• Reduce layers of management to increase decision making speed and get closer to the customer. • Sharpen focus on core competencies of the firm, and outsource nonessential[r]
(1)FACILITATOR
Prof Dr Mohammad Majid Mahmood
Art of Leadership & Motivation
(2)Role of Leaders in Downsizing:
(3)Faulty Assumptions
• Leaders will handle the downsizing just fine because “they are leaders”
• Once we get past the downsizing, things will return to normal
• We only need to worry about what is
happening inside the organization walls
(4)The Tough Part of Downsizing:
(5)Downsizing
What is Downsizing?
• Downsizing - process of reducing the number of
employees within an organization by eliminating jobs
(6)Downsizing
What is Downsizing?
• A downsizing strategy improve its financial performance (Robbins & Pearce, 1992)
• A reduction of the workforce is one of only several possible ways of improving
(7)Downsizing
Why Firms Downsize? • Reduce costs
• Reduce layers of management to increase decision making speed and get closer to the customer
• Sharpen focus on core competencies of the firm, and outsource nonessential
activities
• Generate positive reactions from shareholders
• Increase productivity
(8)Downsizing
• Downsizing doesn’t guarantee improvements or cost savings
(9)Downsizing Issues 2011 (EASNA Survey)
Financial Stress Legal Violence
(10)