Advantages and drawbacks of using downsizing, technology, and acquisitions and mergers as a change strategy to tackle organizational challenges
The primary advantage of downsizing is cost saving. It helps businesses to cut costs since it is a reaction to a decline in sales and profits. Improved efficiency is another benefit of downsizing. This benefit attributes to the fact that downsizing helps organizations to reduce the unproductive workforce and restructure departments. Also, downsizing helps to improve labor mobility since it directs workforce to embrace new technologies and skills. De Meuse and Dai (2013), note that although downsizing results in positive financial outcomes, the gains do not happen in the short-term. Further, downsizing result in loss of skilled and experienced ...