Downsizing


The process of downsizing often involves dwindling resources and letting staff go. A well-executed downsizing strategy, however, can put an organisation on the road to financial health and stability. The concept reviews the key benefits of this strategy and outlines the four driving forces behind the decision to downsize.

Technique Overview

Downsizing

Downsizing Definition

Downsizing is a strategy designed to reduce the number of employees in the workforce, often with the aim of improving organisational performance and selectively decreasing costs (Sheaffer et al., 2009).

Downsizing Description *

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Business Evidence

Strengths, weaknesses and examples of Downsizing *

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Business Application

Implementation, success factors and measures of Downsizing *

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Professional Tools

Downsizing videos and downloads *

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Further Reading

Downsizing web and print resources *

Downsizing references (4 of up to 20) *

  • Ahmadjian, C.L. and Robinson, P. (2001) Safety in Numbers: Downsizing and the Deinstitutionalization of Permanent Employment in Japan. Administrative Science Quarterly, Vol. 46(4), pp. 622-54.
  • Appelbaum, S.H. and Donia, M. (2000) The Realistic Downsizing Preview: A Management Intervention in the Prevention of Survivor Syndrome (Part I). Career Development International, Vol. 5(7), pp. 333-50.
  • Cartwright, S. (2005) Mergers and Acquisitions: An Update and Appraisal. International Review of Industrial and Organizational Psychology, Vol. 20, pp. 1-38.
  • Daft, R.L., Murphy, J. and Willmott, H. (2010) Organization Theory and Design. Cengage Learning, Mason, OH.

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