Downsizing at the enterprises by method of restructuring and investigation of impact of downsizing on human resources

viiDOWNSIZING AT THE ENTERPRISES BY METHOD OF RESTURICTING ANDINVESTIGATION OF IMPACT OF DOWNSIZING ON HUMAN RESOURCESMehmet BALABSTRACTIt is almost impossible for corporation to grow and maintain their positions intoday?s world, where technology inconceivably shrinks all dimensions in the universe.On one hand, the unlimited power of creativity facilitates human life; however, on theother hand, it puts those who cannot adapt to its speed of change into a paradox. Theunlimited power of change causes many people lose their jobs and strike those whokeep their jobs with fears. In the developed countries, in order to decrease the impact ofthe anaphora created by the winds of change on their citizens, corporations havedeveloped strategies in coordination with scientific institutions, made career plans usingthe facilities of educational institutions, and have endeavored to minimize the negativeimpacts of downsizing on their citizens by providing psychological aid in coordinationwith the health sector. Many scientific researches have been conducted and units formedto provide consultancy services in this area. However, less-developed or developingcountries could only perform as cheap labor sources and consumer markets. Theinternational corporations and incompetent domestic corporations have downsized inorder to lower costs, increase the speed of decision making process, provide quickresponses to their competitors? actions, focus on consumer needs, increase productivityand create synergy in the highly competitive global business environment, however,they could not lay these downsizing activities on any scientific base.While growth seemed as a symptom of good health, downsizing was perceivedas some situation that occurred during crises. In fact, the corporations tend to grow likeliving organisms. Therefore they put themselves consciously or unconsciously insituation whether good or bad for their survival. On the other hand, theoperatives/employees prefer people fully under their control rather than mechanismsthat control them. A typical example of a Turkish corporation?s downsizing style istheoretically studied and some bullet points such were observed like decreasing thenumber of employees, arranging marketing activities as per competitive environment,viiirenewing the equipment, investing to a new area while the outcome of some areas ofpractice prove themselves. In fact, downsizing strategy should be implemented in orderto lower costs, becoming aware of changes in the competitive environment;reinstitutionalization and take precautions prior to losses diminish the capital. Recently,many synonyms of the concept of ?Downsizing? are used such as ?Reorganization?,?Reconstruction?, and ?Reengineering?. In fact, downsizing is a wider concept thatencompasses all these concepts as it is researched within this thesis study.The main goal of corporations is to provide service or production of high qualityand, thus, maximize profit. On one hand, the main goal of corporation and on the otherhand out-of-scope activity areas and improving the life standards of those employeesassigned for these areas are in conflict with each other.Downsizing that is made to increase the survival chance of a corporation whichgrows like an unhealthy organism also brings conflicts of interest with itself because ofits nature.Downsizing has almost become a lifestyle in the business environments ofdeveloped economies. During times of cutting jobs, and during tough re-employmentperiods, the trauma of becoming jobless is a very important human condition that needsto be analyzed. It takes too much capital investment to create job even for one perperson. Therefore, the importance of this thesis study already takes its ground on a needfor a detailed study of gains and losses of downsizing in a national economy. The lossof self-confidence in employees and therefore presenting unfaithful behavior, thenecessary changes due to global competition and technological advances and theirimpacts on the Turkish economy increase the importance of this study as anotherhighlight. Because, downsizing is an unwanted outcome of unplanned growth and thisbill is paid by the corporations? fellow employees through cutting jobs.Due to no detailed study have been conducted on downsizing, this study aims tobe the pioneer one in this field.