Human Resource defined the people that staff and operate an organization … as contrasted with the financial and material resources of an organization. It is the organizational function that deals with the people.
What is Downsizing?
Downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff, with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people. Rightsizing is downsizing in the belief that an enterprise really should operate with fewer people. Dumbsizing is downsizing that, in retrospect, failed to achieve the desired effect.
Here are the following list of company that has undergone Human Resource downsizing and the cause and processes of it.
1.) Microsoft's Razorfish
Microsoft's online ad agency Razorfish laid off 40 staff in its New York office this afternoon, citing a drop off in business from the financial services sector.
"Many companies, especially those in the financial services sector, have been hit hard by the economic crisis. This has had a direct impact on our business, particularly in New York," Razorfish spokeswoman Sally O'Dowd said. "As a result Razorfish had to lay off about 40 people today, about two percent of our work force."
http://www.techflash.com/microsoft/Microsofts_Razorfish_online_ad_agency_cuts_NY_staff33609649.html
2.) Attachmate
Attachmate today laid off 10 percent of its staff, or 120 employees, as the software company adjusts to the growing economic problems. Company spokeswoman Melissa Liton did not immediately have information on the number of workers affected at the Seattle headquarters, though she said cuts occurred across most of the divisions and offices. “The reductions were necessary to ensure Attachmate maintains a healthy financial structure during this difficult and uncertain economic climate,” said Liton.
With the economic storm clouds darkening, a number of technology companies have cut staff in recent weeks. In Seattle, The Cobalt Group, RealNetworks and Marchex have all scaled back operations. Rumors have also circulated that Microsoft -- the anchor of the Seattle tech community -- may be preparing for a layoff later this month.
http://www.techflash.com/venture/Attachmate_cuts_10_percent_of_staff37314084.html
3.) Nokia
Finnish mobile giant Nokia has announced that it is trimming down its operations by cutting over 600 positions, mainly in marketing and sales departments. The Nokia Research Center (NRC), the business unit that explores and develops technologies that will be available in the marketplace in five to ten years, will also focus on fewer research areas from now on.
In addition to the lay-offs, Nokia is closing an entire company site (Turku) by the end of January 2009, but hopes to relocate all of its 220 employees to Nokia’s site at Salo or in the capital area in Finland. The changes in the Markets unit, Nokia Research Center and in other Nokia functions will come into effect on January 1, 2009.
In another release, Nokia touts the introduction of a range of low-priced mobile devices and new services catered specifically to people in emerging markets (e.g. India). In total, seven new handsets were announced, and the first services Nokia will offer in emerging markets will focus on email (Mail on Ovi), agriculture and education (Nokia Life Tools).
Like many businesses, Nokia is feeling the nasty sting of the economic downturn. Its recently announced Q3 earnings weren’t spectacular either (down over 28 percenton a year earlier), so these lay-offs don’t exactly come unexpectedly. It’s easy enough to find the irony when you look at the two news releases side by side, but I think Nokia is actually making the right strategic move by shifting its focus to custom internet services for countries where there is much room for growth and very specific needs.
http://recruitersdumpingground.blogspot.com/2008/11/nokia-cuts-600-jobs.html
4.) Hewlett-Packard
Hewlett-Packard began issuing layoff notices that could mean "hundreds" of lost jobs among Imaging & Printing Group workers at the company's Boise campus, according to sources who requested anonymity.
The laid-off HP engineer said furloughed workers will receive five weeks of pay and benefits, during which time they will train other workers to pick up some of their duties. The laid-off workers will be able to look for other jobs inside HP. If they don't find jobs, HP will provide an additional four weeks of pay and benefits, though the employees will have little to do and will not be required to be on site.
http://www.idahostatesman.com/235/story/482932.html
Cause of Downsizing
Downsizing occurs because a company’s business model is no longer producing an acceptable financial return. If downsizing is seen as a signal that “business as usual” is no longer acceptable, then it can be used as a catalytic event for strengthening a company’s competitive abilities. If downsizing goes beyond “laying off” people to laying off unnecessary processes, low margin products and customers, and non-value services, an organization can quickly improve its financial performance. Downsizing is an opportunity to shock the organization out of complacency and to find significantly better ways of running the business.
Role of Human Resource
Most line managers are so focused on who to terminate and how to keep up with the work demands, that they cannot readily see opportunities for improvement or strengthening the culture. The Human Resource manager can play a vital role during this transition period, since they are responsible for orchestrating the downsizing effort.
Given the organization uncertainty during downsizing, line managers can be much more receptive to suggestions from HR. This is the perfect opportunity for HR managers to assist line management in finding ways to adapt to working with less resource. Upside downsizing is a set of tools the HR manager can use to help managers get productivity and employee satisfaction not only back on track, but elevated to new levels. When properly implemented, upside downsizing will help both the company and HR’s stock increase.
Five tips for downsizing and layoffs processes:
When the company has already trying everything to reduce overhead to cutting back on employee hours and reducing energy costs. Nothing seems to be getting your small business on the road to recovery during these tough economic times and the only answer is company layoffs. This will be a difficult time for your business because nothing is easy when it comes to company downsizing. However, these five layoff tips will help you make the transition through this difficult time smoother and more effective.
