Restructuring & Downsizing Essay Example for Free

Restructuring Downsizing Essay Human resource management has evolved from a largely administrative and operational role to one that plays an important part in strategic planning. This shift is more evident in its role towards downsizing. The decision to downsize is a decision that requires careful planning and consideration. It is critical to consider the long-term effects that short-term cost cutting measures can bring. Downsizing creates disruptions in the organization’s relationships with customers, suppliers and employees, organization’s structure, culture and climate. As Wayne F. Cascio says â€Å"if you must downsize, do it right, that no class of employee can be disproportionately affected. † Finding the best way to downsize is crucial, because the success of organisations that have downsized in the past has not been particularly laudable. Downsize Decision The downsizing decision is the most demoralizing and stressful aspect of the emerging Human resource managerial role. Downsizing is viewed as having a profound effect on the organization and the personnel including those who are terminated and those who survive. Yet it is the integral part of any workforce management decision. It involves understanding the tangible pitfalls of a reduction in workforce and analyzing the emotional and practical ramifications. Downsizing may occur intentionally as a strategic, proactive response designed to improve organizational effectiveness, increase productivity and cost cutting strategy. This response may involve mergers, acquisitions, sell-offs, or restructuring to better enable the organization to meet its mission or fill an environmental niche. It may involve reduction in personnel through transfers, outplacement, retirement incentives, buyout packages, layoffs, attrition, and so on or may occur in which new products added, new sources of revenue are opened up, etc. It affects work processes. Fewer employees may be left to do the same amount of work and the quality may suffer. Downsizing activities may include discounting functions, abolishing hierarchical levels, merging units, or redesigning tasks. Downsizing can impact financial well-being, health, personal attitudes, and family relationships. Before downsizing HR need to explore possible alternatives such as reducing hours across the board, introducing forced vacation, asking for layoff volunteers, compressed workweek, hiring freeze, and early retirement or implementing other cost-cutting measures. Human resource managers should weigh in on several factors that influence downsizing decisions. They need to identify the specific problems downsizing is expected to solve, consider overall financial health of the company, fiscal operating policies, and industry benchmarks before proceeding, and review all legal implications. Managing Process One key to a successful downsizing plan lies in management’s ability to clearly convey to employees the purpose behind the cost-cutting efforts. Secondly, consider any oral or implied contracts of employment, review employee files, plan for the contingencies, know the stakeholders, clearly define criteria for selection factors on which downsizing decisions will be made. Downsizing may have variety of adverse effects on layoff individuals, survivors and organizations such as loss of morale, distrust, anxiety, feelings of job insecurity, anger, job stress, physical ailments, poor mental health, decreased loyalty, lowered motivation and productivity, increased resistance to change, crisis mentality, politicised special interest groups, occupational violence, lack of teamwork, perception of unfairness, lack of leadership and overall commitment to the organization. Downsizing decision has to be a prudent one because it deals with lives of people. The managers will be faced with a work force at least partly staffed with survivors of downsizing. Providing information regarding the type of severance packages or outplacement benefits will be given to those displaced will alleviate some fears and let those who remain will know that their colleagues are being taken care of. The personnel attribute of downsizing usually involves reductions in personnel. However, downsizing is not limited entirely to personnel reductions. In some downsizing situations new products are added, new sources of revenue opened up, and/or additional work acquired. Even though some people may be added, the overall process results in fewer numbers of workers employed per unit of output as compared to some previous level of employment. Human resources must also position the company to be able to respond quickly and effectively when the economy recovers. The approach taken by the organization to the downsizing process can have an ongoing impact on the companys reputation with clients and potential future recruits. An inability to recruit critical talent later can mean an inability to rebound, so human resources must provide information openly and promptly to manage perceptions and rumors both internal and external about the fairness of any reductions and the need for additional downsizing in the future. Job placement services, employee assistance programs and financial counseling are all services that human resources should consider offering to affected employees. In the aftermath of a mass downsizing, employee morale will undoubtedly be affected. Employers should strive to be as open as possible during