International Scientific Conference 2016

THE PRIORITY DIRECTIONS OF NATIONAL ECONOMY DEVELOPMENT

DOWNSIZING - AN EXIT STRATEGY FROM THE CRISIS?

,

Abstract:  In its managing functioning, the management of each company undertakes goes through a range of activities to improve organizational efficiency, productivity and competitiveness, depending on the current objectives. If a priority imposes to reduce costs and thus increases efficiency, it has been used frequently as a downsizing strategy for the last two decades. Downsizing is a decrease in the size of an organization, it usually goes through a reduction in the number of employees but it is not limited to this. As with any strategy, there are many pros and cons, and effects depend on the application. In order to be successful it has to be planned and actionned on time as a business part strategy and part of a specific company plan. However, even when the consequences of certain changes resulting of a market reduction and the poor results of the company, changes in technology and etc., with an adequate plan and its application, it can lead to positive results for a takeover. Otherwise, results can be negative for the employees as well as the company and to the entire economy.

Keywords:  Downsizing, efficient management, organization, organizational change, strategy

Published:   p. 197-206   PDF

ISC-2016



Faculty of Economics

Faculty of Economics Address:
Trg kralja Aleksandra Ujedinitelja 11
18000 Nish, Serbia
 
phones:fax:
+381 18 528 601+381 18 45 23 859
+381 18 528 689+381 18 45 23 268
 
email:  ekonomski(at)eknfak.ni.ac.rs
web: