The Impact of Downsizing on Human Resource Management

The Impact of Downsizing on Human Resource Management The workplace is constantly changing each day and the job of the Human Resource Manager is constantly changing to keep up with these changes. It is important for the Human Resource Manager to stay attuned to the various changes and make sure the corporation is productive during the changes as this can affect the profits and profitability of the company. One of the major problems in the workforce today is downsizing and the impact that downsizing has on Human Resource Managers and the programs they must implement and communicate to the employees of the corporation and follow any legal requirements that are in place at the time of the downsizing. The Human Resource Manager must make†¦show more content†¦This can cause problems for Human Resource Managers because they now have an employee of force of less experienced people. Another form of downsizing is Early Retirement Incentives which lets the employee pick a date in the future to retire and earn a sizable amount more in retirement benefits. This plan has several drawbacks, which includes costing the company more money when they are trying to cut costs and leaves the company with the same problem of employees with less experience. This plan should be a last resort alternative due to the high cost of the plan and the fact that the date is in the future which could affect profitability if the market changes. If the market improves, the company can now keep the worker but still has to pay out the larger amount of the retirement benefits. Another downsizing plan available to Human Resource Managers is the compulsory termination, which means the employer lays the employee off without any benefits or severance package at all. This hurts the employee and this normally happens when a plant closes or job elimination of departments or divisions within the company. This plan is not the best plan but happens when there are factors that are beyond the control of a company. When a plant closes because there is no work available to the employee, this is the only option available and the company probably closes and does notShow MoreRelatedHuman Resource Management1748 Words   |  7 PagesModule 1 – CASE HUMAN RESOURCE MANAGEMENT; CHALLENGES AND CHANGES Case Assignment In today’s job market we see many human resource management changes and challenges evolving with the changes in a competitive market environment. One goal of the human resource department is to hire employees that will be as productive as possible, which in turn leads to more revenue and the success of an organization. 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