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With economic pressure & tough competition, top management used to save cost via employees layoff and esp to support department not to hard core divisions like Finance, Marketing, IT, SCM. How do you comment on this? Do they save cost for long term in this way? Does this practice have negative impact on other employees? your expert opinion is required.
Unfortunately, this is true and very common in rodays management world
I have seen top CxO management, business owners and decision makers taking this choice as the easy and lazy way out when things get really bad financnially.
I have also seen the industry coming with buzzwords and fluffy expressions that management/business owners took as good reason for employee layoff .... things like "downsizing" and "business process reengineering, ...
Downsizing or doing layoffs is a toxic solution. Used sparingly and with planning downsizing can be an organizational lifesaver, but when layoffs are used repeatedly without a thoughtful strategy, downsizing can destroy an organization's effectiveness. How you treat people really matters - to the people who leave and the people who remain.=> One outcome of downsizing must be to preserve the organization's intellectual capital.=> How downsized employees are treated directly affects the morale and retention of valued, high-performing employees who are not downsized.=> Downsizing should never be used as a communication to financial centers or investors of the new management's tough-minded, no-nonsense style of management - the cost of downsizing far outweighs any benefits thus gained.
Yes you are right in this situation, but I think that it should negative effects on employees as well as organization. I know that employer does not bear any loss for that reasons they want to go downsizing and somewhat it should not be avoided. In my experience, when I was corporate, one of our business would not perform better then we replace other business units beacuse they were the committed workers. You can marge position with other similar positions and who are not necessary then replace if other unit demand your organization. Replacing can be a re-structuring strategy.
