After this chapter the student should have acquired the following knowledge and skills: Recognize your followership style and take steps to become a more effective follower; understand the leader’s role in developing effective followers; apply the principles of effective followership, including responsibility, service, challenging authority, participating in change, and knowing when to leave;. | FACILITATOR Prof. Dr. Mohammad Majid Mahmood Art of Leadership & Motivation HRM – 760 Lecture - 8 Role of Leaders in Downsizing: Who Goes and Who Stays? Faulty Assumptions Leaders will handle the downsizing just fine because “they are leaders” Once we get past the downsizing, things will return to normal We only need to worry about what is happening inside the organization walls The Tough Part of Downsizing: How to say what you don’t want to say to people who don’t want to hear it Downsizing What is Downsizing? Downsizing - process of reducing the number of employees within an organization by eliminating jobs. Downsizing What is Downsizing? A downsizing strategy improve its financial performance (Robbins & Pearce, 1992). A reduction of the workforce is one of only several possible ways of improving profitability or reducing costs. Downsizing Why do Firms Downsize? Reduce costs Reduce layers of management to increase decision making speed and get closer to the customer Sharpen focus on core competencies of the firm, and outsource nonessential activities Generate positive reactions from shareholders Increase productivity Downsizing Downsizing doesn’t guarantee improvements or cost savings. It can have a devastating impact on employee morale Downsizing Issues 2011 (EASNA Survey) There is no perfect way to handle downsizing that “feels right” or “goes well” for everyone involved. What happens to the organization? Employees can turn into headcounts where there is a decreased emphasis on understanding the personal impact of downsizings and change Stress typically increases in response to restructuring or increased workload The work environment is marked by fear of job loss and paranoia (both real and imagined) The focus on employee engagement can change to “just be glad you have a job” Resources shift away from “softer” people issues like diversity, learning, safety and instead focus on economic or business outcomes The impact . | FACILITATOR Prof. Dr. Mohammad Majid Mahmood Art of Leadership & Motivation HRM – 760 Lecture - 8 Role of Leaders in Downsizing: Who Goes and Who Stays? Faulty Assumptions Leaders will handle the downsizing just fine because “they are leaders” Once we get past the downsizing, things will return to normal We only need to worry about what is happening inside the organization walls The Tough Part of Downsizing: How to say what you don’t want to say to people who don’t want to hear it Downsizing What is Downsizing? Downsizing - process of reducing the number of employees within an organization by eliminating jobs. Downsizing What is Downsizing? A downsizing strategy improve its financial performance (Robbins & Pearce, 1992). A reduction of the workforce is one of only several possible ways of improving profitability or reducing costs. Downsizing Why do Firms Downsize? Reduce costs Reduce layers of management to increase decision making speed and get closer to the .
