal law requires most employers that sponsor group health plans for their employees to allow certain employees and their dependents who would otherwise lose coverage under the plan because they left their job or certain other events – such as a layoff -- to pay to continue that coverage for a specified period of time.
• Other issues employers need to concider during a layoff. The following are list of other issues that can get employers in legal trouble when planning and carrying out layoffs: retaliation, worker's compensation claims, EEOC claims, poor documentation, inadequate document retention, employees protected by whistleblower laws, and badly crafted severance agreements and waivers.
Employers face a difficult choice when contemplating layoffs. Using objective criteria may be the best legal protection, but it isn't necessarily an effective way of keeping the most productive employees. Subjective criteria focuses more on the quality of the remaining employees work but leaves employers more vulnerable to claims of favoritism and discrimination. Either way, careful planning is critical to a successful layoff.


3M Voluntary Separations

Early Retirement.
Paid Insurance Benefits.
Buyouts or Lump-Sum Payments.
Social Security Supplements for Early Retirees.
Paid Tuition.
New Business Start-Up Assistance

3M Involuntary Separations

When redeployment and voluntary separation programs did not achieve
the employment reductions needed to meet efficiency, profitability, span
of control, or other restructuring goals, the organizations in our review
said they instituted, or planned to institute, involuntary separation
programs or reductions in force (RIF). Various criteria, including tenure
and performance, were used to determine which employees would be
involuntarily separated.

The 3M Considerations During their Downsizing Decision Making

3M Specified that when organizations downsize, employees are apprehensive. So they had considered facts about employees after lay-off process.They are
concerned about

(1) possible job loss
(2) uncertainties about career advancement
(3) relations with new supervisors
(4) revised performance expectations
(5) other matters that may affect them personally as their employers restructure or cut the number of people they employ.

Other companies who had gone HR downsizing:
AT&T
• Black & Decker
• DuPont
• Eastman Kodak
• General Electric
• General Motors
• Grumman
• Hewlett-Packard
• Honeywell
• IBM
• Johnson & Johnson
• K-Mart
• Motorola
• Sears

REFERENCES:

http://humanresources.about.com/od/layoffsdownsizing/a/downsizing.htm
file:///F:/MIS/HR%20DOWNSIZING/3M.html
http://minnesota.publicradio.org/display/web/2008/12/08/3m_outlook/
Back to top Go down
View user profile http://www.tipukling3.blogspot.com
florenzie_palma

avatar

Posts : 61
Points : 62
Join date : 2009-06-20
Age : 26

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 9:06 am

Human Resource Development: The Case of General Electric





This is about the Human Resource Development issues faced by General Electric during its transition period. Organizational change has affected the human resources of the company. Training and development has played important roles in preparing and educating the employees about the new strategies and goals of the company. Organizational change in General Electric required flexibility, adaptability and increased responsibility. HRD helped the employees to adjust and perform their current jobs effectively. It has also helped the employees to prepare for future careers and responsibility.

Idea General Electric

GE is a services, technology and manufacturing company operating in more than 100 countries and employs 313,000 people worldwide. Thomas Edison established Edison Electric Light Company in 1878. Edison’s company later formed a merger with Thomson-Houston Electric Company in 1882, giving birth to General Electric Company. GE is among the largest and most diversified industrial corporations in the world.

Idea Human Resource Development in General Electric

Development of people within the organization is directed at performance improvement in order that the organization can benefit – greater organizational efficiency, more effective competitive practices, and greater profitability. Human resource development refers to the preparation through learning activities of human resources for current jobs (training) and future work assignments (development) as well as individual enhancement (education). The three focus of human resource development are training, development and education.


Human resource development (HRD) means competence building, commitment building and culture building. HRD outcomes can influence an organization’ business goals of higher productivity, cost reduction, more profit better image, and more satisfied customers and stakeholders. These outcomes require high-level competencies in the employees (technological, managerial, human relations and conceptual), effective utilization of people through well-developed roles, high work commitment, work motivation, and teamwork. Continuous training, empowerment, and teamwork facilitate employee development.


Idea Issues that affected HRD in General Electric
General Electric, like many successful organizations today has undergone a series of restructuring that has led to downsizing people and stripping off the organizational hierarchy. Changing organizational strategies and objectives, It has a significant impact on the training and development of employees. Restructuring and downsizing can be challenging both for the organization and its people. In the succeeding discussion, it tries to analyze the impact of restructuring and downsizing in General Electric to its employees and managers. Organizational change does not end with changing strategies and objectives. Most important is the human resources – the competitive advantage of the organization. Training and development is an important consideration in times of restructuring and downsizing as it prepares employees to fulfill new and future roles and responsibilities.


Idea Restructuring

Restructuring the organization has a big impact on Human Resource Development. Employees need to be trained and educated about the new strategies and goals of the company. Performance and other contributions made by employees need to be aligned with the organizational goals. The best way to make the people prepared to fulfill their new roles and responsibilities and to make their efforts contribute to the new strategies and objectives of the company is to train and develop them.

Let us consider General Electric’s experience, when became the CEO of General Electric, he pursued a major organizational change. New goals and objectives have been introduced. The organizational structure has been changed and some layers of the hierarchy have been removed. Job redesign was the order of the day. Managers and employees were asked to perform new and different tasks. This has caused tremendous difficulties and challenges. The managers and employees were not well prepared for the abrupt changes. Many lost their jobs. Middle managers were removed. Managers and employees find themselves doing jobs that they were not trained to do. The initial stage of the organizational change was truly challenging for every one in the organization. It takes money and time to replace or change then mix of human resource skills and attitudes when the organization is undergoing major change. Productivity drops on a per capita basis when people are learning in contrast to when they are experienced. Thus, additional training and supervision, and operational personnel resources are required to produce the same results that could be provided by an experienced workforce.

Restructuring the organization requires employee training and development. Change will not occur unless the employees are properly trained and developed. In this example, we must look at how restructuring has impacted the human resources of General Electric. HRD deals with employee training, development and learning. HRD helps employees to fulfill their current roles and prepares them for future assignments and responsibilities.

Like many organizations today, General Electric operates in a fast changing market. Both internal and external environmental factors affect the organization’s performance, goals, culture and success. The most effective way to incorporate human resource factors within corporate strategic planning is to have a member of the human resource planning group and a human resource executive participate as active members of the corporate strategic planning function. General Electric knows that in order to be successful it needs to align its human resource strategic plans with the corporate strategic plans. Human resource management and development should be considered in the organizational planning process.


Idea Downsizing and Delayering

Restructuring and downsizing means that many employees need to be trained to take on expanded responsibilities as organizations have created internal environments of ‘doing more with less’. HRD must be an out growth of the organization’s overall strategy. Today, training must be tailored to fit the organization’s strategy and structure. When strategy changes, training and development have to change and equip employees with the Knowledge, Skills and Abilities necessary to meet new demands.

When took over GE, he started to abolish most of the bureaucratic structure of the company. He stripped out layer after layer of management and making nearly a quarter of GE’s workforce redundant in a matter of a few years. Welch wanted a much leaner and flexible organization which concentrated on its core strengths and markets and could respond quickly to new events. Welch delayering of the organizational hierarchy has caused tension and unrest among the managers and employees. Delayering has negative effects on employee motivation. Because of delayering many employees and managers lost their jobs.

The initial result was chaotic. The employees were suspicious of Welch’s strategies. Motivation is an important factor in human resource development. Because HRD aims to develop, train and educate employees to fulfill their present jobs and be prepared for future assignments, the lack of motivation affects the success of the training programs.

In this example, try to look at downsizing as an HR issue. Downsizing affects employees. Downsizing and Delayering leads to job redesign and restructuring of job descriptions and job responsibilities. In times of downsizing and delayering, the HRD department plays an important role in making sure that the employees are equipped with the necessary knowledge, skills and abilities through training and development. Organizations of today are constantly changing. Employment is uncertain. Human Resource Development is not just about traditional training and development. It needs to prepare the employees to be flexible and adaptive of the changing environment.

In order to counter the negative effects of delayering, the top management led by the CEO showed the managers and employees that it is dedicated to employee development and career advancement. Several strategies were implemented to ensure that the employees are properly trained and given opportunities for development and career advancement. GE invested heavily on employee training. By 1998 the training center had trained over 15,000 managers. Set up an in-house management training center in New York and personally oversaw its development. He put in personal appearance during almost every programme and spoke to the managers involved. By some estimates, GE spends half a billion dollars a year on training, making it one of the largest investors in management in the USA. The top management shows dedication to training and development. This has countered the employee insecurity that was produced by delayering. The employees are given opportunities to upgrade their skills and knowledge. Let us look at the various strategies that GE employed to ensure human resource development.


