Book DescriptionFirms that restructure through downsizing are not more profitable than those that don't, and often end up hurting themselves in the long run. Responsible Restructuring draws on the results of an eighteen-year study of S&P 500 firms to prove that it makes good business sense to restructure responsibly-to avoid downsizing and instead regard employees as assets to be developed rather than costs to be cut.
Wayne Cascio explodes thirteen common myths about downsizing, detailing its negative impact on profitability, productivity, quality, and on the morale, commitment, and even health of survivors. He uses real-life examples to illustrate successful approaches to responsible restructuring used by companies such as Charles Schwab, Compaq, Cisco, Motorola, Reflexite, and Southwest Airlines. And he offers specific, step-by-step advice on what to do-and what not to do-when developing and implementing a restructuring strategy that, unlike layoffs, leaves the organization stronger and better able to face the challenges ahead.
Table of Contents
- Cover Page
- Title Page
- Copyright Page
- List of Exhibits
1: Restructuring in Perspective
- THE ECONOMIC LOGIC THAT DRIVES EMPLOYMENT DOWNSIZING
- DIRECT AND INDIRECT COSTS OF LAYOFFS
- IS RESTRUCTURING A BAD THING TO DO?
- RESPONSIBLE RESTRUCTURING— WHAT IS IT?
- EMPLOYMENT DOWNSIZING— THE JUGGERNAUT CONTINUES
- THE HUMAN AND FINANCIAL TOLL
- THE EFFECT OF POOR LABOR RELATIONS ON PRODUCT QUALITY
- THE PAYOFF FROM TREATING EMPLOYEES AS ASSETS
- 2: The Financial Consequences of Alternative Restructuring Strategies
3: A Baker’s Dozen Myths versus Facts about Downsizing
- MYTH #1 ∎ Jobs are secure at firms that are doing well financially.
- MYTH #2 ∎ Companies that are laying off workers are not hiring new ones.
- MYTH #3 ∎ Downsizing employees boosts profits.
- MYTH #4 ∎ Downsizing employees boosts productivity.
- MYTH #5 ∎ Downsizing employees has no effect on the quality of products or services.
- MYTH #6 ∎ Downsizing employees is a one-time event for most companies.
- MYTH #7 ∎ Since companies are just “cutting fat” by downsizing employees, there are no adverse effects on those who remain.
- MYTH #8 ∎ Most employees are surprised to learn they’ve been laid off. They ask, “Why me?”
- MYTH #9 ∎ At outplacement centers, laid-off employees tend to keep to themselves as they pursue jobs.
- MYTH #10 ∎ The number of employees let go, including their associated costs, is the total cost of downsizing.
- MYTH #11 ∎ Violence, sabotage, or other vengeful acts from laid-off employees are remote possibilities.
- MYTH #12 ∎ Training survivors during and following layoffs is not necessary.
- MYTH #13 ∎ Stress-related medical disorders are more likely for those laid off than for those who remain.
4: The Case for Responsible Restructuring
- ALTERNATIVE APPROACHES TO THE EMPLOYMENT RELATIONSHIP
- WHICH APPROACHES PRODUCE BETTER OUTCOMES?
- THE CAUSAL EFFECT OF MANAGEMENT PRACTICES ON PERFORMANCE
- THE FINANCIAL IMPACT OF EMPLOYEE ATTITUDES ON FIRM PERFORMANCE
- POLICIES AND PRACTICES THAT LEAD TO HIGH PERFORMANCE
- BUSINESS CONCEPT INNOVATION
- WHAT BUSINESS CONCEPT INNOVATION IS NOT
5: Responsible Restructuring— Alternative Strategies
- CHARLES SCHWAB & COMPANY
- COMPAQ COMPUTER
- CISCO SYSTEMS, ACCENTURE, AND MOTOROLA
- STATE OF CONNECTICUT, DEPARTMENT OF LABOR, AND REFLEXITE CORPORATION
- INTEL, CHEVRONTEXACO, AND MINNESOTA MINING AND MANUFACTURING COMPANY (3M)
- ACXIOM, INC.
- SAGE SOFTWARE, INC.
- LOUISIANA-PACIFIC CORPORATION
- PHILIPS ELECTRONICS SINGAPORE
- PROCTER & GAMBLE COMPANY
- 6: The Virtues of Stability
- 7: Responsible Restructuring: What to Do and What Not to Do
- About the Author
- Title: Responsible Restructuring
- Release date: September 2002
- Publisher(s): Berrett-Koehler Publishers
- ISBN: 9781605095677