Human Resource management, downsizing topic, bcom, bba

1. DOWNSIZING
What is Downsizing?
Downsizing means reduction in company's labour force. it
simple means reducingthe size of a company by
eliminating workers and division within the company.
When a company is downsizing, it is attempting to find
ways to improve efficiency and increase profitability.
It is done by those companies that are looking to cut costs
duringtough economic times.

2. DOWNSIZING
1.ExcessStaff:The organization may accumulate extra staff due to wronghuman resource
planning practices.
2.Technical Advancement:The introduction of new technologies leads to a change in the
men-machineratio.
3.Outsourcing:This strategy is helpful when the organization is planning to outsource its
operations.
4.DecreasingDemand:Itis helpful when the demand for goods and services declines in the
market.
5.BusinessRelocation:It helps in reducing excessworkforcewhile relocating the business.
6.Recession:During the recession, companies prefer to cut jobs and save costs.
7.IndustryDecline:Inthe declining phase of an industry, companies often downsize to
survive.
8.Merger:During mergers, many job roles get duplicated.Therefore, companies downsize
the excess staff
WHY DO ORGANIZATIONS DOWNSIZE?

3. VRS is opted by the companies that face the problem of surplus
labour. Such companies have to remove the extra labour to avoid
the extra costs.
Under this scheme employees who have put in several number of
years in service are given an option to opt for early retirement
benefits along with some other amount which is due to them and
is paid when they leave the company.
VOLUNT
ARYRET
IREMENTSCHEME (VRS)

4. Recession in business
Downsizing
Takeovers and mergers
Product/Technology obsolescence
Joint ventures with foreign
collaborations
To reduce labour costs to cut total
cost of production
REASONSF
ORVRS:

5. MERIT
SOFVRS
i) VRSis a more humane way to reduce surplus workforce
than terminating services of employees. The firm’s
reputation remains intact.
(ii)Payment of heavy compensation to retiring employees
prevents resentment on their part.
(iii)Trade unions also do not object to VRS as it is voluntary
in nature.
(iv)Despite heavy initial upfront costs in the form of heavy compensation
package, VRS reduces payroll costs or wage bills significantly over time.
The firm is saved from paying monthly wages or salaries to the employees
opting for VRS.

6. DEMERIT
SOFVRS
(i)Efficient employees may leave the firm and
inefficient stay back. This would reduce the skill
base of the firm.
(ii) VRSmight increase the workload of existing employees if it is used to cut the pay bill.
(iii)VRSmight create a sense of insecurity in the minds of employees not opting for VRS
and deciding to stay with the firm.

7. W
ORKLIF
EBALANCE
Work-life balance refers to the equilibrium
between an individual's professional life
and personal life.It involves effectively
managing and allocatingtime,energy,and
attention to both work-related
responsibilities and personal activities or
relationships.

8. STEPSTOIMPROVEWORKLIFEBALANCE:
Setclearboundariesandprioritize tasks:Clearly define boundaries between work
and personal life. Determine which tasks are most important and focus on those,
delegatingor eliminating less essential ones.
Managetimeeffectively: Plan and organize your time efficiently. Use techniques like
time prioritization, and setting realistic deadlines to optimize your productivity and
ensure a healthy work-life balance.
Takebreaksandpracticeself-care:Allow yourself regular breaks during work hours
to recharge and rejuvenate. Engage in activities that promote self-care, such as
exercise, meditation, hobbies, or spending time in nature.

9. STEPSTOIMPROVEWORKLIFEBALANCE:
Communicate and seek support: Openly communicate your needs and limitations
with your colleagues, superiors, and loved ones. Seek support from others when
necessary, whether it's through delegating tasks, asking for help, or seeking guidance
and advice.
Regularlyevaluateandadjust:Regularly assess and evaluate your work-life balance
to identify areas that need improvement. Adjust your strategies and routines
accordingly to maintain a healthy balance as circumstances change

10. Reduced Stress: Maintaining a healthy work-life balance helps to reduce
stress levels . Itallows individuals to recharge, relax, and engage in activities
that promote well-being, leading to better overall mental and emotional
health.
Enhanced Physical Health: Balancing work and personal life enables
individuals to prioritize self-care, including regular exercise, sufficient sleep,
and healthy eating habits. This can lead to improved physical health,
increased energy levels, and a decreased risk of health issues associated with
chronic stress.
ImprovedMental Well-being:When work and personal life are in balance,
individuals experience improved mental well-being. They have more time for
hobbies, leisure activities, and spending quality time with loved ones, which
can contribute to a sense of fulfillment, happiness, and overall life satisfaction.
BENEF
IT
SOFW
ORKLIF
EBALANCE

11. BENEF
IT
SOFW
ORKLIF
EBALANCE
Increased Productivity and Performance: Work-life balance positively
impacts productivity and job performance. Bysetting boundaries and
effectively managing time, individuals can focus and concentrate better on
theirworktasks.Theyaremoremotivated,creative,andefficient,resultingin
higherqualityworkoutput.
EnhancedJob Satisfaction andRetention: Achievingwork-lifebalance
promotes job satisfaction asindividuals are able to fulfill personal and
professionalgoals.Itreducesfeelingsofoverwhelmanddissatisfaction,
increasingoveralljobsatisfaction.This,inturn,cancontributetohigher
employeeretentionrates.
Stronger Relationships: Balancing work and personal life allows individuals
to invest time and energyin building and nurturing relationships with family,
friends,andsignificant others.Itstrengthenspersonal connections,improves
socialsupport,andfostersasenseofbelongingandhappiness.

12. Employeeempowermentmeanssharingofinformation,
rewards and power by the managementwith the
employees.
Itaims at encouraging initiative and creativity of
employeessothattheyperformtothebest oftheir
ability.
Empowermentprovidesgreaterauthorityandpowerto
theemployees.W
orkersaregivenmorespaceand
libertyinordertoincreasetheirmoraleandjob
satisfaction.
EMPOWERMENT

13. IMPORT
ANCEOFEMPOW
ERMENT
Quality of work produced: Whengiven the autonomy that
allowsthemtomakeadifferencetoproductorserviceoutcomes,
employeeswill producehigher-qualitywork.
Satisfiedemployees:V
ariousstudieshaveshownthat
empoweredemployeesaremoresatisfiedintheirwork,andless
likely to seek employment elsewhere. This decreases
employmentcostsandtheneedfortrainingofnewstaff.
Helps in facilitating changes: the emplowered employees may
accept the changes that the managementwishes to implement
withintheorganizationasit iseasiertoimplementchangeswhen
theemployeeshavesomedegreeofpower
.

14. IMPORT
ANCEOFEMPOW
ERMENT
Employeeempowerment reducescosts:
Anempoweredworkforceismoresatisfiedwiththeirjoband
careerpath,andstaffturnoverfallsaccordingly
.
Operationsbecomemoreefficient andproductivityrises.
Solutionstocustomercomplaintsarefoundproactively,and
customer loyalty increases. This reduces the costs of
marketingandfindingnewcustomers.