What is an organizational reduction?

Organizational reduction is a step of the company to reduce the costs and use of resources due to decreasing profits, reorganization of corporate structure or by changing the company's operations. The disadvantage of reducing the organization is that it often relies on the release of workers, reduce salary and bonus and loss of equipment and advantages for the remaining workers. Properly, organizational reduction can lead to revitalization of efficiency and clarified vision and set of values ​​for the future.

There are many reasons why the company may decide to reduce its workforce or resources. One of the main reasons is the decline in profits, sales or macroeconomic shifts leading to declining business. To survive for a long time, society may need to shrink to stay above the water on the lowered market. Merging with another company can also lead to a reduction, as both businesses can have excess jobs and even departments that will require the release and reduction of vnity corporate make -up. CompanySometimes they also embark on an organizational reduction program within the restructuring plan to increase efficiency, reduce costs and commit to a new organizational strategy.

When an organization announces a planner to reduce, the workplace can develop a very different atmosphere overnight. People can properly worry about the future of their work and competitive behavior, and even sabotage is not unheard of in these circumstances. Workers may feel betrayed by their executives and feel angry at high salaries and bonuses that go to society higher while being released with a lower end. However, the size reduction can also be an opportunity for managers and workers to join and create a fixed commitment to each other in an effort to keep as far as possible as possible.

Some commercial experts suggest that companies can do a lot of calmness causedorganizational reduction through the correct preparation. The offer of severance packages, incentives of timely retirement and re-training of jobs can help to release employees with some funds to help. Companies can also help create programs that help former employees with tax and insurance issues caused by the loss of their employment. It may also help ensure that the reduction is nationwide rather than focusing on a specific department or level of employment; If the aim of the reduction is to eliminate inefficiency and waste, this goal can be better met by using standards to all employment levels.

Organizational reduction may also include a reduction in resources in the workplace and people. This can mean restrictions on employees' equipment and programs such as gym membership, company cars and Cafeteria services. Employee services such as medical clinics, workshops and educational assistance can also be reduced. EcOnomization through the entrepreneurship can help reduce waste and at the same time potentially allow more jobs to be maintained.