浏览： 日期：2020-06-10
In today’s world where competitions are high, globally organizations are facing economical crisis and emergence of technology has made every organization to grow faster. Organization that needs to grow and make their reputation is adapting different strategies to increase their market value and build their reputation. Reforming of organizations is taking place in every corner of the world and has also included health care agencies. In any organization, human resources are the building blocks of it.
In the recent years it has been increasingly recognize that in the absence of those resources, organizations cannot grow. However due to reformation, many organizations have adapted many strategies and downsizing is one of the strategy. In this paper I will discuss about my organization issue and analyze this issue in the light of literature along with management theory. Moreover I will recommend strategies to handle that issue.
Aga Khan University Hospital (AKUH) is one of the tertiary care hospitals which serve integrated health care services to public. It is a non profit organization which believes in providing quality care to its customer. Since last 25 years it is established. It has policy of retirement which says that retirement age of employees working in this organization is 60 years. (AKUH personnel policies and procedures manual). On last July 2007, AKUH went through voluntary early retirement scheme. The scheme was offered to permanent full time management staff (falls in grade 9 and above), who is between ages 50 and 58 years and have completed at least 5 years and those who have served the institution over 20 years.
This scheme was only one time offer. (circular for voluntary early retirement scheme). When this offer was announced, there was a chaos in the organization. Every day was started with same issue and was ended with same issue. I was curious why people are taking it so negatively. There were many questions arose in my mind. Why it was necessary for the organization to offer this? Why other people are taking it so negatively? What are the impacts of those approaches on an individual and organization? What are the other approaches to handle those issues? I will analyze my issue with the literature.
Administration of any organization has the responsibility to ensure that organization is growing effectively and competing with other organizations. Reformation is necessary in each organization. Reformation can be done through many strategies and downsizing is one of them. Downsizing is one of the strategies of reformation of the organization. According to Cameron et al. (as cited in Kulkarni, n.d.) “set of activities undertaken on the part of organizational efficiency, productivity and/ or competitiveness” (p.1). It is now a days a business practice and despite of its utilization, its implication is very hazy.
According to Cameron (as cited in Williams, n.d.) “Probably the most pervasive, yet, understudied phenomenon in the business world” (p. 2). The concept of downsizing is not new even in underdeveloped countries. It is mostly done in private companies and many companies and banks in Pakistan have gone through this process which includes Colgate-Palmolive and PIA, WAPDA, Pakistan Railways, Banks included Habib Bank Limited, United Bank Limited and Pakistan Telecommunication Company Limited. (Khan, 2003).
Similarly in developed countries many companies like AT&T, IBM, Kodak and Xerox have approached this process. (William,n.d.). Many health care organizations have also gone through it which includes Sweden, America, Australia and many others. (Hertting, Nilson, Theorell & Larson, 2003; Young & Brown, 1998; Duffield, Kearin & Leonard, 2006).
There two different methodologies which were done to achieve downsizing at AKUH, one is workforce reduction and second is organizational redesigning. Workforce reduction was done through voluntary early retirement scheme and organizational redesigning was done by assigning the same position to individuals who have been evaluated for their capability and able to manage with high workload by their supervisors.
However they are confused and over loaded with work. Johns (as cited in Wagner, 1999) reported that those who perceive a significant role change or ambiguity declined in their work performance. On the other hand Bolman and Deal (2003) also assert that there is no guarantee of success in doing restructuring and it also takes time and resources.
The process of downsizing is very emotional for the employees and employer. Pawlicki (as cited in Brown & Young, 1998) also asserted that it is very disturbing for all nurses. Similarly it is one of the challenges of human resource also to handle the process because it creates dramatic behavioral changes in the environment. The impact of downsizing is traumatic for those who are facing it (victims) and for those who remain behind (survivors). (West 2000). There are many empirical studies have done to evaluate the impact of downsizing on employees.
Many research articles define positive impacts of it and many argued that it is not the effective approach of management which ultimately giving many adverse effects to the employees. It includes anger, frustration, and uncertainty of the job, depression, low morale and distrust of the employees for the employer. Noer (as cited in Brown & Young, 1998). This was similar happened at AKUH, when it was announced the employees who were falling on the set criteria were expressing the same feelings. Moreover other employees who were not directly involved were also having same feelings.
