as following
downsizing plans must take a holistic approach and include strategies in the following six fundamental HR areas (as depicted in Figure 1).
View Image -
Figure 1
1. Employee Involvement
Human resource leaders need to champion the involvement of employees in the downsizing initiative to build commitment. Organizations, who have had success in their downsizing actions, cite employee input as an important factor(Serving the American Public: Best Practices in Downsizing, 1997). Employees have intelligent, thought-out ideas about the organization and their work and should have an opportunity to express these ideas. Employees should be included in problem-solving sessions to gain their valuable input. This input will benefit the organization and will help to maintain, and if necessary, rebuild employee commitment.
Employee involvement during a downsizing initiative can take many shapes. For example, the author is employed by a manufacturing firm that went through a change initiative, which included downsizing. The organization established teams comprised of employees from all levels of the organization. These teams were authorized to challenge current practices, policies and procedures and to recommend changes. The teams came up with suggestions representing $21 million in savings in one year. The suggestions included outsourcing several areas of the organization, negotiating new contracts with internal and external vendors as well as changes in work processes. In addition, a "people" team recommended a downsizing plan that they perceived as fair to all employees. By this involvement in the initiative, employees felt valued and supported, which enhanced the rebuilding of their commitment to the organization.