Unhappy workers means unproductive workers, and this is one of the most challenging aspects of successfully implementing a downsizing plan.
Yet, there are some successes which can bank on how the company approaches the downsize. If the company turns towards downsizing other elements of production, employees can rest a little easier knowing that their employers are trying other strategies before massive lay offs. Ford Motor Company has made the decision to dramatically cut costs after it received millions of dollars of tax payers bail out funds. Ford has been aiming to "cut prices from parts makers an average of 5% a year for the next four years," (Atwood et al. 1). This would save Ford billions of dollars annually, allowing the former American powerhouse to consolidate costs and provide for a stronger future. Ford has also been taking steps to cut their production costs before the move to make even more lay offs, "To further reduce costs, Ford is standardizing components, especially those customers don't see, such as windshield wipers and window motors," (Atwood et al. 1). This is a successful push, for it shows that the company has accepted some responsibility of past failures and is trying to incorporate a new vision within the business context. According to proponents of successful...
Management must identify these mistakes, take responsibility for them, and address them in a way which assures employees they will not happen again," (Strom 1). Such a move can help keep the trust of employees and keeps company morale strong, ensuring a better future for the company in general.
Works Cited
Atwood, Jane; Coke, Ethel; Cooper, Christine; & Loria, Kendra. "Has Downsizing Gone Too Far?" University of North Florida. Retrieved 1 Sep 2009 at http://iopsych.org/downsize.htm#Strategies.
Strom, Wayne L. "The Human Realities of Corporate Downsizing: Resolving the Past and Seizing Opportunities for the Future." Graziadio Business Report. 2009. Retrieved 1 Sep 2009 at http://gbr.pepperdine.edu/981/downsizing.html.
Vermeulen, Freek. "The Tricky Truth About Downsizing." Harvard Business Publishing. 2009. Retrieved 1 Sep 2009 at http://blogs.harvardbusiness.org/vermeulen/2009/04/the-tricky-truth-about-downsiz.html
Weinstein, Bruce. "Downsizing 101." Business Week. 2008. Retrieved 1 Sep 2009 at http://www.businessweek.com/managing/content/sep2008/ca20080912_135498.htm?campaign_id=rss_null.