1.)Plan and Act
Don’t resort to company downsizing in a frivolous attempt to save face. Company layoffs are a serious matter that should be approached with tact and diplomacy. You need to develop and implement a directed plan of action. Even if you are simply considering company layoffs as an alternative option for the future, it’s important to tackle the issue far in advance.
2.)Try to Increase Profit
Sometimes the real issue when it comes to company downsizing is not that there are too many people, but that there is too little profit. Focus a great deal of energy on increasing profit if company downsizing looks like it is on the horizon for your small business.
3.)Be Honest
When it comes to company layoffs, honesty is the best policy. Don’t hide information from your leaders and managers. If other employees come forward with questions and concerns, be sure to address them with complete sincerity. No layoff tips can help you avoid disappointing your workforce, but you need to be honest in order to build trust and maintain relationships through the eye of the storm.
4.)Prepare the Workforce
Even if you don’t know who will be laid of or when, it’s important to start preparing your workforce for the worst. Company layoffs should come as no great surprise. All members of your organization should be informed well in advance if this may become a possibility for your company. Hold a meeting and disclose pertinent, concrete information to your employees. Let them know that you are doing all that you can to avoid making layoffs and that company downsizing is a last resort. You might also consider welcoming any suggestions or tips from the workforce on how to further reduce costs and avoid layoffs.
5.)Avoid Legal Troubles
One factor you need to consider when designing company layoffs is that there are many legal issues. A corporate lawyer will generally provide layoff tips that say to design your layoffs around a last-hired, first-fired model. This ensures that employees cannot file suit regarding discriminatory acts against you. As a small business owner, you need to protect your remaining assets during company layoffs. Approach the situation on the basis of seniority and nothing more.
These layoff tips might not necessarily help you save jobs, but they will make the transition through a period of company downsizing more endurable. Company downsizing is becoming a harsh reality for thousands of people in a variety of industries, but you can make the best of the experience with these layoff tips.
Companies that do not use the downsizing experience as an opportunity to revitalize their business are doomed to repeat the experience. The HR manager can provide a missing leadership role in using downsizing as an initiative for building a more competitive company.
References:
http://adnetwork.kcilink.com/adclick.php?n=aafd07e6
http://www.morebusiness.com/company-downsizing
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html
http://www.onpha.on.ca/AM/Template.cfm?Section=Human_Resources1&Template=/TaggedPage/TaggedPageDisplay.cfm&TPLID=4&ContentID=2204
What is Downsizing?
Downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff, with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people. Rightsizing is downsizing in the belief that an enterprise really should operate with fewer people. Dumbsizing is downsizing that, in retrospect, failed to achieve the desired effect.
Here are the following list of company that has undergone Human Resource downsizing and the cause and processes of it.
1.) Microsoft's Razorfish
Microsoft's online ad agency Razorfish laid off 40 staff in its New York office this afternoon, citing a drop off in business from the financial services sector.
"Many companies, especially those in the financial services sector, have been hit hard by the economic crisis. This has had a direct impact on our business, particularly in New York," Razorfish spokeswoman Sally O'Dowd said. "As a result Razorfish had to lay off about 40 people today, about two percent of our work force."
http://www.techflash.com/microsoft/Microsofts_Razorfish_online_ad_agency_cuts_NY_staff33609649.html
2.) Attachmate
Attachmate today laid off 10 percent of its staff, or 120 employees, as the software company adjusts to the growing economic problems. Company spokeswoman Melissa Liton did not immediately have information on the number of workers affected at the Seattle headquarters, though she said cuts occurred across most of the divisions and offices. “The reductions were necessary to ensure Attachmate maintains a healthy financial structure during this difficult and uncertain economic climate,” said Liton.
With the economic storm clouds darkening, a number of technology companies have cut staff in recent weeks. In Seattle, The Cobalt Group, RealNetworks and Marchex have all scaled back operations. Rumors have also circulated that Microsoft -- the anchor of the Seattle tech community -- may be preparing for a layoff later this month.
http://www.techflash.com/venture/Attachmate_cuts_10_percent_of_staff37314084.html
3.) Nokia
Finnish mobile giant Nokia has announced that it is trimming down its operations by cutting over 600 positions, mainly in marketing and sales departments. The Nokia Research Center (NRC), the business unit that explores and develops technologies that will be available in the marketplace in five to ten years, will also focus on fewer research areas from now on.
In addition to the lay-offs, Nokia is closing an entire company site (Turku) by the end of January 2009, but hopes to relocate all of its 220 employees to Nokia’s site at Salo or in the capital area in Finland. The changes in the Markets unit, Nokia Research Center and in other Nokia functions will come into effect on January 1, 2009.
In another release, Nokia touts the introduction of a range of low-priced mobile devices and new services catered specifically to people in emerging markets (e.g. India). In total, seven new handsets were announced, and the first services Nokia will offer in emerging markets will focus on email (Mail on Ovi), agriculture and education (Nokia Life Tools).
