THE PRIORITY DIRECTIONS OF NATIONAL ECONOMY DEVELOPMENT
DOWNSIZING - AN EXIT STRATEGY FROM THE CRISIS?
Miladin Jovičić, Milena Mirković
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
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