CHAPTER 10 Flashcards
Employees remaining with an organization after a downsizing.
SURVIVORS
Strategy to improve an organization’s efficiency by reducing the workforce, redesigning the work, or changing the systems of the organization.
DOWNSIZING STRATEGY
Activities undertaken to improve organizational efficiency, productivity, and/or competitiveness that affect the size of the firm’s workforce, its costs, and its work processes.
DOWNSIZING
3 types of downsizing strategies:
- WORKFORCE REDUCTION
- WORK REDESIGN
- SYSTEMATIC CHANGE
A short-term strategy to cut the number of employees through attrition, early retirement or voluntary severance package, and layoffs or terminations.
WORKFORCE REDUCTION
A medium-term strategy in which organizations focus on work processes and assess whether specific functions, products, and/or service should be eliminated.
WORK REDESIGN
A long-term strategy that changes the organization’s culture and attitudes, and employee’s values, with the goals of reducing costs and enhancing quality.
SYSTEMATIC CHANGE
4 medium-term alternatives to downsizing:
- EXTENDING REDUCTIONS IN SALARY
- VOLUNTARY SABBATICALS
- LENDING EMPLOYEES
- EXIT INCENTIVES
7 short-term alternatives to downsizing:
- HIRING FREEZE
- MANDATORY VACATION
- REDUCING THE WORK WEEK
- REDUCING OVERTIME
- REDUCING SALARIES
- SHORT-TERM FACILITY SHUTDOWNS
- OBTAINING COST-REDUCTION IDEAS FROM EMPLOYEES
Reabsorbing excess or inappropriately placed worker into a restructured organization.
INPLACEMENT
Providing a program of counselling and job search assistance for workers who have been terminated.
OUTPLACEMENT
3 perceptions of justice:
- PROCEDURAL JUSTICE
- INTERACTIONAL JUSTICE
- DISTRIBUTIVE JUSTICE
The procedures used to determine which employees will leave or remain with the organization.
PROCEDURAL JUSTICE
The type of interpersonal treatment employees receive during the implementation of the downsizing decision.
INTERACTIONAL JUSTICE
The fairness of the downsizing decision.
DISTRIBUTIVE JUSTICE
