Downsizing is when companies terminate multiple employees at the same time, often to save money. Typically, the company has to cut jobs in order to lower costs or maintain profitability. Here are half a dozen major stumbling blocks to avoid in your downsizing plan. If you are a part of a managerial board, or own a company that is thinking about downsizing, you will have to determine the reason you. The second chapter of this thesis introduces the downsizing phenomenon, here again we start by a historical study to understand the circumstances which leaded to the appearance. In the meantime, the couple has some downsizing tips to share that will work for pretty much anyone. Although downsizing is a softer way to call layoff, there are reasons why companies decide on downsizing. Adapting mainframe computer based software to a desktop or personal computer pc based architecture, without too many compromises in system integrity, security, and control. Reducing the total number of employees at a company through terminations, retirements, or spinoffs.
Apr 15, 2009 companies are downsizing, rightsizing, and even capsizing. Downsizing or layoffs is the term used to refer to the practice of firing employees for various reasons in organizations. Downsizing a company refers to when a company chooses to layoff employees. This free threepart course is designed to help you overcome the mental hurdles associated with downsizing, like changing the way you view your stuff and opening yourself up to what is truly important in life so that you can leave the house behind and start exploring the world. Jul 27, 2011 downsizing a business is a difficult task and rife with dangers to your business and your team. Downsizing a business is a difficult task and rife with dangers to your business and your team. Downsizing is a common approach to cutting costs used by companies overwhelmed by debt or struggling to keep up with business expenses. Learn vocabulary, terms, and more with flashcards, games, and other study tools. In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Companies are downsizing, rightsizing, and even capsizing. Downsizing description the full technique overview is available for free. Effects of downsizing essay 2449 words 10 pages effects of downsizing downsizing has been known by several different names, in the late 1970s and the early 1980s it was called reductioninforce, as of late it has been called restructuring government, privatization, contracting out and last but not least downsizing. There is usually some organization restructuring involved with downsizing.
The one starts to see the other side of a dilemma and begins to realize that sometimes decision made might affect both his her life and the environment around them. Downsizing definition, to design or manufacture a smaller version or type of. As it applies to the world of business, downsizing occurs when a business cuts jobs in an attempt to lower their expenses. Although the first definition of downsizing in the merriamwebster dictionary is to reduce in size, in the world of business the term refers to the termination of employees from a company because their positions are no longer needed.
The term connotes that the termination is temporarybut it may well become permanent. Downsizing article about downsizing by the free dictionary. Downsizing definition and meaning collins english dictionary. Information and translations of downsizing in the most comprehensive dictionary definitions resource on the web. Downscoping, on the other hand, involves restructuring or selling off units that are less related to the main business, but without layoffs or work force reductions.
Downsizing is the process of replacing mainframe or minicomputerbased computer system with a network of personal computers. Yet, this definition essentially collapses buzzwords. Layoffs, downsizing, and outsourcing related terms. According to weinstein, downsizing refers to a companys decision to reduce its workforce for reasons other than poor performance, criminal conduct, or unethical behavior on the part of those being let go. The downsizing definition may also encompass the closing of plants and facilities where. Downsizing may also occur during a merger between two companies, or an acquisition of the company by another.
Downsizing is a business tactic that aims to improve the financial standing of a firm by. In other words, just when a company needs its top performers to charge the. After any downsizing, the platinum, gold, and silver performers are the people you count on to fill the gaps, pick up the slack, and generally get you through the tough times. As you may have guessed, downsizing occurs when you shrink the size of something. Methodology the thesis is based on a theoretical foundation comprising corporate social responsibility csr models as well as downsizing theories. Some users distinguish downsizing from a layoff, with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Sep 09, 2014 in the meantime, the couple has some downsizing tips to share that will work for pretty much anyone. Surveys conducted for my forthcoming book, top talent. These reasons can range from poor performance by the employees, the poor performance of the organizations in economic downturns that necessitates laying off employees to save costs, and for disciplinary reasons. An introduction to downsizing the rv entrepreneur school. Some people say downsizing differs from a layoff, with downsizing being a more permanent measure, while a layoff might include a chance of rehiring the workers who lost their. Downsizing which is the principal subject of this thesis. The dire worldwide financial pressures have thrust massive changes on businesses, many times with negative results.
Again, this means reassigning people to new positions with concomitant. Synonyms for downsizing include reducing, lowering, abbreviating, compressing, condensing, contracting, contraction, decreasing, dieting and diminishing. Depending on the organization they are striving to improve or drifting lower. Downsizing is a term used to describe reducing the number of employees on a companys payroll. The dire worldwide financial pressures have thrust massive changes on. When the market is tight, downsizing is extremely common, as companies fight to survive in a hostile climate while. Nothing seems to be getting your small business on the road to recovery during these tough economic times and the. Typically, it involves lay offs or reduction in work force. While corporate downsizing actions are widely utilized as organizational strategies designed to improve efficiency, productivity, and competitiveness, their efficacy remains widely disputed across. Downsizing is the permanent reduction of a companys labor force through the. It is a natural progression in terms of the development of an organization. A downsize refers to reducing the size of a company by eliminating workers andor divisions within the company. Downsize meaning in the cambridge english dictionary. Jan 22, 2018 downsizing not only affects the employees who have to exit the company, but also the remaining employees who may fear themselves to be in a similar situation at a later time.
The automotive industry downsized its cars for improved fuel economy. Definition of downsizing what does the term downsizing mean. Addresses these objectives by examining first, how. The aim of downsizing is to restructure an organization in order to make it more competitive. In this lesson, you will learn why organizations choose to downsize their operations and about the implications that organizational downsizing has.
A layoff is an action by an employer to terminate employees for lack of work. Layoff, temporary suspension or permanent termination of the employment of employees. A layoff is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees collective layoff for business reasons, such as personnel management or downsizing. Downsizing is the act of reducing the number of employees within a company in order to decrease costs and increase efficiency, with the ultimate goal of greater profitability. 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. Property rights they are the ownersinvestors of the. Engine downsizing, trend in the combustion engines construction. Downsizing in a company is defined to involve the reduction of employees in a workforce. Downsizing may involve selling or restructuring one or two subsidiaries or functional units of a business.
Advantages of downsizing in a company your business. Downsizing not only affects the employees who have to exit the company, but also the remaining employees who may fear themselves to be in a similar situation at a later time. Downsizing is a strategy used to reduce the size and scope of a business in order to improve its financial performance, usually by laying off employees or closing lessprofitable divisions. Downsizing, a 2017 science fiction comedy film by alexander payne. Another 30 percent are the employees are not quite with it. Downsized companies either continue the same work functions with fewer employees or they decrease the scope of company wide activities.
To help your bottom line, youve already tried everything from trying to reduce overhead to cutting back on employee hours and reducing energy costs. Employee termination a layoff is an action by an employer to terminate employees for lack of work. Browse the definition and meaning of more terms similar to downsizing. The management dictionary covers over 2500 business concepts from 6 categories. Apr 14, 2020 corporate downsizing is often the result of poor economic conditions. Despite the cost advantages, downsizing can have some negative consequences on the organization and the employees that remain after the layoffs. Downsize definition of downsize by the free dictionary.