The Impact of Downsizing on Organizational Competitiveness & Assignment

The Impact of Downsizing on Organizational Competitiveness & Innovativeness - Assignment Example Such strategies will become their key success factors in the future. The competition is forcing organizations to change their forms and the fundamental practices of management which they follow (Bresnen and Fowler 1994). The competitive advantage durability depends on the value of the human resources working in the organization and the intellectual capital they imply to perform their work (Wilkinson 2005, Guthrie and Datta 2008). To have a strong competitive edge in the business market is extremely vital for the firm to succeed otherwise survival of organizations starts to become quite difficult with such extreme competition taking place vigorously. The impact of downsizing is playing a major role in causing a shift in the social, economic, and the competitive organizational structures (McKinley, Sanchez, and Schick 1995). It can be observed that downsizing can strongly impact the competitiveness of organizations. At times downsizing may cause the business to lose their valuable employees and during the downsizing phase, many of the employees that are being retained may become troubled over their sense of job security which in turn may affect their performance greatly. The main purpose of this research is to find out the impact of downsizing; in what ways are the strategies for competitiveness and innovation of an organization affected whence it decides to downsize. This will be achieved by investigating firms that have conducted downsizing. A deeper look will be taken at the aftermaths of downsizing which was faced by these organizations. 2. To find out whether innovative practices of organizations are successful when firms opt for the downsizing process; a basic question is how the innovation model of any firm changes due to downsizing.