Idea GE’s Solutions to Issues and Problems


Exclamation 1. Employee Empowerment and Teamwork
To mitigate or counter the negative effects of organizational restructuring and downsizing, General Electric promoted employee empowerment. At General Electric, every member of the organization has participated in ‘Work Out’ sessions. These sessions are facilitated by a process expert and are intended to teach skills of consensus, negotiation, and decision making among individuals representing different levels and functions. GE created a culture where employees are empowered to achieve their greatest potential. GE’s performance meritocracy is demanding but the rewards can be just as great. All are geared toward understanding what is important to employees and providing access to tools, resources and information tom help employees reach their potential. The company allows the employees to take personal responsibility and control what they can in the workplace.


The organization realized from the beginning that delayering and stripping out pf managerial hierarchy would have to be counterbalanced and that a new center of organizational gravity would be required. Employee empowerment can be an effective form of development. Employees are given more responsibility over their jobs. Employee empowerment helps employees to become effective decision-makers. By giving them more control, they develop a sense of ownership over their jobs. Employee empowerment also helps employees to improve. One of the benefits of employee empowerment for employees is it allows them to plan for their training and development. Employees identify their training and development needs. These are aligned by the HRM department to the goals and objectives of the organization.


Exclamation 2. Employee Education and Learning
General Electric begun to realize that continuous learning is important in human resources development. Organizational learning is one of the top most priorities in General Electric. Organizations who value learning have the following characteristics:

Arrow Learning is accomplished by organizational systems as a whole, almost as if the organization were a single brain

Arrow Members of the organization are aware of the significance of organizational learning in the achievement of company objectives and goals

Arrow Continuous learning is parallel to work

Arrow There is a focus on creativity and generative learning

Arrow System thinking is fundamental


Exclamation 3. Career Planning Workbooks and Workshops

Workbooks are prepared to guide their employees individually through systematic self-assessment of values, interests, abilities, goals and personal development plans. General Electric has developed an extensive set of manuals for its career development program, including workbooks to help employees explore life issues that affect career decisions.

GE invested considerable time and money training undergraduate and graduate students for its premier entry-level global Leadership Development programs. Many of GE’s top leaders can trace their career beginnings to these programs. Programs such as this help facilitate a common culture. These programs also help nurture core processes and levels of expertise are developed that flood the company. Challenging assignments, mentoring, and regular exposure to senior management help to identify and develop future high potential leaders. GE’s dynamic culture promotes lifelong learning. GE employees are both expected and encouraged to fulfill training that helps them navigate a more competitive market place, learn domain expertise, develop skills and comply with the company’s integrity and citizenship initiatives.


Last edited by florenzie_palma on Mon Aug 17, 2009 9:12 am; edited 1 time in total
Back to top Go down
View user profile
florenzie_palma

avatar

Posts : 61
Points : 62
Join date : 2009-06-20
Age : 26

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 9:06 am

Idea Recommendations

General Electric, today is among America’s most admired company. Its training and development strategies during the organizational phase have been successful. However, there are still factors that are beyond the control of the organization. General Electric operates in a fast-changing environment. Human resources is still its key competitive advantage. Training and developing employees to be able to adapt to changes is still important. The changes in the external environment, especially in technology presents both challenges and opportunities. The organization needs to grab the opportunities given by technological innovations. In this section I try to suggest training and development strategies that can be beneficial for the company.


Very Happy 1. E-Learning

The power of e-learning comes from the opportunity to leverage technology and information to alter the basic tenets of learning by eliminating the one-size fits all approach to instruction and customizing content to meet individual needs and learning styles.

The benefits of e-learning rely on the dynamic relationship that links learning, people, and organizational performance. High quality e-learning can improve speed to capability by significantly reducing the amount of time it takes to train workers on new products and processes. E-learning can also reduce the costs of workplace training. E-learning can help create unprecedented opportunity, productivity, and prosperity for individuals and organizations. E-learning in a technology-enabled learning designed to increase workers’ knowledge and skills so they can be more productive, find and keep high-quality jobs, advance in their careers, and have a positive impact on the success of their organizations, their families and their communities.

E-learning can be a powerful training, development and learning tool for large organizations like General Electric that have operations world-wide. In a diverse organization like General Electric people bring with them different values, attitudes, cultures and learning styles. So traditional one size-fits-all training and development programs are not adequate. E-learning can be an effective HRD tool because it takes employee training and development to personal levels. It fits ach employee’s capabilities and skills to his or her makes training and development. In the case of GE we see how the changing environment affects the human resources of organizations today.

Restructuring, Downsizing and Delayering are facts of organizational life. As companies try to be flexible and adaptive, the HRD department must also make sure that the employees are flexible and adaptive to the changing business environment as well.



Very Happy 2. Web/Technology-based Training

Technology-based training includes all training forms that use the computer for delivery. One example is web-based training. The term web-based training refers to the delivery of computer-based training over the internet and intranets. Learning via the internet is being considered as a new potential model for training. Web-based training is the best way to reach geographically dispersed employees quickly and at a low costs. Web-based training can be synchronous or asynchronous. Synchronous training is instantaneous and allows the instructor and learners to interact via the Web in real time context. In contrast, asynchronous training is not instantaneous; the learner logs on to the course to complete the lesson or post, receives and responds to messages at his or her own pace and at the time that is convenient to him or her.

Like a Star @ heaven Conclusion Like a Star @ heaven

Our discussion talks about the human resources development issues that an organization under organizational change encounters. Organizational change is not only a strategic management issue. It affects not only the strategies and goals of the organization. More than anything, it affects the people within the organization. Organizational change can be chaotic and problematic, especially to the employees who find themselves trap in an unsecured situation. Training and development should be a main consideration in organizational change. The organization cannot implement its new strategies and objectives if the employees are not prepared, trained and educated. Human resources development plays an important role in the success of organizational change efforts.

References:
http://www.businessweek.com/2000/00_50/b3711013.htm
http://hnn.us/articles/5546.html
http://www.strategicedsolutions.org/page.php?ID=47
http://www.highbeam.com/doc/1G1-127545736.html
http://www.icmrindia.org/casestudies/catalogue/Human Resource and Organization Behavior/HROB072.htm

my blog
www.florenzie-palma.blogspot.com


Last edited by florenzie_palma on Mon Aug 24, 2009 6:39 am; edited 1 time in total
Back to top Go down
View user profile
Norena T. Nicdao

avatar

Posts : 58
Points : 64
Join date : 2009-06-22
Age : 26
Location : Davao City

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 11:24 am

What is Downsizing?

Downsizing refers to the permanent reduction of a company's workforce and is generally associated with corporate reorganization, or creating a "leaner, meaner" company. For example, the database developer Oracle Corporation reduced its number of employees by 5,000 after acquiring rival PeopleSoft. Downsizing is certainly not limited to the U.S.; Jamaica Air cut 15 percent of its workforce in an effort to trim expenses and anticipated revenue shortfalls.

I got some of the discussions in the internet about the cause of downsizing...

When do Firm Downsizing?

Downsizing and closure also visit substantial costs on the communities in which they occur. The businessmen and women responsible for employment and plant closure choices act responsibly, but their responsibility is primarily to their shareholders. The workers and surrounding community affected by the choices face substantial restructuring, retraining and perhaps relocation costs.
In a perfect world, perhaps, the businesses would alert their workers and communities of impending plans to downsize or close plants. In our imperfect world, however, there are two major reasons why this will not happen.

First, the businesses themselves will often have little warning of a change in market conditions requiring downsizing. Business people are optimists by nature, and they have faith that something will turn up to permit continued operation.

Second, any alert to workers and community of a possible closure will be the end of business as usual for that plant. Suppliers will not sell on credit; customers will not make long-term commitments; banks will not provide working capital; workers will search for new jobs on company time. Under those conditions, the possibility of downsizing becomes a certainty.



Source: http://www.referenceforbusiness.com/management/De-Ele/Downsizing-and-Rightsizing.html
http://www.unc.edu/~pconway/Textiles/conway_downsize.pdf


I found some articles of the companies about downsizing...

Posted on August 5, 2009 by BioJobBlogger
Lilly to Restructure and Downsize Its Sales Force

Eli Lilly & Co. is offering buyouts to 4,000 U.S. sales representatives to eliminate several hundred jobs and restructure its operations. Sales representatives will be offered four months' pay in addition to the typical Eli Lilly severance package, which ranges from two to 18 months' salary depending on seniority. The company had a total of 40,500 employees at the end of 2008.