the process. Information should not come as a surprise to employees. If the company repeatedly assured workers everything was fine before announcing an unexpected layoff, it will be difficult to regain the trust of the workers who remain. Similarly, if the company focus has always been on meeting the needs of employees and taking active steps to motivate and encourage staff, a forced layoff may actually be more detrimental because it is so contrary to employees expectations of the organization. Management and human resources should meet regularly with employees to keep them informed, answer questions and respond to concerns. Any downsizing of the workforce is likely to result in the loss of key knowledge and critical skills. In the case of a voluntary separation program or early retirement initiative, Because turnover increases in the wake of a layoff, human resources must connect with key workers to outline their importance to the organization and provide information about how the company plans to recover. HR should also detail future career opportunities that can be realized by remaining with the business. Clear documentation, particularly regarding the layoff process itself, is important. Therefore it is vital that HR management weigh the relative costs and benefits against the negative impact downsizing has on employees and identify hazards, undertake risk assessment, consult with employee representatives, pursue compliance with legislative duties and take appropriate steps to manage any significant hazards that are identified, including psychosocial hazards. Downsizing refers to activities undertaken by management to improve the efficiency, productivity, and competitiveness of the organization by reducing the workforce size. Implications of Organisational Restructuring to HR Planning Restructuring: A Perspective Organizations and businesses today are faced with increased demands to become leaner due to global competition and rapid technology change. Many organizations have responded by corporate restructuring and downsizing or streamlining their operations and often outsourcing many functions originally assigned to permanent employees. Restructuring can lead to changes of ownership, radical changes in the internal management structure, mergers, acquisitions and significant downsizing or hiring trends. Internal factors can also include the addition or removal of a major product or service, addition or loss of a major client or the restructuring of departments. Restructuring is not a quick fix. Before restructuring we need to spell out the expectations and objectives and effectively communicate with the all the stakeholders to improve organizations ability to move through change effectively. Restructuring is a formal system of re-aligning tasks and reporting relationships that controls, coordinates, communicates, decides and motivates employees so that they cooperate to achieve an organizations goals. Restructuring may be carried out to expand and create new departments to serve growing markets or to downsize or eliminate departments to conserve overhead. Depending on the size of the organisation and type of business one may adopt a flat or tall structure and model it according to functional, divisional (product, market or geographic) or adaptive lines. Implications of Organisational Restructuring to HR Planning In the event of restructuring HR planning becomes critical because HR is typically responsible for handling all aspects of an organizations restructuring. HR departments provide or support announcements to employees regarding restructuring. HR is typically present when employees are informed of layoffs or permanent downsizing related to restructuring. Changes in employment policies, organizational structure, workforce, and location and job descriptions are announced to employees by human resources and management. HR also calculates changes in compensation and benefits resulting from reorganization. Organizations rely on human resources to provide a smooth transition during restructuring while retaining desired employees and integrating new employees into the new organizational plan. Restructuring leads to a new organization chart and HR need to reassess and alter their existing roles and responsibilities to better reflect the dynamics of the shifting workplace environment. HR departments also fulfil staffing recruitment needs including preparing job descriptions, posting and publishing available jobs, screening and interviewing candidates for employment and integrating new staff members into their assigned work areas. HR will often be called on to act in an advisory capacity salary ranges and often making changes to benefits, profit-sharing and other corporate perks. HR also institute training and educational programs and seminars and assist employees with transitions in and out of positions and in and out of the company. It may provide information, updates and job seeking resources for employees displaced from their jobs due to restructuring. HR departments are responsible for researching, recommending and implanting employee retention strategies during restructuring. Restructuring brings in changes to corporate cultures, which directly affects employees and may result in loss of identity, shrinkage in compensation, distrust, stress and conflict. HR has to ensure the internal processes accommodate the changes and the communication base is prepared to sensitize the various stakeholders.

