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Downsizing - Task 2750


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Downsizing - Task 2750

  1. 1. Downsizing Threat or Opportunity
  2. 2. Definition <ul><li>Downsizing is the management procedure, which reduces the number of employees in a specific company. </li></ul>
  3. 3. Introduction <ul><li>The organizations apply downsizing techniques by cutting down the expenses and increasing employee layoffs. </li></ul>
  4. 4. Downsizing - Important <ul><li>Make no mistake: downsizing is extremely difficult. </li></ul><ul><li>It demands all of a management team's resources. </li></ul><ul><li>No one looks forward to downsizing. </li></ul>
  5. 5. Main Advantages <ul><li>There are some advantages when applying the downsizing: </li></ul><ul><ul><li>Decrease of the labor costs. </li></ul></ul><ul><ul><li>Department reengineering. </li></ul></ul><ul><ul><li>Expenses reduction. </li></ul></ul>
  6. 6. Downsides <ul><li>Companies can lose critical knowledge they didn't know they had. </li></ul><ul><li>Employees are feeling the stress of the enormous changes in the company. </li></ul><ul><li>Corporate downsizing is bad for society as a whole. </li></ul><ul><li>High labor cost (firing people). </li></ul><ul><li>Decrease company morale. </li></ul>
  7. 7. Applying Downsizing <ul><li>There are many factors that involves the downsizing: </li></ul><ul><ul><li>How much notice they will be given. </li></ul></ul><ul><ul><li>The amount of severance pay. </li></ul></ul><ul><ul><li>How far the company will go to help the laid-off employee find another job. </li></ul></ul><ul><ul><li>How to deal with the remaining employees. </li></ul></ul>
  8. 8. Lico Reis Consultoria & Línguas P rof. Roberto Lico Reis [email_address] E-books: Linkedin: Twitter: Licoreis