ORGANISATIONAL BEHAVIOUR

PRESENTATION

Downsizing

CLASS – A
Group B
Anshul G -IGTCPG28MU014
Kavya Mohan -IGTCPG28MU041
Sanika Nanoti -IGTCPG28MU072
Shweta Deshmukh -IGTCPG28MU086 1
EMPLOYMENT DOWNSIZING

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WHY DOWNSIZE?

• To gain economic benefits

• Strategy to reduce the scale and size of the resources
• Reduction of workforce
• To improve efficiency, productivity and reduce expenses

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CAUSES
Mergers and
Acquisitions

Decline in demand Strategy Changes

Mismanagement Economic Crisis

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EFFECTS ON THE ORGANISATION

Firms reputation suffers

Insecurity amongst employees

Misconceptions in the minds of the

employees

Downsizing politics
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WHEN DOWNSIZING FAILS ?

• Downsize - first response rather than last resort

• Business processes not changed
• Failing to involve workers in cost reduction strategies
• Ignoring the effects on other stakeholders
• Underestimate damage on company culture
• Failing to evaluate results and learn from mistakes

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INDIVIDUAL AND FIRM WIDE CONSEQUENCE
Individual negative effects are generally observed in the following
areas:

Workplace Individual Work

Attitude Perceptions
Behaviours Performance
• Job • Supervisor • Turnover • Creativity
satisfaction support • Absenteeism
• Commitment • Willingness
• Justice to provide
• Involvement
• Motivation effort

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WAYS TO EVALUATE EMPLOYEE MORALE

• Staff turnover
• Employee attitude surveys
• Response to customers
• Impact on organisational and personal goals
• Strong feedback system

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CITI BANK - 2008 Crisis
• Job cut - 50,000 out of 3,52,000 total jobs

Steps taken by the organisation:

• Feedback from employees
• Workshops
• Training - skill development

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GENERAL MOTORS- 2018
• Job Cuts- Roughly 14000

Steps taken by the organization

• Assure to restructure, then create more jobs
• Offered almost 17000 voluntary buyouts to its employees

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 DEUTSCHE BANK- 2019
• Job Cuts - 18000

Steps taken by the company

• No steps taken as off now

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DOWNSIZING STRATEGIES
• Attrition
• Voluntary Termination
• Early Retirement Incentives (ERI)
• Compulsory termination

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INTERVENTION PROCESSES
For Discharged Personnels:

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 INTERVENTION PROCESSES
For Retained Personnel's:

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OTHER ORGANIZATIONAL CONCERNS
RELATED TO DOWNSIZING

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SUMMARY
The basic aspects of an effectively managed Downsizing Plan includes:
● Extent to which an overall personnel plan accurately forecasts future
organizational needs
● Accuracy of the downsizing plan to identify downsizing targets in
compliance with the overall personnel plan
● Ability of the downsizing strategies to meet desired end-strengths
● How the intervention processes can facilitate reduction-in-force
strategies

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REFERENCES
•https://www.referenceforbusiness.com/small/Inc-Mail/Layoffs-and-Downsizing.html
•https://www.ukessays.com/essays/management/effects-of-downsizing-on-employees-work-life-
•https://www.inc.com/encyclopedia/layoffs-downsizing-and-outsourcing.html
•SHRM foundation’s Employment downsizing and it’s alternatives.
•https://www.economist.com/news/2008/07/28/downsizing
•https://timesofindia.indiatimes.com/topic/layoffs
•
https://www.livemint.com/news/world/deutsche-bank-to-slash-18-000-jobs-in-sweeping-restructur
ing-1562526055816.html
.
•https://timesofindia.indiatimes.com/topic/layoffs
•Organizational downsizing: Individual and Organisational implications and recommendations for
actions – by Michigan University (1991).
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THANK YOU.

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