Israel: The Vanguard of Middle East Stability Essay -- International G

The Middle East is a power keg about to burst. There are countries in the Middle East where their national stability is in question due to various terrorist and malicious attacks while others promote the inhalation of nations. If these fuses are allowed to spark, it would lead to a cataclysmic array of international consequences including skyrocketing oil prices, increased acts of terrorism, and even WWIII. But, there is a hope to quell this situation. The country of Israel has safeguarded the complete collapse of the Middle East to violence and chaos. It is the last country standing between relative peace to Total War. But, this country will not be able to combat the dread knight of chaos forever; it needs international support. The United States has always kept a keen eye on Israel and has allowed it to continue its heavy load. Without the United States financial support, Israel will certainly collapse, and the Middle East will become as unpredictable as the shifting sands of its d eserts. Due to the crisis in the Middle East and the potential escalation to World War, America needs to continue funding to Israel. As Israel fights the hydra of destruction, it does not have to look far to see the snarling teeth of Iran. Iran, more so than any other country, has the most turbulent and fragile relationship with Israel. This shaky peace is apparent as Israel and Iran had never had formal diplomatic relations since the Islamic Revolution of Iran in 1979 (Farrar-Wellman). This lack of communication has not only led to increased skepticism between the two countries, but also the severe hatred of each other. The sub-human perspective of Iran about Israel was expressed when current president of the Islamic Republic of Iran, Mahmoud Ahmadi... ...ifferent regions of the world, the situation will be dramatically worse without the military power of Israel. Without Israel, the terrorists will have a safe heaven by which to stage and plan terrorist attacks across the Middle East. This increased level of attacks will lead to increased levels of instability within the other countries, and eventually lead to the overthrowing of other democracies in the region. Works Cited Brad, Mitchell. â€Å"U.S Aid to Israel.† Jewish Virtual Library. January 13, 2010 (Updated). Codedesman, Anthony H., and Nerguizian, Aram. â€Å"The Gulf Military Balance in 2010: An Overview.† Center for Strategic and International Studies. April 23, 2010. â€Å"Country Reports on Terrorism 2008.† U.S. Department of State. April 30, 2009. Chapter 2. Farrar-Wellman, Ariel. â€Å"Israel-Iran Foreign Relations.† Iran Tracker. April 8, 2010.

Enron: Smartest Guy in the Room Essay

Enron: The Smartest Guys in the Room is a documentary that was produced in 2005 as a reflection of the 2003, bestselling book with the same name. The documentary was written by Bethany Mclean and Peter Elkind. The film, produced by Alex Gibney is an explicit demonstration of how reputable corporations can tumble down because of illicit financial management. The film is about the Enron Company, which experienced enormous financial drains because of the scandals elicited by its top managerial team. Two years after the inception of the company, two traders engage in betting activities on the lucrative oil markets. This eventually leads to suspicious profits for the company, a phenomenon that raises eyebrows on the financial stand of the company. It is also discovered that Enron’s Chief Executive Officer is redirecting the company’s finances to different accounts. In demonstrating the poor financial management of Kenneth Lay, he encourages the traders to keep on making money for the company, yet he understood clearly that betting is a risky activity that could cause the company a lot of its assets. Lay finally realizes his mistakes when he sacks the traders because of wasting the company’s reserves through gambling. Their actions virtually damaged the image of Enron. When the facts about what happened to the company are exposed, Lay argues that he had no knowledge of the illicit financial endeavors. Jeffrey Skilling is brought in as the new CEO and immediately imposes his own principles about handling profits and projects. Skilling adopts a management practice that engages the company in projects without examining whether the projects have the capacity to be successful or not. This is indeed, a trait that has the capacity to taunt the image of the company in respect to the management of its assets and resources. In essence, this portrays Enron as a profit making company, even if it is not making any profit. The film also highlights on Skilling’s theory of grading employees and firing those who do not perform well, on an annual basis. In order to fulfill his endeavors for the company, Skilling appoints Clifford Baxter and Lou Pai, who heads the Enron Energy Services. Pai is an irresponsible executive who squanders money belonging to shareholders by visiting entertainment joints. Eventually, Pai resigns having cost Enron a loss of $1 billion. After selling his stock, he purchases a ranch in Colorado and becomes one of the largest landowners in the state. Despite