TheImpact of Downsizing on Families

Downsizing andrestructuring have turned out to be common strategies for thecompanies that struggle to compete. But these approaches when carriedout do not often achieve key objectives of the companies such asreduction of costs, increased levels of productivity,competitiveness, and profitability.1On the other hand, downsizing have had impacts to the families of thelaid off.

The purpose of this paper therefore, will be to examine the negativeeffects of downsizing on the families and whether they have recoveredfrom it, whether some companies that underwent the process ofdownsizing tried to establish the means and procedures of helping thedownsized employees, and the experience between the families andmanagers as a result of employees that experienced downsizing. Inaddition, the paper will seek to answer the question on whether thecompanies must do something for their employees before they carry outdownsizing.

To begin with,downsizing is known to have a profound effect on the victims’families. A certain lifestyle is created by the families of thoseworking based on the idea that they receive regular income.2This involve taking on mortgages and debts based on the belief thatthey will be able to make monthly payments. The loss of a job can bea financial blow to the departing employees and their families,especially if they do not find another employment immediately.Unemployment and severance are not enough for the victim’s familiesto meet all the expenses.3Losing a job because of downsizing means the family as a whole inoften case loses other benefits such as the house and healthassurance provided by the company.4While the health care benefits are often extended for the departingemployee and the whole family, for example, COBRA (ConsolidatedOmnibus Budget Reconciliation Act), these present an expensive optionto the families since the option will eventually run out.5The lack of health benefits means the families of the departingemployees means they stand a chance to miss check-ups and failedprescriptions.6

Secondly, thedownsizing effects that the families of departing employees often incase experience the mental well-being. As breadwinners, theexpectations from the families are always high. At the same time,these employees expect to be rewarded through their hard work.Downsizing is often needed by the company to reduce labor and paymentcosts means that eliminating the jobs of the hardest workingemployees in the company is inevitable.7Being aware of what could follow after lay off, downsizing has achance to result the downward spiral, which leads to mental healthdepression issues. Some of the members in afamily have a chance to drug and substance abuse to help themaccept the situation. The laid-offemployees often in case take their frustrations out through domesticviolence.

The question onwhether companies must do something for their employees before theycarry out downsizing is answered by an example given by Techno Inc.,back in 2008. Often a time comes when most companies are laying offits employees, and during that time, Techno,Inc., was among those that wereabout to make these decision. Before the layoff, the company has toapproach it in a way that will not have severe impact on theemployees and their families. First, the company has to find a way tocompensate all the laid off employees. These include health insuranceand pay coverage, the best way it could. A compassionate andtransparent approach, it helps to create a good willfrom the employees than bad.8In addition, the layoff should be carried out in a timely manner bychoosing the right people and doing it face-to-face.

Techno, Inc.establishes a procedure for the process of downsizing. First, itchooses the right people to do the work the company did it at thestart of the week. Deems Michael, who wrote the book, “How to FireYour Friends”, suggested Tuesday mornings.9This is because the company to stay in control of the remainingemployees why the departing ones have a whole week to make soberdecisions. Again, the process needs to be done face-to-face withcompassion. This will assist the employees and their families toovercome the ordeal smoothly and with muchdignity.10

In conclusion,while the negative impact often in case is huge on the families ofdeparting employees, a positive impact is the same. The employeebecomes open to other opportunities that he or she may not haveconsidered before. Such opportunities in most cases come along with ahigh pay, which is a boost to their families.11Some companies help their departing employees tofind another job, which is referred to as outplacement support.12Finally, an opportunity for the employee to set up his or her ownbusiness venture uses the severance pay. This often in case turns ahuge boost to their families’ financial strength.


Theessay project would be dynamite if it had interviewed severalindividuals who got laid-off and interviewed their family members.

Theessay needs more of your thoughts. For example, how do you assess thestrengths and weaknesses of the various studies and viewpoints.

Theessay project does not have a thesis. Let’s work together onconstructing the thesis statement paragraph and the thesis statement.

Commonwriting style problems pertaining to short essay #3:

13points deducted for the occurrence of each of the following commonwriting style problems: #6, #11, #12, #18, #26, #31, #32, #33 = 104points

10points deducted for starting the essay page numbering on the cover(title) page.

