Monday, August 17, 2009

Downsizing (HRM)assignment 5

Identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes.


Razz In this assignment we have a tak to identify a company ‘s website that has undergone downsizing and identify the cause and process of downsizing.


Razz Thus, I have search some sight that help me to evaluate the company and learn some causes . Downsizing probably has a negative or positive to a company. There a fact that if they do this they can help the company to progress and some of companies would closed.
This is a technique to help the company to recover from such business failure.

As we have heard on the news , television, radio broadcast the most prevalent dilemma nowadays that many firms nowadays had done downsizing due to the recent world financial crisis they cannot sustain anymore the high inflation rate low income and high expenses . downsizing is the way for them to recover by this disaster. They lessen the manpower, layoff but later be rehired,early retirement.


Razz Downsizing
In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.
Rightsizing is downsizing in the belief that an enterprise really should operate with fewer people. Dumbsizing is downsizing that, in retrospect, failed to achieve the desired effect.

It is an extremely relevant issue to organizations today in that it has become the most prevalent dilemma in recent years. The current tendency of organizations to restructure and ultimately to downsize has a major negative impact on the organizations themselves, on their surviving and terminated employees, on the government, and on society as a whole. In fact, it is everyone's problem, and it seems to have become more the rule than the exception that it used to be in the not too distant past. The current adverse economic climate has been persistent and long-lasting. As a result, many organizations that were operating inefficiently have been ..

Razz Why do Firms Downsize?

Exclamation Reduce costs
Exclamation Reduce layers of management to increase decision making speed and get closer to the customer
Exclamation Sharpen focus on core competencies of the firm, and outsource peripheral activities
Exclamation Generate positive reactions from shareholders in order to improve valuation of stock price
Exclamation Increase productivity

Razz Downsizing Effects: Overall

Mixed effects on firm performance: some short-term costs savings, but long-term profitability & valuation not strongly affected.
Firm’s reputation as a good employer suffers. Example: Apple Computer’s reputation as good employer declined after several layoffs in 1990s.
Downsizing forces re-thinking of Employment Strategy. Lifelong employment policies not credible after a downsizing. Example: IBM abandoned lifelong policy after several layoffs in early 1990s.
Downsizing Works Best When:
Changes in Strategy, Organization structure and Culture accompany job cuts of downsizing
Weak business units and plant closures are used as basis of reductions, rather than across the board cuts affecting all units (including healthy ones)

Razz Effects of Downsizing
All small business owners know the weighty responsibility of having employees dependent upon him to provide for their families. Despite a popular perceived view, not all business owners are cold-hearted calculating machines caring only for profits at the expense of everyone they step on while rising to the top.
Downsizing also has an economic risk. Shrinking a business reduces market value and reduces its customer base, which can be dangerous if perception of the company views it as unreliable. Growth is always viewed as a positive. Downsizing is not, and doing so will require a good public relations plan to offset negative publicity and customer perceptions.
Another effect is the emotional costs to both owner and employees. Losing a job for any reason is traumatic enough, but losing a job as the result of a business owner’s decision to downsize can be easily misunderstood.

Some Firms undergone downsizing

Philippine Airlines, Inc.

PAL
was
forced to downsize its international operations by completely cutting
operations to Europe and
eventually Southwest Asia,
cutting virtually all domestic services excluding routes operated from Manila, reducing the size
of its fleet and terminating the jobs of thousands of employees.


The airline was placed under receivership in 1998, gradually restoring operations to many of the destinations it formerly serviced. PAL exited receivership in 2007 with ambitious plans to further restore services to its previously-serviced destinations, as well as diversify its fleet.

Motorola Inc .
Based
Motorola Inc. on Monday announced it is downsizing its workforce in the
Philippines as global sales plunge because of weak demand for new mobile
phones.In a press briefing with reporters in Manila, Motorola, which is
headquartered in Schaumburg, Illinois, said they have still to determine how
many workers will be laid off in the Philippines, but added a significant part
of its workforce in the region will be laid off.

Malyn Molina, Motorola's account direct at Ogilvy Philippines told reporters in Manila, "The mobile devices division of Motorola Philippines will still be operating although it will no longer be as big and aggressive as before. But the concept stores and the distributor network will still be there."
But the downsizing of Motorola's workforce in the Philippines will not affect consumers the company said because a skeletal staff offering technical support and coordination

The Army’s elite units

Have grown“demoralized" and restive amid reports that headquarters plans to cut
their strength to just a third of their present size and curb their potential
to mount coups, a senior military officer said Thursday.



A
senior military officer who spoke on condition of anonymity said Army chief
Lieutentant General Romeo Tolentino has given a team until the end of the month
to study the downsizing of the First Scout Ranger Regiment (FSRR) and Special
Forces Regiment (SFR).

The two units consist of three
battalions each at present.

“Officers and men of Socom are greatly affected and demoralized by the ongoing
study at Army headquarters to downsize (the FSRR and SFR)…from their present
organization set up to just one battalion each to remove their capability to
launch coups and topple government," he said.

About 500 men make up a battalion.


Morale problem

“They all know what’s going to happen because that (downsizing of FSRR and SFR)
is the desire of the (Army chief)," he said. “This is a big problem in
terms of the morale of the present personnel and it also affects those who
formerly served with the Special Forces and Rangers."

"In fact, less than 50 Rangers out of nearly 5,000 Socom forces were
involved (in the plot). Why will the whole Socom unit, with the overwhelming
majority who remained loyal and professional, suffer from the misdeeds of the
misguided few," he said.

The officer added that it was “very ironic" that the planned downsizing
comes at a time when the government is renewing its campaign to cripple the
insurgents in two years.

The official said FSRR and SFR forces are have proven to be effective in the
conduct of counter-insurgency operations or counter-guerilla warfare.

“These (expertise) are the core competence or forte of Socom forces. The Socom
forces are the national maneuver force of the (Armed Forces of the Philippines),"
he said.

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References:

http://www.gmanews.tv/story/13375/Elite-Army-units-demoralized-restive-over-downsizing-plans
http://www.answers.com/topic/philippine-airlines
http://www.highbeam.com/doc/1G1-16454092.html
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html
http://business.lovetoknow.com/wiki/Downsizing

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