1. The Downsizing Phenomenon
1.1. The Downsizing Phenomenon
1.1.1. Survivors
1.1.2. Downsizing Strategy
1.2. Defining Downsizing and Restructuring
1.2.1. Downsizing
1.2.1.1. Workforce reduction
1.2.1.2. Work Redesign
1.2.1.3. Systematic Change
1.2.2. Restructuring
1.2.2.1. Portfolio
1.2.2.2. Financial
1.2.2.3. Organizational
1.3. Why do organizations downsize?
1.3.1. Declining Porfit
1.3.2. Business downturn or competitor pressure
1.3.3. Merging with another organization
1.3.4. Introduction of new technology
1.3.5. Need to reduce operating costs
1.3.6. Decrease levels of management
1.3.7. Get rid of employee "deadwood"
1.4. The Downsizing Decision and the Sears Closure
1.4.1. Retention bonuses to keep executives and other employees
1.4.2. Lack of communication with employees
1.4.3. Not paying employees severance
1.5. Alternatives to Downsizing
1.5.1. Medium-Term Cost Adjustment
1.5.1.1. Extending reductions in salary
1.5.1.2. Voluntary sabbaticals
1.5.1.3. Lending employees
1.5.1.4. Exit Incentives
1.5.2. Short-Term Cost Adjustments
1.5.2.1. Hiring freeze
1.5.2.2. Mandatory vacation
1.5.2.3. Reducing workweek
1.5.2.4. Reducing overtime
1.5.2.5. Reducing salaries
1.5.2.6. Short-term facility shutdowns
1.5.2.7. Obtaining Cost-reductions ideas from employees
2. Inplacement and Outplacement Issues
2.1. Benefits to displaced workers
2.1.1. Severance Pay
2.1.2. Benefits Continuation
2.1.3. Outplacement Counselling
2.1.4. Extended Notice
2.1.5. Job Search Support
2.1.6. Job Referral Service
2.1.7. Family Counselling
2.1.8. Retraining Assistance
2.2. Ethical Considerations
2.2.1. Restrictions on Employers
2.2.1.1. Contractual Provisions
2.2.1.1.1. Collective Agreement
2.2.1.2. Legal Restrictions
2.2.1.2.1. Human Rights Legislation
2.2.1.2.2. Labour or Employment Standards
2.2.1.2.3. Common Law or Wrongful Dismissal
2.2.2. Negative Impact on Laid-Off Employees
2.2.3. Concealment or Distortion of Information
2.2.4. Job Insecurity
2.2.5. Breaching Psychological Contract
2.2.6. Poor Reputation for Company, poor corporate citizen
2.3. Planning for Downsizing
2.3.1. 1. How many people will lose their jobs?
2.3.2. 2. Who will be let go?
2.3.3. 3. How will the reduction be carried out?
2.3.4. 4. What are the legal consequences?
2.3.5. 5. Design the current and future work plans.
2.3.6. 6. Implement the decision.
2.3.7. 7. Perform follow-up evaluation and assessment of downsizing efforts.
