The paper “ Downsizing as the Most Successful Change Strategy for Organisations in a Turbulent Environment” is a great example of the assignment on management. Downsizing can be defined as a set of activities that are carried out by the management of an organization to improve productivity, organizational efficiency, competitiveness – or all the three phenomena combined – by reducing the size of the organization. Downsizing is characterized by four keys attributes. The first one is that downsizing is a deliberate set of activities. The second aspect is that downsizing involves a reduction of personnel in an organization, and the reduction is meant to improve efficiency.
The third aspect is that downsizing focuses on improving the efficiency of the organization in question. The fourth aspect is that downsizing affects the work processes of an organization either positively or negatively. This means that although downsizing is meant to improve the performance of an organization, the outcomes of the process can be positive or negative. Given that downsizing is associated with both positive and negative effects on an organization, the argument that downsizing has been the most successful change strategy for organizations in a turbulent environment is not entirely true.
It is true that downsizing has several advantages, but most of these advantages are only felt in the short-term. The advantages are in the form of financial savings due to reduced labor costs, having a manageable number of people and reduced repetition of roles, and increased competitiveness. Downsizing leads to savings due to reduced labor costs because when an organization reduces the number of employees on its payroll, it will make savings on what would have been used to pay the workers who are made to leave the organization.
This is particularly important during turbulent times because the resources that are saved can be used to meet other important needs of the organization. Downsizing also means having a group of personnel that is more manageable, with reduced repetition of roles played by different individuals.