LOGO HUMAN RESOURCE MANAGEMENT DOWNSIZING Group 2 - KD0605 (Huflit) Group 2 – Kd0605 HRM - Downsizing Group 2 – KD0605 Nguyễn Thị Thúy Phượng Nguyễn Thị Duyên Anh Nguyễn Ngọc Thủy Tiên Nguyễn Thị Kiều Oanh Võ Thu Thái Ngân Tạ Minh Uyên Trần Thị Bích Ngọc (Leader) Content HRM - Downsizing Group 2 – Kd0605 I. Summary II. Answer questions III. Conclusion 1. List the elements in the company’s environment that will affect Scott’s suggested plan. How legitimate is the interest of each of these? 1. List the elements in the company’s environment that will affect Scott’s suggested plan. How legitimate is the interest of each of these? 2. Is it true that Scott should be concerned first and foremost with protecting the interest of shareholders? Discuss. 2. Is it true that Scott should be concerned first and foremost with protecting the interest of shareholders? Discuss. Summary Scott Wheeler is a human resource director at International Forest Products Company (IFP) in Ouachita County, Arkansas. IFP employs almost 10% of the local workforce, and few alternative job opportunities are available in the area. Group 2 – Kd0605 HRM - Downsizing Summary Because of the economic recession, Mr. Scott had got the word at a private meeting with the President, Mr. Deason that they would have had to cut the workforce by 30% on a crash basis. Mr. Scott had been to get back to Mr. Deason within a suggested plan. Mr. Deason had depended on Mr. Scott to provide at least a workable approach. HRM - Downsizing Group 2 – Kd0605 Summary Mr. Scott had to consider some aspects to make a final choice: How the union would have reacted. The union would have tried to protect as many jobs as possible. The impact on the surrounding community to consider. To ensure that the costs had just been as low as those of their competitors. To protect the interests of their shareholders. HRM - Downsizing Group 2 – Kd0605 Answer question 1 1. List the elements in the company’s environment that will affect Scott’s suggested plan. How legitimate is the interest of each of these? HRM - Downsizing Group 2 – Kd0605 HRM - Downsizing Group 2 – Kd0605 The environment factors are divided into two groups The external factors The internal factors The external factors HRM - Downsizing Group 2 – Kd0605 The The external external factors factors 1 1 7 7 3 3 5 5 9 9Society Labor force Shareholders Economy Customers 4 4 6 6 8 8 10 10 2 2 Legal Consideration CompetitionCulture Technology Union The internal factors HRM - Downsizing Group 2 – Kd0605 Informal Organization Employees Management style of upper managers Corporate Culture Policy Mission Other Units of the organization Labor management agreement The internal factors [...]... above all else” HRM - Downsizing Group 2 – Kd0605 Downsizing will affect: Increase unemployment  Strike, uprising, social evil… HRM - Downsizing Group 2 – Kd0605 Downsizing will affect: Affect society Affect Company (how can the company work in an unstable society?) HRM - Downsizing Group 2 – Kd0605 Downsizing will affect: Unnerving Upsetting Affect employees in company: HRM - Downsizing Stressful... other companies companies Group 2 – Kd0605 Downsizing is used when: Employees: when observing a troubled market or working for a struggling company Terminated Fired Employees Release Laid off Made redundant HRM - Downsizing Group 2 – Kd0605 Downsizing is used for: Take steps to make it run smoothly while assuring valued employees that their job’s secured HRM - Downsizing Group 2 – Kd0605 It is true that... these: HRM - Downsizing Group 2 – Kd0605 Answer question 2 2 Is it true that Scott should be concerned first and foremost with protecting the interest of shareholders? Discuss HRM - Downsizing Group 2 – Kd0605 Downsizing is used when: A business: when the market is tight Optimized Optimized Right sized Right sized Experiencing a reduction in Experiencing a reduction in workforce workforce HRM - Downsizing. .. uncertain about whether/ not they’ll continued to employed Group 2 – Kd0605 Downsizing will affect: Affect the output capacity and the quality of the product HRM - Downsizing Group 2 – Kd0605 Conclusion Scott has to concern first with the interest of shareholders; however they need to find other strategies instead of downsizing HRM - Downsizing Group 2 – Kd0605 Conclusion Decreasing Decreasing salary salary... promotions promotions to satisfy to satisfy customers customers needs & wants needs & wants to increase sales to increase sales & profits & profits The support The support from from government government HRM - Downsizing Group 2 – Kd0605 Group 2 – Kd0605 LOGO . & want to have profits Downsizing will affect: HRM - Downsizing Group 2 – Kd0605 Increase unemployment  Strike, uprising, social evil… Downsizing will affect: HRM - Downsizing Group 2 – Kd0605 Affect. Downsizing Group 2 – Kd0605 HRM - Downsizing Group 2 – Kd0605 The environment factors are divided into two groups The external factors The internal factors The external factors HRM - Downsizing Group. society?) Downsizing will affect: HRM - Downsizing Group 2 – Kd0605 Affect employees in company: Unnerving Upsetting Stressful Feel uncertain about whether/ not they’ll continued to employed Downsizing