FeatureProductivity Gain
Without Downsizing
...Since the Fifties it has become increasingly clear that productivity
improvement has generated increased standard of living, not unemployment.
When nations that guard the freedoms of their people experience high
productivity increases, they do not turn those increases into high
unemployment rates. Rather, their unemployment rates remain low because
their people find many new things to do. New companies churn out vast
arrays of new products and services. As these products and services win
acceptance, large numbers of new jobs are created to provide them. The
people produce more and they have more. Their standard of living rises.
This accomplishment of a vastly expanded Standard of Living should not be
misinterpreted as some sort of national materialistic obsession, simply
lining up more cars in the driveway and filling ever larger houses with
more and more possessions. It applies regardless of the value systems of
the people and in the U.S. has served a very wide range of values. The
time freed up as a result of increasing productivity has been channeled
into health care, education, art forms, mobility, security, entertainment,
research, etc. In short, it goes towards whatever the people value...
Read the
complete paper...
Musing
When is Downsizing Okay?
The reason for letting employees go
tends to fall into one of three general groups: firing, layoff and downsizing.
Firing is done for cause (cheating, lying, non-performance). It is personal and
it is in the best interest of all the players in the organization (owners,
managers, employees and customers).
Layoffs happen when an organization loses a significant piece of business. They
are not personal and are in the best interest of all players. This may be a hard
sell to the ones who walk, but the alternative is to work for free. Some
organizations' leaders think enough of their people to implement
across-the-board pay reductions instead of layoffs, but that is not always an
option. Some let attrition play a role and some set up an internal
outplacement group to help displaced employees find work.
Downsizing, by my definition, is an across-the-board release of employees with
NO specific reason. It is an accounting excuse to improve the short-term
bottom line that has employees categorized as expenses rather than resources.
It is an act of greed, and there is no excuse for it. It may provide a
short-run benefit for owners (particularly those who get out) but it can be
disastrous for the organization and employees, not just the ones who leave, but
also the ones who are retained and are constantly looking over their shoulders
wondering who will be next. Executives and consulting organizations who participate in this game should
be ashamed. What do you think?
If you have comments or
thoughts you would like to share with our readers, send them to:
Here's a
thought...
Reader Comment
On Bureaucracy:
"Just a
couple of thoughts on why bureaucracy is so entrenched in the workplace
today. First, we get out of folks what we expect of them. Too often we
expect too little. Employees are treated as second class citizens who are
incapable of learning new things or understanding the "bigger" picture.
Second, the management styles we have too often used over the past 50 years
leaves a lot to be desired. It may be that the "greatest generation" learned
its management style in the military. Those in charge give orders, those not
in charge follow orders. As a result, those closest to the problem have the
least input on the solution. And those who follow best, only add to the
problem as they are advanced to lead the next wave.
Maybe someday
we will learn."
Bill Roach, CRM
Enterprise EDMS Coordinator,
State of North Dakota
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