The department heads were also falling in the category so there was no body who could help in handling the grievances of the employees. When I talked to director human resource department AKUH, Surani, N. (personal communication, March 24, 2008) also affirmed that though they received many grievances but those employees were not handled properly at the departmental level so it was very difficult for human resource also to persuade them. Moreover it also translates in the care performance of the employees.
According to Wynne (2003) “Modifications are introduced to achieve performance improvement and the significant organizational change creates a decline in self-esteem for those directly affected, which in turn impacts on and can be attributed to a decline in performance” (p. 99). There are studies done to evaluate patient care mortality and morbidity because of downsizing. In a study of 281 acute care hospitals it was identified that significant increase in patient death occur when downsizing was implemented. (Cameron 1987).
At AKUH the scheme was announced for top down approach that is management staff were involved that also created fear for staff who were not falling on those criteria as before that, they were highly motivated to contribute their work in the organization however when they heard about the scheme, their morale was low as this could be done for them also. It is well said by Di Frances (as cited in Duffield, Kearin and Leonard, 2006) “the whole process of downsizing can create distrust and low morale, especially when junior staff perceives that the reword for long and dedicated service is retrenchment” (p. 44).
In contrast many research studies also confirm that it not only brings at employees level but negative effects are at organization level. A study done to evaluate the impact of downsizing on organizational level revealed that 46% of 1,005 companies were able to meet their objectives through downsizing however 33% met their profit goals and only 21 % companies increased their share holders’ return. In addition, 86% of those companies have gone through downsizing three to five years before the study. (Wagner, 1999). Looking at the statistics it seems that impact of downsizing was not benefit for the organizations.
On the other hand there are positive effects of it on an individual and organization. Heenan (as cited in Kulkarni, n.d) defined many positive out comes in an organization which includes decrease staff level, less time consuming for the establishment of any process, faster decision making, smoother communications, greater collaboration among other groups, increase productivity and increase organizational effectiveness.
According to Cameron, Freeman and Mishra (as cited in Williams, n.d) “from the study of thirty firms from the automotive industry that implemented downsizing policies actually improved their operational effectiveness” (p.6). Conversely it has a positive effect on employees. Evans (as cited in Kulkarni, n.d). While discussing report on small business claimed that this approach opens new opportunities for employees who wish to work. It increases team work, new learning opportunities are given, and increased productivity and more profit are gained.
The effect of this traumatic and emotional change is very difficult to do. When I inquired from director human resource department regarding setting the criteria of voluntary early retirement scheme, Surani, N. (personal communication, March 24, 2008). He informed that the company who had already gone through this process, ideas were taken from them and criteria were set.
Here I would strongly argue that the criteria which were taken from industrial company or business oriented company will not match with health care organization. Health care organizations are unique in nature and work force working in health care organization cannot substitute any modern technology. Director human resource department Surani, N. (personal communication, March 24, 2008) assured that the criteria were changes in the need of the context.
The reasons of downsizing are many. Many organizations do it to make revenue, controlling cost, increase productivity and to be in competitive world. At AKUH, it was done to remove unnecessary layers of employees, to give chance to others to work enthusiastically and help organization to achieve its goals. Similarly to change the attitude of entitle mentality.
Director of human resource also Surani, N. (personal communication, March 24, 2008) asserted that it was needed to change those attitudes. According to Wagner (1999) “in the workplace, entitlement exist when people have so much security that they are not required to produce… ability to perform in the new position” (p.3).
Change is difficult to introduce and manage. Many studies recommend that if the activities are planned then change is achievable. Any new change in the organization creates chaos among its employees.
While offering the scheme, it was a chaos around the campus. It was difficult to handle the situation. However if the change has to occur, it has to be dealt systematically. Here I would like to apply change theory of persuasion as in downsizing approach, human resources were involved.
