As Boroughs noted, "Companies cannot simply downsize
themselves into profitability" (1992: 50).
Thus, the explanation of the behavior of those organizations that downsize
lies in theft imitation of the behavior of the leading companies in their sector.
This research was limited to investigation of the returns of firms that downsize
Unlike business, downsizing will not lead to large savings because government generally does not downsize
He complained about the constant phone calls from the press asking when they were planning to downsize
and described his very guarded responses to them: Any hint of downsizing, he said, would immediately be front-page news, and the coverage was not likely to be complimentary.
The decision to downsize
occurs at corporate strategic levels.
Cascio (1993) reports that not only do most downsizing efforts fail to generate the anticipated results, but that the stock prices of companies that downsize
begin to deteriorate after the event.
Weber (1994) said that nurse administrators "must focus on justice and human dignity" when faced with the need to downsize
Competitive pressure and economic sluggishness have also brought pressure to bear on companies to downsize
How do you think an employee feels when he is told we have to downsize
and later reads that the CEO has made $5 million or $10 million in salary and bonus?
An extensive study conducted by the American Management Association (AMA) concludes that the best indication of whether a company will downsize
in the near future is whether it has downsized in the past.
Little attention, however, has been given to the strategic aspects of downsizing that confront an organization, or the process of planning to ensure a successful downsize
Three out of four firms that downsize
in one year plan to repeat the treatment during the next.
As Corporate America becomes leaner in the movement to downsize
operations, risk managers and their chief executives are faced with a profusion of risks that, if not properly understood and tempered, can doom an otherwise solid corporate re-engineering plan.
Although we've now had a few years to see what a downsized corporate world looks like, there have been remarkably few attempts to find out whether the job cuts have worked and what they could teach us about The Big Downsize
now underway in government.