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DOWNSIZING  & BUSINESS REORGANIZATION Economics Analysis – MRB 1012 IBS – MBA UTM, SKUDAI
DEFINITION ,[object Object],[object Object],[object Object]
INTRODUCTION ,[object Object],[object Object],[object Object]
WHY MIGHT DOWNSIZING FAIL TO IMPROVE THE ECONOMIC POSITION OF A BUSINESS ?
IMPLEMENTATION STRATEGIES ,[object Object],[object Object]
Short-term cost savings Quick payback Long-term adaptability Inhibits Long term payoff Moderate-term payoff Short-term payoff Temporal Target Extended Moderate Quick ImplementationTime Status quo processes Work People Target Culture Jobs and units Workers Focus Systemic Strategy Organization Redesign Strategy  Workforce Reduction Strategy
[object Object],[object Object],[object Object],[object Object],[object Object],THE  MICROECONOMIC  EFFECTS OF DOWNSIZING
[object Object],[object Object],[object Object],[object Object],THE  MICROECONOMIC  EFFECTS OF DOWNSIZING
Back To Basics:  The Demand For Labour & The Determination Of Wages. ,[object Object],[object Object],[object Object],[object Object],SHIFTS IN THE DEMAND FOR LABOUR
EFFECTS OF DOWNSIZING IN THE LABOUR MARKET W1 W2 D1 D2 S1 S2 Q1  Q2
THE  MACROECONOMIC  EFFECTS OF DOWNSIZING Downsizing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Downsizing,  Productivity & Growth ,[object Object],[object Object],Hence the “easy way out” –  TO DOWNSIZE !
Short & Long Run ,[object Object],[object Object],[object Object]
THANK YOU ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Downsizing & Business Reorganisation

  • 1. DOWNSIZING & BUSINESS REORGANIZATION Economics Analysis – MRB 1012 IBS – MBA UTM, SKUDAI
  • 2.
  • 3.
  • 4. WHY MIGHT DOWNSIZING FAIL TO IMPROVE THE ECONOMIC POSITION OF A BUSINESS ?
  • 5.
  • 6. Short-term cost savings Quick payback Long-term adaptability Inhibits Long term payoff Moderate-term payoff Short-term payoff Temporal Target Extended Moderate Quick ImplementationTime Status quo processes Work People Target Culture Jobs and units Workers Focus Systemic Strategy Organization Redesign Strategy Workforce Reduction Strategy
  • 7.
  • 8.
  • 9.
  • 10. EFFECTS OF DOWNSIZING IN THE LABOUR MARKET W1 W2 D1 D2 S1 S2 Q1 Q2
  • 11.
  • 12.
  • 13.
  • 14.