Downsizing is a strategy to reduce the scale and scope of a business to improve financial performance. There are three types: workforce reduction through attrition or layoffs; work redesign to eliminate functions; and a systemic approach changing culture. Haleeb Foods downsized, laying off nearly 500 employees in 2009 and planning to lay off 800 over three years in 2013 to cut costs amid economic challenges. A SWOT analysis found strengths in qualified workers but weaknesses in investor attitudes and stock prices while recommendations focused on advertising, improving HR and distribution.

3. TODAY’S TOPIC
DOWNSIZING

4. WHAT IS DOWNSIZING ?
A COMPANY STRATEGY TO REDUCE THE SCALE (
SIZE ) AND SCOPE OF ITS BUSINESS. IMPROVE THE
COMPANY’S FINANCIAL PERFORMANCE.

5. TYPES OF DOWNSIZING
•WORKFORCE REDUCTION : SHORT-TERM STRATEGY TO CUT THE NUMBER OF EMPLOYEES THROUGH
ATTRITION, EARLY RETIREMENT OR VOLUNTARY SEVERANCE PACKAGES, AND LAYOFFS OR
TERMINATION.
•WORK REDESIGN : MEDIUM-TERM STRATEGY IN WHICH ORGANIZATIONS FOCUS ON WORK
PROCESSES AND ASSESS WHETHER SPECIFIC FUNCTIONS, PRODUCTS AND/OR SERVICES SHOULD BE
ELIMINATED.
•SYSTEMIC APPROACH : LONG-TERM STRATEGY THAT CHANGES THE ORGANIZATION'S CULTURE
AND ATTITUDES, AND EMPLOYEES' VALUES, WITH THE GOALS OF REDUCING COSTS AND ENHANCING
QUALITY.

6. PROCESS OF DOWNSIZING
RULES
• GREATER NEED FOR COMMUNICATION AND COORDINATION DURING DOWNSIZING,
VARIOUS TOOLS OF COMMUNICATION SUCH AS LETTERS MEMOS NOTICES ETC.
• EVERY EFFORT SHOULD BE MADE TO TRY OTHER OPTIONS.
• THE CRITERIA FOR REMOVING PEOPLE SHOULD BE FAIR AND JUSTIFIED.
• ORGANIZATION SHOULD BE PROVIDED OUTPLACEMENT SERVICES ALONE WITH
SEVERAL BENEFITS.
• MAKE THE REQUIRED CHANGES IN POSITIONS AND REDIRECT THE EMPLOYEES
EFFORTS, THEIR ROLES CAN BE MODIFIED.

7. REASONS BEHIND DOWNSIZING
 ECONOMIC CRISIS
 CHANGE IN MANAGEMENT
 STRATEGY CHANGES
 NEW TECHNOLOGY
 WHEN COMPANY GOES AT LOSS
 MAKING BETTAR UTILIZATION OF SATFF
 MERGING OF TWO OR MORE FIRM’S
 TRANSFER WORK TO OTHER PLANTS OR ABROAD

8. PRACTICAL STUDY OF THE ORGANIZATION
WITH RESPECT TO TOPIC
INTRODUCTION
HALEEB FOODS LTD. WAS INCORPORATED ON
JULY 1ST, 1984 WITH A CAPITAL OF RS. 46
MILLION UNDER THE NAME OF CHAUDHARY
DAIRIES LIMITED WHICH WAS RENAMED AS CDL
FOODS LIMITED AND NOW IT IS KNOWN TO BE
AS HALEEB FOODS LIMITED.

9. DOWNSIZING IN HFL
IN 2009:
• MASSIVE LAYOFF OF NEARLY 500 EMPLOYEES.
• 30% OF THE HFL TOTAL WORK FORCE.
IN 2013:
• PLANS TO LAYOFF 800 EMPLOYEES OVER THREE YEARS.

10. DATA COLLECTION METHODS
THE PRIMARY & SECONDARY DATA OF THIS ASSIGNMENT COME FROM THE:
INTERVIEWS OF PERSONNEL OF HFL
BOOKS
DIFFERENT WEBSITES
NEWSPAPERS
MAGAZINES

11. SWOT ANALYSIS
STRENGTHS
• QUALIFIED WORK FORCE.
• ENVIRONMENT FRIENDLY.
• EXPENSES REDUCTION.
WEAKNESS
• NEGATIVE ATTITUDE FROM INVESTORS.
• LOWER PRICE OF HFL STOCK ON THE
STOCK MARKET.
• NEGATIVE AFFECT ON THE QUALITY OF
WORK PRODUCED.

12. SWOT ANALYSIS
THREATS
• LEGAL RISKS IN DOWNSIZING.
• FIRM’S REPUTATION SUFFERS.
OPPORTUNITIES
• SIMPLIFIED ORGANIZATION STRUCTURE.
• IMPROVE THE PERFORMANCE OF HFL HR
DEPARTMENT.
• ALTERNATIVES FOR LAYOFF.

13. CONCLUSIONS
HFL IS A GOOD ORGANIZATION TO WORK IN BUT THERE ARE CERTAIN
DEPARTMENTS THAT NEED IMPROVEMENTS. HFL WANTS TO SHOW THE
SAME RESULTS IN THE FUTURE THAT IT SHOULD HAVE TO TAKE SOME
DECISIONS BEFORE TIME, BECAUSE IN THE 21ST CENTURY ONLY THOSE
ORGANIZATIONS CAN SURVIVE WHO ARE UTILIZING ALL THEIR RESOURCES
EFFICIENTLY AND EFFECTIVELY.

14. RECOMMENDATIONS
• HEAVY ADVERTISING OF ITS PRODUCTS.
• HR DEPARTMENT OF HFL TO INCREASE THE EFFICIENCY OF THE COMPANY.
• HFL SHOULD IMPROVE ITS DISTRIBUTION SYSTEM SPECIALLY THE RETAILERS ARE NOT
HAPPY WITH DISTRIBUTION OF HFL.
• THEY SHOULD PROVIDE PROPER REPLACEMENTS TO THE SHOPKEEPERS TO ENHANCE THE
IMAGE OF THE COMPANY.