Like many businesses, Nokia is feeling the nasty sting of the economic downturn. Its recently announced Q3 earnings weren’t spectacular either (down over 28 percenton a year earlier), so these lay-offs don’t exactly come unexpectedly. It’s easy enough to find the irony when you look at the two news releases side by side, but I think Nokia is actually making the right strategic move by shifting its focus to custom internet services for countries where there is much room for growth and very specific needs.
http://recruitersdumpingground.blogspot.com/2008/11/nokia-cuts-600-jobs.html
4.) Hewlett-Packard
Hewlett-Packard began issuing layoff notices that could mean "hundreds" of lost jobs among Imaging & Printing Group workers at the company's Boise campus, according to sources who requested anonymity.
The laid-off HP engineer said furloughed workers will receive five weeks of pay and benefits, during which time they will train other workers to pick up some of their duties. The laid-off workers will be able to look for other jobs inside HP. If they don't find jobs, HP will provide an additional four weeks of pay and benefits, though the employees will have little to do and will not be required to be on site.
http://www.idahostatesman.com/235/story/482932.html
Cause of Downsizing
Downsizing occurs because a company’s business model is no longer producing an acceptable financial return. If downsizing is seen as a signal that “business as usual” is no longer acceptable, then it can be used as a catalytic event for strengthening a company’s competitive abilities. If downsizing goes beyond “laying off” people to laying off unnecessary processes, low margin products and customers, and non-value services, an organization can quickly improve its financial performance. Downsizing is an opportunity to shock the organization out of complacency and to find significantly better ways of running the business.
Role of Human Resource
Most line managers are so focused on who to terminate and how to keep up with the work demands, that they cannot readily see opportunities for improvement or strengthening the culture. The Human Resource manager can play a vital role during this transition period, since they are responsible for orchestrating the downsizing effort.
Given the organization uncertainty during downsizing, line managers can be much more receptive to suggestions from HR. This is the perfect opportunity for HR managers to assist line management in finding ways to adapt to working with less resource. Upside downsizing is a set of tools the HR manager can use to help managers get productivity and employee satisfaction not only back on track, but elevated to new levels. When properly implemented, upside downsizing will help both the company and HR’s stock increase.
Five tips for downsizing and layoffs processes:
When the company has already trying everything to reduce overhead to cutting back on employee hours and reducing energy costs. Nothing seems to be getting your small business on the road to recovery during these tough economic times and the only answer is company layoffs. This will be a difficult time for your business because nothing is easy when it comes to company downsizing. However, these five layoff tips will help you make the transition through this difficult time smoother and more effective.
1.)Plan and Act
Don’t resort to company downsizing in a frivolous attempt to save face. Company layoffs are a serious matter that should be approached with tact and diplomacy. You need to develop and implement a directed plan of action. Even if you are simply considering company layoffs as an alternative option for the future, it’s important to tackle the issue far in advance.
2.)Try to Increase Profit
Sometimes the real issue when it comes to company downsizing is not that there are too many people, but that there is too little profit. Focus a great deal of energy on increasing profit if company downsizing looks like it is on the horizon for your small business.
3.)Be Honest
When it comes to company layoffs, honesty is the best policy. Don’t hide information from your leaders and managers. If other employees come forward with questions and concerns, be sure to address them with complete sincerity. No layoff tips can help you avoid disappointing your workforce, but you need to be honest in order to build trust and maintain relationships through the eye of the storm.
4.)Prepare the Workforce
Even if you don’t know who will be laid of or when, it’s important to start preparing your workforce for the worst. Company layoffs should come as no great surprise. All members of your organization should be informed well in advance if this may become a possibility for your company. Hold a meeting and disclose pertinent, concrete information to your employees. Let them know that you are doing all that you can to avoid making layoffs and that company downsizing is a last resort. You might also consider welcoming any suggestions or tips from the workforce on how to further reduce costs and avoid layoffs.
5.)Avoid Legal Troubles
One factor you need to consider when designing company layoffs is that there are many legal issues. A corporate lawyer will generally provide layoff tips that say to design your layoffs around a last-hired, first-fired model. This ensures that employees cannot file suit regarding discriminatory acts against you. As a small business owner, you need to protect your remaining assets during company layoffs. Approach the situation on the basis of seniority and nothing more.
These layoff tips might not necessarily help you save jobs, but they will make the transition through a period of company downsizing more endurable. Company downsizing is becoming a harsh reality for thousands of people in a variety of industries, but you can make the best of the experience with these layoff tips.
Companies that do not use the downsizing experience as an opportunity to revitalize their business are doomed to repeat the experience. The HR manager can provide a missing leadership role in using downsizing as an initiative for building a more competitive company.
References:
http://adnetwork.kcilink.com/adclick.php?n=aafd07e6
http://www.morebusiness.com/company-downsizing
http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html
http://www.onpha.on.ca/AM/Template.cfm?Section=Human_Resources1&Template=/TaggedPage/TaggedPageDisplay.cfm&TPLID=4&ContentID=2204
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