Ma. Hitt et al., RIGHTSIZING - BUILDING AND MAINTAINING STRATEGIC LEADERSHIP AND LONG-TERM COMPETITIVENESS, Organizational dynamics, 23(2), 1994, pp. 18-32
Although many companies see ''downsizing'' as a way of maintaining com
petitive advantage, large-scale staff reductions seldom help an organi
zation achieve its hoped-for objectives. Basing their findings on exte
nsive field interviews, the authors identify both ineffective and effe
ctive downsizing tactics. Voluntary early retirements, say the authors
, as well as across-the-board layoffs, are particularly dangerous. Eff
ective tactics start with a concerted effort to ''rightsize'' the orga
nization in view of a long-term corporate identity. By protecting core
competencies and by emphasizing teamwork, training, and leadership du
ring reduction, the organization stands a better chance of achieving i
ts goals.