MHR 849 Lecture Notes - Lecture 8: Human Capital, Interactional Justice, Risk Aversion
14 Jun 2019
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Increased pressure from competitors: declining profits, business downturn, organizational merger, new technology, reduced operating costs, decrease levels of management, get rid of employee deadwood . Downsizing paradox: downsizing is done with the intention to cut costs for labour in the future, considerable evidence exists that workforce reduction fails to meet its objectives, pfeffer layoffs don"t even reliably cut costs. Downsizing alternatives: short-term, hiring freeze, mandatory vacation, reduced workweek, reduced overtime, reduced salaries, facility shutdowns, employee input for alternatives to cutbacks, medium-term, extending reductions in salaries, voluntary sabbaticals, lending employees, exit incentives. Inplacement and outplacement issues: outplacement providing a program of counselling and job-search assistance for workers who have been terminated. Inplacement reabsorbing excess or inappropriately placed workers into a restructured organization. Planning for downsizing: determine how many people will lose their jobs, who will be let go, how will the reduction be carried out, determine the legal consequences, design current and future work plans, perform follow-up evaluation.
