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Managing Change - Essay Example
Author : fred32
Pages 9 (2259 words)
Downsizing has been defined as "a set of organizational activities undertaken on the part of management of an organization and designed to improve organizational efficiency, productivity, and/or competitiveness" (Cameron, 1994, p. 194). A more specific description perhaps is that downsizing is a management tool for achieving desired change through restructuring or re-engineering initiatives by an organization…
This move would have resulted in the loss of 600 jobs in its combined workforce of approximately 4,200 employees from the two plants. For that year, annual production targets were also reduce from 70,000 units to merely 40,000. Global overproduction and a 17% slump in domestic sales for the second half of 1999 were the reasons cited by Mitsubishi for the downsizing. Mitsubishi officials also claimed that the decline in the value of the Australian dollar had made it too costly to import Mitsubishi components. The decision to downsize in 2000 followed the downsizing of already 300 production jobs for the company yet despite these decisions, profits for the company did not improve. As of December 1999, the company reported a $A 130-million loss, its worse in twenty years in Australia (Cook, 2000).
In 1997, the Howard government suspended plans to end tariff protection for the car industry until 2010 due to pressure from car manufacturers and threats by Mitsubishi that it will wind-up production in Australia. ...