Downsizing Effectively: Eliminate Hierarchy

The way a company approaches downsizing can make or break its performance. Using 355 undergraduates as their sample, the authors randomly assigned five-person teams to work on military-based command-and-control simulations. The teams’ performance was gauged first at full strength in control groups and then after one of three separate downsizing approaches was applied to the same groups.

The first approach was to maintain the hierarchy, eliminating … [ Read more ]

Use Downsizing as a Last Resort: Some Alternatives

  • Rely on attrition to right size.
  • Use redeployment and make layoffs a last resort. Hewlett Packard used this strategy extensively throughout the 1980s as it faced intensified competition. Employees were given three months to find a job in HP and were helped to do so. If they could not find an equivalent level job, they were offered a lower level job. If they preferred

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