Downsizing

Downsizing and HRM

Rational School

From a rational school perspective, organisations are instruments designed to attain specific goals. Some of the rhetoric used in this perspective is word like information, efficiency, optimization, implementation and design. The organisation is more focused on the organisations profits and survival and take the employees as a mean for their business. They are less focused on the human relationships. In the TIL case the Savory plant was facing an economical problem as the plant was running at the 45% capacity and the per unit cost was very high as compared to the other plant which lead the company to take a decision of downsizing. He HR manager, Sudeep Rai had joined the organisation recently and he was in a dilemma that he has to lay off 600-700 people and the workers were thinking that he is the person who took this decision but the decisions taken in the past by the management was the real reason why the layoffs were needed. Rai didn’t wanted to do this but to attain efficiency and optimization he was forced to lay off the workers.;

Human Relations School

The human relation school says that when a company or managers took an interest in employees and cared for them, it had a positive effect on their motivation. When managers took a greater interest in employees they felt more valued and empowered. In the case the organisation had to lay off the workers which was affecting the workers economically and emotionally. The organisation proposed a job for the workers in another organisation named Blue Cow which was not hiring them at the similar wages and the ranks were also of grade D. Some workers who were working for last 15 years in the organisation were in trauma and very emotional as they were attached to their organisation. Downsizing causes poor morale, high levels of stress and even guilt among employees who retained their jobs.

HRD approach

The Human resource department of an organisation tries not only to train...