Question

In view of COVID-19 impact on businesses, organizations are planning to cut costs and one of the strategy of cutting cots is downsizing. Considering any large service organization, which strategy of downsizing in your opinion would be most appropriate? Provide justifications for your answer.

Answer 1

COVID - 19 Impact On Business

Pandemics like COVID-19 are not just dangerous for the human race on the planet but also very dangerous for every small scale or large scale industry. It directly affects the operations and movements of the organization in the market and this is due to a fall in the demand for the products and services in which they are engaged. This damages the economical structure of the organization and pushes the organization to take harsh steps in order to survive in the situation. One of the first steps that organizations make in order to instantly reduce the cost is to downsize the organization.

Now let us discuss some appropriate downsizing strategy for the organization.

• The first and most efficient way downsizing the organization for a short period of time until the pandemic passes away the organization can send their many employees which have less or no work at all due to the drop in demand of the product or service to a volunteer leave in which the organization can pay them some percent of their salary to the employees which will help the organization to safe financial reserves and at the same time they can also save their valuable human resource which will pay them back with instant work and profit after the pandemic.
• The organization can also stop paying the incentives and overtime to employees for a temporary period of time which will create a situation in which the organization is getting more from their employees in less money. But this organization needs to explain about the organizational financial standing and motivate them to volunteer their time and work for saving the organization which will directly save their jobs and also increase the efficiency of the organization is such pandemic like COVID-19.