Human Resource Management Assignment - (Doc)
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Human Resource Management
Table of ContentsProject 1................................................................................................................................................3Executive summary .............................................................................................................................3Introduction..........................................................................................................................................3Statement of the problem ................................................................................................................4Purpose of the study.........................................................................................................................4Research Questions, aims and objectives........................................................................................4Aim:.................................................................................................................................................4Objectives: ......................................................................................................................................5Case brief..............................................................................................................................................5Challenges and opportunities of the case.........................................................................................5The first phase ....................................................................................................................................5The second phase..................................................................................................................................6Analysis of Case...................................................................................................................................6Tackling the Evils of Downsizing........................................................................................................6Findings from the analysis ...................................................................................................................7Solution to the problem........................................................................................................................9Lessons from the 'Downsizing Best Practices Companies...................................................................9Conclusion ......................................................................................................................................9REFERENCES ..................................................................................................................................10Project 2..............................................................................................................................................11Executive Summary............................................................................................................................13Introduction........................................................................................................................................14Analysis : Question 3 .........................................................................................................................15Analysis of the case to determine the various theories and approaches used in downsizing theworkforce. .....................................................................................................................................15Application of relevant theories and techniques for effective downsizing ...................................17CONCLUSION .................................................................................................................................20REFERENCES ..................................................................................................................................21
Project 1Executive summary The case analyses the increase in the employee downsizing around the world in the early 21stcentury. The case discusses the downsizing concept briefly and also identify the negative andpossible effect on the employees as well as organisations. The case also analyses the best practiceswith regards to downsizing and the various steps downsizing requires and overcome trauma ofbeing downsized or to search other jobs. It also describes the theories and concepts such ascontingent employment and flexible working arrangements that are utilised by various organisationto reduce or eliminate the impact of downsizing. The process of downsizing generally refers toeliminating or dismissal of a large part from the organisation's workforce in a short time period. Themanagement states that this process can be defined as the organisational activities which aredesigned and developed by the management in order to improve the organisational productivity,efficiency and competitiveness.IntroductionEmployee downsizing is a major issue in the present business environment everyorganisation is trying to adopt this strategy in order to increase its profitability through the reductionof cost or expenses. This report will identify the background of the case “Downsizing Blues all overthe world” in order to understand the issue and other aspects of the employee downsizing. Thereport will analyse the case of downsizing with the help of various theories. Furthermore, the reportwill determine the solution to the issues and problems that will be identified in the case study. Background of the case studyThe case study scenario described employee downsizing all around the world which wasfirst introduced as a management tool during the mid 20th century within US. It is the procedure toreduce the number of employees or workers who are working of a payroll by various methods oractivities such as retirements, terminations or spin-offs. The process of downsizing generally referto eliminating or dismissal of a large part from the organisation's workforce in a short time period.The management states that this process can be defined as the organisational activities which aredesigned and developed by the management in order to improve the organisational productivity,efficiency and competitiveness. According to the case scenario the downsizing activities greatlyaffected the lives of many employees as well as performance of many organisations. It is importantto determine the major cause of the development of downsizing process and its impact or outcomewith respect to various organisations or businesses(Cascio and et.al, 2018).
