Chapter 13: Problem 20

Downsizing has commonly shown to result in a period of lowered productivity for the organizations experiencing it. What might be some of the reasons for this observation?

Short Answer

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Downsizing can lead to lowered productivity due to effects such as decreased morale, operational restructuring, skill shortages, and impaired communication.

Step by step solution

Understanding Downsizing Effects

To begin, it's important to understand the effects of downsizing. Downsizing often leads to layoffs, creating a sense of insecurity and stress among remaining employees. This can impact morale and, as a result, productivity.

Operational Restructuring

During the downsizing process, operational restructuring often occurs. This may involve changing job roles, altering workflow processes, or adopting new technologies. These adjustments can lead to confusion and inefficiency, further lowering productivity.

Skill Shortages

When staff are laid off, their skills and expertise leave with them. The remaining employees might not possess the same skills or abilities, resulting in a skill gap. This can also negatively impact the productivity of the organization.

Impaired Communication

Communication within the organization can be disrupted during downsizing. Unclear communication or a lack of it can make it difficult for employees to understand their new roles or changes to the organization. This confusion can lead to errors and disruptions, diminishing productivity and efficiency.

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Downsizing has commonly shown to result in a period of lowered productivity for the organizations experiencing it. What might be some of the reasons for this observation?

Short Answer

Step by step solution

Understanding Downsizing Effects

Operational Restructuring

Skill Shortages

Impaired Communication

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