Discuss in brief the guidelines suggested for tackling downsizing within an organization.

Question

What will be an ideal response?

Answer 1

First, the decision regarding downsizing should be made by a representative group so that all stakeholder interests can be considered and to earn the trust of those who will be impacted. The facts should be collected and issues should be determined. Since employees should be kept aware of business conditions, the need for a downsizing effort should not come as a great surprise. However, the question of notice is debatable.
Once the stakeholders are identified, it will be vital to enumerate any and all possible options with regard to the downsizing efforts and to catalog the impact of each option on each group of stakeholders. When a firm decides to downsize, as with any other termination it is critical to lessen the impact as much as possible and to allow the terminated employees to depart with dignity. Above all, during a time when relationships might be strained, it is critical to be honest and forthright and to be sensitive to the experiences of those who will be affected.
From a legal perspective, the decision about whom to include in a downsizing effort must be carefully planned. If the firm's decision is based on some criterion that seems to be neutral on its face, such as seniority, but the plan results in a different impact on one group than another, the decision may be suspect.