Effects Of Downsizing On Organizational Performance

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Abstract As worker downsizing has grow to be increasingly more anywhere in recent years, the study of this phenomenon has assumed more importance, we will discuss theorize and empirically take a look at the connection among the significance of personnel downsizing and firm overall performance. Downsizing to be efficient and successful, good and effective planning must take place long before, during, and after downsizing, a downsizing plan should be included in the strategic management plan of all organizations, regardless of whether they plan to downsize or not. Because if organizations forced to do that in response to environmental changes, it will have a good preparing to start the staff reducing process. Downsizing may not continually…show more content…
PART (1):THERRETICAL FRAMWORK 1 Downsizing literature review Downsizing is a process that organization promote for many reasons as increasing profit and gaining a competitive advantage in the business for the organization, many organizations seek to decrease the number of employees because the organization confront a heavy economic crisis, if there is no economic crisis, the organization going in this case to gain a better competitive advantage to increase its profitability and improving its performance. Downsizing is used as management's strategic response to environmental and institutional changes " the harm caused by downsizing was not only in creating unemployment, but also on lives of employees' families"( sun, 1994 ). Downsizing is a heavy sharp decision because its influences on the lives of several employees and their families, then the community as a…show more content…
it is a frightening experience for anyone, the individual who left and the employees who remain to pass through, the effect not only on the people who leave but also on the people who remain and they do not know what would happen to them, so downsizing affect on their performance because they do not have any motivation to do the work effectively and efficiently and consequently they don’t achieve the required profit a it was planned on the long run. 1.1Downsizing In a business enterprise, downsizing is reducing the quantity of employees on the running payroll. some customers distinguish downsizing from a layoff , with downsizing intended to be a everlasting down scaling and a layoff supposed to be a temporary down scaling in which employees may additionally later be rehired. organizations use several strategies in downsizing, together with imparting incentives to take early retirement and switch to subsidiary organizations, but the maximum common technique is to in reality terminate the employment of a positive range of individual. What is meant by organization downsizing

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