Thompson Technologys Management - Paper Example

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618 words
Middlebury College
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While preparing to implement downsizing in the organization, some of the strategies that the managers of the company should put in consideration are the need to redesign the organization and change the attitudes, values and general organizational culture. It is essential that the organization prepares for the ripples that come with downsizings, such as panic within the workforce and generalized worry among shareholders, that might negatively affect the value of the stock. They should consider explaining their decision, both to the shareholders and the employees, as done earlier, elaborating how the move is in line with the companys mission, vision, and objectives so that they gain their trust and confidence. Downsizing also requires the organization to set up a budgetary allowance in advance, that will cater for the send-off packages of the leaving employees. Strategic plans should then be put in place, to arrange for department merges, reallocation of tasks and other alternative measures such as adoption of technology (Cameron et al, 1993).

In order to guarantee longterm results for the employees and the organization at large, the number of workers can be reduced through various strategies such as offering early retirements, buying out employees, transferring or outplacing the employees to other organizations, and adopting job banks, where employees are kept in waiting, while under minimal compensation, until the company can manage to absorb them as employees again. It is not recommended for the organization to conduct mere layoffs and firings, as these would greatly affect the relationship between the remaining employees and the organization. They will remain in anxiety and fear, in worry of losing their jobs as well in future, and hence the loyalty between them and the management will be compromised. The adopted downsizing strategies must also be implemented in line with the existing federal and state laws, the requirements of labor unions and with respect to employment contracts, so as to avoid future lawsuits that would taint the organizations reputation (Cameron et al, 1993).

After the organization has successfully implemented the downsizing, its new responsibilities towards the downsized employees include setting up outplacement services to help them get jobs elsewhere, conducting exit interviews and offering recommendations that would boost their future search for employment, rewarding the leaving employees with send-off packages and rewards as per the law and company policies and maintaining any relationships that may have previously existed between the two parties. With regard to the remaining employees after staff reduction, the organizational leaders and the residual HR department, in particular, need to communicate the new changes clearly and explain how the remaining employees contribute to the organizations success. There needs to be a reallocation of job responsibilities, taking care to allocate tasks that employees can easily handle and keep them engaged. It is also important to conduct retraining, education, and development sessions, so as to assist employees to adjust to their new tasks and responsibilities. Even though the company is currently trying to minimise operation costs, it is crucial that the remunerations and benefits of employees are reconsidered. Surviving employees should be fairly rewarded for additional tasks that they undertake, and regularly motivated to increase their motivation levels. Motivation and engagement may also be boosted through conducting team-building activities, that would positively influence the relationships between employees themselves and with the leaders, and improve teamwork and efficient accomplishment of tasks (Noer, 2009). Through these strategies, Thompson Technology will be able to successfully wade through the waters of downsizing and in the end, achieve its goals and objectives.


Cameron, K. S., Freeman, S. J., & Mishra, A. K. (1993). Downsizing and redesigning organizations. Organizational change and redesign, 19-63.

Noer, D. M. (2009). Healing the wounds: Overcoming the trauma of layoffs and revitalizing downsized organizations. John Wiley and Sons.

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