Right Sizing

       The term which means, “to reduce to an optimal size” referring to reducing the number of employees in the organizations. There have been many instances when organizations grow at a very fast pace, and in this course they ignore the basic motto behind hiring a new talent. Hiring is done on project basis and this results in a lot of employees sitting idle when the project is over. This also reflects on the inefficiency of the HR department of the organization. Inefficient hiring may also result in increasing the overheads and hence reducing the benefits.

These days most companies are looking forward to save money for which right sizing is one of the easiest route. Right sizing is more than just downsizing. It’s redesigning the processes and systems of the organizations. For this strategic planning is to be done, which includes work force planning. 

Reasons for right sizing can be many:

• Technology mix change
• Economic crisis or slowdown
• Growth or expansion
• Mergers - Acquisitions

The various strategies for right sizing include: permanent downsizing, temporary lay offs, contract labor etc. With right sizing – reducing the organizational numbers will initially improve productivity figures. The trick with right sizing the organization is to watch and track the link between reducing numbers and productivity and stop the reduction as soon as the productivity improvement graph plateau’s out.

The downfall to rightsizing and downsizing is the emotional toll it takes on everyone. Employees concerned about their professional future slow down production. Highly prized employees find new jobs in order to circumvent being laid off. The company can alleviate some concerns by communicating with employees and providing them outlets for their concerns, such a regular company meetings and professional evaluations.

Proponents of rightsizing feel it reduces much of the emotional determent to operations. There is no reason why managers can’t do this on a regular basis, small companies are good at this where companies over 300 employees quickly loose the plot.