Many synonyms such as downsizing exist, most of which are euphemisms and more abstract descriptions of the process, most of which can also be used for more inclusive processes than that of reducing the number of employees. Downsizing is the "conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness". Since the 1980s, downsizing has gained strategic legitimacy. Indeed, recent research on downsizing in the U.S., UK, and Japan suggests that downsizing is being regarded by management as one of the preferred routes to turning around declining organisations, cutting costs, and improving organisational performance, most often as a cost-cutting measure.
"Mass layoff" implies laying off a large number of workers. "Attrition" implies that positions will be eliminated as workers quit or retire. "Early retirement" means workers may quit now yet still remain eligible for their retirement benefits later. While "redundancy" is a specific legal term in UK labour law, it may be perceived as obfuscation. Firings imply misconduct or failure while layoffs imply economic forces beyond the employer's control, especially in the face of a recession such as the one that began in the late 2000s.
Certain countries (e.g. France and Germany), distinguish between leaving the company of one's own free will, in which case the person isn't entitled to unemployment benefits and leaving a company voluntarily as part of a reduction in labour force size, in which case the person is entitled to them. An RIF reduces the number of positions, rather than laying off specific people, and is usually accompanied by internal redeployment. A person might leave even if their job isn't reduced, unless the employer has strong objections. In this situation, it's more beneficial for the state to facilitate the departure of the more professionally active people, since they are less likely to remain jobless. Often they find new jobs while still being paid by their old companies, costing nothing to the social security system in the end.
There have also been increasing concerns about the organisational effectiveness of the post-downsized ‘anorexic organisation’. The benefits, which organisations claim to be seeking from downsizing, centre on savings in labour costs, speedier decision making, better communication, reduced product development time, enhanced involvement of employees and greater responsiveness to customers (De Meuse et al. 1997, p. 168). However, some writers draw attention to the ‘obsessive’ pursuit of downsizing to the point of self-starvation marked by excessive cost cutting, organ failure and an extreme pathological fear of becoming inefficient. Hence ‘trimming’ and ‘tightening belts’ are the order of the day (Tyler and Wilkinson 2007)
Category:Termination of employment Category:Labour law Category:Employment compensation Category:Offshoring Category:Euphemisms
ca:Acomiadament col·lectiu de:Entlassung fr:Licenciement collectif nl:Ontslag (arbeid) no:Permittering ja:レイオフ pt:Downsizing ru:Временное увольнение sv:Permittering fi:Lomautus zh:裁員This text is licensed under the Creative Commons CC-BY-SA License. This text was originally published on Wikipedia and was developed by the Wikipedia community.
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