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HRM in the News Paper 1

HRM in the News Paper 1

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Published by: Cameron Creighton on Feb 17, 2011
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HRM in the News

Cameron Creighton 6/13/2010

(Anonymous 1). organizations will systematically layoff a large amount of employees to permanently reduce their size. As stated by Stewart. Layoffs: Companies that are facing diminishing revenue and profits try to find means to solve these problems. or fear they might lose theirs. ³regain competitiveness by reducing its workforce by about 28%.Cameron Creighton MGNT 323: HRM in the News 2 ³The facts seem clear. the number of people who are laid off is fairly substancial. This is not new. Layoffs are mostly bad for companies. The biggest threats for employees are for their organization to do what many companies are doing these days. by reducing employee size while maintaining profitability. This trend can be terribly detrimental to an organization. As technology progresses.´ (Anonymous 5). One that¶s becoming more of a commonplace practice is to lay off employees to reduce costs. For the most part. the goal of layoffs is to cut costs. The less people that have jobs. or about 34. and Brown. as well there is a emotional and psychological strain put on both the layoff survivors and those who parted ways. This massive amount of people who are. they reliably cut costs. when Ford saw shrinking sales they made a plan to. ³let go.´ can hurt the company in a very broad way. The costs incurred during and post-lay off can be very steep.000 employees. depends soley on the size of the organization and their goals. They go on to say how. They don¶t always help. (Stewart and Kenneth 260). there is a constant threat of job loss. a case is made against layoffs. In the global economy that we exist in. Downsizing: With dwindling profitability and sales. Ultimately. The people are not chosen for their poor performance. For the first time since the great depression the unemployment rate has risen above ten percent. we become ever more efficient and jobs that were once done by people are now performed by machines. Throughout the article. harmful for the economy. The article also tries to dispel myths that have become associated with the benefits of layoffs including. The amount of people laid off. The goods or services once provided by the company might have faced a drop in demand or become all together outdated. and devastating for employees. and increase profits. This statement provides a clear message about layoffs. (Norris). layoffs and downsizing. companies are partially jumping on the bandwagon of layoffs because that is what a vast amount of others are doing. This poses a serious threat on peoples jobs. correlate with less spending especially on non-essentials . Organizations that have taken advantage of these innovations might possibly not need their employees who were replaced by machines anymore (Stewart and Kenneth 260). It details case studies from across the world and how their results tie to negative consequences. There are other reasons that downsizing occurs. (Stewart and Kenneth 260). productivity does not always remain consistent with their previous rate. and the organization reacted by reducing its employee base. the employees let go are picked in various ways that are determined by what situation the organization is facing. The process of laying off employees takes its toll on the organization in a very broad way as well. The author uses a variety of case studies and research papers to make the case that laying off employees is not always beneficial. While the initial capital saved from laying off workers might seem like a benefit. This article sheds a negative light on the results of organizations who partake in layoffs. or should not be.

This hits productivity. (Anonymous 4).´ (Anonymous 4). and this hurts everyone in the economy. There are countless more. With a staggering number like that. the American Management Association performed a survey that found. the single airline that did not cut their employee base. For an industry as a whole to have almost 50 percent of its revenue vanish resulting from lay-offs. Lay-offs and downsizing has touched most of our lives in one way or another. With monetary pros and cons aside.´ (Anonymous 4). the airline for instance. to have them replaced with lesser paid and less knowledgeable employees. The former CEO of Proctor & Gamble said it right. The author also correlates between these factors and employees health. As for Circuit City. Cited in the article. sales fall. The toll that lay-offs take on companies seems to outweigh the benefits. The stress. This article has shown me the deeper more impactful results that are usually left unseen. Southwest Airline. As the author states. which in turn affects profit.´ (Anonymous 3). there is the possibility of a drastic emotional and psychological hit to the employees. That is only one example of when lay-offs turn bad. To cut costs.declined by 47 percent between 2000 and 2007«$9. With this surge in poor satisfaction came a nasty result. ³The best time to gain ground on competitors is when they are retreating. ³an unpleasant experience.. Circuit City laid-off 3. such as product knowledge and skill within their workplace. Word Count: 1056 . Added to the health issues. and still expect growth and stabilization from this. A clear example of the negative aspects concerning lay-offs and downsizing is Circuit City. There is no way to avoid it. The airline lay-offs made flying on the other airline. The company laid-off that many of its skilled sales people.Cameron Creighton MGNT 323: HRM in the News 3 like luxury goods. if that is the course of actions that the company decides to pursue. they went bankrupt and no longer exist. The employees were most likely paid more for a reason.´ (Anonymous 4). (Anonymous 1).400 employees who received on average more compensation than other employees. in terms of the cost-benefit of downsizing. When all the other domestic airlines had massive lay-offs Southwest stepped up to the plate. anxiety and emotional hardship placed on both the remaining and the departed employees have its consequences. is an astounding fact.6 billion in revenue.. is now America¶s largest domestic airline. ³88% of companies that had downsized said that moral decreased. The post-9/11 airline industry faced an enormous toll on their livelihood. ³With less aggregate demand in the economy. is the toll that is taken on employee¶s moral and perceived organizational support within their organization. the remaining workers possibly could perform even worse because they fear that they might be next and do not need to work hard to keep their job.´ (Anonymous 4). ³the number of«passenger trips.

Human Resource Management: Linking Strategy to Practice. Newsweek.html>. KY: Wiley. Greg and Brown.com/2009/07/11/business/economy/11charts. .com/2010/02/04/lay-off-the-layoffs. The New York Times.nytimes. Floyd. Unable to Move . Kenneth. "Lay Off the Layoffs. 13 June 2010 <http://www." 10 July 2009. 13 June 2010 <http://www.com.Cameron Creighton MGNT 323: HRM in the News 4 Bibliography Anonymous. Versailles. Norris. 2009." 05 February 2010. Print. "On the Unemployment Line. Stewart.newsweek.html>.

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