Alternatives to Downsizing: An Organizational Innovation Approach

Abstract

Fifty alternatives to downsizing are offered.  A brief literature review was conducted with specific emphasis on advantages and disadvantages of downsizing. Downsizing alternatives are divided into economic, institutional and socio-cognitive frameworks.  Though many of the alternatives have been used in isolation, the writers provide a conceptual framework that challenges those involved in making the decision whether to downsize or not. The authors further challenge decision makers to resist the almost reflexive response to downsize when confronted with gaps in efficiency and effectiveness. Decision makers should consider alternatives to downsizing while keeping the two major goals of downsizing intact. Decision makers are charged to carefully identify the root cause of their challenges and to explore and create viable alternatives before downsizing becomes an option. Organizational leaders, human resource management and policy makers are given specific methods to conceptualize business decisions without the need for permanent employee layoffs.