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Downsizing: The cure that can kill
Author(s) -
Roth William F.
Publication year - 2009
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.20287
Subject(s) - profitability index , productivity , cites , revenue , business , key (lock) , industrial organization , operations management , marketing , economics , finance , computer science , economic growth , computer security , fishery , biology
In a tough economy, many U.S. businesses turn to downsizing as a quick cost‐cutting strategy. The author argues that the price isn't worth it, and that operational effectiveness, not efficiency, is the key to survival. The author discusses the systemic effects of downsizing and the impact on longer‐term productivity. He cites alternatives to downsizing taken by Nugget Market, Dorner Mfg. Corp., and Lincoln Electric and then explores the case of an organization that rejected layoffs and instead utilized all its employees' expertise to design and implement improvements that produced increased productivity, revenue growth, and higher profitability. © 2009 Wiley Periodicals, Inc.