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Will you uphold a Company employees-downsizing policy to generate more profits which is getting common in ME as well?

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Question added by Muhammad Farooq , Plant Operations and Project Manager , WR Grace
Date Posted: 2013/11/16
Khaled Alhassoun
by Khaled Alhassoun , Consulting Management - Senior manager , Price waterhouse Coopers

sometimes, it might be part of a solution

As a manager I would uphold any legitimate company policy but if I felt it would be counter productive I would make my thoughts known.

At the end of the day the directors run the company, they make the policy and employ people like me to enforce that policy, if not - I will be part of the down-sizing and replaced by someone who will comply.

Tanveer Ahmad Niazi
by Tanveer Ahmad Niazi , CEO (Self-employed) , Project Management Training & Consultant

I am fully agree with Steven Earnshaw

I believe you asked a great question that is particularly applicable in our region, as we have companies that start business and expand like a bubble due to certain abnormalities in business environment in previous years with limited future planning, then reaches a stage where it cannot withstand its huge cost base and this is where companies try to downsize, some problems I saw with downsizing are the following:

  • Fear will result to have the most talented leave first, as they cannot afford being off work, and for them it’s easy to find alternatives
  • Most of the times, companies look to payrolls first, and try to fix them, rather than seeing areas of inefficiency, and try to reduce them
  • Companies in downsizing efforts get short sighted (myopia), they take easy but costly options, like closing down R&D, letting go core workers (who actually get the revenue), and stop investing in products and services

Hence, I would agree to a right-sizing that looks in all directions, and that assures having professionals to perform this task rather than attempting to just create a smaller organization that may backfire on it (such as reducing sales team while you need to increase sales).

Ahamed Shareef
by Ahamed Shareef , Divisional Head - Quality Assurance , Apollo Tyres Ltd

Downsizing is more linked to managing finances in unstable market conditions to ensure stakeholder needs to met, than making profits. In other words, in a growing market companies make recruitment to ensure they capture the opportunities. It is a game of sustenance or survival in troubled market condition! as we dont want value of our share or stake holder value to drop.

amer jayyousi
by amer jayyousi , Business Development Consultant , freelance

i believe downsizing  is a result of poorly managed corporation and  a recipe for disaster.

if a company can't restrucure and improve operations and profits within a set timeframe,failure will cause the outcome of downsizing.

a well managed corporation or company adjusts as they go without upsetting the process of improvement,if they fail,then they will decide to resort to employee-downsizing,operations cuts ,facilities and showroom shut downs,....etc.

i believe downsizing is the beggining of downfall.

restructuring through downsizing is the inability of management to meet its duties and bring the company to a profitable state.

Wayne Greiner (MBIFM)
by Wayne Greiner (MBIFM) , Engineering/ Facilities Manager. , Hertfordshire Constabulary

Steven Earnshaw has hit the nail on the head with this one, at the end of the day a company policy is a company policy regardless of what the outcome is and whether you agree with it or not it must be upheld at all times.

Mohammad Tohamy Hussein Hussein
by Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

That depends on my position within the company. If that policy is within my circle of concern, I will uphold the policy and raise my concerns (if I have any). If the policy is within my circle of influence and I participated in approving the policy, I will uphold the policy and implement it and sell it to all partiese. If I didn't participate in approving the policy, I will uphold the policy and discuss any concerns I might have with the company's management to influnce it if I can.

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