PAC Resources and Downsizing - Assignment Example

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The assignment 'PAC Resources and Downsizing' presents PAC Resources in the present scenario which is experiencing a lot of difficulties regarding declining sales and an increase in total labor costs. In order to sustain in the competitive market, it is essential to reduce overall labor costs…
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PAC Resources and Downsizing
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The saved costs in this manner will help to save maximum jobs possible. On the other hand, labor costs can even be reduced by providing limited training and focusing more on factors which are resisting team members from enhancing sales volume. The saved costs in this manner will help to save maximum jobs possible. On the other hand, labor costs can even be reduced by providing limited training and focusing more on factors which are resisting team members from enhancing sales volume. 
Downsizing is a common phenomenon which is adopted by an organization when it needs to reduce the total labor costs. However, there are certain short term and long term implications of downsizing. In the context of short term, such factor facilitates layoffs and enables management to focus on those employees who are productive by nature. The major short term implication of downsizing is that it helps to eliminate unnecessary costs from the system. On the other hand, the long term implication of such a procedure is that it initiates insecurity within other team members. The employees might feel that if their performance level declines in any month then even they would lose their jobs. Downsizing in the long term makes an organization less productive as it loses the capability to retain employees in the organization. The other long term implications are usually in the form of lack in motivation or enthusiasm within the firm which has a direct impact on end results. Often firms focus on short term implications of downsizing but long term implications are not given much importance. 
Downsizing is one of the essential steps that need to be taken by PAC resources so as to sustain its overall operations. In order to enable a 10 percent overall reduction in the workforce, it is recommended to analyze the performance of team members. This would help in determining which of the employees are not performing up to the set standard in the past few years. On the other hand, a monitoring and evaluation technique can even be implemented to identify the effectiveness of the training session. That personnel who have been able to maintain their performance standard and performed well in training programs will be retained in the organization. There are certain discrimination issues associated with downsizing as some employees might feel that experienced candidates were given more preference in relation to those who have currently joined the system. A discriminating factor can also be related to gender, as males can be majorly retained in the system in comparison to females since the job was of sales profile.  Read More
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