HRES2202 Case Study: Evaluating Downsizing in Canadian Government

This case study examines the downsizing phenomenon within the Canadian government, specifically focusing on the case of Marita Smith, an employee affected by departmental restructuring. It analyzes external and internal factors influencing the government's operations through PESTAL and SWOT analyses, highlighting political, economic, social, technological, and legal aspects. The study identifies key HRM issues arising from digitalization and cost-cutting measures, alongside legal considerations regarding employee termination. It proposes alternatives to downsizing, such as hiring linked to organizational vision, cross-training for development, and redeployment within the organization, emphasizing a strategic approach to recruitment and selection. The report concludes by recommending the implementation of strategic changes in HRM processes to mitigate future downsizing situations and enhance organizational performance. Desklib provides similar case studies and solved assignments for students.

Downsizing in Canadian government
Recruitment and selection
Canada
6/18/2018

Executive summary
In the modern era human resource management has many issues related to the recruitment
and selection of the desired candidates. In the recent years downsizing of employees in
various organisation has been the subject of research. In last few years Canadian government
is also performing such downsizing activities in some of its department this downsizing in
Canadian government is due to the digitalization of several departments. In this report
thorough discussion about downsizing and its alternatives is described. In Canadian economy
effectiveness of these alternatives is much more to avoid such situations. Thisb report will
make it understood to the readers that what is downsizing, what are its alternatives and their
effectiveness as well.

Table of Contents
Introduction................................................................................................................................3
Case study..............................................................................................................................3
External and internal factor analysis......................................................................................3
SWOT analysis.......................................................................................................................4
HRM issues................................................................................................................................5
Legal considerations...............................................................................................................6
Alternatives................................................................................................................................6
Recommendations......................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

Introduction
Case study
Marita Smith, victim of the case study, works as a clerk in a government department. This
department is facing the problem of downsizing. Sometimes having more number of
employees working under an organization than that of required at that particular time. In such
cases organization has to make some really difficult decision regarding restructuring the
organization in terms of human resource management (Datta, Guthrie, Basuil, & Pandey,
2010). To overcome such issues human resource management has to perform organization
downsizing process. In this process organization terminate its employees who are not so
worthy to have them in the organization. This downsizing affects for the victims as well as
the survivors (Small, et al, 2014). Victims are those who involuntarily lose their job and
survivors are those who have to bear the extra workload of terminated employees
(Bhuvaneswari, et al, 2011). In this case Marita is the victim as she has to leave her job
because of the department downsizing.
External and internal factor analysis
External and internal factors that may influence an organization and its operations can be
analysed with the help of PESTAL analysis of that particular organization (Snider, da
Silveira, & Balakrishnan, 2009). In the given scenario Alberta, Canada Government is the
organization that is undergoing the downsizing of its several departments (Fertel, Bahn,
Vaillancourt, & Waaub, 2013). In this context the PESTAL analysis of the Alberta
government is done as following
Political aspects: Country has a multi-party system that requires a strong co-operation
between parties to maintain the government operation effective and more efficient. Lack of

co-operation between these parties will lead the employment sector to a mismanagement of
governments departments in terms of its recruitment and selection process for different posts
(Babiak, & Wolfe, 2009).
Economic aspects: Canada is one of the wealthiest nation and showing a less increment in
the inflation rate in the last few years. Service sector of the country contributes around 70%
of the total GDP which employs more than 75% of the total population (Frue, 2016).
Social aspects: In 2000, average family income of the country was $66,160. Around 40-50%
of total population falls in the middle category. This shows that the country has to improve its
employment policies to provide more jobs.
Technical aspects: Technical environment of the country is changing rapidly by the
combined efforts of government and other global technical leaders in the field of
communication and technology. This enhances the government operation to make
termination of some of the employees from different department to overcome the economic
burden over the government (Dobuzinskis, & Howlett, 2018).
Legal aspects: Country’s legal system has its roots from the British common law system.
Structure of the legal system consists of two major laws that are common law and civil law.
These laws are used to provide better legal judgments to the people of Canada.
SWOT analysis
SWOT analysis shows the key factor of an organization that influences the organization
management operations in respective manner. Strengths, Weaknesses, Opportunities, and
Threats of the Canadian government are analysed as following.
Strengths
 Entrepreneurial support: Government
of Canada supports entrepreneurships.
Weaknesses
 Dependency on US: Although
closeness of Canada to the US serves

