Downsizing ( Human Resource Management)

Downsizing ( Human Resource Management)

1. Dr. Amar Nath Tiwari Department of Commerce

2. Introduction to Downsizing Downsizing is the planned reduction of a company's workforce to improve financial stability, increase efficiency, or adapt to changing market conditions. It can happen for various reasons: Organisational Restructuring Economic Struggles Cost Reduction Change in Business Strategy Mergers and Acquisitions Technological Advancements Outsourcing

3. Types of Downsizing Attrition: Not replacing employees who leave. Early Retirement Programs: Offering incentives for voluntary retirement. Layoffs: Involuntary termination of employment . Transfer to Subsidiaries Outsourcing: Transferring functions to external providers. Restructuring: Reorganizing departments and roles.

4. Potential Impacts of Downsizing (Positive) Reduced Costs: Improved financial performance. Increased Efficiency: Streamlined operations. Improved Focus: Prioritizing core competencies. Enhanced Agility: Ability to adapt to market changes.

5. Potential Impacts of Downsizing (Negative) Decreased Morale: Fear and uncertainty among remaining employees. Loss of Talent: Skilled employees may seek other opportunities. Reduced Productivity: Disruption during the transition. Damage to Reputation: Negative public perception. Increased Workload: Remaining employees may be overburdened.