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Human Resource Management in Downsizing - Essay Example

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Human Resource Management in Downsizing

Despite so many rounds of restructuring, announcing another one has blown off the whole motivation towards work into air. Commitment to organizational objectives is crucial to maintain in such conditions. Commitment refers to attachment and loyalty. It represents the identification of an individual with and involvement in the organization. It consists of the following factors;
The behavior towards the organization also needs to be managed. The visibility of acts, the extent to which the outcomes are irrevocable and the degree to which the person undertakes the action voluntarily are important features of behavior.
Organizations, such as our bank, are facing increased competition and structural change. They are more conscious to get people to identify themselves more closely with the company. To meet these needs, three ways of representing commitments have been identified that are; affective, continuance and normative. Affective commitment deals with the emotional attachments. Continuance commitment is when employee(s) stays with an organization based on his/her perceived cost of staying i.e. the cost of going in search for a new job might be more. Normative commitment refers to the moral commitment of an employee to the organization. Thought all three might look similar, they have very different impacts on the manner the employee refers himself with respect to the organization.

We need to inculcate the affective commitment in the employees of our bank to restore productivity and motivation to work effectively for the success of the company. If we are successful in this, we will have a better workforce with less absenteeism; a workforce that is willing to go beyond what is desired out of their job. They are more eager to assist the organization to achieve its goals and objectives. These types of employees tend to show more motivation and organizational citizenship. With the passage of time, the employees have become a part of the bank. They have developed psychological contracts with the bank. This is like forming a relational link; not based on the monetary and/or economic incentives but on their perceived loyalty and socialization within the bank that they have been continuously feeling and practicing over so many years.
Whenever going for downsizing i.e. restructuring the organization, effective communication is always beneficial. Applying a vision oriented approach, while downsizing, complimented with good and effective communication will lower the feeling of being deceived by the management. The strategic management of human resource behaviors will avoid the "Survivors" to have a decreasing level of productivity due to their perceived gap between them and the top management group. Organizational overall future success is highly dependant on these survivors and there attitudes towards the company. These employees think that now they cannot count on a longer/continuous commitment from the bank management. These remaining people are a critical ...Show more


Organizations are continuously downsizing. This is mainly due to the increase in competition which has led companies to find less costly methods to carry on with their operations. The ever increasing use of computers and other peripherals and equipment ha though contributed positively towards the profitability and/or sustainability several companies; human resource has been worst effected by this change…
Author : dejuan20
Human Resource Management in Downsizing essay example
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