2.4. Adjusting to Job Loss
2.4.1. Can Losing a Job be a Good Thing?
2.4.2. Organizational Interventions
2.4.2.1. 1. Advance notification
2.4.2.2. 2. Severance pay and extended benefits
2.4.2.3. 3. Education and retraining programs
2.4.2.4. 4. Outplacement assistance
2.4.2.5. 5. Clear, direct and empathetic announcement of layoff decision
2.4.2.6. 6. HR planning practices as alternatives to large-scale layoffs
2.4.3. Employment Status and Suicide Risk
2.4.3.1. 1 additional suicide for every 4,200 men in mass layoff
2.4.3.2. 1 additional suicide for every 7,100 women in mass layoff
2.4.3.3. Suicide risk goes up for both men and women who experience long periods of unemployment
3. The "Survivors" of Downsizing
3.1. Perceptions of Justice
3.1.1. Procedural Justice
3.1.1.1. Procedures or decision rules used to determine which employees stay or go
3.1.2. Interactional Justice
3.1.2.1. Interpersonal treatment employees receive during the downsizing process
3.1.3. Distributive Justice
3.1.3.1. Fairness of the downsizing decision
3.2. Survivor Reactions
3.2.1. Negative attitudes and behaviours
3.2.2. Reduced performance capabilities
3.2.3. Lower organizational productivity
3.3. Impact on the "Downsizers"
3.3.1. Social and organizational isolation
3.3.2. Decline in well-being
3.3.3. Increased stress and family problems
4. Financial Performance and Downsizing
4.1. Consequences of Downsizing
4.1.1. Short term solution
4.1.1.1. Rarely meets organizational objectives
4.1.2. High quit rate and human cost
4.1.2.1. Lower morale
4.1.2.2. Psychological trauma of survivors and terminated employees
4.1.2.3. Loss of valuable employees
4.1.2.4. Potential litigation
4.1.3. Reduced employee commitment
4.1.3.1. Hostile work environment
4.1.4. Lower performance
4.1.4.1. Job insecurity
4.1.4.2. Managers focus to damage control
4.1.4.3. Safety concerns
4.1.4.4. Shift from innovation to protection
4.2. Downsizing Strategies
4.2.1. Should we downsize?
4.2.2. When should we downsize?
4.2.3. How should we downsize?
4.2.4. Rightsizing
4.2.4.1. Establishing a shared vision of the organization, a clearly stated strategy andm a sense of ownership by all members of the company
4.3. Strategic Downsizing
4.3.1. Policies and procedures in place to manage problems associated with cutting human resources
4.3.2. Downsizing efforts need to be integrated with overall strategic plan
4.3.3. Change management plan
4.3.4. Redesigning the organization
4.3.5. Systematic strategy for cultural change
4.4. Best Practices
4.4.1. 1. Top down with involvement from all employees
4.4.2. 2. Workforce reduction: selective in application and long term in emphasis
4.4.3. 3. Special attention given to survivors and terminated workers
4.4.4. 4. Decision makers need to identify address specific areas where redundancies, excess costs and inefficiencies exist
4.4.5. 5. Should result in formation of small semi-autonomous organizations within the broader organization
4.4.6. 6. Proactive strategy based on increasing performance
5. The Future of Work
5.1. Artificial Intelligence and Job Loss
5.1.1. An estimated 35%-47% of North American jobs at risk of bring replaced by automation
5.1.1.1. Retail salesperson
5.1.1.2. Administrative Assistant
5.1.1.3. Food Counter Attendant
5.1.1.4. Cashier
5.1.1.5. Transport Truck Driver
5.1.1.6. Telemarketer
5.1.2. The Intelligence Revolution
5.1.2.1. Robotic process automation
5.1.2.2. Artificial Intelligence
5.1.2.3. Human enhancement technologies
5.1.3. Five Factors
5.1.3.1. The concept of a job has fundamentally changed
5.1.3.2. Machines are learning faster than humans
5.1.3.3. New opportunities for people and machines to integrate
5.1.3.4. Impact of technological change will be wide and deep
5.1.3.5. New emerging workforce of freelancers and consultants
5.2. The Amazon Effect
5.2.1. Revolutionizing the retail sector
5.2.1.1. Warehouse workers and robots
5.2.2. Massive changes to the grocery industry
5.2.2.1. 1 robot doing the work of 4 employees
6. The "New Deal" in Employment and the Psychological Contract
6.1. Psychological Contract
6.1.1. A downsizing survivor is 30%-35% less likely to be in social groups
6.1.2. longer exposure to downsizing result in desensitization and flexibility
6.1.3. Lower levels of trust
6.2. The Role of HR
6.2.1. Advising on restructuring organization, maximizing productivity, retaining quality performers
6.2.2. Developing skills inventories and planning charts to evaluate the impact on HR needs and projected capabilties
6.2.3. Communicating the decision effectively
6.2.4. Evaluating the program after completion
6.3. Labour Relations Issues
6.3.1. Positive and cooperative relationships
6.3.2. Familiarity with the Collective Agreement
6.3.3. Interventionist Response
6.3.3.1. Early involvement in restructuring process
6.3.3.2. Involvement in development and implementation of the new form of work organization
6.3.4. Pragmatic Response
6.3.4.1. Union relies on employer to make changes
6.3.4.2. Impact of changes negotiated after the fact