Date of Award
Master of Business Administration
Jan R. Kniffen
This thesis will focus on the study of downsizing , the importance of a strategic plan for downsizing and the effect the on human resource factor .
Businesses experienced unprecedented growth throughout the 1960 1 s and early 1970 ' s ; in the 1980 1 s the recession slowed this growth and downsizing became a necessary economic device for businesses to remain competitive . Some of the reasons stated for downsizing are : to safeguard profit mar gins , stagnant growth , poor earnings , market driven cuts , foreign competition , advancing technology , and a last ditch effort to stay afloat . The ramifications of downsizing are: potential employee related liabilities ; the results are less profitable than expected ; downsizing has created an unstable work environment ; a staff of survivors that are counterproductive ; decreased sales and unsatisfied customers . The reasons and ramifications of downsizing a r e as diverse as the companies and corporations .
The research confirmed the necessity of a strategic plan . The main portions to formulate a plan are : assessing the needs of the organization, communicating internally , creating focus teams and support teams , redesigning the work structure , utilizing outside consultants , not downsizing with across-the- board cuts, communicating with the employees , enacting financial support and transition assistance, restructure, re- evaluate, and go forward as a newly designed organization. Companies need to realize the cost of downsizing and budget ahead of time for it .
Analyzed throughout the thesis , was the major concerns of/for the human resource factor . The corporations success during and after downsizing is the human resource factor . Examples were given of corporations that followed a plan with concern and positive points for their employees wbo were laid off or restructured . These corporations were showing incr eased sales . The literature reviewed listed several factors for corporations to consider regarding the human resource factors' needs and rights . Also , listed were the ramifications if the human resource factor was disregarded .
The results of a downsized and restructured corporation , Brown Group , Inc . was analyzed and reviewed . This study covered the market pressures that created the need to downsize , the difficulties , the redesigning , two companies merging , and the success from planning and considering the human resource factor .
The research and reviews supported the thesis ideas to strategically plan a downsizing and to consider the human resource factor . The purpose was to enlight and study the current trend of downsizing .
Kaiser, Kathleen M., "Strategic Planning for Downsizing and the Human Resource Factor" (1996). Theses. 117.