The Effects of Corporate Downsizing

The effects of corporate downsizing have greatly affected business profitability and how an employee views their employer. The goal of downsizing is to lower costs and increase efficiency thus increasing profitability. This can be an effective strategy to accomplish these goals but is often a knee-jerk reaction to today's profitability goals and has not been put together with long range planning. Companies began downsizing in the late 1970s to cut costs and improve the bottom …

…Nelson, D., (1998) Lessons learned. Canadian Journal of Administrative Sciences Vol. 15, Issue 4, p372, 10p Cameron, K.S. (1994), Strategies for successful organizational downsizing. Human Resource Management, Vol. 33 No.2, pp.189-211. Di Frances, John. (2002) Ten reasons why your company shouldn't downsize. Successful Meetings, Vol. 51, Issue 9 Dougherty, D. and Bowman, E. H. (1995). The effects of organizational downsizing on product innovation. California Management Review, Vol. 37, pp. 28-44. The American Heritage Dictionary of the English Language (4th ed.). ( 2000) Houghton Mifflin Company.