Introduction
The YAI network is an organization that creates hope for people with developmental, physical or learning disorders as well as their families.
The organization is committed to creating a society where all the people who are affected such as autistic persons are able to achieve individuality as well as a sense of belonging to the society. It is comprised of a huge number of dedicated staff which is well trained and competent in their specialized fields.
The organization highly values the staff and they are allowed to play a part in the decision making procedures. Through many community based programs, the organization has greatly changed the public view of people with developmental or physical disease.
As opposed to ancient periods when people with disabilities were taken to “specialized” institutions where they were mostly mistreated and not given proper attention as well as care, the organization takes a more considerate approach.
Throughout any organization, whether profit or not for profit, there is need for a change in the organization in order to conform to the ever-changing market or societal conditions. However, Mishra and Spreitzer stated that:
“There have been a variety of different industries that have widely been impacted by layoffs, not only manufacturing. For example, hospitals like other companies and nonprofit organizations have experienced downsizing that has negatively impacted healthcare employees with varying degrees of psychological distress and poor health.
In a 1998 study, Mishra and Spreitzer showed that restructuring and its changes can result in lower job satisfaction and job insecurity.” (1998)
An organizational change may be the key to success for a firm that is geared to widen its operations and achieve efficiency and economy.
One of the ways by which YAI network can be better at achieving its ultimate objectives is by downsizing its large staff of about 5600 members.
Thesis statement
Downsizing will create numerous advantages to YAI network if it is carried out in the proper manner. However various flaws are also associated with the practice.
It is definite that by laying off some of the staff, the YAI network will be at a much better position to achieve its objectives which includes assisting the disabled to participate, love their work as well as to feel much better about themselves.
Downsizing
This refers to reorganizing of a company structure in a manner that brings about reduction in a company’s workforce. The YAI network has a very large workforce which in reality may not be necessary for the company to achieve its objectives at the current cost that it incurs. The main reasons why the organization should downsize are to reduce costs as well as to achieve efficiency.
The YAI network has very many stakeholders who will be affected if the company reduces its staff. The large numbers of people with developmental disease and their families, the staff that are laid off and even the remaining staff are among many other stakeholders that will largely be affected by the downsizing. These are just a few of the people who will be highly affected though it actually encompasses a much wider scope.
Impact of downsizing
One major effect of downsizing is that it mostly always results is reduced staff morale. Pederson’s (1991) research and revelation have showed that:
“The restructuring impacts job insecurity in both direct and indirect ways. In other words, an effect of downsizing is lower satisfaction with one’s job. This is most probably the result of disillusionment as well as feelings of being let down by the company and uncertainty about one’s employment in the future. Decreased job satisfaction then leads to lower job security.
The researchers do note, however, that these increased feelings of disillusionment and decreased feelings of job satisfaction and job security can be reduced if the organization’s administration does its best to offer support, information sharing, and input into decision-making.
To the degree that healthcare workers believe they are important to the hospital and that the institution cares about them and their opinions, the effects of restructuring can be considerably decreased.” (p. 134)
The employees who are retrenched
Considering the tough economic times and immense competition in the current job market, this group may suffer from unemployment. They may raise questions as to why they were retrenched and if unsatisfactory answers are raised then it may lead to frustration.
The remaining staff
Considering that the employees are now fewer the workload would be more than before therefore a lug in the provision of services could be a result. They may also be faced with uncertainty, reduced morale, declined productivity and mistrust in management. In totality this can affect all activities of the organization in a negative way.
The management
The managers charged with the responsibility of laying off the staff may face rebellion from the remaining team members. This may be very frustrating for them and therefore the managers should be prepared in advance for such occurrences before they actually happen.
Disadvantages of downsizing
There are many disadvantages of downsizing and below are a few;
- The loss of important skills in the company that may require either training of the in-house employees or rehiring of qualified personnel.
- The creation of new job demands of which the remaining staff are not quite conversant with.
- It may also result in unintended impact on equality of employed staff within the company such that the ratio of say, Asians or minority groups or women may be compromised.
- The loss of old experienced staff through early retirement may result in reduced efficiency of the company.
The YAI network should consider the adverse effects of downsizing early enough so as to take necessary steps to reduce the impact.
In carrying out a successful downsizing exercise, the management of a company should create a clear communication channel between themselves and the employees throughout the downsizing process. In so doing the following should be communicated to the employees:
- The precise reasons for the change.
- Methods that will be used to effect the change.
- The criteria that will be used to carry out the redundancies and the details of any staff changes to be made.
- The impact and final result of the change.
Change Management
This is a well organized approach to shifting a firm from a current state to a desired future state. It could also refer to a process in an organization whereby the employees are empowered and informed on the benefits and necessity to accept change.
An organization as a whole may undergo various types of organizational changes among them being a change in the company mission, strategy, change in the company structure or technological changes.
At the beginning of the change management process, the organization should initially carry out a systematic diagnosis to determine the need for change and capability of the company to make the change. Applebaum, Henson and Knee stated that “a change management plan should be in place specifying the main objectives, content and processes of the change process.” (Applebaum, Henson and Knee, 1995)
Successful change management is highly demanding and may depend on whether the following requirements are met:
- An efficient communication process in which all involved stakeholders, in this case the persons with developmental diseases, their families etc, are informed of the reasons , advantages and details of the change management process.