Lilly’s best-selling drugs include Zyprexa for schizophrenia and bipolar disorder, Cymbalta for depression, Byetta for type 2 diabetes, and Evista for osteoporosis. The patent supporting Zyprexa, which bought in $4.7 billion in revenue last year, will expire in 2011. The patents on the company's next three top drugs —Cymbalta, Humalog insulin, and cancer drug Gemzar —are set to expire in 2013.

The restructuring is expected to start in mid-November and take effect in January.

Sales reps and R&D scientists have suffered the most during pharma’s recent three year downsizing binge. While many R&D jobs have been shipped overseas, pharma sales reps might consider a new career in biotechnology drug sales. Growth in biotechnology and personalized medicine drugs is expected to increase for the foreseeable future.

Posted on August 5, 2009 by BioJobBlogger
Lilly to Restructure and Downsize Its Sales Force

Eli Lilly & Co. is offering buyouts to 4,000 U.S. sales representatives to eliminate several hundred jobs and restructure its operations. Sales representatives will be offered four months' pay in addition to the typical Eli Lilly severance package, which ranges from two to 18 months' salary depending on seniority. The company had a total of 40,500 employees at the end of 2008.

Lilly’s best-selling drugs include Zyprexa for schizophrenia and bipolar disorder, Cymbalta for depression, Byetta for type 2 diabetes, and Evista for osteoporosis. The patent supporting Zyprexa, which bought in $4.7 billion in revenue last year, will expire in 2011. The patents on the company's next three top drugs —Cymbalta, Humalog insulin, and cancer drug Gemzar —are set to expire in 2013.

The restructuring is expected to start in mid-November and take effect in January.

Sales reps and R&D scientists have suffered the most during pharma’s recent three year downsizing binge. While many R&D jobs have been shipped overseas, pharma sales reps might consider a new career in biotechnology drug sales. Growth in biotechnology and personalized medicine drugs is expected to increase for the foreseeable future.

Source: http://www.biojobblog.com/tags/downsizing/

Company Website:[url] http://www.lilly.com/[/url]

Other Company Articles about downsizing:


Yet Again :More Downsizing at Bristol Myers Squibb

In a previous post, I suggested that more layoffs would occur at Bristol-Myers Squib (BMS) by December, 1, 2008. The Pharmalot Blog reported today that 800 more BMS employees ( including scientists) would lose their jobs before the end of 2008. Okay, so I was off by about two weeks.

A company spokesperson told the Pharmalot folks that “We are reducing the global Bristol-Myers Squibb workforce as part of our previously announced second wave of productivity initiatives designed to enhance our ability to address the significant challenges and uncertainties our company faces in the short- and long-term. Headcount reductions associated with the second wave of productivity initiatives will continue through 2010, with a goal of a 10 percent reduction in our global workforce. This [layoff of 800] is in addition to the 10 percent workforce reduction previously announced in December 2007.”

Things are obviously not going well at BMS these days. Look for more layoffs in early 2009 and beyond. Who do you think is going to buy BMS?

In a previous post, I suggested that more layoffs would occur at Bristol-Myers Squib (BMS) by December, 1, 2008. The Pharmalot Blog reported today that 800 more BMS employees ( including scientists) would lose their jobs before the end of 2008. Okay, so I was off by about two weeks.

A company spokesperson told the Pharmalot folks that “We are reducing the global Bristol-Myers Squibb workforce as part of our previously announced second wave of productivity initiatives designed to enhance our ability to address the significant challenges and uncertainties our company faces in the short- and long-term. Headcount reductions associated with the second wave of productivity initiatives will continue through 2010, with a goal of a 10 percent reduction in our global workforce. This [layoff of 800] is in addition to the 10 percent workforce reduction previously announced in December 2007.”

Things are obviously not going well at BMS these days. Look for more layoffs in early 2009 and beyond. Who do you think is going to buy BMS?

Posted on July 23, 2009 by BioJobBlogger
Bristol-Myers Squibb to Buy Monoclonal Antibody Maker Medarex

Bristol-Myers Squibb (BMS) announced late yesterday that it intends to purchase Princeton, NJ-based Medarex for $2.1 billion. BMS and Medarex were working collaboratively to develop a monoclonal antibody called Ipilimumab as a treatment for late stage melanoma.

The acquisition represents BMS’s public commitment to transform itself into a “next generation pharmaceutical company” with both pharmaceutical and biotechnology products in its arsenal. Last year, BMS bought Kosan Biosciences, Inc a California-based biotechnology company developing novel cancer treatments. Also, as you may recall, BMS lost ImClone to Lilly in a bidding war over Erbitux—a monoclonal antibody-based colorectal cancer treatment that was co-marketed by BMS.

Medarex was one of the last independent, public, late stage monoclonal antibody development companies in the biotechnology industry. Many of its competitors, like ImClone and Cambridge Antibody Technologies, had already been acquired by big pharma and I was wondering when Medarex would be acquired. I have always held Medarex in high regard and it is a solid and well position company. To that end, I recommended that my mother purchase Medarex stock several years ago telling her that I thought it had a huge upside. Not surprisingly, the stock has been soaring since the announcement; so much so that my mother called me today to tell me how smart I was—go figure.

It is not clear, at present, what effect, if any, the Medarex acquisition will have on the employment situation in New Jersey. Although BMS is headquartered in NYC, it has two large sites in New Jersey, one in Lawrenceville and the other in Plainsboro. As mentioned above Medarex is based in Princeton, NJ. BMS has been steadily downsizing over the past three years and I suspect that there may be more layoffs after the Medarex deal closes. If there are layoffs, more are likely to occur on the Medarex side of the business.

While I have been critical of some of BMS’ strategic moves in the past, I think the Medarex acquisition is an outstanding one and BMS will likely benefit from it!


Source:http://www.biojobblog.com/2008/12/articles/biojobbuzz/yet-again-more-downsizing-at-bristol-myers-squibb/
http://www.biojobblog.com/tags/downsizing/
http://www.biojobblog.com/2008/12/articles/biojobbuzz/yet-again-more-downsizing-at-bristol-myers-squibb/

Company Website: http://www.bms.com/careers/Pages/home.aspx


Last edited by Norena T. Nicdao on Sun Aug 23, 2009 9:11 pm; edited 3 times in total
Back to top Go down
View user profile
Joseph Ethel Valdez

avatar

Posts : 57
Points : 64
Join date : 2009-06-20
Age : 26
Location : Brgy. Villarica,Babak Dist.,IGACOS

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 11:30 am

Human Resource defined the people that staff and operate an organization … as contrasted with the financial and material resources of an organization. It is the organizational function that deals with the people.

What is Downsizing?
Downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff, with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people. 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.

Here are the following list of company that has undergone Human Resource downsizing and the cause and processes of it.

1.) Microsoft's Razorfish
Microsoft's online ad agency Razorfish laid off 40 staff in its New York office this afternoon, citing a drop off in business from the financial services sector.

"Many companies, especially those in the financial services sector, have been hit hard by the economic crisis. This has had a direct impact on our business, particularly in New York," Razorfish spokeswoman Sally O'Dowd said. "As a result Razorfish had to lay off about 40 people today, about two percent of our work force."
http://www.techflash.com/microsoft/Microsofts_Razorfish_online_ad_agency_cuts_NY_staff33609649.html

2.) Attachmate
Attachmate today laid off 10 percent of its staff, or 120 employees, as the software company adjusts to the growing economic problems. Company spokeswoman Melissa Liton did not immediately have information on the number of workers affected at the Seattle headquarters, though she said cuts occurred across most of the divisions and offices. “The reductions were necessary to ensure Attachmate maintains a healthy financial structure during this difficult and uncertain economic climate,” said Liton.

With the economic storm clouds darkening, a number of technology companies have cut staff in recent weeks. In Seattle, The Cobalt Group, RealNetworks and Marchex have all scaled back operations. Rumors have also circulated that Microsoft -- the anchor of the Seattle tech community -- may be preparing for a layoff later this month.
http://www.techflash.com/venture/Attachmate_cuts_10_percent_of_staff37314084.html

3.) Nokia
Finnish mobile giant Nokia has announced that it is trimming down its operations by cutting over 600 positions, mainly in marketing and sales departments. The Nokia Research Center (NRC), the business unit that explores and develops technologies that will be available in the marketplace in five to ten years, will also focus on fewer research areas from now on.
In addition to the lay-offs, Nokia is closing an entire company site (Turku) by the end of January 2009, but hopes to relocate all of its 220 employees to Nokia’s site at Salo or in the capital area in Finland. The changes in the Markets unit, Nokia Research Center and in other Nokia functions will come into effect on January 1, 2009.

