Emerging Issues in HRDS
Reducing the total number of employeesat acompanythroughterminations,retirements. In a
business enterprise, downsizing is reducing the number of employees on the operating payroll.Some users distinguish downsizing from a layoff, with downsizing intended to be a permanentdownscaling and a layoff intended to be a temporary downscaling in which employees may later be rehiredThe basic GOAL for a successful downsizing is "work better and cost less”. To help achieve thisgoal, it is important to review and learn from the experiences of organizations that havedownsized--and recognize that downsizing does not always achieve the intended result.
Eg: - Jet AirwaysCORPORATE RESTRUCTURING
Restructuring is the corporate management term for the act of partially dismantling and reorganizing acompany for the purpose of making it more efficient and therefore more profitable. It generallyinvolves selling off portions of the company and making severe staff reductions.
Corporate Restructuring refers to multidimensional process. However, the term corporate restructuring is usedhere for operational restructuring as long term strategy of businessOperational restructuring is an ongoing process, which includes improvement in efficiency and management,reduction in staff and wages, sales of assets (for example, reduction in subsidiaries), enhanced marketingefforts, and so on with the expectation of higher profitability and cash flow (1). Rising competition, breakthrough technological and other changes, rising stock market volatility, major corporate accountingscandals have increased the responsibility to managers to deliver superior performance and enhance marketvalue to shareholders. The companies which fail to deal with the above successfully may lose their independence, if not face extinction.In India, corporate houses have recently witnessed an increase of restructuring in different organizations. Someorganizations have done their restructuring through acquisition and mergers and some through demergers.There is also corporate restructuring done through changes in corporate structure and optimization of resourcesincluding financial structuring.EXAMPLE :- Reliance Industries Ltd., Larsen and Toubro Ltd.For example, the acquisition, merger, and demerger of Reliance Industries Ltd. Mergers of ReliancePetrochemicals Ltd., and the recent demergers of four entities like Reliance Communication Ventures Ltd.,Reliance Energy Ventures Ltd., Reliance Natural Resources Ventures Ltd., and Reliance Capital Ventures Ltd.