Much of the rapid organizational transformations including indiscriminate downsizing over the last several years have been senseless. Approximately 62% of companies in one survey didn’t even look at other methods for reducing costs before getting rid of people. Many followed the reengineering herd to downsize people instead of changing fundamental processes or growing the business. And within one year of the layoffs, more than half of these companies refilled the laid-off positions. Go figure!
Does this mean that organizations will get smarter with their hiring and firing decisions? Who knows? History is not a good indicator. With rapidly changing and growing markets, knowledge and people power are again valuable but who knows what’ll happen in the next economic blip?