First, they adopted a rational focus, under the premise that organizations downsize in order to improve efficiency (McKinley et al.
It also considers other determinants, which reflect via control variables the influence of corporate characteristics such as size or age, or of economic factors, on the decision to downsize.
Firms should cautiously assess the convenience of implementing these practices Managers should be aware of the reasons that lead them to downsize.
The primary implication of this study is that returns to firms that downsize are affected by the characteristics of the firm announcing the action.
This research was limited to investigation of the returns of firms that downsize.
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.
There is a legion of other equally damaging exposures that many companies frequently overlook in their zeal to downsize without delay.
The myth that only large companies downsize
, and that massive layoffs result in leaner and meaner corporations, is just one of seven myths explored in Right Associates' new study, "Lessons Learned: Dispelling the Myths of Downsizing.
The CEO's role is to minimize that productivity hit and downsize
right the first time.