Nov 28, 2020 in Coursework

Downsizing

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Introduction

Human resource management is a practice which main concern is the workers. This practice deals with the increasing needs that affect the workers. It deals with all the aspects that exist in an organization. It has been associated with various fields that include compensation, training, downsizing, hiring, and the management of performance among others. This practice gives a go ahead in bringing together people, the workplace, and most of the entire environment. Various articles have identified this aspect in broader terms. HR has on many occasions been associated with traditional practices which involved administration and personnel, but it is advancing to a level where the important aspect is the value to be added to the employees and all the program set in place. This aspect of value addition is critical as it ensures the success of the organization (Kapstein, 1993).

Downsizing is a term that is widely used to mean the aspect of trimming down workforce in a bid to reduce the working cost. This aspect is practiced very often when the market seems to have little light to enable the company run and at least maintain the competing power between it and other businesses. The changing nature of the markets and economy leads to companies using this practice as a tool to achieve better performances. This practice is deemed to be disappointing as many employees lose their careers to enhance the growth of the business. This word is also replaced by various other ones such as laid off, release, termination, or firing (Garber, 2008).

There are various reasons why this practice is put in motion. One of the major reasons which allow the flow of this practice is to enable the operations of the organization achieves the effective and efficient nature of running and operations. This aspect is practiced when a company may, for example, wish to replace part of its workforce with new and improved machines. This aspect is quite good as the business can expect that the machines are easier to handle and use less cost. The using of the machines to be minimal prone to making errors also attracts the aspect of downsizing. The company can also realize that it had employed a lot of employees and wishes to trim the number to a capacity that it can handle. This is influenced if the company faces a shortage in the number of its customers that it had (Parkinson & Conference Board, 1997).

The term laid off has quite an interesting meaning as it implies that the employees are not permanently sent home but can be recalled back to work if the markets show they are picking and getting back to normal. This aspect is one tough blow for employees, and they must be aware and ready for it when the markets dim. This process, however, should be done in a simplified way and manner that will help employees recover from the shock. Companies that use this aspect should make use of it to establish their presence in the market (Baumol, Wolff, & Blinder, 2003).

There are a couple of reasons why this aspect happens. Part of these reasons is when a company combines and accepts to merge with another. This happens as the company becomes a single company and it has to achieve the sole role of being in the market deemed to be profit. The employees have to be trimmed to ensure the company operates smoothly. If a company is bought by another, then this aspect of downsizing may occur. In the case of change, this happens when a new management is put in place.

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Downsizing has been felt recently by the gaming industry, and it has caused the chaos among the users as it is explained in the article by Kim-Mai Cutler. Gamers are people who enjoy playing games using the internet and who also like to obtain the used games. This is likely to be felt in South America. Cutler explains that $46 million is on the downfall due to this downsizing. The world recession that is constantly grinding its teeth has left a mark in the gaming industry as many try to obtain any free games. These games have been treasured as they are a form of entertainment which is regularly available. Researches and studies, conducted over the last few years, have illustrated that many used games are being bought compared to those that have been recently produced. This is also illustrated by the total number of people who wish to rent rather than purchase a new game. According to Cutler, it has got this effect from the Facebook which has received massive increment. Since these games have become a better part of entertainment, then this practice is being chromed by many users. Statistic has identified that quite a large number of people enjoy playing games better than watching movies or listening to music (Pfann & Salvanes, 2001).

The impact of downsizing is about to be felt by the employees of Siemens as indicated in the article by Maria Sheahan. The management led by the chief executive has stated that it is about to trim part of its workforce. The proposed numbers that will face downsizing include about 1120 employees from the department of power generations. This aspect is not going to be appreciated by many employees about the company has to attain its mission (Baumol, Wolff, & Blinder, 2003).

The other organization that the catastrophe of downsizing will be felt is the U.S. army as explained in the article by major general James Milano. The government has announced that part of the army will be retrenched to ensure that it retains the specific number of army to conduct normal business. The management has explained that it wishes to retain only the best, effective and efficient soldiers. This is according to the government directive that the army should retain only the most efficient and effective soldiers. This article is also explained in greater details by John Vandiver.

In conclusion, the practice of downsizing is one that is becoming increasingly a tool to achieve the best performance when times hit low. In every human resource department, this aspect has to be practiced. The company must take and use all means within their power to ensure that they retain and maintain the stability of their firms in the market.

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