Downsizing Will Never Be Rightsizing

The recession has had a devastating economical effect on many companies. They have seen a tremendous decline in profitability. While companies grapple with the struggling economy members of upper management desperately search for quick solutions. For some reason company's believe that by reducing its workforce it will eradicate its financial problems. In corporate America sometimes downsizing does more damage rather than good.

For years companies have resorted to downsizing; they think that it will put them on the road to financial recovery. Several years ago there were some people in corporate America that felt the word "downsizing" sounded too negative, so they began to refer to it as rightsizing. Regardless of what it is called the culprit is still the same. The end result of downsizing unfortunately will always be someone losing their job. Upper management may have good intentions in terms of the growth and development of an organization but I assure you that there is nothing positive about downsizing. The talk about downsizing is by no means a laughing matter. Anytime someone's livelihood is affected by an impulse decision it is never good. When downsizing takes place it has a very negative impact on the remaining employees; they are now going to be highly insecure about their jobs. They will be working with the fear that their jobs might be next on the list to be eliminated. In essence downsizing also affects employee morale and productivity.

Downsizing should be a company's last resort in its efforts to reduce costs; it should not be used as a contingency planned. There are many other alternatives to downsizing to reduce costs. If downsizing is considered maybe management should start with some of those corporate fat cats, many of which are overly compensated. They have enjoyed hefty bonuses and expense accounts far too long. Many of these executives greed contributed to their company's financial collapse. I believe that company's use downsizing as an excuse to make up for bad financial decisions that were made by upper management. Regardless of what downsizing is referred to it never a good thing. It is only a company's temporary solution to a sometimes permanent problem.