Strategic Human Resource Management

Section Four

Table 4-1
Key Findings About Downsizing

Far too many companies are not well prepared for downsizing;
they begin with no retraining or redeployment policies in place,
and they fail to anticipate the kinds of human resource
problems that develop subsequently.

Six months to a year after a downsizing, key indicators often do
not improve: expense ratios, profits, return-on-investment to
shareholders, and stock prices.

Survivors’ syndrome is a common aftermath. Be prepared to
manage it. Better yet, try to avoid it by actively involving
employees in the planning phase of any downsizing effort.

Recognize that downsizing has exploded the myth of job
security, and has accelerated employee mobility, especially
among white-collar workers. It has fundamentally altered the
terms of the psychological contract that binds workers to
organizations.

To bring about sustained improvements in productivity, quality,
and effectiveness, integrate reductions in head count with
planned changes in the way that work is designed.