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Words: | Submitted: Mon Jun 19 2006
... company in the 1980s, it faced a number of significant changes in its operating environment. These factors range from increased competition resulting from government policy, to technological changes in the telecommunications industry. Such changes in the operating environment have necessitated the need to increase productivity in order to remain competitive. Throughout the case study, it becomes apparent that BT have sought to use downsizing as a simple tool to reduce the organisations headcount thus reduce cost. However, although such a structural change may be easy to comprehend at its superficial level, in reality the process of downsizing is highly complex and can often generate a range of reactions that undermine the original objectives. This is why a noted scholar assessed downsizing as "probably the most pervasive yet understudied phenomenon in the business world" (Cameron, 1994). For BT's intentions of downsizing to be realised, it was necessary to consider and manage ...
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