Outplacement As A Technique Using To Decrease Negative Effects Of Downsizing

Essay by chrusniakUniversity, Master'sB-, November 2011

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Outplacement as a technique using to decrease negative effects of downsizing


Outplacement is a term used to describe efforts made by downsizing company to help former employees through the transition to new jobs and help them re-orientate to the job market.

Downsizing is a process of reducing organization's size, connected with decreasing the number of employees. Generally, in practice downsizing involves layoffs and claims the positions of staff specialists, middle managers and senior executives. Downsizing is implementing in response to different conditions: mergers and acquisitions, organization decline caused by loss of revenues and market share, as well as technological and industrial change. Using this strategy organizations often may lose key employees, cutting into its core competences and bring mistrust among members. It all may lead to bad reputation.

That is why companies try to implement outplacement in order to prevent above mentioned downsizing effects.

Synopsis has examined theoretical and empirical approaches of outplacement.

The following questions have been answered in order to give a better understanding of the problem:

Does outplacement act upon employees' or companies' benefits?

Which techniques and operations do companies use while implementing outplacement?


Outplacement process has not been described in details (including its implementation's period, financial calculation etc.) because of limited access to confident companies' information about downsizing.

Outplacement in theoretical view.

Outplacement is a practical support from professional consultants designed to help people who have to leave a company, whether through redundancy or severance, move to the next stage in their careers. A consultancy firm usually provides the outplacement services which are paid for by the former employer and are achieved through practical advice and psychological support.

Outplacement is either delivered through individual one-on-one sessions, group format or executive outplacement. All these programmes, whether group or individual, are designed to help people cope...