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The downside of downsizing: managing an organization to its right size
Author(s) -
Orpen Christopher
Publication year - 1997
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/(sici)1099-1697(199707)6:4<195::aid-jsc249>3.0.co;2-p
Subject(s) - popularity , business , process (computing) , marketing , industrial organization , organizational effectiveness , operations management , management , economics , computer science , political science , law , operating system
Why do organizations downsize, and does it impose organizational effectiveness? The article argues that the popularity of downsizing derives from its immediate impact on profits, rather than any intrinsic benefits for organizational effectiveness. Drawbacks of downsizing are identified. These are often overlooked by managers who are eager to follow the fashion. Better alternatives to downsizing are discussed. Recommendations are given for managing a process that reduces the organization to the right size. © 1997 John Wiley & Sons, Ltd.