In his article, the author is trying to elaborate its main theme by pointing out clearly that downsizing is not an easy process. For most managers it is difficult to laying off some of their workers, even when it is a necessary measure. However, there are different issues that should be considered by the company before laying off their workers in order to make the process of downsizing efficient and effective.
The top management should warn employees of downsizing early enough. In such a way, more trustworthy relationship will be created between the employees, who have luckily survived the downsizing, and the top management. The top management should also encourage the surviving employees to talk about the downsizing after it happens. The company should also state the reason behind the downsizing and explain whether it has happened because of a large number of employees or because the company is making small profits. The company should also seek legal expertise when downsizing.
As it was already mentioned, the company should inform the employees in advance about the future downsizing. However, I disagree with it, because once the employees know that they will be fired, they will not be motivated to work. What is more, they will be less productive, which will probably become a huge problem to the organization.
The author has separated making small profits and having many employees as reasons for downsizing. In my opinion, the two points cannot be separated, as one of them leads to the other. The company makes small profits as a result of incurring high expenses for keeping many employees. Therefore, downsizing becomes necessary to cut the company’s cost and increase their profits.
I absolutely agree with the author, when he points out that the company should get legal expertise when downsizing. A legal expertise will assure the company and its employees in rightfulness of the whole process. Moreover, this will also help the company to deal with any legal suit in case if an employee sues the company after being laid off.
Dealing with Downsizing: the Right Way to Manage
The main theme of the second article is how a company can deal with downsizing effectively. The company should have a good communication system if the email system is not heavily relied on. The company should also invest in training their employees, because employees are very important to the company. The company can also avoid the layoffs by cutting the working hours or reducing the employees’ salaries. In such a way, the company will be able to retain most of its qualified workers. The last thing that the company should do is to handle the layoffs through effective planning, respecting the law and treating their employees in the best way possible.
One of the points the author has put forward is avoiding downsizing by reducing employees’ salary and working hours. However, reducing employees’ salary will decrease their motivation. Employees might not be willing to work once their salaries are reduced. Moreover, the employees might go on strikes, if they do not agree with the management.
Involving employees in decision making is a good idea. However, in the case of downsizing, I disagree with the author that consulting the employees is an appropriate action. Involving too many people in making decision will only make the process long, and, in some cases, the understanding cannot be reached.
The company should plan the downsizing process effectively. Thus, it will help to ensure that the process is successful and that the company’s activities are not affected before and after the downsizing.