In another release, Nokia touts the introduction of a range of low-priced mobile devices and new services catered specifically to people in emerging markets (e.g. India). In total, seven new handsets were announced, and the first services Nokia will offer in emerging markets will focus on email (Mail on Ovi), agriculture and education (Nokia Life Tools).

Like many businesses, Nokia is feeling the nasty sting of the economic downturn. Its recently announced Q3 earnings weren’t spectacular either (down over 28 percenton a year earlier), so these lay-offs don’t exactly come unexpectedly. It’s easy enough to find the irony when you look at the two news releases side by side, but I think Nokia is actually making the right strategic move by shifting its focus to custom internet services for countries where there is much room for growth and very specific needs.
http://recruitersdumpingground.blogspot.com/2008/11/nokia-cuts-600-jobs.html

4.) Hewlett-Packard
Hewlett-Packard began issuing layoff notices that could mean "hundreds" of lost jobs among Imaging & Printing Group workers at the company's Boise campus, according to sources who requested anonymity.

The laid-off HP engineer said furloughed workers will receive five weeks of pay and benefits, during which time they will train other workers to pick up some of their duties. The laid-off workers will be able to look for other jobs inside HP. If they don't find jobs, HP will provide an additional four weeks of pay and benefits, though the employees will have little to do and will not be required to be on site.
http://www.idahostatesman.com/235/story/482932.html

Cause of Downsizing
Downsizing occurs because a company’s business model is no longer producing an acceptable financial return. If downsizing is seen as a signal that “business as usual” is no longer acceptable, then it can be used as a catalytic event for strengthening a company’s competitive abilities. If downsizing goes beyond “laying off” people to laying off unnecessary processes, low margin products and customers, and non-value services, an organization can quickly improve its financial performance. Downsizing is an opportunity to shock the organization out of complacency and to find significantly better ways of running the business.

Role of Human Resource
Most line managers are so focused on who to terminate and how to keep up with the work demands, that they cannot readily see opportunities for improvement or strengthening the culture. The Human Resource manager can play a vital role during this transition period, since they are responsible for orchestrating the downsizing effort.

Given the organization uncertainty during downsizing, line managers can be much more receptive to suggestions from HR. This is the perfect opportunity for HR managers to assist line management in finding ways to adapt to working with less resource. Upside downsizing is a set of tools the HR manager can use to help managers get productivity and employee satisfaction not only back on track, but elevated to new levels. When properly implemented, upside downsizing will help both the company and HR’s stock increase.

Five tips for downsizing and layoffs processes:
When the company has already trying everything to reduce overhead to cutting back on employee hours and reducing energy costs. Nothing seems to be getting your small business on the road to recovery during these tough economic times and the only answer is company layoffs. This will be a difficult time for your business because nothing is easy when it comes to company downsizing. However, these five layoff tips will help you make the transition through this difficult time smoother and more effective.

1.)Plan and Act
Don’t resort to company downsizing in a frivolous attempt to save face. Company layoffs are a serious matter that should be approached with tact and diplomacy. You need to develop and implement a directed plan of action. Even if you are simply considering company layoffs as an alternative option for the future, it’s important to tackle the issue far in advance.

2.)Try to Increase Profit

Sometimes the real issue when it comes to company downsizing is not that there are too many people, but that there is too little profit. Focus a great deal of energy on increasing profit if company downsizing looks like it is on the horizon for your small business.

3.)Be Honest

When it comes to company layoffs, honesty is the best policy. Don’t hide information from your leaders and managers. If other employees come forward with questions and concerns, be sure to address them with complete sincerity. No layoff tips can help you avoid disappointing your workforce, but you need to be honest in order to build trust and maintain relationships through the eye of the storm.

4.)Prepare the Workforce

Even if you don’t know who will be laid of or when, it’s important to start preparing your workforce for the worst. Company layoffs should come as no great surprise. All members of your organization should be informed well in advance if this may become a possibility for your company. Hold a meeting and disclose pertinent, concrete information to your employees. Let them know that you are doing all that you can to avoid making layoffs and that company downsizing is a last resort. You might also consider welcoming any suggestions or tips from the workforce on how to further reduce costs and avoid layoffs.

5.)Avoid Legal Troubles
One factor you need to consider when designing company layoffs is that there are many legal issues. A corporate lawyer will generally provide layoff tips that say to design your layoffs around a last-hired, first-fired model. This ensures that employees cannot file suit regarding discriminatory acts against you. As a small business owner, you need to protect your remaining assets during company layoffs. Approach the situation on the basis of seniority and nothing more.

These layoff tips might not necessarily help you save jobs, but they will make the transition through a period of company downsizing more endurable. Company downsizing is becoming a harsh reality for thousands of people in a variety of industries, but you can make the best of the experience with these layoff tips.

Companies that do not use the downsizing experience as an opportunity to revitalize their business are doomed to repeat the experience. The HR manager can provide a missing leadership role in using downsizing as an initiative for building a more competitive company.

References:
http://adnetwork.kcilink.com/adclick.php?n=aafd07e6
http://www.morebusiness.com/company-downsizing
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html
http://www.onpha.on.ca/AM/Template.cfm?Section=Human_Resources1&Template=/TaggedPage/TaggedPageDisplay.cfm&TPLID=4&ContentID=2204


mY Blog:
http://jevaldez.blogspot.com/
Arrow
Back to top Go down
View user profile
carla comoda

avatar

Posts : 50
Points : 54
Join date : 2009-06-20
Age : 26
Location : Davao City

PostSubject: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 11:43 am

Visit and identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes.

Downsizing
is an extremely relevant issue to organizations today in that it has become the most prevalent dilemma in recent years. The current tendency of organizations to restructure and ultimately to downsize has a major negative impact on the organizations themselves, on their
surviving and terminated employees, on the government, and on society as a whole. In fact, it is everyone's problem, and it seems to have become more the rule than the exception that it used to be in the not too distant past. The current adverse economic climate has been persistent and long-lasting. As a result, many organizations that were operating inefficiently have been driven out of business, and most of those that have survived were forced to restructure in order to streamline their operations and achieve operating cost savings that would ensure their continued competitiveness both on the local and global markets. More often than not, this meant downsizing the organization and, in many cases, the downsizing was conducted in multiple phases or on an on-going basis. The direct result on the organization was a marked drop in employee morale and productivity which prevented organizations from realizing their strategic objectives.
Beyond the organization, the overall effect of these cost-cutting measures has been the loss of a very significant number of jobs in the North American economy. Specifically, in Canada, unemployment rose in November, 1992 to 11.8%, with approximately 1.6 million Canadians unemployed.(1) In Ontario and Quebec, the numbers were 10.9% and 14.3% respectively.(2) These numbers do not include unemployed persons who: (1) have given up looking for jobs and have been transferred to the Welfare system, (2) have decided to pursue further education, or, (3) have simply decided to lower their standard of living and live on one income.

Background On Downsizing

-In the contemporary business era, where the emphasis is on cost-effectiveness and ‘lean' organizations, downsizing has emerged as a prominent activity of relieving employees from their jobs. There are several reasons due to which organizations follow the downsizing strategy.


Managing After Downsizing : A Manager's Guide to Coping With Layoffs

-Downsizing is a very personal and emotional experience for people caught up in the events. Some managers believe that those who are not dismissed will feel relieved, even grateful that they survived to keep their jobs. This might be true in some cases, where the cuts are few and widely...
*Layoff -dismissal, often temporarily, from work because a job ceases to exist or because of lack of work. Employees who are laid off may qualify for unemployment compensation.

