Introduction to Management Sample

5Z7V0035 Logistics and Supply Chain Practices

Executive Summary

The report comes up with a description of the human resource management of the company. As a graduate trainee, the report included the details of the impact of downsizing or restructuring on employee engagement and motivation. The information is prepared based on the annual review prepared by the top company executives which shows a decline in sales along with an increase in operating costs. These actions were having an impact on the profits of shareholders. Due to this reason, the report asked the HR manager for an analysis of the impact of restructuring and downsizing on employee engagement and motivation. The information, therefore, included the details of the best possible strategies that will show the path forward to move the company forward with having the least impact on the staff morale.

Introduction

The Human Resource Management system of the organization is the part that handles the whole total management of the manpower division of the organization. It is the certain department of the organization that deals with the recruitment and selection of employees. As per Baker & Parkinson, that, the Human Resource Management system helps in providing orientation, induction, training, and all other activities that can elevate the performance of the employees (Baker & Parkinson, 2016). Through the proper HRM system, there will be the maintenance of the proper relationship between the employee and management which enables the enhancement of the motivational activities of the employees by providing compensations and benefits. Therefore Chernev said that on the whole the HRM system of the organization handles the most vital part that provides scope starting from employee hiring, remuneration, employee motivation, employee maintenance, industrial relation, and the prospects of employees (Chernev, 2014). Therefore the report brings out the impact of some HRM activities like downsizing and restructuring upon the stature of employees in the organization.

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Research & Analysis

Like other activities mentioned within the profile of the Human Resource Management system, these two factors maintain their vital position. These two are downsizing and restructuring. Both are vital functions of the HRM system of the organization. As per Dekker et al, in that case, it is necessary to have a clear idea regarding both the functions which will affect the situation like the decline in sales with the increase in the operating costs affecting employee motivation (Dekker et al., 2013). These two functions restructuring or downsizing are the strategic procedure of the HRM system that makes the reduction in the scale as well as in the scope of business that will eventually increase the financial performance of the organization.

As per Eunson, the company in a gradual process is going through a situation of decline in the sales part which eventually created its impact on the operation of cost management. With this, there will have an increase in the operating costs of the organization which resulted in an impact on the profits of the shareholders (Eunson, 2012). The company therefore to bring back the organization to its position planned to take out the important step by acquiring two strategic functions, downsizing or restructuring. These two functions as mentioned above are the vital part that provides scope for the financial development of the company. Foxall said that the basic requirements to acquire one of these two functions are mostly the same. Both are undertaken in the situation of a financial crisis that is going on in the organization (Foxall, 2014).

Downsizing is the process that makes sure about the reduction of the employees from the organization who are on the payroll of the company. It is the first option that comes to the organization’s mind when the operating costs are high. As per Hollensen, this reduces the manpower along with the recruitment of employees with a low payroll to improve efficiency, competitiveness, and efficiency. But mostly the organizations make downsizing and let the rest employees perform the same work with more pressure. The second thought that comes to mind is the restructuring of the organization (Hollensen, 2015). Restructuring in itself is a very important corporate action that involves the modification of the structure of the company to rescue organization from the financial harm which eventually can improve the business activities of the organization. Making the restructuring of the organization involves the internal process which involves the changes within the departments aiming towards the business to be more integrated and reliable. As per Kotler et al, for these reasons, the legal advisors are appointed who can most feasible part to carry out the process (Kotler et al., 2015). Other than that the company also restructures itself by bringing changes in its payroll or through the selling of the assets.

Accounting for Managers

The organization takes out the process of restructuring which will make the organization run in a smooth condition with an economic business environment within the organization. It is no doubt both strategic function has many advantages and disadvantages which will directly affect the status of the employees. The restructuring makes the arising of legal issues due to the overlapping of the positions within the organization. Also due to restructuring, there will have the elimination of jobs along with the laying down of the employees.

Sheth&Sisodia said that similarly, the downsizing brings down also hampers employee engagement. It is therefore much clear that both functions make it through the situation by increasing the productivity of the organization (Sheth&Sisodia, 2015). Out of these, downsizing makes more focus on the core competencies of the firm with the result of a reduction of cost and an increase in revenue. With direct downsizing, the employees develop fear, insecurity, frustration, anger, betrayal, mistrust, and illness. As per Dekker et al, at the same time, the restructuring also brings out anger, resentment, fear, and negative feelings. But out of that restructuring is the option that can again provide an opportunity through which it can survive in the organization and attain the goals that are beneficial to the organization.

With the announcement of any of these functions, the employee first gets a negative feeling of unfairness and mistrust, depression comes within the employees which can directly act upon their motivational values within the organization (Dekker et al., 2013).

Eventually, this action slows down their productivity which creates a threat to the engagement of the employees. It is just because they become safety conscious that turns out into frustration, anger, resentment, insecurity, and uncertainty. As per Eunson, mostly when in any organization the trust value is lowered then in that situation the people drive their focus toward their protection and survival which directly affects employee engagement and the motivational values of the employees (Eunson, 2012).

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Conclusions

By going through every aspect of the report the details of the strategic functions of the HRM are very well known. The report will therefore be able to show the aspects of the impact of the functions like downsizing or restructuring within the organization. From the perspective of the employees, the report will therefore definitely provide the view to the management to carry out the best possible function for the organization.

Recommendation

The report brought the scenario of the implementation of the strategic function like downsizing or restructuring in the organization. It is therefore quite clear from the scenario of the organization that the companies having high trust values always attain a high amount of productivity as compared to the companies having low trust values. That is the reason the company is better recommended that without trust the goals of the organization cannot be fulfilled. Therefore the organization must keep trust by going through organizational restructuring rather than downsizing which will help in lowering the cost value with the enhancement of the profits of the shareholders. Again it will make more increase in the business of the organization as well. Through restructuring the organization the company can keep its faith in the employee which in later conditions will count for enhancing motivation within the employees.

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