LO & Big Layoffs LO5623

Rol Fessenden (76234.3636@compuserve.com)
14 Feb 96 00:03:30 EST

Replying to LO5584 --

Bill's statement below is the most accurate viewpoint on 'downsizing' that I
have seen so far on this list. I cannot speak for all corporations any more
than anyone on this list, but I detect a strong anti-corporate bias -- or anti
CEO bias -- that seems driven by distrust. Again, I can't speak for all
corporations, but personally, I don't know of any leader who has down-sized
without severe pangs of anxiety, guilt, and personal self-questioning.

------- prior quotes ------

While I agree that employees are primary stakeholders I am unable to place
them first on the list. Depending on how the enterprise is funded I think
that the external customer or the shareholder (financier) is first. The
organization needs venture capital or income to survive. The only profit
center is the paying customer. For non-profits or start ups the source of
funding is contributors, however you name them.

Yes there is a social contract with employees that mitigates for retaining
them as long as possible. Yes it is sometimes necessary to let employees
go, a decision I don't think that managers or leaders take lightly. I
think that there is a devil's choice sometimes, do I 'downsize' and save
the corporation or keep everyone until I file bankruptcy.

IMHO the priority of stakeholders is situationally dependent on the
position of the enterprise within its environment.

"William J. Hobler, Jr." <bhobler@cpcug.org>

Rol Fessenden <76234.3636@compuserve.com>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>