Impact of employee downsizing on organization Department: Business Administration and Management By: bapatigi7954 Project ID: 2120 Rating: (3.3) votes: 6Rate this project12345 Price:₦2000 Get the Complete MaterialAbstractOne of the primary reasons for employee downsizing is to reduce costs. Employee payroll counts as a liability on the company balance sheet and, therefore, reduces the owners'' equity. The retained earnings of a company are affected by the amount it pays out in payroll and removing this obligation is one way to cut costs. Aside from payroll, employee benefits are also costly to companies, as are the operating costs associated with overproduction. Companies sometimes downsize their employee base to increase productivity. This may seem counterintuitive on the surface, but some instances exist where this would be advantageous. For instance, if a company knows that it can increase the output of individual workers while remaining constant with its productivity, this can be advantageous for cost reduction. However, a company may also decide to downsize to increase productivity by replacing workers with sophisticated equipment that can do the same job. Downsizing the number of employees a company has generally signaled that some restructuring and changes are underway. These changes generally take place for increasing the profitability of the company. If shareholders and other investors perceive that the company will be making changes that increase its profitability, it will increase the value of company stock. This can result in more investors coming on board or current investors increasing their shareholdings in the organization. In either case, downsizing can increase the company's perceived value ...Preview Download Preview +Other Business Administration and Management project topics and materials you might be interested in»The Effect of Management Information System on Achievement of Organization Objectives ( A Case Study of Nitel Owerri )»The impact of production planning and control on a manufacturing process ( a case study of Nigeria bottling company aba, abia state)»Marketing implication of merger and acquisition in banking industry - a case study of Access bank Plc, Bida branch, Niger state»The Effect of Motivation on Employees Productivity in Anambra State ( A Case Study of Education Commission Awka )»The Impact of Staff Discipline in the Attainment of Organizational Objectives ( A Case Study of Selected Organizations in Owerri, Imo State )»The Impact of Performance Appraisal on Staff Productivity ( A Case Study of Diamond Bank Plc, Owerri )»The effect of irregular payment of workers salaries on productivity of workers in imo state (a case study of owerri municipal council)»A critical evaluation of leadership style and organization performance in the private sector ( a case study of selected establishment in abia state)»The impact of welfare packages on employees performance (A case study of Nigeria breweries plc Aba)»The Effects of Motivation on Workers Morale ( A Case Study of Power Holding Company of Nigeria, Aba )»Motivation and Employee Performance in Public Sector ( A Case Study of NTA Channel 12 owerri)»Management Problems of Manufacturing Industries in Nigeria ( A Case Study of Nigeria Breweries Plc and Unilever Plc )»An assessment of the impact of modern communication facilities on service delivery in business organization ( A case study of ICT based firms in aba, abia state)»The Impact of Delegation on Management Decision Making ( A Case Study of Zenith Bank Plc, Enugu )»The Role of Customer Service in the Service Delivery of Multinational Companies in Nigeria ( A Case Study of Unilever Nigeria Plc Aba)