Downsizing and Its Effects

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Category: Business and Industry

Date Submitted: 09/25/2011 01:16 PM

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Corporate Downsizing and Its Effects on Middle Management Employee Morale

[Name of the Writer]

[Name of the Institution]


This report analyses the reasons of downsizing and its future prospects as well as the impact on the employee’s motivation and the effectiveness. Here we will discuss about the factors influencing the downsizing decision and the types of scenarios where the downsizing is necessary. There are many situations where despite of the good performance by the employee he gets laid off and that’s the only option left with the organization. People at the organizations do know the situation of the company and the external pressures and they are well aware of the fact that in coming time someone will lose the job but whom? That’s always the question remain unanswered until the person gets the notice. In downsizing it’s not necessary that if you are doing good job then you won’t be laid off and that’s the only factor which reduces the motivation level and moral of the employee.


Downsizing or "downsizing" is a strategy that has been used more regularly in recent years to respond to different situations organizational. The "downsizing" is a form of reorganization or restructuring companies through which conducts and improvement in work systems organizational redesign and proper establishment of human resources maintain business competitiveness. One of the main objectives strategies is pursued to achieve optimal organizational size ("Rightsizing") and rethink the organization ("Rethinking").

We have reduced the definition of organization proposed by Burros(2009, p. 70), which determines the reduction as "the conscious use of the organization of permanent staff reductions in an attempt to improve the efficiency and / or efficiency. " Includes the determination of reduction is to reduce the number of employees, reducing the use of consciousness.

Why do most scholars, not...