WEEK 9 - Chapter 10 - Downsizing and Restructuring

Case 1:

A Downsizing Decision at the Department of Public Works

1. Issues considered prior to a restructuring strategy are as follows:

 Reasoning and Logic for the restructuring

 Determine who will go or example if the decision will be made on the basis of seniority,
performance or potential.
 Explanations to all the reasons behind the downsizing taking place
 What type of restructuring? Portfolio Restructuring, Financial Restructuring, Organizational
Restructuring
 Determining the legal consequences
 Designing current and future work plans
 Exit incentives: Like early retirement, voluntary” buyout packages”, voluntary layof
 Performing follow-up evaluation and assessment of the downsizing eforts

2. Based on the results of the survey, all categories from employee morale, departmental commitment,
job satisfaction and intention to stay have increased and the numbers have even reached to 2005’s all-
time high levels. It seems that there is a very low chance that staf would be interested in voluntary
measures but the municipality could make it an option and wait to see what type of feedback would be
presented. Also, residential survey results show that the level of satisfaction with the Board of Public
Works and the quality being provided by Public Works is at an all-time high. It will be important to
maintain and attempt to increase these satisfaction levels after any restructuring takes place. Also
changing some of the ways in which the work is conducted. In the past this department “experienced
considerable downsizing and 4% of permanent positions were cut back in 2005 and an additional 2%
cutback four years later” which clarifies that over staffing is not the issue and it would be unethical and
quite difficult to put stress out on staf reduction especially in light of positive performance and past
cutbacks. Since the mandate has not specifically included job cuts but wants to stay in line with its
mission of “providing quality service to its residents in a cost efective manner”, it shows the main efort
to downsize seems to be related to the need to reduce operating costs. If she incorporates a work design
strategy closely linked to a systematic change approach in order to implement long term cost cutting
measures while maintaining moral it would keep both parties in a good position.

3. ADVANTAGES DISADVANTAGES

Decreased labour costs Decreased control over the process

Increase in revenue Potential problems related to service quality

Allows for focus on areas Loss of jobs

Improved efficiency and efectiveness Poor employee morale

Chapter 11- Strategic International HRM - Dangerous Assignments

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 Case 1

1. Unfortunately there are many instable regions around the world. There are regions experiencing
economic turmoil, political chaos, and just plain unpredictable environments that are due to the nature
of the jobs or the general operating environment. I would think there is no way they didn’t know the
risks that they were taking but I’m sure they did not expect it to get this bad. This was an area known to
be dangerous and a huge violator of human rights. You would think that the decision to operate in this
region was not made lightly and a in-depth risk assessment was conducted and or even a safety strategy
was implemented before entering the region. The reasons to operate there would need to have been
persuasive enough to authorize this huge risk.

2. I think what Reinhart did was incredibly brave and rare of him to do. I can’t think of any other
employer in the world that would risk his life to save his own employee. I also believe what he did was
the only way to make sure his friend came back home safely. Although it kind of backfired and he ended
up getting kidnapped too I believe if it went any other way the employee would have been killed

3. The role of HR is to prepare the assignees and provide a supportive role. Primarily, there should be a
risk assessment conducted, security measures put into place, employees should be made aware of all
known potential risks and then communication, training and assistance should be provided. SIHRM aims
at being flexible and security important. There is a duty of care for the employers with respect to
international assignees. The responsibilities relate to legal matters, trust relationships, and overall social
responsibility.

4. Preferably and you would hope so or think that both employees should be given the same support
unfortunately though it is not true in these types of situations. Often times the host employee is not
given similar concern due to the idea that they are familiar and can navigate the area as it is and part of
their daily reality is to live and work in such an environment. Some companies may provide extra or
similar concerns but in reality it’s all about the money in this time of age so most likely not.

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