CEO of ABC Company has observed inefficiency of staff members. He doesn’t want to fire people from the company and also the objective is to increase the efficiency rather to decrease the cost. Some advisors advise CEO to hire more people to overcome this problem and some are saying that existing staff needs training and development. The matter of fact is that the existing staff is capable enough and has the ability to perform better. But there is a problem that few managers are very influential and put negative impact on other employees. They are politicizing the organization, forbade employees to work hard and create messy situation. On the other hand Jobs are well defined and assigned tasks are specific so removing any person may create problem in running operations. CEO is now thinking to replace these culprits (managers) only with some efficient and professional people to overcome this problem and the best solution to increase the overall productivity of the organization.
In your opinion what CEO is going to do; Downsizing or Rightsizing? Give reason in one sentence only (reason should not exceed more than 30 words to avoid negative marking).
In your opinion what CEO is going to do; Downsizing or Rightsizing? Give reason in one sentence only (reason should not exceed more than 30 words to avoid negative marking).
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Hello, as we all know that copying and cheating is prohibited in vu, so am uploading this file so that u can actually understand the difference between righsizing and downsizing and than write the answer in your own words. all the best !!!
1. Rightsizing and downsizing are both buzzwords that have gained popularity among business and management circles. Both these words represent an approach to management functions of manpower planning and staffing.
Rightsizing, which gained popularity before the other word, refers to reducing the the total size of the manpower employed by the company to cut down on cost. Implicit in this practice is an assumption that the company being downsized is essentially over staffed and that performance levels can be maintained or even improved by reducing manpower. Plain retrenchment of the employees, or with some scheme of voluntary retirement accompanied by one time compensation were the primary means of achieving downsizing.
To some extent, the practice of downsizing resulted in making companies more efficient and cut down cost. Bur in many cases companies found that that in the process of downsizing they have also thrown out the baby with the bath water. The found that the people given voluntary retirement were performing useful function which cannot be handled effectively by the remaining staff. Also it was found that in may cases the alternative of sub-contracting is neither economical nor effective.
Realizing these problems, the experts and management consultants coined a new term - rightsizing. In theory the term rightsizing implied that companies should determine and maintain and level of employment "right" for its requirement. This is precisely what the traditional function of manpower planning and staffing are supposed to achieve. However, done in the traditional way, it becomes a slow and activity and lacks the glamour associated with latest management fads. So, under the name of rightsizing companies continue to practice downsizing - perhaps with some extra caution.