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Getting fired is one of the most feared events in corporate America today. No one wants to go home to their wife and kids and tell them that they do not have a job anymore and no longer have a source of income. It is embarrassing, life changing, and overall depressing and draining for the person involved. This does not only affect the person laid off but also the employees who survived and in turn the company’s performance itself. The person laid off is now unemployed and insecure, survivors are confused and don’t know what to think, and the organizations performance is initially greatly affected. Letting someone go has devastating effects and needs to be handled in a professional and serious way. Before laying off occurs, all other possible alternatives must be taken into account. In business, there are three strategies for downsizing: organization redesign, systematic, and workforce reduction; however workforce reduction is the most effective.
Downsizing Defined
Cascio says “Downsizing is defined as the planned elimination of positions or jobs” (Cascio 55). Notice the word planned in that definition. This brings up an important point that needs to be made clear: Downsizing does not have to occur. The company brings it on themselves and it is their own decision. No regulator comes along and forces a downsizing process. Downsizing has and will continue to have major effects on organizations, managers at all levels, employees, labor markets, customers, shareholders, families, and also communities (Cascio 55). Freeman and Cameron explicitly state the four attributes that make up downsizing. “First downsizing is an activity that members of an organization or company undertake in a purposeful manner. Second, downsizing in most cases involves a reduction in the company’s personnel. Third, the focus of the downsizing activity is on improving effectiveness and the efficiency in the organization. And fourth, downsizing affects the work processes...