MANAGEMENT

THEORY & PRACTICEPRESENTED TO : SIR IMRAN INAM

PRESENTED BY : WAQAS ILYAS (BA 582702)

TODAY’S TOPIC

DOWNSIZING

WHAT IS DOWNSIZING ?A COMPANY STRATEGY TO REDUCE THE SCALE ( SIZE ) AND SCOPE OF ITS BUSINESS. IMPROVE THE COMPANY’S FINANCIAL PERFORMANCE.

TYPES OF DOWNSIZING•WORKFORCE REDUCTION : SHORT-TERM STRATEGY TO CUT THE NUMBER OF

EMPLOYEES THROUGH ATTRITION, EARLY RETIREMENT OR VOLUNTARY SEVERANCE PACKAGES, AND LAYOFFS OR TERMINATION.

•WORK REDESIGN :  MEDIUM-TERM STRATEGY IN WHICH ORGANIZATIONS

FOCUS ON WORK PROCESSES AND ASSESS WHETHER SPECIFIC FUNCTIONS, PRODUCTS AND/OR SERVICES SHOULD BE ELIMINATED.

• SYSTEMIC APPROACH :  LONG-TERM STRATEGY THAT CHANGES THE

ORGANIZATION'S CULTURE AND ATTITUDES, AND EMPLOYEES' VALUES, WITH THE GOALS OF REDUCING COSTS AND ENHANCING QUALITY.

PROCESS OF DOWNSIZINGRULES• GREATER NEED FOR COMMUNICATION AND COORDINATION DURING

DOWNSIZING, VARIOUS TOOLS OF COMMUNICATION SUCH AS LETTERS MEMOS NOTICES ETC.

• EVERY EFFORT SHOULD BE MADE TO TRY OTHER OPTIONS.

• THE CRITERIA FOR REMOVING PEOPLE SHOULD BE FAIR AND JUSTIFIED. 

• ORGANIZATION SHOULD BE PROVIDED OUTPLACEMENT SERVICES ALONE WITH SEVERAL BENEFITS.

• MAKE THE REQUIRED CHANGES IN POSITIONS AND REDIRECT THE EMPLOYEES EFFORTS, THEIR ROLES CAN BE MODIFIED.

REASONS BEHIND DOWNSIZINGECONOMIC CRISIS

CHANGE IN MANAGEMENT

STRATEGY CHANGES

NEW TECHNOLOGY

WHEN COMPANY GOES AT LOSS

MAKING BETTAR UTILIZATION OF SATFF

MERGING OF TWO OR MORE FIRM’S

TRANSFER WORK TO OTHER PLANTS OR ABROAD

PRACTICAL STUDY OF THE ORGANIZATION WITH RESPECT TO TOPIC

INTRODUCTION

HALEEB FOODS LTD. WAS INCORPORATED ON JULY 1ST, 1984 WITH A CAPITAL OF RS. 46 MILLION UNDER THE NAME OF CHAUDHARY DAIRIES LIMITED WHICH WAS RENAMED AS CDL FOODS LIMITED AND NOW IT IS KNOWN TO BE AS HALEEB FOODS LIMITED.

DOWNSIZING IN HFLIN 2009:

• MASSIVE LAYOFF OF NEARLY 500 EMPLOYEES.

• 30% OF THE HFL TOTAL WORK FORCE.

IN 2013:

• PLANS TO LAYOFF 800 EMPLOYEES OVER THREE YEARS.

DATA COLLECTION METHODSTHE PRIMARY & SECONDARY DATA OF THIS ASSIGNMENT COME FROM THE:

INTERVIEWS OF PERSONNEL OF HFL

BOOKS

DIFFERENT WEBSITES

NEWSPAPERS

MAGAZINES

SWOT ANALYSIS

STRENGTHS

• QUALIFIED WORK FORCE.

• ENVIRONMENT FRIENDLY.

• EXPENSES REDUCTION.

WEAKNESS

• NEGATIVE ATTITUDE FROM INVESTORS.

• LOWER PRICE OF HFL STOCK ON THE STOCK MARKET.

• NEGATIVE AFFECT ON THE QUALITY OF WORK PRODUCED.

SWOT ANALYSIS

THREATS

• LEGAL RISKS IN DOWNSIZING.

• FIRM’S REPUTATION SUFFERS.

OPPORTUNITIES

• SIMPLIFIED ORGANIZATION STRUCTURE.

• IMPROVE THE PERFORMANCE OF HFL HR DEPARTMENT.

• ALTERNATIVES FOR LAYOFF.

CONCLUSIONSHFL IS A GOOD ORGANIZATION TO WORK IN BUT THERE ARE CERTAIN DEPARTMENTS THAT NEED IMPROVEMENTS. HFL WANTS TO SHOW THE SAME RESULTS IN THE FUTURE THAT IT SHOULD HAVE TO TAKE SOME DECISIONS BEFORE TIME, BECAUSE IN THE 21ST CENTURY ONLY THOSE ORGANIZATIONS CAN SURVIVE WHO ARE UTILIZING ALL THEIR RESOURCES EFFICIENTLY AND EFFECTIVELY.

RECOMMENDATIONS• HEAVY ADVERTISING OF ITS PRODUCTS.

• HR DEPARTMENT OF HFL TO INCREASE THE EFFICIENCY OF THE COMPANY.

• HFL SHOULD IMPROVE ITS DISTRIBUTION SYSTEM SPECIALLY THE RETAILERS ARE NOT HAPPY WITH DISTRIBUTION OF HFL.

• THEY SHOULD PROVIDE PROPER REPLACEMENTS TO THE SHOPKEEPERS TO ENHANCE THE IMAGE OF THE COMPANY.