Downsizing With Dignity

Most companies' resort to downsizing for achieving increased profitability. The organizations apply downsizing techniques by cutting down the expenses and increasing employee layoffs. However, experts suggest that an organization must recognize the real problem within the organization before going on a layoff spree. Moreover, even if an organization is determined


Top 10 Ways To Survive An HR Downsizing
In tough times, it’s not unusual for an HR downsizing to occur in many organizations. Cost pressures, lack of profitability, competitiveness issues, and organizations restructurings happen every single day and impacts thousands of people. And HR is not exempt from this ax.
Losing your job in an HR downsizing can be a traumatic experience. If the ax does drop on you, you’re likely to feel angry, discouraged and disoriented. And while these emotions are natural, it’s important that you don’t stay in that place for long.
Losing your job is just like any loss — your body and your emotions need some time to adjust to this new type of change that you’ve just experienced. It’s important that you take time to work through your thoughts and feeling and then get back on track quickly.
If you’ve lost your job or about to lose it, here’s what you can do right now, in order to get back on track quickly….
1. Realize that downsizing isn’t personal. There is a great possibility that the downsizing happened for reasons outside of your control If that’s the case then it’s important to understand that it’s not your fault or a reflection on you. You’re just getting caught in the middle of business fact of life that impacts just about everyone at some point in their career. There no one to blame.
2. Don’t take the victim mindset. Adopt the perspective that you are the same great HR person that you were before downsizing. It’s important that you take on the frame of mind that you as a person, are always bigger and more important than any job or career that you’ll ever have….and that your unique set of HR skills and experience are valuable.
3. Reach out and spend time with others in your organization, especially other HR folks, who have also been downsized. You’ll get job and career ideas from them if you stick together, network and support each other. Resist the urge to think that you’re in competition with each other. There is power in numbers.
4. Stay in touch with your HR colleagues who are still working at the company. Candidly, some may uncomfortable talking with you since you’re now moving on. However, don’t let them feel awkward and be sure to bury your own ego. The next job opening or career opportunity usually comes from someone you already know, not from an ad or a headhunter. If you’ve done a great job of building relationships and networking, don’t be surprised if you get a call from a former colleague or boss about a different opportunity.
5. Form your own Career Advisory Board of your 5-7 smartest friends and family members who know you well. Why not use this as an opportunity for getting input from people around you who care? Get together twice a week to toss around ideas for how to handle the current situation and let them challenge you to look beyond the problem and consider new possibilities. They may know you better than you do and may provide options you’ve not thought about.
6. If you need to, reduce your spending right away to give you extra time to sort things out. Don’t assume that you’ll land the right HR job immediately. Cut your personal expenses by at least 40-70%, if needed. Don’t be afraid to take brutal, even radical steps. Often, this type of self-imposed ‘jolt’ will encourage a different type of thinking, which is critical during this time for you. And, frankly, who needs the stress of worrying about money? You need to be thinking clearly at this time about your next career steps.
7. Start thinking about the kind of work that is personally rewarding to you. You may find out it’s not HR work. If you’re an HR generalist, do you want to stay a generalist? If you’re doing labor relations work, are you tired of wrestling with unions or do you want to chance your career direction entirely. Too many people are not in jobs or careers which fulfill or satisfy them. And life’s too short to suffer in silence. So, use this break as an excuse to get real selfish and discover what makes you the happiest. When you’re happy doing what you’re doing, the money will usually take care of itself.
8. Invest in strengthening your towering skills. No one else will. The HR job market is hungry for highly skilled individuals in any field – generalists, specialists, consultants, coaches, mentors, part-timers, or contractors. If you’ve got a specialized skill or natural aptitude, invest in expanding that skill and making it even stronger. The best skills take time to develop into a well-paid profession, career or business. It’s never too late to invest in your self.
9. Treat the downsizing experience like a treasure hunt where getting your next job is the prize. Get out paper and pen or jump on your laptop and begin creating a plan for yourself. Identify where you are. What resources and skills you have. Who you know who can help – consider doing anything you can do keep yourself motivated until you land the next job. Turn it into a game.
10. Get some coaching and counseling. Many firms who are downsizing provide outplacement counseling and resources. Take full advantage of this benefit.
Going through an HR downsizing can be a painful experience. However, following these ten steps can enable you to cope this trauma and quickly get your career back on track.


reference:
http://www.allbusiness.com/human-resources/workforce-management-hiring/417499-1.html
http://www.successinhr.com/human-resources-downsizing santa


Last edited by april kaye bigonte on Wed Sep 30, 2009 5:34 am; edited 1 time in total
Back to top Go down
View user profile http://quinkaye.blogspot.com
jojimie

avatar

Posts : 51
Points : 52
Join date : 2009-06-20
Location : Davao City

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 11:51 am

Downsizing ----In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.


Righting downsizing in Asia





Although the global economic meltdown has roots in the United States, virtually every developed or developing economy across the globe is now caught up in this unprecedented crisis. While nauseated watchers of the NASDAQ, Hang Seng, BSE and other indexes experience the highs and lows of the daily tumult, the stakes are higher and more painful for employees who have been laid off or fear for their future prospects. For the Asian economies which have enjoyed rapid growth in recent years, particularly China and India, the crisis has been hard-felt. Today, nearly every industry has been affected in some way. Although specific details can be hard to come by, reasonable estimates indicate that literally thousands of Chinese factories have been closed, scattering displaced workers throughout the country. For many of those that remain open, layoffs are inevitable. In India, the fear of a global slowdown affecting India is worrying. People have not been exposed to an environment of global repercussions.

What does this mean to the employees that remain behind? If engaged workers are the key to a variety of important business outcomes, what sort of a toll do downsizings have on the morale of its survivors? We will take a look at layoff survivors in Asia to see how they view the workplace. What can organizations do to re-engage the survivors of layoffs, strengthening their workforce for the eventual but inevitable economic revival?


The walking wounded


Whether we use the term layoff, downsizing, or right-sizing, the outcome and the pain for workers is the same. Although still employed, employees who have survived layoffs could be described as the walking wounded. Survivors can carry a heavy burden, having to cover for lost friends and colleagues while wondering about their own security and possibly a loss of trust in senior leaders. Amidst this bleak scenario, managers must rally the remaining troops while dealing with similar issues.

To discover the effects of layoffs on employee engagement and turnover intent, and to identify the work characteristics most important to layoff survivors’ engagement with work, and to the organization—the most effective way to emerge from downsizing unscathed, the Kenexa Research Institute (KRI) utilized the WorkTrends™️ data to explore employee opinions and engagement drivers in Asia, specifically Australia, China (including Hong Kong), and India. For the sake of data robustness, we combined the data for the countries, though we acknowledge that there are differences between countries in terms of the drivers of engagement and absolute magnitude of favorability scores.


The negative impact of downsizing

As the graph clearly shows, members of organizations that have undergone layoffs in the past 12 months are less positive on every WorkTrends dimension, most notably with regard to confidence and security (i.e. confidence in the organization’s future) by a difference of 16 percentage points. Perhaps this explains Trevor and Nyberg’s (2008) finding that voluntary turnover rates increase within the calendar year of, and 24 months following the downsizing event.


Maintaining engagement

Conventional wisdom maintains that initial layoffs target poor performers and redundant positions while subsequent events more often result in regrettable losses. Regardless of whether your organization is into the first or second round, WorkTrends can provide some insight into the key factors that promote engagement among layoff survivors. By focusing on these areas, organizations should be better positioned to rebound with the economy but perhaps more importantly, retain those key employees who will be so critical to your organization’s future.

A key driver analysis conducted on layoff survivors reveals the following as the key drivers of employee engagement:

* Confidence in the future of my company
* A promising future for me at my company
* All employees have equal opportunities for advancement, regardless of gender, ethnicity, religion, sexual orientation and culture
* Satisfaction with recognition for the work I do
* Excitement about my work

Taken together, these five items explain roughly 40% of the reasons for layoff survivors’ engagement, and therefore leaders can start here in their efforts to improve employee engagement and retain key personnel. While these are also drivers of engagement in organizations that have not downsized, they take on greater importance in the aftermath of layoffs. Scores on all of these items are significantly lower for layoff survivors than employees whose organization has not downsized, suggesting that the need to respond is much greater. In addition, the order of importance of the drivers is different for layoff survivors. For example, feeling that there is a promising future is much more important to layoff survivors suggesting that organizational efforts to improve confidence and the sense of security would be time well spent in a post-layoff environment; a finding which is substantiated by the 15-point difference on the confidence and security dimension between the groups.

Finally, the top drivers for layoff survivors show a greater preponderance of layoff survivors on employee-centric questions. In other words, items that have to do with “my experience” and “how I feel” move up in rank compared with employees in non-layoff organizations. Drivers of engagement in non-layoff organizations include items that ask about innovation, ethics, social responsibility. For layoff survivors, these issues are further down the list of engagement drivers and take a back-seat to the more personal matters.


