Chapter 10 - Downsizing and Restructuring Flashcards
distributive justice
The fairness of the downsizing decision
downsizing strategy
Strategy to improve an organization’s efficiency by reducing the workforce, redesigning the work, or changing the systems of the organization
inplacement
Reabsorbing excess or inappropriately placed workers into a restructured organization
interactional justice
The interpersonala treatment employees receive during the implementation of the downsizing decision
outplacement
Providing a program of counselling and job search assistance for workers who have been terminated
procedural justice
Procedures or rules used to determine which employees will be downsized
psychological contract
An unwritten commitment between employers and their employees that historically guaranteed job security and rewards for loyal service
survivors (of downsizing)
In examining the survivors of downsizing, three types of justice warrant consideration.
- Procedural justice
- Interactional justice
- Distributive justice
systematic change
A long-term strategy that changes the organization’s culture and attitudes, and employees’ values, with the goals of reducing costs and enhancing quality
work redesign
A medium-term strategy in which organizations focus on work processes and assess whether specific functions, products, and/or services should be eliminated
workforce reduction
A short-term strategy to cut the number of employees through attrition, early retirement or voluntary severance packages, and layoffs or terminations