downsizing & business reorganisation

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]

downsizing & business reorganisation

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