Analyzing The Plan for Downsizing of Calika Company †Free Samples

Question: Discuss about the Analyzing The Plan for Downsizing of Calika Company. Answer: Introduction: The main aim of the report is to understand the different risks of downsizing as well as possible techniques that has to be properly analyzed as well in order to understand the requirement of the change management in the organization. There are different faults, errors as well as conflict in the management due to the downsizing of the employees in the organization. The purpose of the report is to properly analyze the different ethical challenges that have to be tackled by the managers in the organization. Proper plan has to be implemented as this will help in understanding the requirement of downsizing in the companies. The conclusion is based on the proper implementing plan that has to be properly adopted by the company as this will help in understanding the requirement of downsizing in the companies. The different kind of challenges that has been faced by the company has to be discussed as well. Downsizing techniques (Decision making models, types, styles and approaches) There are different techniques of downsizing that can be applied in the respective organization named Calika Company. The downsizing has adopted different techniques that are innovative in nature f removing the employees from payroll. Hiring Freezes and attrition wherein it occurs when a person dies, quit or retire and they are not replaced from organization. Unless the rate of turnover is high, the attrition will help in removing a smaller number of individuals from the organization. This is one of the most efficient methods that can be applied by employer and this is received with better understanding of employees and employers in the organization (De Meuse Dai, 2013). Early retirement buyouts of the senior employees are other way of downsizing the employees from workplace. In this case, the employers offer extra incentives to the employees while offering them early retirement options. This can help in motivating the employees in the organization and this will be a good alternative for downsizing as well (Goesaert, Heinz Vanormelingen, 2015). A proper decision making level has to be adopted by the respective company as this will help the employers in the organization to make rational decision about downsizing the employees. Proper redesign of the workforce can help in eliminating the unnecessary works as this will help in eliminating the positions that are not required in the respective organization (Suttipun Setyadi, 2017). Benefits of downsizing There are different benefits of downsizing of a company both to employees as well as employers that are as follows: Savings in labor cost is one of the advantages of downsizing in the company as the main motive of laying off the employees in the organization is to help in reducing the labor expenses. There are companies that try to downsize employees at a high end pay scale if it possible. Labor is one of the highest cost companies that incurs in the operations of the business. The cutting jobs are one of the quickest ways to lower the costs significantly as well (Jung Mun, 2017). Sale of assets is other advantage of downsizing of employees in the organization as this will downsize the entire business wherein it will cut the cost of employees but the assets has to be sold as well as this will help in properly downsize the number of employees in the organization. The different equipments, supplies as well as furniture are the other items that can be sold in order to raise the funds for the sizable downsizing (Brauer Laamanen, 2014). Collective focus is the advantage of downsizing as this will benefit both employers and employees in the organization. The supervisors in the company can work towards to motivate the remaining employees in the organization and provide them more career developmental and training opportunities (Jung, 2016). For this particular purpose, the organization can take few resources that have been saved by properly eliminating the costs from the positions that are less valuable in nature and properly investing it on the employees who perform well in the organization (Carriger Carriger, 2017). Ethical Challenges tackled by managers Criteria for termination are one of the ethical challenges that are faced by the respective organization. While downsizing the employees from the organization, it will affect the sales and production of the company and this can have huge effect on the company as well. When the employees are known by the higher officials of the company, the employees who are the favorite of the managers are kept in the payroll and this is one of the main ethical challenges that are faced by the company. The managers need to understand the loyalty of the customers along with the contribution of each employee in the organization as this will help them in judging well and this will have huge positive impact on the company. Options to quit are another ethical challenge that is faced by the managers in the company and this has to be tackled by the employers of the organization itself. There are different employees who do not want to quit and do not want any kind of termination history in their work records. In such cases, the employers of the organization can introduce other ways of termination that may not affect the confidence of the employees and offer them another position in the offices and this will help in improving the confidence as well (Habel Klarmann, 2015). Confidentiality is other ethical issue faced by the managers and this is related to the termination of the employees in the organization. This kind of issue can be tackled by the employer of the organization wherein such termination problems should not be discussed with the other employees and by following such strategy this can help in maintaining proper confidentiality. References Brauer, M., Laamanen, T. (2014). Workforce downsizing and firm performance: An organizational routine perspective.Journal ofManagement Studies,51(8), 1311-1333. Carriger, M., Carriger, M. (2017). Does size matter? The impact of the size of downsizing on financial health and market valuation.Journal of Strategy and Management,10(3), 313-325. De Meuse, K. P., Dai, G. (2013). Organizational downsizing: Its effect on financial performance over time.Journal of Managerial Issues, 324-344. Goesaert, T., Heinz, M., Vanormelingen, S. (2015). Downsizing and firm performance: evidence from German firm data.Industrial and Corporate Change,24(6), 1443-1472. Habel, J., Klarmann, M. (2015). Customer reactions to downsizing: when and how is satisfaction affected?.Journal of the academy of marketing science,43(6), 768-789. Jung, J. (2016). Through the contested terrain: Implementation of downsizing announcements by large US firms, 1984 to 2005.American Sociological Review,81(2), 347-373. Jung, J., Mun, E. (2017). Does Diffusion Make an Institutionally Contested Practice Legitimate? Shareholder Responses to Downsizing in Japan, 19732005.Organization Studies, 0170840616677631. Suttipun, M., Setyadi, D. A. (2017). How Does Triple Bottom Line Reporting Influence Financial Performance?(Evidence from the LQ45 Companies Listed in the Indonesia Stock Exchange).ABAC ODI JOURNAL VISION. ACTION. OUTCOME.,4(2), 45.