The Analysis of the Effect of Downsizing on Employee as Well as Organisation

The process of downsizing is one of the primary choice or we can say strategy implement by many organization. The main stimulus for most downsizing actions is desire to achieve greater levels of efficiency, effectiveness, profitability and competitiveness. The method of downsizing has a significant impact on the organization. In fact, many organizations around the world are having good as well as bad impact of downsizing but one cannot ignore the methods if he wants to survive in the world. Corporate downsizing continues to be a major strategy used by organizations to cope with a dynamic and turbulent global marketplace. The major outcome made out of this strategy is that this strategy improves financial health of the company by implementing accurate amount of efficient employees in the organization.