LEIDY JOHANNA ANGEL HERRERA. Updated 26 October Transcript. BENCHMARKING,DOWNSIZING Y RIGHTSIZING. Right-sizing, downsizing and improving the employee and employer In my experience, the following four considerations will set you and your. Downsizing, Rightsizing or Dumbsizing?: Quality and Human ÔÇťAmerican mana gement adopted quality concepts in order to cut costs and regain. international.

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In addition, managers should encourage employee initiative and communication and provide employees with rewards for excellent work. Since companies frequently lose a significant amount of employees when downsizing, they usually must reallocate tasks and dosnsizing.

However, economists remain optimistic about downsizing and the effects of downsizing on the economy when the rate of overall job growth outpaces the rate of job elimination. In contrast, announcements of downsizing are well received in the stock markets. Employees who are laid off tend to suffer from depression, anxiety, insomnia, high blood pressure, marital discord, and a host of other problems. Reports of executive salaries growing in the face of downsizing and stagnant wages for retained employees only fan the flames of this criticism.

While layoffs are a customary measure for companies to help compensate for the effects of recessions, downsizing also occurs during periods of economic prosperity, even when companies themselves are doing well. Because of the possible negative effects that occur after downsizing, managers may have to implement measures to counteract employee apathy, improve customer service, and restore employee trust. Furthermore, some analysts suggest that companies can improve their efficiency, productivity, and competitiveness through quality initiatives such as Six Sigma, empowering employees through progressive human resource strategies that encourage employee loyalty and riightsizing, and other such techniques.



Consequently, downsizing is a controversial corporate practice that receives support and even praise from executives, shareholders, and some economists, and criticism from employees, unions, and community activists. Advocates of downsizing also argue that job creation from technological advances offsets job declines from downsizing.

The jobs and responsibilities that are not considered part of the primary revenue-generating functions are the ones that are frequently downsized.

These jobs are not actually eliminated, but instead moved out of reach of the employees who lose their jobs to outsourcing.

Roghtsizing some sectors, this trend is projected to be particularly prevalent throughas shown in Table 2. Downsizings such as these are also commonly called reorganizing, reengineering, restructuring, or rightsizing.

DOWNSIZING Y RIGHTSIZING by Ronal grajales gronal83 on Prezi

Some studies have indicated that the economic advantages of downsizing have failed to come about in many cases, and that downsizing may have had a negative impact on company competitiveness and profitability in some cases.

Some economists, however, suggest that the overall net effect of such outsourced jobs will actually be an increase in U. Downsizing affects most sectors of the labor market, including retail, industrial, managerial, and office jobs, impacting workers in a wide range of income levels. Revised by Scott B. Show my email publicly. In essence, restructuring efforts attempt to increase the amount of work output relative to the amount of work input.

A trend toward outsourcing jobs overseas to countries with lower labor costs is a form of downsizing that affects some U.

Moreover, downsizing can lead to additional problems, such as poor customer service, low employee morale, and downsizjng employee attitudes. Rightsiaing essence, they downsized because they lacked new products that would have stimulated growth and because their existing product markets were decreasing.

For example, governments must sometimes enact programs to help displaced workers obtain training and receive job placement assistance.


Occupations with the Largest Job Decline, Advocates of downsizing counter critics’ claims by arguing that, through downsizing, the United States has maintained its position as one of the world’s leading economies.

In xownsizing twenty-first century, downsizing continued after a sharp decline in the stock market early in the century and followed by continued pressure on corporate earnings in the aftermath of the September 11,terrorist attacks.

In addition, advocates of downsizing contend that staff-reduction efforts help move workers from mature, moribund, and obsolete industries to emerging and growing industries, where they are needed. Hence, these efforts frequently have mixed results.

Suggested alternatives to downsizing include early retirement packages and voluntary severance programs.

Corporate downsizing results from both poor economic conditions and company decisions to eliminate jobs in order to cut costs and maintain or achieve specific levels of profitability. Unemployed Persons by Reason of Unemployment. Regardless of the label applied, however, downsizing essentially refers to layoffs that may or may not be accompanied by systematic restructuring programs, such as staff reductions, departmental consolidations, plant rightsizlng office closings, or other forms of reducing payroll expenses.

Table 1 Number of U. By studying particular tasks and determining their essential components, managers can get rid of unnecessary tasks and eliminate unnecessary jobs altogether.

This involves providing employees with clear indications of what is expected of them cownsizing how they can meet increased productivity goals. These jobs might then be outsourced or handled by outside consultants and workers on a contract basis.

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