Turning survive into thrive

If your organization has undergone trauma in the form of layoffs as a result of economic conditions or other reasons (e.g. M&A-induced redundancies), what should HR practitioners and organizational managers and leaders do? The WorkTrends results suggest a number of important steps that can be taken to enhance future levels of engagement and mitigate the potential of regrettable turnover.
---Confidence is key
---Recognition and opportunity
---Turn ‘me’ into ‘we’
---Prepare for the rebound


References:
http://www.expresscomputeronline.com/20090824/technologylife02.shtml
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html


Last edited by jojimie on Fri Oct 02, 2009 10:54 pm; edited 3 times in total
Back to top Go down
View user profile
katherine eng lajom

avatar

Posts : 40
Points : 41
Join date : 2009-06-23
Age : 29
Location : Davao City, Philippines

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 11:59 am

Visit and identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes.

Downsizing has become a watchword as company layoffs, mergers and acquisitions capture the headlines. Downsizing and mass layoffs are a plague afflicting not only US companies but also organizations in the entire industrial world. In addition to ruining employee morale, layoffs corrode loyalty and cause tremendous pain to employees, who, through no fault of their own, find themselves out of work. The subject of layoffs is controversial. On one side, critics paint a picture of layoffs as nothing but the abandonment of American workers by greedy corporate executives in their quest for profit, while those on the other side believe that massive layoffs are a necessary response to economic realities.

Ref:
Beylerian, Marc & Kleiner, Brian H. (2003). The downsized workplace. Management
Research News, Retrieved from Rutgers University ABI/INFORM Global database Web
site: http://www.libraries.rutgers.edu/rul/indexes/search_guides/abi_inform.shtml

The reasons why the company downsizes are related to dramatic changes occurring in the environment. This may make the company lose a market share in its industry or respond to fierce competition from its rivals resulting in the need for the company to cut costs through altering its size to fit its market and customer base. Globalization and the breakdown of trade barriers among nations and the emergence of technology and automation have also necessitated the company to downsize. Thus, the overriding rationale for downsizing by the company appears to be the need for survival and the ability to compete in the new global economy.



Hewlett-Packard (HP) incorporated started in 1939 under the ownership of Bill Hewlett and Dave Packard. By 1979 the company had 52,000 employees and more than 4,000 products as reported by Beer and Rogers. Since that beginning, the company had a different, but concrete culture for managing its employees. Dave’s idea was that if they could simply get everyone to agree on the firm’s objectives and understand what the company’s business was; its employees, and eventually, the company, would move in the right direction.

HP was structured as a decentralized organization, where general managers were authorized to make decisions for their product segments. The firm’s business policies allowed for self-structuring mechanisms within the firm; and financially, leverage was almost non-existent as evidenced by its minimum long-term debt.

Management by wandering around (MBWA) and management by objectives (MBO) were unique elements of HP’s corporate culture. Beer and Rogers mentioned that these two elements consisted of tactics in which managers would spend part of the day walking and talking with subordinates and with other departments in order to improve communication; and establishing long and short-term objectives that were communicated to all employees. Employees had employment security and stability; and the company was proud of its hiring and employee retention policies. According to Beer and Rogers, the HP employees had an average satisfaction index that was 25% above the national norm in 1979. However, by the 1980’s Hewlett-Packard’s business units and organization had severely changed. Rapid innovation in information technology; new companies being created; and the decline of profits, caused the firm’s stock price to crumble. In order to react, the company was obligated to downsize and redeploy some of its workers to other units. Downsizing created a larger workload for the remaining workers and the relocated workers felt alienated. These actions led to disbelief of employees in the HP Way and caused their morale to decrease.

In 1989, pressured by competitors, HP was forced to acquire another company. HP’s creators felt that integrating the culture of the new firm would weaken the internal structure of Hewlett-Packard; eventually eroding the HP Way. New polices in the company also caused regional managers to lose their independence; as they no longer had direct influence on their business units.

How can one believe in the HP Way when people are losing their jobs?

It is important to remember that, regardless of industry and organization, most employees will tend to appreciate the company’s desire to avoid layoffs. So, in the case of HP, this could indicate that employees agreed that change is inevitable in order for the company to have a spot in the market. So the corporation should develop a different management approach that focuses on the merits of the program for organizational change. The new approach must emphasize the corporate objectives regarding people, values and mission. The company should also stress the HP security policy such as compensation packages, retirement plan, stock options, and relocation opportunities. Employees should understand that downsizing and redeployment were two better options than layoff. It could also be an opportunity for employees to change careers. In addition, a psychological support and a mentoring program would also be a good way to ensure employees still believe in the HP way.

Why don’t practices apply equally across the company anymore?

HP divided its operations between its computer hardware business and its smaller office products division. Beer and Rogers (1995) suggest that as HP expanded into the computer segment, resulting in acquisitions, consolidation and outsourcing, this created a feeling of detachment and fragmentation in employees. The company had no prior experience in dealing with growing a company, so as it grew larger, the only way they saw fit was to acquire and expand. This was further complicated by the fact that HP had no solid, general plan for growth. Substantiating this claim is the evidence that HP only acquired and partnered with other firms only to gain technical knowledge and not to integrate its organizational culture within the new firms. This resulted in the company not expanding HP practices across the board to their new partners. These issues would not have been so much of a problem if HP had experience in these procedures or had sought the use of consultants. That way, the transition process would have been easier and would have allowed the HP Way to still be used by the firm in light of the new changes.

The firm’s new decentralized structure also conflicted with the HP Way. The company did not factor in the firm’s mission, objective or vision statements into how the company was expanding and operating. Each of HP’s business segments also operated more independent from each other. The personal computer, printer, measurement, tests, and international divisions did not share any common services; each had different customers and target groups; their management structures were different; technology was implemented differently in each segment; and each segment also had its own set of distribution channels, all of which further led to lower coordination within the company and increased fragmentation across units . Efforts to bring centralization to HP for some reason reinforced its decentralized methods. The new bureaucracy that was created increased difficulty in decision making and other work processes which helped to bring down HP employees’ spirits. All of these actions further led to decreased coordination in the company’s work practices.

Another reason why practices at HP did not apply across the board can be attributed to how foreign operations were managed. Foreign managers were converted to only being liaisons between the U.S. and their subsidiaries. If these managers would have been used to coordinate business in their respective countries with headquarters, they could actually serve the purpose of employing the HP Way with minor modifications for cultural work practices in each foreign location. There was also no effort made to ensure the HP Way values were effectively communicated to the foreign branches. All of these actions and auxiliary actions that took place lead to the decreased application of HP practices throughout the firm, both domestically and internationally.

Can the HP Way survive in today’s intensely competitive environment?

The key to maintaining the HP Way and values like it are to create values that can be modified when changes in the firm’s internal or external environment occur. The problem most companies face when trying to hold on to their core values is that the values are sometimes too rigid. Rigid values and processes make it hard for a firm to adapt to environmental changes and to effectively implement new processes into the firm. If a firm instead has values that provide a good foundation and culture on how to operate without specific guidelines, the values can then be adjusted to incorporate new changes within and outside the firm; which allows smooth transitions and minimal disruptions for employees.

References:

Beer, M. and Rogers, G.C. (1995). Case Study: Human Resources at Hewlett-Packard (A) Harvard Business School.

http://findarticles.com/p/articles/mi_m0IJN/is_2002_August/ai_90332291

http://sanjose.bizjournals.com/sanjose/stories/2005/07/18/daily10.html[code]
Back to top Go down
View user profile http://grandliver.blogspot.com
Stihl Lhyn Samonte

avatar

Posts : 55
Points : 55
Join date : 2009-06-22
Location : sasa, davao city

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 3:31 pm

Razz Smile


Last edited by stihlyn on Thu Oct 01, 2009 12:06 pm; edited 1 time in total
Back to top Go down
View user profile
Gleizelle Jen Dieparine

avatar

Posts : 54
Points : 54
Join date : 2009-06-22
Age : 27
Location : Davao City

PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   Mon Aug 17, 2009 5:31 pm

Identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes.


Razz In this assignment we have a tak to identify a company ‘s website that has undergone downsizing and identify the cause and process of downsizing.

Razz Thus, I have search some sight that help me to evaluate the company and learn some causes . Downsizing probably has a negative or positive to a company. There a fact that if they do this they can help the company to progress and some of companies would closed.
This is a technique to help the company to recover from such business failure.

As we have heard on the news , television, radio broadcast the most prevalent dilemma nowadays that many firms nowadays had done downsizing due to the recent world financial crisis they cannot sustain anymore the high inflation rate low income and high expenses . downsizing is the way for them to recover by this disaster. They lessen the manpower, layoff but later be rehired,early retirement
Razz Downsizing
In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.
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.

