Question

What are the steps to the downsizing intervention?

Answer 1

Downsizing interventions tend to proceed by the following steps-

1) Clarify the organization's strategy-   As a first step, organization leaders specify corporate strategy arid communicate clearly how  downsizing relates to it. They seek to inform members that downsizing is not a goal itself, but restructuring process for achieving strategic' objectives. Leaders need to provide visible and consistent support throughout the process. They can provide opportunities for for members to voice their concerns, ask questions and obtain counseling if necessary.

2) Assess downsizing options and make relevant choices- Once corporate strategy is clear, the full range of downsizing options can he identified and assessed. A specific downsizing strategy may use elements of all 3 approaches (workforce reduction, organization redesign, and systemic change). Workforce reduction is aimed at reducing  the number of employees, usually in a relatively short timeframe. It can include attrition, retirement incentives, outplacement services, and layoffs. Organization redesign attempt to restructure the firm to prepare it for the next stage of growth. This is a medium term approach that can be accomplished by merging organizational units, eliminating management layers and redesigning tasks.

It can involve interventions that alter the responsibilities and work behaviors of everyone in the organization and that promote continual improvement as a way of life in the firm.

3) Implement the changes- This stage involves implementing methods for reducing the size of time organization. Several practices characterize successful implementation. First downsizing is best controlled from the top down. Many difficult decisions are required, and a broad perspective helps to overcome people's natural instincts to protect their interprise or function. The morale of the organization can be hurt if areas commonly known to be redundant are left untouched. Finally, comminucate frequently using a variety of media

4) Address the needs of survivors and those who leave- Most downsizing eventually involves reduction in the size of the workforce, and it is important to support not only employees who remain with the organization but also those who leave. When layoffs occur, employees are generally asked to take on additional responsibilities and to lean new jobs, often with little or no increase in compensation. This added workload can he stressful, arid when combined with anxiety over past layoffs and possible future ones, it can lead to what researchers have labeled time "survivor syndrome". This syndrome involves a narrow set of self-absorbed and risk-averse behaviors that can threaten the organization's survivor. Organizations can address these survivor concerns with communication process that increase the amount and frequency of information provided. Communication should shift from explanations about who left or why to clarification of wherethe Company is going, including its visions, strategies and goals.

These are the steps to downsizing intervention.