With several avenue tax breaks and tax
reductions entrepreneurs feel confident
in Canada.
 Niche market growth: Canadian
government has seen an increase in the
exports in the niche market of the
counry.
 Close to America: Being the eighbour
of America, Canada has benefits of
substantial trade surplus.
several trading benefits, this closeness
can turn into dependency as a weakness
for the country.
 Fluctuating Canadian dollar: In theh
recent year Canadian dollar has been up
and down more frequently that can be a
weakness for the country.
Opportunities
 Emerging market: Canada having a
big exporting market has an opportunity
of exporting to the international market.
Threads
 Closing of the stores: Low value of
Canadian dollar in international market
has threatened the future and livelihood
of many stores in the country.
 Lonnie connected to the oil: It has
been observed that Canadian dollar has
a correlation with oil prices in
international market but in the recent
time dropped oil price in international
market has threatened the Canadian
dollar as well.
HRM issues
When an organization faces some tough times for the business purpose owners mostly opt for
the cost-cutting operation to make business profitable in such tough times. In the recent few
years Canadian government digitalizing its operating departments that is resulting in
downsizing in most of the department (Maertz, Wiley, LeRouge, & Campion, 2010). Some of
the key issues HRM facing in the recent times in Alberta government are as following
 Constant GDP growth in the last few years
 Involvement of technology in various operation of the government departments
 Digitalization of various departments
These issues are needed to bring in light as in the current scenario government downsizing in
several departments. Employees are facing involuntary loss of their jobs. They need to

understand the reason behind such act of the government implementing in many departments
including the government department, the given victim Matrina was working in for the last
five years. Such operations of the HRM in govt. departments are affecting people serving the
government honestly with their hard work.
Legal considerations
One of the significant areas considered in the employment laws defined in the Canada is
termination of the employees. This termination of employees is of two types as termination
without any specified reason and termination for a specific cause. Under the consideration of
termination of employees for a specific cause there are certain laws that can be defined as
following
 There is no employment “at will” in the Canadian legislation.
 Employers cannot terminate employees for any type of conduct issue.
 In all but most serious misconduct of the employee in only one incident does not
allow termination of employees for their misconduct (McMillan, 2018).
In the given case scenario Merita was facing the situation of termination for a cause. The
reason of her termination is the on-going downsizing of the department she is working in. For
this type of termination legislation has a provision of giving preference to the terminated
employees for any other desirable post in the same organization.
Alternatives
Downsizing in an organization should be the last and extreme step to be taken for
restructuring the organization in terms of human resources (Sitlington, & Marshall, 2011).
There are so many alternatives of downsizing which are resting on two major pillars called
share the pain and strong human resource initiatives. In order to avoid downsizing there are

many long-term staffing alternatives (Muñoz-Bullon, & Sanchez-Bueno, 2010). Some of
these effective alternatives are as following
Hiring linked to the vision of the organization: This alternative defines that organization
should identify that what kind of skills it will need in the future. Therefore, during the process
of recruitment and selection organization must consider these requirements to be fulfilled by
the selected candidates. This will prevent such type of downsizing which are results of
technical advancement introduction to the organization.
Cross training for development: By understanding the need of skill mix staff candidates
and linking this consideration to the anticipated skills required in the future , organization
must allow the employee to determine what skills they need to develop to be the gainful
employee in the organization for a longer time period.
Redeployment within the organization: Redeployment of the organization can be linked to
the alternative placement but this placement can be seen often within the organization a
sophisticated career management process is required to implement successful redeployment
so that managers as well as employees can be made aware of the open position (Hcamag.com
2009).
These alternatives can solve the problem up to an extent. Hiring linked candidates will ensure
the recruitment and selection of the candidates who are eligible for such technical changes in
the organization. This will prevent termination of employees only because of the
digitalization in the department. Cross training of the employees will also help the
organization to use their employees more efficiently without terminating them as this training
will develop employees to work with more flexibility and make use of the existing
employees. Redeployment will also help organization to redeploy their employees to avoid
such downsizing (Cascio, 2010).

Recommendations
Organization facing such type of downsizing because of lack of technical knowledge in the
employees must use some effective alternative ways to avoid such situations. There are so
many alternatives that can be used for the purpose of satisfying the employees with a long
term employment to them. Among all these alternatives “hiring linked to the vision” is the
best alternative. This alternative requires a strategic recruitment and selection process to be
followed by the human resource management of the organization. in this case government
shoud consider such strategic changes in their recruitment and selection processes while
recruiting candidate in any of the department which may experience such technical
enhancement in the future. This strategic change in the process of recruitment and selection
will help the government to avoid such situation where employees challenge the organization
for their legal right violation.
This process of implementing strategic recruitment and selection process will require only a
few changes in the pre-existing process like
 Provision of separate HRM department
 Strategic implementation of the strategies designed by the HR managers
 HR managers are needed to redesign their interview pattern including new question
which are specifically related to the skills that are organization is looking for in the
desired candidates.
This alternative for such situations will surely make it to the employers to keep their
employees for a longer time period. Such initiative increase market image of the organization
and help them to attract desired talented candidates for the further recruitment and selection
process for the organization. the success of ssuch implementation can be measured through
the organization performance enhancement as the loger time employment will motivate

employees to be the part of such organization and they will work had to be that part of the
organization. Therefore, Number of application organization receives in the future
recruitment and selection process will measure the success of this alternative.
Conclusion
The above analysis of the report concludes that the environment of an organization influences
the recruitment and selection process as well as other HRM activities of the organization.
These activities are important to deal with several tough situations an organization may face
at times. The alternatives suggested in the report are effective and can be used to avoid
situation similar to the given case. These alternatives require only a few extra efforts that may
change the complete scenario with a positive impact on the organization and its performance
as well.

References
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