Strategic downsizing

Abstract

Corporate strategies directed at gaining competitive advantage and satisfying customers′ needs always have human resource implications, and tactics such as job redesign, multi‐skilling, redeployment, training, paying for performance, layoffs and downsizing should be specifically directed at implementing the human resource strategies of organizations. Unfortunately, however, the strategic considerations which should accompany the use of these tactics are often absent. Highlights one of the particularly popular methods, namely downsizing. Addresses its strategic facets. Argues that the objective of downsizing should be to raise productivity per head and that this can be achieved only by proper strategic decision making, planning and implementation, and the subsequent evaluation of the downsizing effort.