Downsizing and Delayering in Organization

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Delayering
Downsizing
Conclusion
Bibliography

Introduction

In globalized economy leading companies have to employ various means to increase their efficiency or at least to survive. Among possible strategies, we can single out downsizing and delayering. Perhaps, we should give a brief definition of these notions: the first one is just a euphemism for massive layoffs and reduction of the staff. Subsequently, delayering can be interpreted as the simplification of the administrative structure of an organization (Child, 2005, p 4). Our task, in this essay, is to analyze the benefits and possible adverse effects of such policies. The best way to do it is to refer to the experience of the firms, which have already faced a similar dilemma.

Delayering

As for delayering, we should say that many enterprises have to struggle with such problems as bureaucratic apparatus, which is extremely cumbersome and unproductive. Thus, there is a necessity to make this hierarchy more flexible. The major advantage of delayering is that it enables managers to get their message across without delays and distortions. To some extent, it creates a direct connection between the higher authorities and average employees.

Furthermore, delayering helps to reduce the costs of managerial compensation, which is also very important. At this point, we may discuss the implementation of this policy in such companies as AT& T (American Telephone and Telegraph). In the early nineties, the leading officials decided to improve the functionality of the firm utilizing delayering. For a short, period, it decreased the operation expenses. Yet, this also gave rise to some unexpected difficulties; in particular, we should speak about the so-called loss of memory”. A great number of very skilled and qualified workers were forced out, and there was no substitute for them (Baker, 2001, p 111).

Apart from that, it should be mentioned that delayering provides no stimulation to the workers because they know that they have practically no opportunity to climb the career ladder. Secondly, we should not disregard such phenomena as overload. Many managers are simply unable to cope with the whole scope of their duties. As a result, they are often discontented with their jobs and search for an alternative variant. To sum up, in the vast majority of cases, delayering produces short-term results, and in the long run, these tactics may even impair the companys performance.

Downsizing

Speaking about downsizing, we have to admit that it has both economic and organizational advantages. First, considering the rapid growth of information technologies, many companies tend to computerize some menial jobs. This subsequently boosts the profitability of the enterprise. In part, this is the reason why AT&T chose to do it. Secondly, it brought some improvements to customer service because clients achieved a greater degree of independence. In this respect, we cannot forget that this optimization of the workforce also leads to an atmosphere of uncertainty or even fear among those employees who secured their positions (Baker, 2005, 113). Moreover, it had a detrimental impact on retention in this organization because many workers were inclined to leave AT&T as soon as they could find some other job.

Conclusion

Certainly, we have explored only the most obvious aspects, but this information indicates that delayering and downsizing may often decrease the productivity of the firm because they create a shortage of qualified employees, and more importantly, such methods practically eliminate competitiveness and motivation within the organization. We cannot deny the fact that there are certain economic and structural benefits but they are usually short-lived.

Bibliography

David Needle (2004). “Business in context: an introduction to business and its environment”. Cengage Learning EMEA.

John Child (2005). “Organization: Contemporary Principles and Practice”. Blackwell.

Michael John Baker (2001). “Marketing: Critical Perspectives on Business and Management”. Taylor & Francis.

Click Here To Order Now!

Downsizing and Delayering in Organization

Do you need this or any other assignment done for you from scratch?

We have qualified writers to help you.

We assure you a quality paper that is 100% free from plagiarism and AI.

You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)