Essays on Report Assignment

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Introduction………………………………………………………………. ..4Challenges Associated by Downsizing and Outsourcing……………. ..4The Challenges Associated By Downsizing…………. ….4To the Organization……………………. …….. .4To the leadership………………………. ………5To the employees……………………. ………. ... 5Challenges Associated by Outsourcing…………. …….. ... 6The Key Elements of Successful Downsizing Strategy………. ………. ..6To avoid bankruptcy and closure of the company…. ….. 6Acquisition and Merger………………………………. …... 6To consider Privatisation………………………………. .... .6Reduce the opening operating costs to remain in the International Markets…………………………………. ….. 6The Key Elements of Successful Outsourcing Strategy……………. .... ..7Costs……………………………………………. ………. ….. 7Written Contract……………………………………. …….. .7Staffing Issues………………………………………. ….…. ..7Roles and Expectations………………………………. .….. .7Performance Criteria………………………………. .……. ..8Recommendations and Implementations………………………………. .8Planning and executing of the Outsourcing Downsizing Exercise………………. ……9Benefits Downsizing and Outsourcing to an Organization……………………………………. ….. ….. ….. 9Conclusions……………………………………………. …………. .………12References and Bibliographies………. .…………………………………. ….13IntroductionDue to the Global financial crisis that hit the world markets and saw the closure of many businesses and loss of jobs globally, the a few businesses that survived the predicaments like one International Air Carrier, decided to downsize and outsource its maintenance functions.

This decision prompted them to engage a business consultant to advice and assist them in the said plan. Downsizing basically means the cutting down, restructuring the company’s staff and operations cost so as to improve the productivity, efficiency and the competition of the organization with other players in the industry (Gladys, 2000). Most companies may try so hard to be employee friendly even during the most economic trying times but are eventually forced to reduce their number of employees when the economy becomes too bearable to their pockets.

However they have to tread with caution and well laid down plans before implementing the downsizing and outsourcing processes. Outsourcing entails contracting work out: obtaining the goods and services from outside suppliers and also the hiring of consultants in order to maintain a flexible workforce. The three categories of downsizing comprise of Global (Macro), Organization (strategy) and Individual (Micro) levels (Gladys, 2000). We shall dwell on the Organizational (strategy) downsizing for this case. 2.

Challenges associated by Downsizing and OutsourcingFor these changes and implementations to take place successfully, the organization evaluated several critical issues such as the availability of skill and critical mass for internal improvement. Leadership, technical, continuous improvement mindset, and process skills are among the skill sets required and considered. The other factors that were also considered are time, which was needed for the completion of improvement of all the areas of maintenance that need s attention. These areas include tools, technology, leadership, people, supplies and parts, process and maintenance.

The management also availed the necessary apparatus for the successful in-house development project. The tools comprised of people, money, cooperation and resources. 2.1 The Challenges Associated by Downsizing2.1.1 To the organization: There are always are problems with deciding which employee to let go and who to retain. The airlines maintenance department being the most important and sensitive department than all other departments, obviously consists of the most competent and hardworking employees who are likely to be affected by means of being eliminated in the process of re-prioritizing and restructuring activities.

This posse a great threat to the organization (Ronald and Cary, 2000). The organization gets it difficult to downsize without causing disastersDifficulty in gathering support of the main stakeholdersUndecided on what to do away withRetaining resourceful people and maintaining morale is difficultThe organization will experience more stress due to increased workload and restructuring. The workplace surrounding will be haunted with paranoia and the fear of more possible job losses.

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