IntroductionIn the restructuring of an organization there are several situations that take place. These could be laying off the workers, downsizing or outsourcing (Susskind, 2007). Laying off workers refers to termination of employees where by the work in the organization has reduced and they are therefore now laid off. Laying off could be temporary for they can be rehired if opportunities arise again. This normally occurs in construction industries in the seasons when work reduces. Downsizing on the other hand refers to the situation where employees are released because of changes in the organization that render what they did in the organization unnecessary.
It is normally necessitated by things in the organization being reorganized or restructured. It leads to elimination of some jobs. This they normally call it a reduction in force mainly done by government or military forces (Susskind, 2007). Outsourcing is also known as off shoring. It means that the work is being transferred to another organization which could be domestic or even overseas. This paper will address the challenges associated with the activities of an international air carrier that is planning and implementing a downsizing exercise and outsourcing of its aircraft maintenance.
This has been necessitated by a drop in finances due to global financial crises. It will also explain the successful change elements that need to be put into place so as to allow the organization to do well. This paper will entail recommendations to the airline organization. DownsizingDown sizing in any company could be caused by several causes. One major cause can be increased productivity. Decrease in the demand of the products or the services that an organization produces calls for reduction in the workers of the company.
As a result it also calls for downsizing in the organization (Susskind, 2007). The demand of a company’s products always dictates the level of activities in the company or organization. This is the case in the airline company as in the global international crises people reduced their demand of the airline’s services. Decline in the economy or declined in revenue also leads to downsizing of firm’s activities and this is also in the global economic crises that rocked the world.
It could result from either a poor economy in the nation or increase in the foreign competition. Factors to consider while downsizingWhenever a company wants to lay down some of its workers there are normally rules and regulations the management team of the company has to put into consideration. This is because they have to comply with all the recommendations as well as the standing orders by the labor department (Bean & Hamilton, 2006). Other than the laws and regulations by the government and the labor department there are other recommendations that are given by the human rights activists as well as the labor organizations.
I would therefore recommend to the employer and the management team of the airline company to employ the following points before they lay down the workers. Fairness - This is enforced by the statutes and especially the civil rights statutes. Fairness is further reinforced by the employment statutes that seek to protect employees from any uncomely treatment by their employees. The employer in the instance of downsizing should always make sure that he/she is not biased against the protected minorities.
The protected minorities are such groups as women, the disabled, veterans, workers who are over forty years in age and the racial minorities (Sronce & McKinley, 2006). The employer should ensure that his decision is only based on what the business requires. This could be laying down all the functions that can no longer be supported in the job system. The airline company should thus ensure that it puts into practice the fairness concept to avoid biased decisions on who to be affected by the down sizing. Transparency - In addition to fairness the airline company’s terminating group should ensure that they communicate openly the criterion that is employed when laying down the employees.
This will cause a clear understanding among all the workers so that if a worker is laid down they will understand the reason why. This will cause further visibility among the workers (Susskind, 2007). For example the terminating employer could decide to use qualifications such that the most junior employees according to ranks are terminated. This should be communicated to the public. This transparency allows fairness to be visible.
The airline carrier should put this into practice too (Burke & Cooper, 2000). Communications - Communication is also a very important tactic that should be employed by the management team that is in charge of the downsizing process. This communication should be both to the staff that will be retained after downsizing as well as to the departing employees (Bean & Hamilton, 2006). This is mainly done so as to ensure that the goodwill of the employees who are departing from the organization is maintained.
It is a very critical element because the services of these employees could be needed again. The retained staff also needs to be communicated to by the management so as to ensure that their morale is built up. This is due to the uncertainty resulting from the changes in the company (Hargroves & Smith, 2005). Timing - The airline company team that is in charge of the downsizing process should also be very keen about the timing of the communication to the employees. The statutes clearly indicate that the communication should be done well in advance so as to avoid inconveniences to the laid down employees (Burke & Cooper, 2000).
They should not be laid down without prior notice. The law provides such recommendations. An example is the US laws like the Worker Adjustment and Retraining Notification Act (WARN) that recommends a prior notification of at least six months. Some employers however argue that announcing the intention to lay down the employees in advance will affect their productivity and so they always prefer to communicate the decision right about the time of termination.
Timing could also refer to such issues as the dates of the termination communication. For example communicating the date just before Christmas not before Christmas would be considered as inhuman (Lewis, Thornhill & Saunders, 2003). Agenda - The airline company should also announce to the laid down workers how they intend to help them and the dues and packages that they will be entitled to as they leave the company. This could be such issues as getting for them help from employment agencies and giving them the sufficient information on how they should fill the forms for the unemployment benefits available to them (Bean & Hamilton, 2006).
This will further improve the communication and the confidence as well as improve the workers goodwill towards the company. This step could also involve counseling for the workers who are leaving the company. This should be done by some qualified staff who will prepare these workers to face the world out there. This will avoid many psychological problems like workers falling into depression and other associated problems. The agenda should also involve such issues as helping these workers to prepare resumes that will land them in good companies so as to create goodwill as well as providing for them leads on the available and well paying jobs for them (Sronce & McKinley, 2006).
The last step that the airline company management should do should be to provide for them recommendation letters as many employees seek for these letters as they add to the credibility of the workers. Severance fee - I will advice the airline company to pay a severance fee to its workers who are affected by the downsizing (Ceri, 2007).
This is normally is a week or two weeks payment for each year that the employee has given the company. In some cases this is usually inclusive of any extended benefits and also assistance for the out placement. Exit interviews - I will advice the airline company to ensure that it conducts exit interviews for the employees who are now exiting. This is important so as to understand the image, of the company to those employees as well as to those outside of the company’s setting.
It will also be used for improving the standards in the company.