Basu (2012), “rightsizing is the strategic response of a small or large business to changes in business and economic conditions” (para. 1). Rightsizing deals with the reduction in workforce and operating expenses to keep a balanced cash budget operating within a company. Companies’ analyze their cost structures based on the amount of work the company has and the availability of employees. Many times it requires companies to adjust their staffing levels and costs to avoid a reduction in their revenue. This can be detrimental to a company if their budget is not balanced based on the revenue and employees it has to operate. InterClean has made the decision to merge with EnviroTech to create the largest company in the sanitation industry. The merger enables InterClean to maximize its sales goals and increase its revenue. Customers will be presented with a vast amount of solutions to their sanitation problems by merging the products and services of both companies. This can be a major concern for customers and would help to meet their ever-growing expectations. InterClean will be required to train and educate employees on governmental regulations to ensure their compliance with the industry standards. Employees of both companies must be aware of the goals and mission of InterClean to ensure they align with the expectation of the employees from EnviroTech. Employees should be knowledgeable and experienced in how the products work and how well the products will help customers needs. InterClean will need to direct its focus of rightsizing to the skills of their staff and how knowledgeable they are in performing their jobs. According to Gallup (2012) rightsizing is done to “gain control of payroll costs and to maximize returns on wage expenses” (para. 1). InterClean would look at the expenses in gaining additional employees from EnviroTech and make the decision to right size based on the amount of work the company will have for all employees. Rightsizing occurs when organizations are looking to reduce costs and because labor costs represent a huge part of a company’s total costs” (Noe, Hollenbeck, Gerhart, & Wright, 2008 p. 192). Because the company is merging with another company, there may be changes to technology based on the way labor was previously done. The company may believe because they will use more machinery to process jobs, not as many employees will be needed with the new company. The decision will be based on the employees who have the skills and know how to conduct the jobs and get the job done. InterClean can create multifunctional teams with employees from both companies. This will create a more productive and creative workforce and not require extensive training across different regions of the company. Managers will be provided with training on how to handle the teams and provide feedback and development that may be required as a result of the merger. Rightsizing may not always be the best option, depending on what cost analysis is done to determine the needs of the company. Rightsizing cause risk to companies to lose valuable and skilled employees. Voluntarily rightsizing occurs when employees leave because of the new direction of the company. Rightsizing can be emotional on many employees because they will be concerned with the future of the company and where they fit in. Many employees decide to seek employment elsewhere for fear they could be laid off in the future if the company decides to take a new direction. Companies can alleviate the pressure employees feel by communicating to them the direction of the company and providing them with continuous training to further advance their skills. This will enable them to move to other areas internally. InterClean can offer employees the option to take furlough days and still be active employees. InterClean can look to offer early retirement packages to employees close to retirement. This can help to avoid downsizing the
transfers. FedEx prides itself in the understanding of their customers and employees, and strive to have answers to the following questions: (1) What is expected of me, and what do you want me to do; (2) What is in it for me; (3) Where do I go to resolve a problem (Anthony, Kacmar, & Perrewe, 2010, p.599). In order for the company to continue to have a satisfied workforce, the following must be addressed: (1) how technology and layoffs could affect the companies organization culture and what steps can be…
employee layoff. When the economy — or a company’s business — goes south, the quickest way a company can chop its costs is by laying off its employees. It’s never popular and often companies will try other cost-cutting measures long before they have to cut workers, but if you’re among those who get the pink slip, you don’t really care. You just lost your job. For many, being laid off is something that will be unexpected and shocking. Unless you work in a seasonal industry where layoffs occur with…
something to meet the losses in slack sales periods caused by too many workers such as layoff. However, such behavior is deviate from the company’s fundamental tenet for this company take the concept that apparel manufacturing should treat worker as well as possible. b) Reasons for such ethical issue are 1) it is the company’s inception that it should treat employees well, so it is intolerable for the behavior of layoff, but 2) the reality force has to do something to cover the loss. Therefore, American…
9-396-324 REV: MAY 13, 2008 KATHLEEN VALLEY VICTORIA MEDVEC Adam Baxter Company/Local 190 1985 Negotiation Baxter Management Confidential Information 1 It is July 18, 1985, exactly one month prior to the expiration of the contract established in the 1978 labor agreement. In the 1981 wage negotiation between the International AFL/CIO and a number of the food processing companies including Baxter, the base wage rate was frozen at $10.69. Following significant changes in the industry, wages were…
decisions will affect employees and the long term business sustainability. Labor relations is a broad field encompassing all the myriad interchanges between employers and employees. While labor relations is most often used to discuss this exchange as it pertains to unionized employees, it may also refer to nonunion employees as well. Labor relations are dictated in a large part by the government of a nation and the various regulations it provides regarding the treatment of employees. The forming…
groceries, which are exchanged for money. This in returns will allow the grocer to purchase more wholesale goods, therefore selling more merchandise in the store. In addition that money that the grocer spends allows wholesalers and distributors to pay employees and to make payments to manufacturers for the product. However, the chain does not end there; the manufacturers have to get resources from farmers. Through the entire chain of purchasing, each transaction or sale is taxed, and the government is…
system Purchasing of Groceries To buying of groceries affects the government because the demand of groceries at price level has to cover production and wages for employees working at the grocery store. All of this factors as output generated to GDP for the economy. Massive Layoff of Employees People are forced into unemployment due to layoffs in their company for whatever reason can affect the government to lower the price level also it discourages…
American clothing company is it has to do something to meet the losses in slack sales periods caused by too many workers such as layoffs. However, such behavior is deviated from the company’s fundamental tenet for this company take the concept that apparel manufacturing should treat worker as well as possible. b) Reasons for such ethical issue are 1) Treating employees well is the company’s core belief. Randomly laying off workers contradicts to the values, but 2) the reality force determines that…
massive layoff of employees, and a decrease in taxes. When purchasing groceries the effect on a household is the amount of groceries can be purchased from the store. The effect on a business is that the store wants to get the households money to stay in business and out do their competition. Purchasing groceries can affect the government because of the taxes they impose on the price of the groceries, which in turn will also determine how much a household can buy. A massive layoff of employees can…