Surviving downsizing

Abstract

Downsizing is a trend that is likely to be with us and characterize management's response to ever increasing world competition until well after the turn of the century. Much has been written about the efficacy of this approach as to whether it is a viable, moral instrument to save and enhance organizations. Some would say that organizations become bloated and inefficient thus calling for radical surgical type operations to remove the excess "fat". Advocates of downsizing may see organizations as collections of employees-people-much like a crowd. By removing a few, the crowd is thinned out and the organization becomes more efficient. Those who question the appropriateness of this approach to management prefer to see the organization as a living organic, social institution. They say that the organization consists of many vital social networks. Downsizing they say devastates these social networks. This results in lowering of morale and loss of organizational memory. Both of these are important to the long range vitality of an organization. Much has been written and reported about the devastation that downsizing heaps upon the first victims, those whose employment is terminated from the organization. The New York Times featured this phenomenon the week that this paper was being written. The ratio of written word reporting on the outplaced victim to that written about the survivors was easily ten to one, if not more. Survivors of downsizing struggle to revitalize what is left of the organizations after downsizing is over. The author recently survived a downsizing and restructuring of his organization. He addresses first hand experiences about that situation.