It is an extremely relevant issue to organizations today in that it has become the most prevalent dilemma in recent years. The current tendency of organizations to restructure and ultimately to downsize has a major negative impact on the organizations themselves, on their surviving and terminated employees, on the government, and on society as a whole. In fact, it is everyone's problem, and it seems to have become more the rule than the exception that it used to be in the not too distant past. The current adverse economic climate has been persistent and long-lasting. As a result, many organizations that were operating inefficiently have been ..
Razz Why do Firms Downsize?
Exclamation Reduce costs
Exclamation Reduce layers of management to increase decision making speed and get closer to the customer
Exclamation Sharpen focus on core competencies of the firm, and outsource peripheral activities
Exclamation Generate positive reactions from shareholders in order to improve valuation of stock price
Exclamation Increase productivity

Razz Downsizing Effects: Overall

Mixed effects on firm performance: some short-term costs savings, but long-term profitability & valuation not strongly affected.
Firm’s reputation as a good employer suffers. Example: Apple Computer’s reputation as good employer declined after several layoffs in 1990s.
Downsizing forces re-thinking of Employment Strategy. Lifelong employment policies not credible after a downsizing. Example: IBM abandoned lifelong policy after several layoffs in early 1990s.
Downsizing Works Best When:
Changes in Strategy, Organization structure and Culture accompany job cuts of downsizing
Weak business units and plant closures are used as basis of reductions, rather than across the board cuts affecting all units (including healthy ones)

Razz Effects of Downsizing
All small business owners know the weighty responsibility of having employees dependent upon him to provide for their families. Despite a popular perceived view, not all business owners are cold-hearted calculating machines caring only for profits at the expense of everyone they step on while rising to the top.
Downsizing also has an economic risk. Shrinking a business reduces market value and reduces its customer base, which can be dangerous if perception of the company views it as unreliable. Growth is always viewed as a positive. Downsizing is not, and doing so will require a good public relations plan to offset negative publicity and customer perceptions.
Another effect is the emotional costs to both owner and employees. Losing a job for any reason is traumatic enough, but losing a job as the result of a business owner’s decision to downsize can be easily misunderstood.







Some Firms undergone downsizing

Philippine Airlines, Inc.

PAL
was
forced to downsize its international operations by completely cutting
operations to Europe and
eventually Southwest Asia,
cutting virtually all domestic services excluding routes operated from Manila, reducing the size
of its fleet and terminating the jobs of thousands of employees.



The airline was placed under receivership in 1998, gradually restoring operations to many of the destinations it formerly serviced. PAL exited receivership in 2007 with ambitious plans to further restore services to its previously-serviced destinations, as well as diversify its fleet.

Motorola Inc .
Based
Motorola Inc. on Monday announced it is downsizing its workforce in the
Philippines as global sales plunge because of weak demand for new mobile
phones.In a press briefing with reporters in Manila, Motorola, which is
headquartered in Schaumburg, Illinois, said they have still to determine how
many workers will be laid off in the Philippines, but added a significant part
of its workforce in the region will be laid off.


Malyn Molina, Motorola's account direct at Ogilvy Philippines told reporters in Manila, "The mobile devices division of Motorola Philippines will still be operating although it will no longer be as big and aggressive as before. But the concept stores and the distributor network will still be there."
But the downsizing of Motorola's workforce in the Philippines will not affect consumers the company said because a skeletal staff offering technical support and coordination

The Army’s elite units

Have grown“demoralized" and restive amid reports that headquarters plans to cut
their strength to just a third of their present size and curb their potential
to mount coups, a senior military officer said Thursday.



A
senior military officer who spoke on condition of anonymity said Army chief
Lieutentant General Romeo Tolentino has given a team until the end of the month
to study the downsizing of the First Scout Ranger Regiment (FSRR) and Special
Forces Regiment (SFR).


The two units consist of three
battalions each at present.

“Officers and men of Socom are greatly affected and demoralized by the ongoing
study at Army headquarters to downsize (the FSRR and SFR)…from their present
organization set up to just one battalion each to remove their capability to
launch coups and topple government," he said.

About 500 men make up a battalion.


Morale problem

“They all know what’s going to happen because that (downsizing of FSRR and SFR)
is the desire of the (Army chief)," he said. “This is a big problem in
terms of the morale of the present personnel and it also affects those who
formerly served with the Special Forces and Rangers."

"In fact, less than 50 Rangers out of nearly 5,000 Socom forces were
involved (in the plot). Why will the whole Socom unit, with the overwhelming
majority who remained loyal and professional, suffer from the misdeeds of the
misguided few," he said.

The officer added that it was “very ironic" that the planned downsizing
comes at a time when the government is renewing its campaign to cripple the
insurgents in two years.

The official said FSRR and SFR forces are have proven to be effective in the
conduct of counter-insurgency operations or counter-guerilla warfare.

“These (expertise) are the core competence or forte of Socom forces. The Socom
forces are the national maneuver force of the (Armed Forces of the Philippines),"
he said.

Visit
my blog



http://gleizelle@blogspot.com

References:

http://www.gmanews.tv/story/13375/Elite-Army-units-demoralized-restive-over-downsizing-plans
http://www.answers.com/topic/philippine-airlines
http://www.highbeam.com/doc/1G1-16454092.html
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html
http://business.lovetoknow.com/wiki/Downsizing
Back to top Go down
View user profile
Stihl Lhyn Samonte

avatar

Posts : 55
Points : 55
Join date : 2009-06-22
Location : sasa, davao city

PostSubject: HRM Assignment 5   Mon Aug 17, 2009 8:15 pm

In this assignment, we are tasked to visit a company website that has undergone HR downsizing.

What is Downsizing?

• To reduce in number or size
• To dismiss or lay off from work:
• To make in a smaller size

Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees. When the market is tight, downsizing is extremely common, as companies fight to survive in a hostile climate while competing with other companies in the same sector. For employees, downsizing can be very unnerving and upsetting.
There are several reasons to engage in downsizing. The primary reason is to make the daily operations of a business more efficient. For example, a company may be able to replace assembly line employees with machines which will be quicker and less prone to error. In addition, downsizing increases profits by reducing the overall overhead of a business. In other instances, a company may decide to shut down an entire division; a car company, for example, might decide to stop making sedans altogether, thus cutting an entire department.
In some cases, it becomes apparent that a business has too many employees. This may be because there has been a decline in demand for the company's services, or because a company is running more smoothly and efficiently than it once was. Many offices are heavily bloated with support staff and redundant departments, and these businesses may refer to downsizing as “trimming the fat.”
Numerous terms accompany downsizing. Employees may be terminated, fired, laid off, made redundant, or released. A business may be optimized, rightsized, or experiencing a reduction in workforce. Some of these terms have different legal meanings depending on where one is in the world; a layoff, for example, may refer to a mass temporary release of employees who will brought back in once business picks up, while a redundant employee is one who is asked to leave permanently.
Numerous consulting firms offer assistance with downsizing, often with the use of specialists who visit a business to evaluate it. Since profit is an important bottom line for companies, downsizing measures should be expected by employees, especially when they observe a troubled market or they are working for a struggling company.
For employees, the process can be stressful, because they may feel uncertain about whether or not they will continue to employed. Sometimes, downsizing is very abrupt, with a huge batch of employees being released from employment on the same day, while in other cases it may be a more drawn out and nervewracking process in which employees are slowly let go. Employers should remember that downsizing is very upsetting and stressful, and they should take steps to make it run smoothly while assuring valued employees that their jobs are secure.
In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.

Downsizing is a cutback in a company's operations and usually implies a reduction in its employee headcount as well. Downsizing results from many factors, including increased global competition, new technologies, and weaker labor unions; it takes various forms and has various outcomes. Some firms use downsizing as part of a long-term effort to transform their businesses; others turn to downsizing simply to slash costs and boost earnings. Sometimes downsizing boosts employee morale by giving the remaining workforce new responsibilities and opportunities; in other cases, downsizing leaves a demoralized staff that is undermanned when economic conditions improve. Some firms carry out downsizing relatively gently by offering workers strong incentives to retire; for other companies, downsizing means chopping heads as quickly and cheaply as possible. Whether downsizing generally helps or hurts a company's long-term profitability remains controversial. Evidence can be presented on both sides, but most would agree that the answer greatly depends on how the downsizing is executed.

Many companies today are under intense economic pressure. Reorganizations, takeovers, mergers, downsizings, joint ventures, and other major changes are extremely common, as companies try to grow and survive.

