Cutback Management in an Organization - Essay Example

Budget allocations are very crucial to every organization. It often represents the most important and consequential policy statements that governments or nonprofit organizations make (Bryson, 2011). In a bid to cut off expenses, an organization is faced with budgetary constraints. Operational costs or programs may be cut to give room for other funds for piloting, preparation, or other substantial reforms. It, therefore, becomes hard to achieve changes in an organization. With fewer resources remaining, it will be a hard task to bring organizational changes, as well as to meet innovative programs for employees. Furthermore, the organizations’ flexibility in innovation is diminished. It may become hard to reach a consensus on how much is going to be cut from the budget by the stakeholders.

Cutback management should be viewed as a trend to better opportunities that will lead to improvement as opposed to a threat. The tone used for such a task should be positive. Also, cutback management should be planned and prepared for, and articulated well. The management should be well aware that there comes a future turn to economic minimum resources. The organization also should evaluate human resources as an important asset instead of pegging it as a budget line. It makes a human resources more viable in terms of growth and productivity. In this sense, employees should be involved in the trend. They should contribute and feel that they are accountable for such a move. Communication also plays an important role. Therefore, during such a move stakeholders should be honest in every aspect to every employee that it will be done on honest grounds. Last, a variety of methods should be adopted and not merely headcount restrictions (Bryson, 2011).

As seen above, cut-back management embraces a systematic strategy that an organization adopts to achieve some set targets. On the other hand, ordinary change management refers to a haphazard manner undertaken to cut expenses that a firm incurs. It does not affect productivity as the organization still operates on maximum benefits per man hour times. Cutback management may affect productivity (Levy, 2013).

The future of management seems to be based on cutting-edge productivity coupled with little margins left on non-profit organizations. It is no feat to learn that strategic planning forms the core of nonprofit and public organizations to continue being viable. Managers should strive for efficiency and ultimate effectiveness. They should look for more strategies to improve performance. The above two strategies are important tools in effecting a change, though they should be used not to curtail any work in an organization.