- Providing education and training of staff in preparation for the change process.
- Offering counseling services where necessary to deal with staff that may have fears associated with change.
- Coming up with strategies to deal with staff resistance coming as a result of change.
- A detailed process for monitoring the change process so as to ensure that it is going according to plan. This may involve making necessary adjustments where necessary.
Principles of change management
Change in organizations is guided by certain philosophies:
Address the human side systematically- a formal structure should be put up to manage change all the way from the top management to staff and all other stakeholders in general.
- Create ownership- this is by allowing the employees to identify problems and find solutions to the problems. Facilitation of this is by providing gifts and rewards.
- Prepare for the unexpected- this refers to the organizations ability to adapt to change and come up with strategies to counter change.
- Assess the cultural landscape-review of the cultural background of the company’s surrounding in order to determine the weaknesses and conflicts all with the intention of determining the company’s ability to handle a change.
- Communicate the message-in order to effectively carry out a change, an efficient communication process has to be set up to provide the staff with the right information at the right time. Numerous communication channels will have to be used.
- Make the case- have a realistic critique of the company’s ability and future to effect change while considering its management.
- Start at the top- the acceptance of change must first begin with the leaders who must then encourage the employees to do the same. They must be strong and united as they too may be under immense pressure.
- Involve every layer- the transformation process from the design and strategy all the way to the implementation process affects every layer of the organization.
- Speak to the individual- it’s important that details of how the work will change, the expectations from them before and after change, how it will be measured and what success or failure will mean to them, the individuals, and the ones around them are clearly outlined.
- Assess how the company is culturally overt- every company has its’ unique cultural values that are a factor of its shared history.
A change may result in either one of the following: combining cultures as in the case of mergers; creating new cultures as in the case of new companies or companies formed from multiple acquisitions or reinforcing cultures as in the case of manufacturing companies or long established goods.
The Nature of the YAI network
The company has a flexible management structure where all employees are allowed to participate in the decision making process. Junior members of staff are allowed to pass on their ideas to their superiors. The organization is also sensitive to its stakeholders and aims at achieving the highest level of excellence in the provision of its services.
The organization also believes in the advantages of working in teams. Therefore all seven branches embrace the doctrine of teamwork. This is based on the concept of synergy as working together reaps more benefits than working as individuals.
Development of staff is also among one of the top priorities of the organization as staff is viewed as the most important resource for YAI network. This initiative has been of great benefit to the company by creating a highly qualified workforce which is dedicated to its work. This is carried out through education and training of staff in order to improve their skills
YAI network also has an initiative based on togetherness. The initiative, labeled as togetherness we are one, applies to all the stakeholders of the company including all employees, management, the board of trustees and all the 20000 people with developmental disease and physical disabilities.
Effect of downsizing
As much as this will increase the workload for the remaining staff it will eventually improve the effectiveness of the organization. Cooper (2000) noted that “there will be faster decision making within a company”. Moreover, if proper management change is carried out the company should be able to counter the negative effects of change such as rebellion.
For the networks ultimate decision makers, working with a smaller workforce who are highly trained will result in faster achievement of organizational objectives.
Training of personnel is also an added advantage as fewer resources will be spent to train the existing staff to acquire the best skills to equip them in performance of their duties. Considering that effectiveness refers to the degree by which a company achieves its objectives or finds solutions to its problems then it is right to state that downsizing will definitely improve the effectiveness of YAI network.
Conclusion
It is therefore correct to state that indeed the YAI network will benefit from a downsizing exercise which will enable it to achieve all its organizational goals more effectively.
This however, is subject to whether the organization will carry out the exercise in an effective manner. As explained above, all the benefits will accrue to the firm if the change process is well managed such that any adjustments can be made if necessary.
It is in this light that in view of the nature of the organization, which highly regards its staff, a reduced workforce will enable the firm to channel relatively less funds towards the education and training of its personnel. In effect this will result in a smaller number of staff who will be highly trained and also who are able to work more efficiently compared to a larger number of staff who are not as highly trained.
The YAI network, being a service providing organization is obligated to provide better services to all the people with developmental disease, their families and all other people who are involved in the process.
Therefore prompt consideration should be taken to achieve its mission which is giving hope and new life to people with developmental disease. The question of how this can be achieved lies in one procedure. This procedure is downsizing.
References
Appelbaum, H.S., Henson, D. & Knee, K., (1999). “Downsizing failures: an examination of convergence/reorientation and antecedents – processes – outcomes”, Management Decision, 16, 473 – 490.
Cooper, C. (2000). The organization in crisis: Downsizing, restructuring, and privatization. New Jersey: Wiley-Blackwell.
Mishra, K. E., Spreitzer, G. M. & Mishra, A. K. (1998). Preserving employee morale during downsizing. New Jersey: Wiley-Blackwell.
Pedersen, L. B. (1991). The effects of organization downsizing on the survivor work force: An investigation of the effects of layoff process on work performance of those who remain within the organizational system. Florida: Nova University.