To the extent that senior workers are, by virtue of their seniority, more highly paid, the firm gets more economic bang by terminating more senior employees. In settings where the knowledge base and technology change rapidly, recent hires may be more in tune with important new developments, giving another reason to discharge more senior workers. […]
A process issue that deserves careful thought in contemplating a downsizing concerns the choice between dramatic, swift cuts versus a more gradual, less wrenching approach. The advantages of a gradual approach are apparent: The firm may be unsure how deeply to cut and a onetime massacre runs the risk of cutting too much. Of course, […]
You should consider ways in which you can attenuate (or might unwittingly exacerbate) the psychological costs for workers and reputation costs for your organization. Indeed, you should be thinking about these things as you debate whether to downsize at all. The key here is the process of downsizing. Perhaps the most important way to attenuate […]
Critics of downsizing argue that not only are the effects on the bottom line seldom as rosy as management expects, but that job loss has profound negative consequences for the displaced employees and their families, consequences that add to the social costs of downsizing. They cite research showing that unemployment and job loss are related […]
Some of the downsizing craze may be pure herd behavior; if everyone else seems to be doing it, you should also. Some of this herd behavior may be induced by the financial markets In other cases, downsizing is a managerial response to inane incentives – for example, a division chief is told that her performance […]
There are some cases – especially in star roles, such as sales, professional athletics, and surgery – in which it is viewed as legitimate to pay a nominal subordinate more than his or her nominal supervisor. No one quibbles with paying a top athlete more than his coach or a star surgeon more than the […]
Economists usually sneer at attempts to tie appropriate wages to positions based on an artificial scale of value. Wages, according to economics, should reflect conditions of demand and supply. The sort of scale constructed in schemes such as: 1) Might capture something of what is important in the demand for labor services, but it misses […]
If compensation is not tied directly to performance, what might and should it be tied to? To answer these questions, consider how wages and salaries are set in many organizations. Perhaps the most common approach involves something like the following. The firm looks at compensation rates in the local labor market for similar jobs or […]
Events are a common occurrence in todays life. These are moments when nothing has to go wrong no matter how things appear. Some people will go for professional organizers to get things done. These are people who have the schooling to manage such occasions. The kind of occasions will include weddings, a child\’s gathering among […]
CME courses, which means continued medical education, can be necessary when it is time to renew your license in your field of medicine. These courses may be offered by a local university, college, hospital or other medical institutions. You also may have options for your specific coursework online. You may want to check with the […]
