CASE STUDY: THE SPIRAL JOURNEY OF DOWNSIZING TO EXPLORE THE PATH OF INNOVATION

Publication Date : 01/05/2017


Author(s) :

NICOLAS V. MARAMBA.


Volume/Issue :
Volume 2
,
Issue 2
(05 - 2017)



Abstract :

BuildHill one of the global leading engineering consultant service provider of project delivery and consulting services to the resources & energy sectors and complex process industries, failure to sustain business and financial performance had resulted to the decision to downsizing with a massive lay-off of employees across the company. Organizations were restructured, and changes are kept and managed with minimum publicity, and employees’ communications are reframed for good from company stand point. However, the massive laying-off of employees (Engineers to Project Managers level) which comes into series of waves and up to this date, it is still on-going and no definite precise direction on how and when, it will end. The concealed approach of communication for the company’s direction and pragmatic subtle behaviours of the top management to the down line employees to share their perspective common views of concern for the directive plan, objectives and strategy to overcome the current crisis may have strong implications that attributed the causes of employee’s low morale thus affected their work related performance, growth, social and cultural development. These issues will eventually affect the business performance. This case study will provide an insight for the evaluation and analysis of the challenges the organization faced by BuildHill. The objective is to mainly focus on assessment and addressing the issues related to the various effects and implications of the downsizing to the employees’(survivor) morale, company assets integrity (stock knowledge, knowledge creation process and leaders) and performance that has been identified as prime factors which seems to have impact BuildHill normal operation and their businesses. Downsizing has been a managerial practice for the past decades. The major reason of any downsizing endeavour is to make organizational entity more competitive compared to its rival and to achieve bottom line objectives. There are very few studies conducted by scholars to support the effectiveness for the impact of downsizing on innovation.


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