What is restructuring downsizing?
What is restructuring downsizing?
The term connotes that the termination is temporary—but it may well become permanent. A “downsizing” simply means releasing employees because the operation no longer needs them; reorganization or restructuring of the institution has eliminated jobs.
What is the difference between restructuring and downsizing?
Downsizing usually is the best way that a company can take inorder to fight inefficiency and low productivity, while restructuring is the step taken when there is a real crisis that might actually lead to the downfall of a company like debts and low number for the products.
What are the downsizing strategies?
Downsizing is the permanent reduction of a company’s labor force through the elimination of unproductive workers or divisions. Cutting jobs is the fastest way to cut costs, and downsizing an entire store, branch or division also frees assets for sale during corporate reorganizations.
What happens when you restructure a team of employees?
If a restructure might impact people’s jobs, there’s a process you need to follow. As with anything involving employee relations, it’s underpinned by the principle of ‘good faith’ — meaning you and your employees act fairly in your dealings with each other. are active and constructive in establishing and maintaining a productive relationship.
What to say to employees about company restructuring?
If an employee asks “are we restructuring or going to lay off staff?” (and you know that you might have to in the future), be honest. Gentle, but honest. You’d be surprised how many staff members appreciate honesty and how quickly it can starve the rumors.
What are the advantages of restructuring an employment contract?
One advantage of attempting to renegotiate employment contracts during a period of economic decline is that both the employer and the employee are motivated by the knowledge that an unsuc- cessful restructuring may hasten the employee’s eventual termination or, at worst, result in the bank- ruptcy of the employer’s business.
How to plan team restructuring in New Zealand?
You need to: 1 Confirm that the proposed structure will be the new structure. 2 Outline the feedback you considered, and your decision regarding that feedback. 3 Be clear about the affected roles and what this means, including details of follow-up meetings and a notice period if relevant. 4 Offer to have individual meetings to discuss the outcome.
If a restructure might impact people’s jobs, there’s a process you need to follow. As with anything involving employee relations, it’s underpinned by the principle of ‘good faith’ — meaning you and your employees act fairly in your dealings with each other. are active and constructive in establishing and maintaining a productive relationship.
One advantage of attempting to renegotiate employment contracts during a period of economic decline is that both the employer and the employee are motivated by the knowledge that an unsuc- cessful restructuring may hasten the employee’s eventual termination or, at worst, result in the bank- ruptcy of the employer’s business.
What should employees do during restructuring and redundancy process?
It is also important throughout a restructuring and redundancy process that employees know exactly where they stand with regards to their final pay and notice rights, and what else they may be entitled to if they are made redundant. This could include, for example, the right to take reasonable time off work to secure alternative employment.
How to reduce the risk of constructive dismissal?
A better approach is to reduce the risk of such claims by taking steps to ensure that any restructuring changes do not result in the repudiation of any employment contracts, either at law or in the minds of the employees. Restructuring Changes That May be Considered Constructive Dismissal