Some personal reflections on downsizing.

Abstract

Downsizing, the deletion of jobs and the involuntary termination of the employees occupying those positions, has become a common and accepted corporate management tool. Although it may save money and improve a company's financial balance, it can bring with it various undesirable outcomes, including loss of loyalty and trust of personnel and degradation of the quality of the organization's product, be it a manufactured item or a service. Downsizing, as it is typically practiced, demonstrates a double standard on the part of management. The deference that employees are expected to show to employers typically is not reciprocated by companies. As a result, workers, even well-educated, professional white-collar personnel, cannot take job security for granted and must be prepared to survive a downsizing action. Front line managers usually are tasked with carrying out a downsizing action decided on at the corporate level. It is to their benefit to practice a management style that will allow them to do so in a professional manner, preserving both their credibility and the employee's dignity to the extent possible. The basic concept of downsizing is not invalid, but the manner in which it is implemented often leaves much to be desired.