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... m staffing alternatives include hiring linked to vision, cross training, succession planning, redeployment within the organization, creating value-added and revenue-enhancing opportunities, a comprehensive model, reduced hours, lower wages, attrition, alternative placement, leave of absence, employee buy-outs, and shared ownership (Maurer 13). A brief synopsis explaining the virtues and liabilities of the mentioned alternatives is listed henceforth: Redeployment within the organization/Alternative placement: Job opportunities should be ascertained within a company to accommodate people as and when a vacancy emanates. Lincoln Electric Holdings is a manufacturer of arc-welding products based in Cleveland, OH. In 1992 they were faced with losses after expanding in to Latin America, Russia, Europe, and Asia. Despite this, Lincoln Electric avoided firing employees.
They redeployed 54 factory workers into sales people. These sales people earned a total of $ 10 million in sales their first year, which helped Lincoln Electric pull out of their decline. Roy Morrow, the director of corporate relations, knows that this companys employees are valuable. According to Morrow, Lincoln Electric loses $ 100, 000 every time they replace an employee. At that kind of cost it's foolish to lose employees unnecessarily.
Outplacing: Organizations find employment opportunities for their workers with other corporations. Rhino Foods exercised this method to save the employment of their workers. Rhino Foods, a small company of only sixty employees, faced operational inefficiencies, and a drop in orders during 1994. The small size of the company created an intimate feel among the employees. Searching for a way to cut losses without firing people, Rhino Foods lent about a dozen workers to their biggest customer, Ben and Jerry's Ice Cream. The workers retained their Rhino benefits and seniority, learned new skills while gaining a better understanding of the customer, and some employees even earned a higher salary.
Two years later Rhino Foods, now recovered from their losses, recalled the employees. The Great Game of Business: Empowers employees by giving them a stake in the company and allowing them access to financial and other pertinent information. This system is employed by: creating financials, setting up incentive programs that will reward their performance, learning to forecast financial results, learning what drives financial results, communicating progress with each other and sharing the rewards of good performance. The inventors of this method, Springfield Remanufacturing (SRC) in Springfield, Missouri proved that it works. The employees of SRC have stock ownership. Each year their stock increases in value based on the productivity of the company.
As a result the employees put a lot into their work. When faced with a large order cancellation, layoffs seemed eminent. Management responded by putting the jobs in the hands of the employees. The employees were informed of the cancellation, and given the financial information about what and how productivity needed to happen. In each area of the company there was a computer, accessible by any employee, in which any financial information regarding the company was available. The employees had the numbers and everyday they were challenged to beat them.
By teaching the employees to act, and think like owners, and measure success in the same way the financial world does, SRC allowed workers to save their own jobs as well as increase the value of their company. Hiring linked to vision: It refers to the idea that a company identifies the potential present and future market needs and tries to recruit skilled personnel to meet demands and goals of the company rather than having surplus manpower Cross training: This helps employees to expand their working potential and allows them to diversify and venture into other specialized fields related to their work by internal retraining. This has special importance due to the ever-changing technological advances. Succession planning: It has a special relevance in respect to the needs and positions vacant in the upper hierarchy within the company. Instead of hiring outside the organization or making a compromise by promoting an undeserving candidate to fill the brass, continuous effort should be made to train people in the junior positions to fill their vacancies. Creating value added and revenue enhancing opportunities: A company can expand its business and create new jobs by incorporating and implementing new range of products and services created by people within the organization.
A comprehensive Model: A company shares its profit / loss with the employees working within. Better productivity and profits leads to better compensation while losses are shared proportionately. Reduced hours: Total working hours is reduced throughout the company during tough times, depending on the market requirements. Lower wages: Wages are reduced proportionately within a company instead of downsizing during a downturn in a market. This is a temporary phase where everyone participates and bears the brunt according to their status within a company. Attrition: Schemes like voluntary retirement can be encouraged within a company and the positions vacant can be left that way to increase profits instead of downsizing.
Leave of Absence: Employees can be offered leave of absence with full benefits during the crunch time. They are promised their jobs back as and when conditions become favorable. Employee Buy-Outs: Employees are offered to buy a closed down operation, which they could set up there own business. Shared ownership: Instead of just cutting wages, employees will trade salary cut for company stock. As discussed in chapter 2 of the HRM textbook: Gaining a Competitive Advantage, downsizing as an organizational factor, is a directional strategy. Its intentional use is to gain competitive advantage.
The unintentional use of corporate restructuring leads to selection and placement, employee development and training usually within a year of the initial effort. All in all, downsizing achieves its goal in the short-term: it improves an organizations profit line by reducing its biggest expense. Long-term, though, the organization suffers from mass confusion, psychic depression, and lack of key ingredients for growth and leadership: energy, loyalty, creativity, time and teamwork. As organizations downsize, they are bleeding their biggest asset: their workers. As put by Alan downs, author of Corporate Executions, Like an anorexia of the organization, layoffs begin depleting the business of its fat, then it muscle, and finally its brain power. " American Management Association International (1997).
AMA Survey: Corporate Job Creation, Job Elimination, and Downsizing. 1998 Available: HYPERLINK web web [ 1998, Library 16 ] Bumbaugh, M (1998, February). Moving Beyond Survival After Downsizing. Nursing Management, 29, 30 - 33. Downs, A (1996, July/August).
The Wages of Downsizing. Mother Jones Magazine (1996): Available: web jones JA 96 /downs. html Est, D. The High Cost of Dumbsizing. Maclean's 6. 3. 109 (1996): 28 - 29. Great Game of business Online. 30 August 1999 web Hawken, P.
Growing a Business. Ambrose Video Publishing vol. 7, New York. Mauer, R Stop! Downsizing doesnt work!
The Canadian Manager 24. 1 (1999): Noe, R. A. , Hollenbeck, J. R. , Gerhard, B. , Wright, P. M.
Human Resource Management, Gaining a Competitive Advantage. Boston: McGraw Hill Companies Inc. , 2000. Piturro, M Alternatives to Downsizing. Management Review; New York 88 Rayburn, M.
and Rayburn, G. Smart Alternatives to Downsizing. Competitive Uchitelle, L & Kleinfeld, N The Downsizing America. New York Times 116 pars. 3 Mar 1996. 13 Feb. web Bibliography:
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Research essay sample on Competitive Advantage Lower Wages
