Downsizing is good or bad? If it's bad, how do we cope with its effects?


In the article, dealing with the effects of downsizing, in The Hindu newspaper the author discusses the issue of how to cope with the effect of downsizing. The author says that although downsizing has good effects on organization in some situations, it also has bad effects on organizations and its employees who remained there. Downsizing might help organizations cope with economic pressures, it might increase efficiency, but it could put employees down in different ways. It brings the shame of defeat, and it destroys the future of loyal employees. The remaining employees might also face psychological issues if downsizing occurs. Employees will lose self-esteem; they will lack initiative, and they might also feel guilty for remaining with the company laid their friends off. The book also mentions that those employees who retain their job might feel frustrated, anxious, and lost because of t

he stress, the increased workload, feeling guilty, and unfair (p216-217). However, to cope with the effects that downsizing brings, some tips were proposed. Firstly, employees must be aware of the reasons of the organization making such a decision about downsizing through an honest communication. Secondly, employees should question themselves honestly about issues concerning their feeling toward their job and how they’re going to satisfy themselves in the certain position and situation they occupy instead of thinking about the existing problem. Thirdly, employees should perceive the situation brought by downsizing as an opportunity that they should exploit for advancement for their career. Also, employees should be secure about their jobs because otherwise, downsizing will be perceived as threat if they were insecure. Furthermore employees should give themselves priority in doing their jobs. And finally, employees must not get discouraged; yes, it might be a-bad-depressing process, but it’s a fact and it happened thousands times before to millions of people. The book says that managers can help employees cope with such a problem by creating an open discussion about how the employees feel such as guilt, anger, and anxiety (p217).