Journal of Management Research
Volume 10, Number 1 ( April 2010)
ISSN: 0972-5814 Online ISSN: 0974-455X
New Developments in Reduction-in-Force A Brief Historical Analysis of a Business Strategy
Franco Gandolfi
| Abstract |
After nearly three decades of corporate restructurings and reorganizations, the modern organization has continued to resort to reductions-in-force (RIF) strategies. This article presents an overview and a brief historical analysis of some of the most popular RIF concepts that have been adopted by firms and governmental agencies on a global scale since the late 1970s. The review found that most RIF tools have their root in the core-periphery model. While some of the more traditional RIF strategies have remained popular, the paper showcased two contemporary practices; the traditional (non selective) layoffs and stealth layoffs. A discussion of modern-day restructuring and RIF practices was deemed timely given the high levels of layoffs currently occurring in the global automotive, retail, and finance-related industries. Finally, a particular focus is placed on presenting practical implications of the conduct of RIF for the firm, the managers, and the individual employees.
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