Downsizing ppsx

LOGO
HUMAN RESOURCE
MANAGEMENT
DOWNSIZING
Group 2 - KD0605
(Huflit)
Group 2 – Kd0605
HRM - Downsizing
Group 2 – KD0605
Nguyễn Thị Thúy Phượng
Nguyễn Thị Duyên Anh
Nguyễn Ngọc Thủy Tiên
Nguyễn Thị Kiều Oanh
Võ Thu Thái Ngân
Tạ Minh Uyên
Trần Thị Bích Ngọc (Leader)
Content
HRM - Downsizing
Group 2 – Kd0605
I. Summary
II. Answer questions
III. Conclusion
1. List the elements in the company’s environment
that will affect Scott’s suggested plan. How
legitimate is the interest of each of these?
1. List the elements in the company’s environment
that will affect Scott’s suggested plan. How
legitimate is the interest of each of these?
2. Is it true that Scott should be concerned first and
foremost with protecting the interest of
shareholders? Discuss.

2. Is it true that Scott should be concerned first and
foremost with protecting the interest of
shareholders? Discuss.
Summary
Scott Wheeler is a
human resource director
at International Forest
Products Company (IFP)
in Ouachita County,
Arkansas. IFP employs
almost 10% of the local
workforce, and few
alternative job
opportunities are
available in the area.
Group 2 – Kd0605
HRM - Downsizing
Summary
Because of the economic recession, Mr.
Scott had got the word at a private
meeting with the President, Mr. Deason
that they would have had to cut the
workforce by 30% on a crash basis. Mr.
Scott had been to get back to Mr. Deason
within a suggested plan. Mr. Deason had
depended on Mr. Scott to provide at least
a workable approach.
HRM - Downsizing
Group 2 – Kd0605
Summary

Mr. Scott had to consider some
aspects to make a final choice:
How the union would have
reacted. The union would have tried to
protect as many jobs as possible.
The impact on the surrounding community to
consider.
To ensure that the costs had just been as
low as those of their competitors.
To protect the interests of their shareholders.
HRM - Downsizing
Group 2 – Kd0605
Answer question 1
1. List the elements in the company’s
environment that will affect Scott’s
suggested plan. How legitimate is the
interest of each of these?
HRM - Downsizing
Group 2 – Kd0605
HRM - Downsizing
Group 2 – Kd0605
The environment
factors are
divided into two
groups
The
external
factors
The
internal

factors
The external factors
HRM - Downsizing
Group 2 – Kd0605
The
The
external
external
factors
factors
1
1
7
7
3
3
5
5
9
9Society
Labor force
Shareholders
Economy Customers
4
4
6
6
8
8
10

10
2
2
Legal
Consideration
CompetitionCulture
Technology
Union
The internal factors
HRM - Downsizing
Group 2 – Kd0605
Informal Organization
Employees
Management style of upper managers
Corporate Culture
Policy
Mission
Other Units of the organization
Labor management agreement
The
internal
factors
1.2 The interest of each of these:
HRM - Downsizing
Group 2 – Kd0605
Answer question 2
2. Is it true that Scott should be concerned
first and foremost with protecting the
interest of shareholders? Discuss.
HRM - Downsizing

Group 2 – Kd0605
Downsizing is used when:
HRM - Downsizing
Group 2 – Kd0605
A business: when the market is tight
Optimized
Optimized
Right sized
Right sized
Experiencing a reduction in
workforce
Experiencing a reduction in
workforce
Fight to
survive in a
hostile
climate while
competing
with other
companies
Fight to
survive in a
hostile
climate while
competing
with other
companies
Downsizing is used when:
HRM - Downsizing Group 2 – Kd0605
Employees: when observing a troubled

market or working for a struggling company
Release
Fired
Laid off
Made redundant
Terminated
Employees
Employees
Downsizing is used for:
HRM - Downsizing
Group 2 – Kd0605
Take steps to make it run smoothly while assuring
valued employees that their job’s secured
It is true that Scott should be…
It is true that Scott should be concerned first
and foremost with protecting the interest of
shareholders because:
HRM - Downsizing
Group 2 – Kd0605
“The shareholders’ interest above all else”
They can get back their money & make the company go
bankrupt
They are the owner of company
They don’t concern with what & how the company does; they
seem to be more concerned with the return on their
investment
They invest & want to have profits
Downsizing will affect:
HRM - Downsizing
Group 2 – Kd0605

Increase
unemployment
 Strike,
uprising, social
evil…
Downsizing will affect:
HRM - Downsizing
Group 2 – Kd0605
Affect society
Affect
Company (how
can the
company work
in an unstable
society?)
Downsizing will affect:
HRM - Downsizing
Group 2 – Kd0605
Affect
employees
in company:
Unnerving
Upsetting
Stressful
Feel uncertain
about whether/
not they’ll
continued to
employed
Downsizing will affect:

HRM - Downsizing
Group 2 – Kd0605
Affect the output capacity
and the quality of the
product
Conclusion
HRM - Downsizing
Group 2 – Kd0605
Scott has to concern
first with the interest
of shareholders;
however they need to
find other strategies
instead of
downsizing.
Conclusion
HRM - Downsizing
Group 2 – Kd0605
We suggest some
strategies may be
used to protect
the shareholders’
interest without
cutting down the
workforce:
Decreasing
salary
Decreasing
salary
Increasing

promotions
to satisfy
customers
needs & wants
to increase sales
& profits
Increasing
promotions
to satisfy
customers
needs & wants
to increase sales
& profits
The support
from
government
The support
from
government
LOGO
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