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DownsizingStructural OD Intervention
Prepared By
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Manu Melwin JoyAssistant Professor
Ilahia School of Management Studies
Kerala, India.Phone – 9744551114
Mail – [email protected]
Downsizing
• This intervention reduces costs and bureaucracy by decreasing the size of the organization through personnel layoffs, organization redesign, and outsourcing.
• Clarify the organization’s strategy
• Assess downsizing options and make relevant choices
• Implement the changes• Address the needs of
survivors and those who leave• Follow through with growth
plans
Downsizing Process
Cummings & Worley, 7e (c) 2001 South-Western College Publishing 14-5
Downsizing TacticsTactic Characteristic Examples
WorkforceReduction
Reduces headcount Short-term focus Fosters transition
Attrition Retirement/buyout Layoffs
OrganizationRedesign
Changesorganization
Medium-term focus Fosters transition &
transformation
Eliminate functions,layers, products
Merge units Redesign tasks
Systemic
Changes culture Long-term focus Fosters
transformation
Changeresponsibilities
Foster continuousimprovement
Downsizing is normal