the declining performance of Enron in the global scale, the company initiates a public relations campaign that displays itself as profitable and solid. With the short term successes that the company gets, it tries to captivate stock market analysts. Executives raise their stock prices and introduce the broadband technologies in order to distribute movies on demand, but the projects do not meet their expectations. After a series of financial irregularities, Jim Chanos and Bethany McLean expose the financial misappropriation and irregularities in stoke value. In response to the allegations, Skilling argues that McLean is unethical in his assertions. It is also found out that Andrew Fastow, one of Enron’s executives has been defrauding Enron of millions of dollars. Indeed, this is a documentary about the fall of a big corporation because of financial misappropriation (Gibney, A. and McLean, 2005). II. Analysis In reference to the documentary, it is worth pointing out that the management of the company did not articulate its financial obligations in the most feasible way. Financial management is an integral aspect in the success of a company. A company’s management should ensure that proper procedures are followed in capitalizing on its assets in order to avoid loses in the future (Bhat, 2008 p. 65). The management team’s lapse in controlling its finances led to the downfall of the company. The image of the company was put at risk because of the selfish actions of the leadership. The company’s corporate image was not able to maintain its stability, bearing in mind that the media exposed the inappropriate handling of the company’s assets. Embezzlement of the finances led to the loss of confidence in the public eye. This is a clear indication that financial obligations are pertinent in influencing the performance of a company; since, financial endowment is a primary component of expanding the image of a business enterprise (Shoffner, Shelly & Cooke, 2011 p. 36). It is also worth noting that the management’s actions affected the performance of the employees. In a company, it is extremely pertinent to invest in feasible measures that will enhance human capital. A well established human capital is instrumental in providing a viable platform for proper financial management (Jones & Spender, 2011 p. 94). When the management started a program of rating and firing employees, this created a non-cohesive environment that did not give employees a chance to thrive. In this respect, employees could not fulfill their obligations in enhancing the capacity of the company. In addition, the stakeholders to the company lost confidence in the management team of the company because it did not deliver as it was expected of them. This affected the input of the stakeholders as well as the internal and external cohesion of the company. It is also critical to assert that the company faced financial implications resulting from management’s failure to conduct itself in a competent and professional way. The company’s markets share did not achieve its expectations; since, it could not maintain stability in the stock market. The values of its shares could not compete vehemently with other companies because the company had lost its market value. Moreover, the company incurred losses in regard to its assets record through engaging in illicit financial planning. This led to the company failing to meet its financial objectives; since, it was not in a position to control its costs. The failure of a company to control its costs leads to unaccountability and the risk of loses due to poor accounting systems (Lee, 2006 p. 201). Additionally, the company experienced a lapse in its financial accounting systems in an effort to hide the misappropriation of finances. Compromising the financial accounting systems resulted to slow growth in the development of feasible accounting procedures (Hampton, 2009 p. 6). Another financial consequence to the company was the inability to control debts. The company could not keep track of its debts because its financial records had been compromised by the incompetence of the management team. The lack of proper financial returns led to inconsistency in the company’s performance; hence, leading to an internal financial crisis. In this respect, it is viable to underscore that the financial inconsistency in a company is a contributing factor in its financial meltdown (Brigham, Gapenski & Ehrhardt, 2011p. 12). III. Commentary The actions of the management team were indeed detrimental in the financial breakthrough of the company. The company’s resources were put in jeopardy because of mishandling the assets in an unethical manner in respect to business standards. The employees of the company did not have a cohesive environment to capitalize on their potential. They could not handle the products and services of the company in a professional way because the management team did not provide the platform for enhancing the cost of goods. I believe the biblical worldview as Christ would view it for the church is that whatever you do in the dark will be exposed. The Bible states that God hates the very presence of evil and it will have no place in his kingdom. So