Operational costs or program may be cut to give room for other funds for piloting, preparation or other substantial reforms. It therefore becomes hard to achieve changes in an organization. With fewer resources remaining, it will be a hard task to bring organizational changes, as well as to meet innovative programs for employees. Furthermore, the organizations’ flexibility in innovation is diminished. It may become hard to reach consensus on howmuch is going to be cut from the budget by the stakeholders.
Cut back management should be viewed as a trend to better opportunities that will lead to improvement as opposed to a threat. The tone used for such a task should be positive. Also, a cutback management should be planned and prepared for and articulated well. The management should be well aware that there comes a future turn to econonmise minimum resources. The organization also should evaluate human resource as a an important asset instead of pegging it as a budget line.it makes a human resource more viable in terms of growth and productivity. In this sense, employees should be involved in the trend. They should contribute and feel that they are accountable for such a move. Communication also plays an important role. Therefore, during such a move stakeholders should be honest in every aspect to every employee that it will be done on honest grounds. Last, a variety of methods should be adopted and not merely headcount restrictions (Bryson, 2011).
As seen from above, cut back management embrace a systematic strategy that an organisation adopts in order to achieve some set targets. On the other hand, ordinary change management refers to a haphazard manner undertaken in order to cut on expenses that a firm incurs. It does not affect the roductivity as the organisation still operates on maximum benefits per man hour times. Cut back management may affect on productivity (Levy, 2013).
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