20points deducted for using footnotes when instructions call forendnotes. Microsoft Word has a feature that converts footnotes toendnotes. Please contact me when you are experiencing issues withyour citations.


Beazley, Hamilton, Jeremiah Boenisch, and Daṿid Hardan. 2002.Continuity management preserving corporate knowledge andproductivity when employees leave. New York: John Wiley.

Burke, Ronald J., and Cary L. Cooper. 2000. The organization incrisis: downsizing, restructuring, and privatization. Malden:Blackwell Publishers.

Carter, Tony. 1999. The aftermath of reengineering: downsizingand corporate performance. New York: Haworth Press.

Cooper, Cary L., Alankrita Pandey, and James C. Quick. 2012.Downsizing: is less still more? New York: Cambridge UniversityPress.

Gelfand, Michele J., Chi-yue Chiu, and Ying-yi Hong. 2011. Advancesin culture and psychology. New York: Oxford University Press.

Gottlieb, Marvin R., and Lori Conkling. 1995. Managing theworkplace survivors: organizational downsizing and the commitmentgap. Westport, Conn: Quorum Books.

Greer, Charles R, 2004. Strategic Human Resource Management: General Managerial Approach, Second Edition, Person Education

Karake, Zeinab A. 1999. Organizational downsizing, discrimination,and corporate social responsibility. Westport, Conn. [u.a.]:Quorum Books.

MacCormick, David. 1998. The downsized warrior: America`s army intransition. New York, NY [u.a.]: New York Univ. Press.

Manson, Bonita. 2000. Downsizing issues: the impact on employeemorale and productivity. New York: Garland Pub.

Pfeiffer, Raymond S., and Ralph P. Forsberg. 2004. Ethics on thejob: cases and strategies. Belmont, CA: Thomson/Wadsworth.

Quinn, Hope Stanley, and Lyn Miller-Lachman. 1997. Downsized butnot defeated the family guide to living on less. Kansas City:Andrews McMeel Pub.

  1. 1Stanley Hope Quinn and Miller-Lachman Lyn. Downsized but Not Defeated the Family Guide to Living on Less (Kansas City, MO.: Andrews McMeel Publishers, 1997) 45-67.

  1. 2Raymond Pfeiffer S., and Forsberg R. Ralph, Ethics on the job: cases and strategies. Ethics on the Job: Cases and Strategies (Belmont, CA: Thomson/Wadsworth, 2004) 56-99.

  1. 3Bonita Manson, Downsizing Issues: The Impact on Employee Morale and Productivity (New York: Garland Publisher, 1998. 111-123.

  1. 4David MacCormick, The Downsized Warrior: America’s Army in Transition: New York University Press, 1998), 101-109.

  1. 5Zeinab A. Karake, Organization Downsizing Discrimination, and Corporate Social Responsibility (Westport, Conn: Quorum Books, 1999), 111-112

  1. 6Charles R Greer, Strategic Human Resource Management: General Managerial Approach 2nd ed. ([New York]: Person Education, 2004), 86-89

  1. 7Marvin R. Gottlieb and Conkling Lori, Managing the Workplace Survivors: Organizational Downsizing and the Commitment Gap (Westport, Conn: Quorum Books, 1995), 78-79

  1. 8Michele J. Gelfald, Chiu Chi-yue, and Ying-yi Hong, Advances in Culture and Psychology (New York: Oxford University Press, 2011) 56-57.

  1. 9Cary L. Cooper, Pandey Alankrita, and James C. Quick, Downsizing: Is Less Still More? (New York: Cambridge University Press, 2012) 90-91.

  1. 10Tony Carter, the After of Reengineering: Downsizing and Corporate Performance (New York: Haworth Press, 1999) 56-60.

  1. 11Ronald J. Burke and Cooper L. Gary. The Organizing in Crisis: Downsizing, Restructuring and Privatization (MA: Blackwell Publishers, 2000) 56-57

  1. 12Hamilton Beazley, Jeremiah Boenisch, and Daṿid Hardan. Continuity Management Preserving Corporate Knowledge and Productivity When Employees Leave, 2002), 15-17