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Organizational Management and Down Sizing

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In 1998 the PIA have downsized their employees, which was a very disturbing situation and experience by the employees, most of the employees who were the survivors feel insecure and their trust, commitment towards the organization were also decline. To motivate the remaining employees they used human resource interventions and training programs to cope up the hallow situation

In current situation PIA is in financial crises, PIA has loss of more than 42.6 billion. The government is tried to assign more and more people without any need, they are just doing for their party popularity, but this action may take them to uncontrollable dilemma.

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Many organization managers apply workforce downsizing strategy for their organization, often focus their attention and effort for those employees who be laid off and pay little attention to those who remain with organization. As the large bank in Vietnam, VietinBank is also applying workforce downsizing like many other organizations to overcome the current difficulties. Get to know the survivor’s syndrome is very important not only for VietinBank but also for many other organizations. The future of the organization can be at stake if these warning signs take hold and start to have a long-term effect

Organizations that understand and combat the causes of survivor syndrome at an early stage have a far better chance of weathering the storm and moving forward after the period of unsettling change. Based on the previous studies, in the scope of this research, researcher would like to find out the impact of workforce downsizing to the behavior such as trust, commitment, and stress and job insecurity of Vietinbank’s staffs to see how they were affected by downsizing and which elements of fours will be the most impacted by downsizing. Through this research, researcher hopes to put some help for VietinBank managers in order to have a better understanding about their employees so that they can looking for an appropriate direction as well as specific plan to minimize the harmful impacted may arises from downsizing.

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In times of downsizing when the environment is overflowing with pressure, anxiety and stress, laughter is the best option to soothe the surrounding. Managers must spend quality time with their workers where everyone can sit together, chat, enjoy and laugh along will certainly ease the difficult time. This can also be made possible via team engagement activities. When employees are losing hope and are grieving for the company’s decision to terminate their co-workers and friends, there is a dire need to make the remaining employees feel that they are still valued and they need to extend relations with other survivors. Team engagement activities such as sports, trainings and other leisure exercises can further create a better transparent system (Bratton, 2013)

Hence, although having a job might be a great satisfaction for an individual, it is the issue of job security that might often worry him especially in the case unexpected organizational and economic conditions. Downsizing may occur in the case of a merger or especially during the time when a company needs to maximize its profit and performance by cutting on their overall cost. Despite the several ways in which this could be achieved, downsizing results in extreme stress, anxiety and fear amongst those who are being terminated and those who survive this crucial period. Families break, future distorts, illnesses increase and overall well being is affected by the truth of downsizing (Jamison, 2001)

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For the most part, loss of loyalty is caused by fear, anxiety, and strict supervision. Additionally, employees are concerned about possible job loss, chances of advancement, new supervisors, and hence variant expectations

In deed, lack of loyalty is higher in job categories that are more exposed to major downsizing. This can translate to lower productivity or even lose of valuable employees due to insecurity. Therefore, during downsizing, the organization management should formulate plans to motivate the stayers and restore employee trust and loyalty in the organization.

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Applebaum, S. (1997). The survivor syndrome: aftermath of downsizing. Career Development International, 2(6): 278-286.

Bratton, D. (2013). Federal employee motivation during government downsizing. Australian Journal of Business and Management Research, 3(7): 1-7.

Burke, R. (2011). Hospital restructuring and downsizing. Europe’s Journal of Psychology, 1: 81-98.

Jamison, C. (2001). Downsizing in Britain and its effects on survivors and their organizations. Anxiety, Stress, and Coping, 14: 35-38

Diane publishing Company, Workforce Reduction: Downsizing strategies used in selected organizations, (NY: Diane Publishing, 1995), p. 6.

Denise Roussea, Psychological contracts in organizations: understanding written and unwritten agreements, (California: Sage, 1995), p.212.

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