The Equity Issue LO5710
Sun, 18 Feb 96 22:15:01 GMT

David Reed wrote in message LO5682:

> What I have found is that there are three primary reasons for
> downsizing:
> 1. Reduction in production rates - resulting in fewer people
> needed to deliver fewer products
> 2. Process improvements - sometimes referred to as
> re-engineering. This results in people working themselves out
> of a job.
> 3. Cost cutting - resulting in dollar goals being set without
> reference to work statements

> If anyone would like to explore the differing issues behind each of
> these, I would be happy to participate in the discussion.

Reduction in production rate and cost cutting will be connected in
many cases - and both may come from market saturation and overcapacity
that is found in many industries. Another reason would be declining
markets, especially for mature industries that are in or near the

If you discuss the impact on the organizational ability to learn, then you
can (at least) start at two levels: The organizational level, where you
can start to evaluate the relationship between environmental change and
cultural web, including paradigm; or the personnel level, where downsizing
and the tread to loose a job may produce fear and frustration among
employees, what may block very efficient their ability to learn and to
adapt to change. I think that both threads are very important if you wish
to explore further why organizations behave ultra-resistant against

Wolfgang Schmid
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