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A contribution is a function of how effectively commitments are completed and the relative importance (or impact) of the commitments toward achieving the goal or objective.. The rest of the process involves getting the right people committed to performing these tasks by ensuring that the individual contribu- tors have the skills, talents, motivation, and necessary resources to complete their commitments...
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parties results because the exchange is defined by economic terms, a close-ended time frame has been established, and the scope of the obligations is very narrow. Table 5.1 summarizes the types of promises that make up the relational and transactional components of the psy- chological contract.. The conceptualization and measurement of the psychological contract has been the subject of recent...
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Once an organi- zation has decided that resizing is the only feasible response to com- petitive pressures on the organization, management must identify the specific actions it will implement to maintain a sound psycho- logical contract between the organization and its employees.. If the issues are effectively addressed, a more positive psychological contract will exist between the employee and the...
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the candidate can expect in that area of the employment rela- tionship. At the most basic level, organizations have responded to competi- tive pressures by implementing business strategies (like resizing) that alter the nature of the psychological contract between the organi- zation and its employees. As the psychological contract continues to be transformed, employees frequently perceive their organization as failing...
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The financial objectives serve as the focus for the objectives and measures on all other scorecard perspectives. The idea is that every measure selected for the balanced scorecard should be part of a link of cause-and-effect relationships, culminating in improved financial performance. Fundamentally, the learning and growth perspective is posited as the enabler of achieving ambitious objectives in the other...
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Impact of Downsizing on Leading Indicators of Organizational Performance. Table 6.4 describes the eight scales defined by this model: four leadership practices (Customer Orientation, Quality Emphasis, Employee Involvement, and Employee Training) and four em- ployee results (Information/Knowledge, Teamwork/Cooperation, Overall Satisfaction, and Employee Retention). With those scales, Table 6.5 presents how employees characterize these practices and their results differently for organizations...
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Financial Consequences of Employment-Change Decisions in Major U.S.. The fundamental question that they addressed was whether cor- porate downsizing improves financial performance in the year of the event and in the two subsequent years following the imple- mentation of changes in employment.. The study examined in this chapter uses the same methodology as the previous one but extends the previous...
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Dividends on common stock (DVPSX). Price of common stock, end-of-year close (PRCC). For each event-year in the study period, 1983 through 1998, we calculated the change in employment as the ratio REMP 0 = EMP 0 /EMP − 1 , where the subscripts denote the year, with the event year being 0, and −1 the prior year. The subscripts 1...
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1 and 2, the asset downsizers showed improvements in returns on assets that were significantly higher than those of stable employers and also higher than those of their industries. We conclude that while some categories of downsizers improved their profitability through downsizing, this effect is not sufficiently consistent across categories to justify rejection of the null hypothesis.. The results of...
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Cascio et al., 1997). First, the process generally happens so quickly that the managerial implications of the proposed changes are rarely thought through (Mirvis &. For instance, Zuboff (1989) noted in cases of automation that midlevel managers and execu- tives have fundamentally different reasons for automating and fun- damentally different expectations of the outcome. Third, customers are not considered in...
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below the local industry average in both deposit and loan growth during the period of the case, one performed above the local in- dustry average in loan growth but not in deposits, one performed above the local industry average in deposits but not in loan growth, and three performed substantially above average in these two in- dicators during the same...
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With regard to performance outcomes, firms in quadrant 2 may experience growth at the expense of the resizing rival, but they run the risk of losing their employees and customers to the rival or to other competitors. Businesses in quadrant 1 run both of the above risks and are likely to experience below-average growth. First, resizing com- pany managers must...
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Consequence of Layoffs to Outsiders.. For children. Decreases in economic well-being (for example, increased work hours, decreased college attendance). Negative changes in affect and mood of the relationship. current wages of the other spouse and current savings, loss of work can mean depletion of savings and dramatic decreases in the stan- dard of living. Particularly if the laid-off spouse is...
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Downsizing has an impact on friends of laid-off employees and the quality of laid-off employees’ relationships with their friends. In this discussion, we will be primarily focusing on the nonwork friends of laid-off employees rather than coworkers or survivors in the workplace.. Consequences of Layoffs for Friends. Relative to the other networks being examined in this chapter, the consequences of...
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These outplacement firms provide different lev- els of assistance to downsized employees, depending on the benef- icence of the terminating organization and the hierarchical position of the employees who were let go. Similarly, retraining helps laid-off workers in declining occu- pations and industries obtain new skills to improve employment prospects elsewhere. For example, corporations like General Elec- tric have partnered...
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generated, and staff redeployed to ensure the organization retains its competitive edge and market position? What are the implica- tions for people in organizations—people who come to work every day, eager for the opportunity to excel, loyal to the company, giv- ing back in return for recognition and reward? What steps should be taken as shifts occur, when, and by...
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Will there be a need for cost-of-living adjustments in the new area?. Are there geographical relocation or cost issues?. Has the organization set a precedent in previous action, and is that process applicable in the current environment?. If it is not, it will be important to explain how this process is different and why.. Are there labor union contract stipulations?....
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People from another country are not necessarily going to see things the way you do or un- derstand verbal or cultural nuances in the same way you do.. Regardless of nationality or culture, em- ployees around the world have many of the same universal needs:. Typically, they are stuck in the old paradigms and unable to accept support or assimilate...
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Effective communications are vital to the success of the divestiture.. If there is a labor union in the facility, the union’s local leadership must be informed about the pending sale. Depending on the labor-management relation- ship, notification can be helpful in stopping rumors.. Ultimately, the buyer will place a value on the facility and its employees, who represent the intellectual...
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They might not see the strate- gic necessity for planned terminations or may not be entirely sup- portive of the actions to be taken. The company risks a “they made me do it” attitude that can be conveyed to the affected employees.. It is important that managers buy into the reasons behind the resiz- ing and the selection process. The...