the catastrophic effect that this company had on society was abomination to what God would want for his people. God wants us to suffer with him and the end result is that we will reign with him, however lying, cheating and stealing will not have a place in heaven. As part of the management team, I would have handled things differently. Firstly, it is significant to point out that I would not allow incompetent people to control the company’s finances. Only competent people would be allowed to handle the company’s financial obligations and management of the company’s assets. Secondly, it is essential to assert that I would invest immensely in the employees of the company. I would ensure that human capital is enhanced in order to improve the image of the company. It is widely acknowledged that an empowered human resource is vital in the success of a company; hence, I would seek to empower the activities of the employees. Moreover, as part of the management team, I would ensure that transparency is enhanced in corporate governance. The duties and responsibilities of every stakeholder would be defined in an amicable way, in order to avoid the confusion that emerges. This would play a dominant role in enhancing the profitability of the company, as well as improving the image of the company in a large scale. Indeed, it is critical for any business enterprise to adopt a viable mechanism of enhancing its corporate governance (Baker, 2008 p. 78). In my opinion, I believe what happened was as a result of managerial incompetency by the management team. Lack of inconsistencies in financial breakthrough by the company led to the meltdown in the company’s assets and costs control. In this respect, I believe that accounting laws and regulators can help in avoiding this scenario again. The accounting laws will play a dominant role in keeping track of a company’s financial assets and prevent it from incurring unnecessary loses. In addition, it is critical to highlight that such law and regulators will help immensely, in holding the management accountable. The management team of a company will be able to maintain high profile accountability in maintaining the value of the company. The market share of a company is able to attain reputable standards because of using the accounting laws. Additionally, accounting laws and regulators act as instrumental platforms in identifying challenges in a company, and making the necessary decisions in overcoming the challenges. The management team of a company is able to use business intelligence in developing a way forward in solving the challenges that a company faces in respect to financial management. In order to avoid the detrimental effects of financial mismanagement, companies can adopt viable ways of managing their operations. Transparency is a critical way of enhancing the gains of a company because its operations are open to scrutiny. In addition, it is important for companies to employ competent personnel to handle its operations, ranging from cost control to managing its experiences. It is pertinent for companies to develop policy frameworks that implement feasible financial obligations.

Impersonal Subjects and Gerunds Quiz

Compare these two sentences: Studying English is sometimes boring. It is sometimes boring to study English. Both of the sentences are used to make general statements about an activity - studying English. Here is an overview of the two forms: First form: gerund object to be conjugated (adverb of frequency) adjective Examples: Playing tennis is an excellent exercise.Reading English newspapers is often difficult. Second form: It to be conjugated (adverb of frequency) adjective infinitive Examples: It is sometimes exciting to walk in the pouring rain.It was strange to say that Russian is easier than English. Two Exceptions The phrases It is worth and It is no use take the gerund NOT the infinitive form. It is worth / It is no use gerund object Examples: It is worth driving to the lake to have a look around.It is no use studying for this exam. Quiz Change the sentences from the original to the other similar structure. Example: Original: It is sometimes easy to forget your cell phone number.Changed: Forgetting your cell phone number is sometimes easy. Original Sentences Playing chess requires great concentration.It is not easy to learn Chinese.It is difficult to understand the motives of many politicians.Interviewing applicants is often stressful and unrewarding.Speaking English is always useful when traveling abroad.It is never simple to move abroad.Thinking about danger is often illogical.It has been difficult to accept his death.Flying to Africa will be great fun.Working hard for so many years has been tiring for them. Sentence Changes It requires great concentration to play chess.Learning Chinese is not easy.Understanding the motives of many politicians is difficult.It is often stressful and unrewarding to interview applicants.It is always useful to speak English when  traveling  abroad.Moving abroad is never simple.It is often illogical to think about the danger.Accepting his death has been difficult.It will be great fun to fly to Africa.It has been tiring for them to work hard for so many years.