A Study into the Process of Downsizing and Reengineering. - Essay Example

Only on StudentShare

Extract of sample
A Study into the Process of Downsizing and Reengineering.

wnsizing and reengineering as well as practical applications need to stress total quality management (TQM), improvement of total level of strategic thinking, reengineering instead of downsizing whenever possible, process safety management (PSM), and other factors.
Managing expert Geoffrey James argues that downsizing is one of the five stupid management concepts that should be cut from the management corpus (2010). “How, exactly, did the company get into a situation where it needed to fire people in order to remain competitive?”, James asks. Yes, markets can be unpredictable and things can change at the drop of a hat, but this is what management is for. Downsizing is a sign of company failure: It is a sign that the company did not anticipate the changing marketplace and grew too much or spent too much. Downsizing is passing the buck: Management failed, but workers pay the bill. When downsizing is required, CEOs should be fired, not improved.
Reengineering needs to be conceptually separated from downsizing. Downsizing is almost by definition cutting down capital, particularly labor. It involves terminating peoples jobs, hurting resumes, economic dislocation and externalizing onto the system. But reengineering is a far more generic term. Reengineerings popularity has led to a backlash effect (Business Architects, 1999). It is often confused for downsizing, and thus has become negatively associated with the concept. Further, reengineering, unlike downsizing, can be conceptually “fuzzy” (Business Architects, 1999). Whats the bright line between reengineering and simply changing a companys strategic approach? If reengineering involves firing some people, isnt that downsizing? What if it merely involves some demotions, or some increases in responsibility without commensurate increases in pay? Nonetheless, reengineering is in fact very different from downsizing, and has unfortunately been falsely associated with downsizing when it is conceptually ...
Download paper


Workers can lose trust in the company; so can consumers who may be turned off by perceived bad labor policies. Similarly, downsizing can cost institutional knowledge and hurt the institutional culture. People who…
Author : andre70

Related Essays

Enterprise Resource Planning- Business Process Reengineering
Organizational goals and the ability to meet them are vital and can be made possible only when the collective force of the employees are aligned to the goals of the organization....
4 pages (1004 words) Essay
Strategies for Responsible Downsizing
3 pages (753 words) Essay
Reengineering business process
This ever increasing competition necessitated the company to contemplate about the provision of information on various matters including marketing at appropriate time points. However, contrary to the expectations of its well wishers, the superannuated legacy systems used by the company had serious flaws in their architecture which impaired the achievement of organizational effectiveness and strategic objectives. The critical problem associated with structure of legacy systems was its inability to integrate and become compatible with other systems. To overcome these shortcomings and survive in...
14 pages (3514 words) Case Study
Is Downsizing unethical
Insofar as the actions that managers take are in accordance with their moral and legal obligations toward the firm's owners, any decisions resulting from those actions would not necessarily be perceived by them as unethical. Based on this reasoning, decisions made by top management to adopt and implement the downsizing alternative, with the objective of ensuring the financial health of the firm, would be in the best interest of the firm's owners. Subsequently, the ethics of downsizing is not likely to be a conscious consideration as top management formulates downsizing decisions....
5 pages (1255 words) Essay
Survivors' reactions to organizational downsizing
Each organizational downsizing event could result to predictable outcomes in terms of having similar issues related to the feelings of betrayal, loss of trust in the management of the company, and experiencing internal conflicts between the corporate management and employees in line with retaining and losing their job. (Strom, 2008) As a result, the lack of organizational commitment among the stakeholders of the company becomes a major problem that top management needs to solve....
3 pages (753 words) Essay
Business Process Reengineering
These standards differ for different industries....
4 pages (1004 words) Essay
Business Process Reengineering (Hammer and Champy, 1993) has been discredited by highly visible failure rates in practice and is often associated to human dimensions for its failure. Evaluate this proposition and discuss the role of the human dimension in
There are various pitfall of BPR including the fact that organizations invest heavily in technology and processes however, at the same time also ignore the fact that underlying organizational processes and systems also need to be changed. Inability to define and identify core business processes can be another important variable that can cause the failure of BPR. Thus the reasons as to why BPR fails can be many however; important and significant element of the role of human dimension is often ignored....
8 pages (2008 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!