¶ … Layoffs and Downsizing in California
Business entities are established on the basis of profit making. As a result, they ensure that profit margins are maintained by balancing the levels of expenditure as compared to their revenues. When faced with hard economic situations such as the recession that was realized in the year 2008, entities refer to cutting their expenditures, a move that include layoffs of workers as operations are streamlined. This paper seeks to discuss the impacts that were felt in California due to downsizing of organizations and subsequent layoff of workers.
Recession in California
The economic crisis that was realized globally in the year 2008 was greatly felt in the state of California just as experts had predicted. A review of the economy of the state that was characterized with a lot of weaknesses indicated immense effects that would be felt by residents of the state as compared to other regions of the United States. This was due to the background that the California had exhibited prior to the period. The volatility of its economy together with the sub-prime mortgage crisis that had been realized threatened the state's stability and was expected to run down even if other states in America could be able to withstand the threat of economic meltdown. The mortgage crisis had for example run down the housing industry and spread to affect other sectors such as financial institutions that suffered losses. The economy of California is also identified to be on either extreme in the general consideration of the economy of the United States. It poses the best performance in good times and the worst in bad times. The trend repeated itself in the year 2008 as the state was greatly affected by the recession forcing organizations and employers to make adjustments into systems for sustainability in the difficult time....
Downsizing The Effects of Downsizing A noted scholar recently assessed downsizing as "probably the most pervasive yet understudied phenomenon in the business world" (Cameron, 1994). While we have become numbed by the near daily accounts of new layoffs, a New York Times national survey finding is perhaps more telling: since 1980, a family member in one-third of all U.S. households has been laid off (New York Times, 1996). By some measures, downsizing
downsizing on Manufacturing Industries The amount of information on the effects of down sizing on manufacturing was not plentiful, however one main point that flows through all of the articles is that even though down sizing may be done to help a company it can end up hurting them in the long run. In the paragraphs to follow we look at the effects that downsizing has on people and companies
Boosting Employee Morale After Downsizing Downsizing has become a significant idea in today's economy and maintaining the trust of employees when something like this takes place has also become very serious business (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). The question is not whether a company should downsize their employees but how to do the downsizing properly so that as few employees as possible are injured (Brockner, Konovsky, Cooper-Schneider, Folger,
The likes of service oriented companies like America Online (AOL) is a prime example of how relocation and outsourcing has changed the way service oriented businesses function in this global economy. AOL continues to be one of our nation's most intelligent economic organizations as they take advantage of the outsourcing for the majority of their customer oriented operations. When an AOL customer calls in to have his password reset
Dismissal Meeting As Manamela (2000) notes, employers who are conducting dismissals for whatever reason need to be able to prepare for the dismissal meeting, by understanding why the dismissal is occurring and how the dismissal will be communicated to the employee. One of the most important considerations, one that will guide the dismissal meeting, is whether or not the dismissal is "fair" or "unfair" (Earnshaw, Marchington & Goodman, 2000). This means
If it is just generally assumed that these employees are lazy or do not care about their job, they will often be the object of anger from other employees. If other employees and management would talk to these employees and determine what could be done to help them, it is quite possible that simple accommodations can be made that will keep everyone happy and help to dissipate the anger
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