Change is difficult to initiate however it is something to do to survive in the business world. The basic understanding of change helps organization to implement it. According to Garvin and Roberto (2005)
Our research into organizational transformation has involved settings as diverse as multinational corporations, government agencies, nonprofits, and high-performing teams like mountaineering expeditions and firefighting crews. We’ve found that for change to stick, leaders must design and run an effective persuasion campaign—one that begins weeks or months before the actual turnaround plan is set in concrete. (p. 1)
Before initiating any change it is indeed a need for organization to extensively plan for it. As illustrated by Garvin and Roberto (2005), a campaign through persuasion should run in order to make employees happy. (see figure 1) The four phases define by Garvin and Roberto (2005) can help organization to make it possible and easy to handle. One phase includes turnaround process and other three phases includes persuasion process. I will relate this campaign with my organization and try to identify gaps followed by its strategies.
In phase one, it is time to convince employees that change is required for the organization and discuss with employees why it is needed with organization mission and vision. Here at AKUH, all employees who were following in the criteria were not fully aware about it. Moreover as discussed earlier, mostly heads of the department were also falling in this category, so they were anxious and not able to convince other employees. In my opinion what I have learned from them that they were not aware about the new directions and were basically claiming that it is because of the changing of leadership in the organization.
Here the second phase talks about position and frame preliminary plan and gather feed back. This is the phase when leaders should announce the plan to the employees. Here AKUH issued memo to employees in which every detail was presented along with all clauses. Moreover a general memo was issued to each and every employee who was in grade nine and above. Phase three includes employees mood should be managed through constant communication. Here people were having problem.
Human resource department also received grievances however as heads of the department were not ready to accept change it was translated to other employees also. Employees were talking to each other however their views were not voiced out.
Once leadership group met with employees however still this was the time when employees were not in accepting phase. Here constant communication with employees needs to be handled very properly so that it helps employees to understand and accept the change. Phase four talks about reinforcement of behavioral guidelines to avoid backsliding.
This phase in my opinion is very important that if employees are facing behavioral changes it is time when through counseling and constant communication, employees’ negative effects on change can be handled properly. Moreover Gravin and Roberto (2005) also asserted that developing a plan and implementing a plan should consist of turnaround process and initiation of phase one, phase two and starting of phase three and implementing phase consist of phase four.
There are several recommendations and strategies are defined in the studies to implement downsizing and handle the aftermath of it. Abrahamson (as cited in Dixon, 2000) valued the importance of change moreover he asserts that change should not be disruptive to the organization. In order to implement the approach is to make sure that communication is done with all employees keeping the values and mission and vision and direction of the approach. There are many studies and literatures suggest that communication is the only key to success for this process. (Wagner, 1999; Young and Brown, 1998; David and Roberto, 2005; and Kulkarni, n.d).
It was also affirmed by director human resource that they have also learned how to handle the issue though effective communication. In addition, it is also recommended that all stake holders should be taken in confidence so that resistance to change can take place. The heads of the departments should be involved in phase one of the persuasion campaign so that it is easy for leaders to implement change.
According to David and Roberto (2005) “Managers must perform significant work up front to ensure that employees will actually listen to tough messages, question old assumptions, and consider new ways of working” (p.1). Conversely it is also recommended that honesty and dignity of the employees should be the agenda of the organization at all time.
It is also recommended that follow up surveys and researches in this regard also appreciate organization to learn and move according to the need of the employees. There are many researches done to evaluate the impact of downsizing. (Kulkarni, n.d.; Young and Brown, 1998; Wynne, 2003; Duffield, Kearin and Leonard, 2007; and Wagner, 1999). Research on this topic will help organization to understand employee’s views and help them to adjust for the change.
The final position after literature analysis on my issue I can reflect that downsizing is not a new concept though it is controversial. On the other hand it has much benefit at the organizational level and employees’ level. It helps organization to grow and give chance to others to grow however if it is handled through effective communication it can create positive impact on employees which helps organization to grow. If we address the issue of emotional aspects of change at the individual level and departmental level, it helps organization to take decision easily and achieve it goals.
Leaders are the one who take organization along with them. They are the one who influence people to accomplish organizational goals. Leaders’ prime responsibility is to think and behave strategically. In order to build the reputation and grow in the market it is necessary for the leaders to adapt to the need of the environment. Moreover change as a result of reformation has a significant implication on any organization.
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