List the Six Guidelines Proposed for Successful Downsizing, and Explain the Importance of Each one.

List the six guidelines proposed for successful downsizing, and explain the importance of each one.

Initially, downsizing (sometimes called rightsizing or resizing) refers to the planned elimination of jobs within an organization.  This is important because the financial community will most likely favor the investment in its remaining employees.  In addition, this is an important because having a retrenchment strategy will be positively favored (Wheelen, Hunger, Hoffman and Bamford, 2015, pp. 282-283).

There are six guidelines for successful downsizing. They are as follows:

1. Eliminate unnecessary work instead of making across-the-board cuts – when a cut is made without sensible focus; it may impact the business in a significant manner and also lower employee morale. So add value to the company and reduce the number “hoops” workers need to progress through.
2. Contract our work that others can do cheaper – contracting out work is always good; but prudent when expenditures are being scrutinized to save money. Contractors also supply a horizontal knowledge/skill base that typically is not vertical and more costly for a myriad of financial reasons.
3. Plan for long-run efficiencies – It’s never about how much you spent in a crunch but about how much was saved; particularly over long periods of time to ensure the preservation and functioning of business. However, continue to grow the business with normal expenditures, such as R&D, advertising and in critical areas.
4. Communicate the reasons for the action – Any executive that does not communicate the reason for cuts and the duration of reductions to their staff is looking for a mass exit.  Employees have families and self-preservation is key.  Promote educational programs and announce the end game.
5. Invest in the remaining employees – The individuals that weathered the storm and for whatever reason… are entitled to see some training on the new responsibilities they’re undertaking.
6. Develop value-added jobs to balance out job elimination – Value-added jobs are to me… code words for more work and same pay.  However in the spirit of this assignment, having employees round out and balance the lost positions are always a great way to usher upward mobility in the organization.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2015). Conceptsin Strategic Management: Globalization, Innovation, and Sustainability (14 ed.). Upper Saddle River, NJ: Pearson.