... process. Finally the fourth part will outline the necessity of training for management and the importance of handling redundancy. 3.0 TERMS OF REFERENCE To: Leslie Catchpowle From: Sejal Patel Subject: Employee Relations Redundancy Report Date: 18th November 2002 The purpose of the report is to assess whether the Redundancy legislations policies and accompanying procedures is an effective method of managing downsizing in the workplace. 4.0 FINDINGS 4.1 Downsizing In the past several years, majority of companies have been experiencing organisational changes in the form of reorganisation, mergers and downsizing. Over the last 5 years statistics suggest that over 85% of Fortune 500 companies have downsized and 100% are planning to do so. (Buch, 1992 Sadri, 1996) In order to gain a competitive advantage and satisfy customer needs, organisations exercise downsizing as a strategy for shifting the organisational structure. Downsizing has been a major effort to revitalize organisations. The need for change in organisations is due to the:> Increased global competition> Impact of IT Cameron 1994 ...

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