Management & employees
Cross training is another tactic which may help employees to expand their working potential by allowing them to branch out and venture into other specific fields related to their work by internal retraining. This specially applicable in the context of the ever-changing technological advances that have swept many companies. Management may be advised of other options instead being faced unnecessarily with downsizing. It may be advised to make its hiring linked to its vision.
This idea ahs the effect of allowing the company identify the potential present and future market needs so that when it recruits skilled personnel, the number would be just enough to meet demands and goals of the company. This would therefore create the effect of preventing surplus manpower that may require downsizing. It may be argued there is also a difficulty to anticipate changing conditions. Basic management requires planning to be an indispensable part of management hence it may be stated that the eventual fear to downsize was actually caused by lack of planning.
Management may also have the application of succession planning. Still this concept is still part of planning that should have been there before there issue of downsizing as this has looking with anticipation about the needs for positions that may become vacant in the hierarchy within the company as a result of retirement and normal resignations of people of the organization. This is a better option to hiring outside the organization or taking an unplanned stand by having to put undeserving candidate to fill the position.
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In fact in case of great demand for company’s products, the company may actually even hire a great number of people but since there are times that business if not always at the peak of good times, some allowance should be allowed when times are bad. Hence the best process or methods of downsizing is the one that could afford the company the greatest flexibility without necessarily terminating or disregarding the best source of company’s competitive advantage.
To conclude, it may be stated that downsizing is not as simple as reducing number of employees and hence less labor cost and better profits. Business entities do need to look at the future which could really be influenced by external factors and they must do more planning if only to prevent acting on downsizing. If they see that business activities will be reduced, they may find reason to layoff or downsize the organization but if they see that that employees will also be needed in the future they may again have to hire and retrain employees.
The simple possibility of adding and subtracting and adding again the number of employees may not be properly executed by resorting to terminating employees when the employees need most the employment during difficult times. Employees are human beings and such as such they have feeling and pride that could be hurt if they are not treated well in the organizations they work with. Many nations of the world may have even passed laws on employment to protect the employment of employees which means that they could not just be terminated from employment with out just or authorized causes.
While downsizing or reducing the number of employees is one of the available strategies in case of inevitable business reverses and as such it may justify management action, it may not necessary compensate for the lost loyalty of employees who might have given their best during good times for the company. On the hand therefore, retaining the employment of these employees during difficult times may even result to better prospects in the future in case business activities will go back to normal.
There are arrangements that could be done like redeploying the employees to areas of the business where they could be most productive or lending them to companies to which has relations while hoping for the possibility of having these employees back again when times will warrant. A company that takes care of its employees during difficult times has all the right to expect loyalty in return. Loyal companies may be trained to have reduced salaries if only to help the companies during difficult times. But there are better options like making them stockholder and employees at the same time.
An employee and owner at the same time would know how to take care of the company’s purpose of existence. It is in this sense that if the reasons of employees for working are salaries, making them co-owners in business would put their feeling the same with the capitalist who values every dollar that is spent for labor. This is therefore believed to create productivity which would counter the feared effects of downsizing while giving the management the much needed support from its employees especially during difficult times.