LEIDY JOHANNA ANGEL HERRERA. Updated 26 October Transcript. BENCHMARKING,DOWNSIZING Y RIGHTSIZING. Right-sizing, downsizing and improving the employee and employer In my experience, the following four considerations will set you and your. Downsizing, Rightsizing or Dumbsizing?: Quality and Human “American mana gement adopted quality concepts in order to cut costs and regain. international.

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This process also enables companies with growing competitive advantages to maintain their positions in the market in the face of greater domestic and global competition, and it is the difficult but necessary result of the transition toward a global economy. The major industries affected by this stiffer competition included the automotive, electronics, machine tool, and steel industries. Show my email publicly.

They reason that without downsizing, companies would not remain profitable and hence would go bankrupt when there is fierce competition and slow growth.

In essence, restructuring efforts attempt to increase the amount of work output relative to the amount of work input. In righfsizing, announcements of downsizing are well received in the stock markets.

Downsizing y Rightsizing by carla peña on Prezi

Revised by Scott B. If redundant but nonessential work cannot be completely eliminated, it perhaps can be reduced.

By studying particular tasks and determining their essential components, managers can get rid of unnecessary tasks and eliminate unnecessary jobs altogether. Since dense bureaucracy frequently causes delays in communication and decision-making, the reduction of bureaucracy may help bring about a more efficient and responsive corporate structure that can implement new ideas more quickly.

Instead of laying employees off, critics recommend that companies eliminate jobs only as a last resort; not as a quick fix when profits fail to meet quarterly projections. However, economists remain optimistic about downsizing and the effects of downsizing on the economy when the rate of overall job growth outpaces the rate of job elimination.


Nevertheless, some companies began simply to cut their workforce without determining whether or not it was necessary and without any kind of accompanying strategy. Chemical plant and system operators.

Occupations with the Largest Job Decline, It is not uncommon for a company’s stock value to rise following a downsizing announcement. The corporate downsizing trend grew out of the economic conditions of the late s, when direct international competition began to increase.

Downsizing is certainly not limited to the U. For example, governments must sometimes enact programs to help displaced workers obtain training and receive job placement assistance.

Downsizings such as these are also commonly called reorganizing, reengineering, restructuring, or rightsizing. Downsizing and reengineering programs may result from the implementation of new, labor-saving technology.

In essence, they downsized because they lacked new products that would have stimulated growth and because their existing product markets were decreasing. Economists point g that despite the downsizing that has become commonplace since the s, overall U. For some sectors, this trend is projected to be particularly prevalent throughas shown in Table 2. As a major trend among U. Eliminating non-core aspects of a business may also include the reduction of bureaucracy and the number of corporate layers.

Companies in these industries, like those in the auto industry, suffered from higher per-unit costs and greater overhead than their Japanese counterparts due to lower labor productivity and a glut of white-collar workers in many U.

In other words, managers must strive to maintain or increase productivity and quality levels despite having a smaller workforce. A Manifesto for Business Revolution. Downsizing affects most sectors of the labor market, including retail, industrial, managerial, and office jobs, impacting workers in a wide range of income levels. Therefore, reports used for communication between layers of the old corporate hierarchy, for diwnsizing, can be eliminated.


Labor groups have reacted to the frequency and magnitude of downsizing, and unions have taken tougher stances in negotiations because of it.

In the twenty-first century, downsizing continued after a sharp decline in the stock market early in the century and followed by continued pressure on corporate earnings in the aftermath of the September 11,terrorist attacks. Analysts of downsized companies argue that managers should take steps immediately after workforce reductions to provide the remaining workers with the support and guidance they need.

Unemployed Persons by Reason of Unemployment. Unemployed Workers by Month Adapted from: In addition, managers should encourage employee initiative and communication and provide employees with rewards for excellent work.


Besides rightsiznig off workers, restructuring efforts may involve closing plants, selling non-core operations, acquiring or merging with related companies, and over-hauling the internal structure of a company. Downsizing refers to the permanent reduction of a company’s workforce and is generally associated with corporate reorganization, or creating a “leaner, meaner” company.

A trend toward outsourcing jobs overseas to countries with lower labor costs is a form of downsizing that affects some U.