Statement of the problem Employee downsizing negatively affected the lives of many people, the employment levelreduced due to dismissals and termination. It also affected the market condition and economy invarious countries. The main concept of downsizing is difficult to be understood, organisations statedthat they adopted this method of reducing the employee as they were not much useful for thebusiness and are a sort of burden to the organisation. The market is developing due to theglobalisation, increasing demand and technological improvement in the world but still theorganisation adopted to downsize their workforce which was a weird practice observed by thepeople and employees got demotivated. Purpose of the studyThe activity advertises over the world looked extremely miserable in the mid 21st century,with numerous organizations having scaled down an impressive piece of their representative baseand numerous all the more noteworthy plans to do as such soon. Organizations on the Forbes 500and Forbes International 800 records had laid off more than 460,000 representatives' by and large,amid mid 2001 itself. This pattern made destruction in the lives of a huge number of employees allover the world, Many individuals lost their employments at a short or no early notification, andnumerous others lived in a condition of vulnerability with respect to their occupations or jobs.Organizations guaranteed that overall financial log jam amid the late-1990s had constrained them tocut back, cut expenses, streamline assets and survive the droop. In spite of the fact that the idea ofscaling back had existed for quite a while, its utilization had expanded in the recent period, since thelate-1990s Investigators remarked that cutting back accomplished more harm than great to theorganizations as it brought about low resolve of held workers, loss of representative dedication andloss of skill as key staff/specialists left to discover more secure employments(Brewster and et.al,2017)Research Questions, aims and objectivesIn order to identify the main issues or achieving the research objectives a number of questionnairescan be developed as mentioned below - 1.What was the major reason for adopting employee downsizing?2.What were the impact of implementing downsizing?3.What were the various theories adopted to downsize the workforce?Aim:“To understand the reason and impact of adopting employee downsizing by various organisations”
Objectives: 1.To identify the major reason of employee downsizing2.To determine the impact of implementing downsizing 3.To determine the various theories and approaches used in downsizing the workforceCase briefChallenges and opportunities of the caseThe first phase The number of organisation s adopted downsizing was limited till the late 1980s but later on in the1990s the situation changed, many big companies such as General electric and General motorsadopted employee downsizing in order to increase efficiency, optimum utilisation of resources,surviving competition in the market and increasing productivity. Many of the companies mainly thechemical industry supported downsizing in order to develop a valuable position in the market andgain competitive advantage. The organisation not only adopted downsizing but also redesigned theirorganisational framework and structure to improve the business efficiency as well as cutting cost ofoperations(Chelladurai and et.al, 2017). However, the most of the companies that adopted thedownsizing in the 1990s increased their profit by cutting the cost of operation through terminatingthe employees but a major negative impact affected the companies was failure to improve theproductivity of the organisation. The quality of services and products as well as the fulfilment ofconsumer demand was affected negatively due to the shortage of employees or workers such as theairline industry lacks the workforce in the baggage handling, customer service and maintenance. Inrespect to this the government imposed the downsizing tax on the companies for terminating morethan 40 employees. The companies who are downsizing more than 40 employees have to report thesame to the labour department in written. These organisations need to contribute to theunemployment fund also present a plan regarding the future retraining program to the government.It was finally observed that the downsizing did not solve many problems or issue as it created. Itnegatively affected the opportunities of the job seekers to get employed in an organisation orcompany. The major cause of low rate of job opportunities and high level of unemployment inEuropean countries was the downsizing tax(Reiche and et.al, 2016)The second phaseVarious factors such as stronger economies, increase in national income and reduction in inflationeliminated the need of downsizing all over the world. Downsizing again came into light in the late1990s due to the factors such as increase in global competition, changes in technologies andincreasing availability of contract based or temporarily employees. The organisation adopted
downsizing negatively affected by the process, they lost some of their best employees whichaffected the productivity and quality of services. It also developed many issues and problem such asincreased workload for the existing employees, uneven distribution of workforce, reducedproductivity etc. In order to resolve both the issue of increased global competition and reducedproductivity or quality of services the organisations got attracted towards recruiting temporarily orcontract based employees. This helped them to control the operating cost and obtainingeffectiveness within the business operations or activities. The organisations also increased theexpenditure on the overtime and decrease in the bonuses provided to the top level managers andemployees to cut down the cost. Analysis of CaseTackling the Evils of DownsizingPerformance management system Downsizing was adopted by many organisations or countries all around the world, theseorganisations used various strategies to adopt the downsizing as analysed by many researchers.These strategies can be described as below - Compulsory termination, in which leaving representatives are given no decision, is the lastdownsize methodology also, is common place of planned terminations and the discountdisposal of divisions or on the other hand speciality units. Despite the fact that it is, ofcourse, unappealing to workers, the supervisors who settle on the choices do have thechance to outline and actualize criteria in view of the necessities of the business. Eliminatingemployments or whole special units additionally makes it more outlandish that workers willwin in claims charging discrimination. Attrition, in which firms don't supplant a man who leaves, the least difficult strategy. Withthis approach, representatives have the opportunity to practice free decision in choosingregardless of whether to stay or leave, and consequently the potential for struggle andemotions of frailty is limited. At a similar time, be that as it may, wearing down may causemajor issues for administration, since it is spontaneous and not in control. Leave without pay, this strategy is a methodology in which the leaves without any pay isgranted to the employees with fewer benefits but with a guarantee of job whenever theyreturn after the completion of leave period. This strategy was beneficial for the organisationsas they can cut down the cost of operations rather than reducing the workforce. Voluntary retirement and buyout benefits – The Voluntary retirement benefits motivates andencourage workers to get early retirement with reduced or full pension benefits before the
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