Responsible Restructuring Creative and Profitable Alternatives to Layoffs

by Cascio, Wayne F.

• ISBN13: 9781576751299
• ISBN10: 1576751295
• Edition: 1st
• Format: Hardcover
• Copyright: 2002-09-02
• Publisher: Berrett-Koehler Publishers

Summary

Restructuring is a hot topic right now -- companies need to figure out how to weather the current economic storm and still be well-positioned to take advantage of the next upswing. Using real-life illustrations of successful, responsible restructurings at companies such as Charles Schwab, Cisco, Motorola, and Intel, this book provides alternatives to downsizing. Wayne Cascio examines the specific practices these leading firms use instead of layoffs -- including retraining, labor-management partnership, and compensation linked to organizational performance. These practices demonstrate that these companies view their workers as assets to be developed rather than as costs to be cut. Cascio presents compelling evidence showing that businesses adopting these measures fare better than businesses in similar circumstances who choose downsizing.

Author Biography

Wayne F. Cascio is currently a professor of management at the University of Colorado-Denver.

Table of Contents

List of Exhibits	p. x
Preface	p. xi
Acknowledgments	p. xv
Restructuring In Perspective	p. 1
The Economic Logic That Drives Employment Downsizing	p. 3
Direct and Indirect Costs of Layoffs	p. 3
Is Restructuring a Bad Thing to Do?	p. 5
Responsible Restructuring--What Is It?	p. 6
Employment Downsizing--The Juggernaut Continues	p. 7
The Human and Financial Toll	p. 8
The Effect of Poor Labor Relations on Product Quality	p. 11
The Payoff from Treating Employees as Assets	p. 12
The Financial Consequences of Alternative Restructuring Strategies	p. 16
Results of the 1982-1994 Study	p. 18
Extension and Update from 1995 to 2000	p. 21
Stock Return	p. 22
Employment Downsizing and Flexibility	p. 27
A Baker's Dozen Myths versus Facts about Downsizing	p. 28
Jobs are secure at firms that are doing well financially	p. 28
Companies that are laying off workers are not hiring new ones	p. 28
Downsizing employees boosts profits	p. 29
Downsizing employees boosts productivity	p. 30
Downsizing employees has no effect on the quality of products or services	p. 30
Downsizing employees is a one-time event for most companies	p. 30
Since companies are just "cutting fat" by downsizing employees, there are no adverse effects on those who remain	p. 31
Most employees are surprised to learn they've been laid off. They ask, "Why me?"	p. 32
At outplacement centers, laid-off employees tend to keep to themselves as they pursue jobs	p. 32
The number of employees let go, including their associated costs, is the total cost of downsizing	p. 33
Violence, sabotage, or other vengeful acts from laid-off employees are remote possibilities	p. 34
Training survivors during and following layoffs is not necessary	p. 35
Stress-related medical disorders are more likely for those laid off than for those who remain	p. 35
The Case for Responsible Restructuring	p. 37
Alternative Approaches to the Employment Relationship	p. 38
Which Approaches Produce Better Outcomes?	p. 39
The Causal Effect of Management Practices on Performance	p. 40
The Financial Impact of Employee Attitudes on Firm Performance	p. 42
Policies and Practices That Lead to High Performance	p. 44
Business Concept Innovation	p. 46
What Business Concept Innovation Is Not	p. 47
Responsible Restructuring--Alternative Strategies	p. 49
Charles Schwab & Company	p. 49
Compaq Computer	p. 51
Cisco Systems, Accenture, and Motorola	p. 52
State of Connecticut, Department of Labor, and Reflexite Corporation	p. 53
Intel, Chevron Texaco, and Minnesota Mining and Manufacturing Company (3M)	p. 60
Acxiom, Inc.	p. 62
Sage Software, Inc.	p. 64
Louisiana-Pacific Corporation	p. 65
Philips Electronics Singapore	p. 66
Procter & Gamble Company	p. 69
The Virtues of Stability	p. 71
Snap Back	p. 73
Lincoln Electric Holdings, Inc.	p. 75
SAS Institute	p. 77
Southwest Airlines	p. 83
Best Employers in Asia	p. 88
The Costs of Downsizing versus the No-Layoff Payoff	p. 89
Responsible Restructuring: What to Do and What Not to Do	p. 91
Why Address Organizational Justice?	p. 92
Components of Procedural Justice	p. 93
The Importance of Communication	p. 94
Developing a Systematic Communications Strategy	p. 97
Implementing a Corporate Communication Effort	p. 98
10 Mistakes to Avoid When Restructuring	p. 100
Restructuring Responsibly: What to Do	p. 102
Endnotes	p. 107
Index	p. 120
About the Author	p. 126
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