Philippine Airlines

Formerly one of the largest Asian airlines, PAL was severely affected by the 1997 Asian Financial Crisis. In what was believed to be one of the Philippines' biggest corporate failures, PAL was forced to downsize its international operations by completely cutting operations to Europe and eventually Southwest Asia, cutting virtually all domestic services excluding routes operated from Manila, reducing the size of its fleet and terminating the jobs of thousands of employees. The airline was placed under receivership in 1998, gradually restoring operations to many of the destinations it formerly serviced. PAL exited receivership in 2007 with ambitious plans to further restore services to its previously-serviced destinations, as well as diversify its fleet.

Causes of Downsizing
Changing market conditions
Ultimately, it is the small business owner who must accept responsibility for downsizing his company. There are just so many factors that an owner can control, but changing market conditions isn’t one of them. The market determines the lifecycle of a business, and the small business owner must stay in touch with changing market conditions in order to keep up the pace of growth. But this doesn’t always happen. Market shifts and the introduction of new technology can make a business become obsolete almost overnight. To restructure to meet changing market needs isn’t always possible. No amount of funding will breathe life into a dead horse. There comes a time when you have to let go.

Disaster
A natural disaster can occur swiftly so that there can be little to do but batten down the hatches and wait it out. But a natural disaster on the scale of the hurricanes Katrina and Rita that destroyed thousands of small businesses along the Gulf Coast, can decimate a business and literally wipe it from the face of the earth. Natural disasters occur everywhere, from floods in the Midwest, tornadoes in the central belt, earthquakes in California, to volcanic eruptions in the Pacific Northwest. No area of the country is immune. Insurance can’t cover all the expenses of rebuilding, so a business owner has a choice of rebuilding with less, or letting go and shutting down for good.

•Change in management

The change in the top brass of a company can also result in downsizing. The working methods and procedures vary with the management. Therefore, a significant change in the management roles may drastically affect the employee size to suit a particular style of working.
Economic crisis
This is the single biggest cause of downsizing. Often, it consists of huge lay-offs by a number of organizations across various domains. The recent economic recession facing the world, has triggered a number of lay-offs in many reputed and popular firms in the world. According to a survey conducted by the US Bureau of the Census, organizations consisting of higher percentage of managerial staff downsize more than the ones with higher percentage of production process employees.

One of the more common reasons for corporate downsizing is a decrease in the demand for a company’s goods and services. This decrease may be due to competitors gaining a larger share of the available consumer market, or economic downturns that cause consumers to focus more on necessities and less on any luxury items. In both situations, the lack of demand means that the corporation can no longer continue to operate with the same level of expenses and remain solvent. Thus, the company is likely to limit or shut down some portion of the manufacturing facilities in order to adjust to market demands. This usually means that hourly employees and managers will be laid off for an undetermined amount of time or let go completely.
When corporate downsizing is due to corporate mergers, there is usually the need to streamline the operations of the company in order to prevent duplication of effort. Often, a merger will mean that at least some of the executives are likely to be laid off or let go as various upper level operations are combined. A merger can also often lead to closing some physical plants and other facilities where both entities formerly operated. In turn, this means a reduction on the number of line employees, shift managers, and plant directors as two or more operations are restructured to operate out of one facility.
While corporate downsizing is usually viewed as a negative situation, that is not always the case. Severance packages sometimes take some of the sting of a layoff out of the picture. Many companies who go through a downsizing process make efforts to fund job retraining programs for their former employees, while others actively seek to identify other employers who would be interested in hiring some of the laid-off work force. People who have been laid off due to corporate downsizing sometimes use the event as a springboard into an entirely new career or line of work, one that ultimately proves to be more personally fulfilling as well as more lucrative.


Sources:
http://www.wisegeek.com/what-is-downsizing.htm
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html
http://www.investorglossary.com/downsizing.htm
http://en.wikipedia.org/wiki/Philippine_Airlines
http://www.buzzle.com/articles/reasons-for-downsizing.html



mY bLog: http://stihlyn.blogspot.com/http://stihlyn.blogspot.com/ Arrow
Back to top Go down
View user profile
Sheila Capacillo

avatar

Posts : 57
Points : 57
Join date : 2009-06-21
Age : 27
Location : Davao City

PostSubject: Assignment 5   Mon Aug 17, 2009 10:56 pm

bounce bounce bounce
A distressing 80 percent of downsizers admit that the morale of their remaining employees has been mugged. These sullen, dispirited, hunkered-down folk, lest we forget, are the very people who are supposed to revitalize your enterprise and delight your customers.

Ronald Henkoff in Fortune,
January 10, 1994

Companies are like human, they have their strengths and weaknesses. I can say that the worst weakness of the company is when it decides to have their downsizing.
Before we discuss about company’s downsizings we will first define and elaborate the meaning of down sizing.

These findings was based on the downsizing experience in America.

Study Findings
Following are some of the highlights of the Downsizing Study Team's findings from our investigation of benchmarked organizations:

Senior leadership plays a vital role in downsizing.

We found that successful downsizing resulted when senior leadership became involved early on in the process and continued to participate actively, remained visible and accessible, and was perceived by employees to be their source of communications concerning major downsizing actions.

Causes of Downsizing

Downsizing causes resentment and resistance in surviving employees if not handled carefully will cause financial set backs.

Over communication is impossible during downsizing.

We found that honest and open communication of what was happening to the organization during the downsizing is what employees most want from their organization's leadership. Moreover, the communication flow must be two way, with management listening to employees as well as the converse.

Planning for downsizing begins with getting the right people together.

This includes senior leadership, human resource executives, and labor representatives; all of whom play key roles in strategic downsizing planning.

Information not normally required in an organization's day-to-day operations becomes critical during downsizing.

Arrow Arrow Arrow For example, management requires information for planning and monitoring the staff reduction, and employees need information to help them decide on a course of action. Most of this information is supplied internally by human resource offices; additional information can be obtained from other organizations that have successfully downsized.

lol! Successful planning for downsizing includes the development of business plans from various departments within the organization.
Requiring each department within an organization to develop a business plan helps ensure that the managers of those departments are involved in the planning; it also builds support for the effort.

Identification of work processes that will not be needed in the future organization is vital to the success of the downsizing action.

This identification effort also helps protect those processes that are key to the organization's future from being affected by the downsizing.

Incentives such as early retirement and buyouts work well and are popular with employees. Early retirement incentives allow employees to retire with either full or reduced pension benefits at an earlier age than normal; buyouts provide a lump sum payment to employees in exchange for their leaving the organization voluntarily, regardless of whether they are eligible for early or regular retirement.

The use of multiple strategies and techniques to accomplish goals for downsizing helps to leverage the outcome.

Our partners found that not all downsizing strategies worked exactly as planned, with some not working well at all and others exceeding expectations. The concurrent use of multiple strategies, therefore, helps ensure the success of the downsizing process.

Organizations that have successfully downsized provided career transition assistance to both separated and surviving employees.

Among the services provided are career counseling, personal counseling, career/skill and career transition training, relocation assistance, outplacement assistance, resume¬¬writing assistance, access to office equipment, paid time off, child care, financial counseling, and access to job fairs and to Internet job placement sites.

Monitoring progress is a chief component of successful downsizing.

Those organizations that took the time to periodically review their procedures, learn from their mistakes as well as their successes, and incorporate what was learned from these periodic assessments into their downsizing procedures found that they could minimize adverse impact in ongoing downsizing processes and complete future downsizings in a more streamlined fashion.

Successful Downsizing Depends on the Survivors

A key conclusion of this report is that the success or failure of a downsized organization depends on the workforce remaining after the downsizing. A well-planned and -managed downsizing process, which the survivors perceive as having been fairly and humanely administered, promotes trust and faith in management and in the future of the organization among these employees and empowers them to provide improved service.


http://govinfo.library.unt.edu/npr/library/papers/benchmrk/downsize.html


blog blog blog...
http://shecapacillo.blogspot.com/


Last edited by Sheila Capacillo on Tue Sep 01, 2009 12:41 am; edited 1 time in total
Back to top Go down
View user profile
Sponsored content




PostSubject: Re: Assignment 5 (Due: August 17, 2009, 13:00hrs)   

Back to top Go down
 
Assignment 5 (Due: August 17, 2009, 13:00hrs)
View previous topic View next topic Back to top 
Page 1 of 2Go to page : 1, 2  Next
 Similar topics
-
» Amendments to the Revised IRR through GPPB Resolution No. 06-2009
» A Boutique and an assignment against me.
» Transitory Provisions for Revised IRR
» New Baby, New Assignment, Old Dress
» UPDATED[MediaFire]3 Idiots • 2009 • 550MB • X264 DVDRiP • English SubTitles •

Permissions in this forum:You cannot reply to topics in this forum
USEP-IC  :: HRM-
Jump to: