Creative downsizing requires strategic intelligence

Citation

(2009), "Creative downsizing requires strategic intelligence", Human Resource Management International Digest, Vol. 17 No. 1. https://doi.org/10.1108/hrmid.2009.04417aad.010

Creative downsizing requires strategic intelligence

Article Type: Abstracts From: Human Resource Management International Digest, Volume 17, Issue 1

Maccoby M. Research Technology Management (USA), July-August 2008, Vol. 51 No. 4, Start page: 60, No of pages: 2

Purpose – Approaches the problem of downsizing research and development (R&D) staff in as rational a manner as possible through systematic staff evaluation. Design/methodology/approach – The situation is considered where the director of a company’s successful R&D laboratory is obliged to downsize the staff in spite of arguing with senior management that the best approach to dealing with economic misfortunes and downturns is to maintain levels of R&D to ensure continuing innovation. Focuses on the need for managers to continue with their role of developing the company’s ability to innovate and stresses the need for maintaining staff trust through appropriate leadership. Recommends that managers start with their direct reports since they will need their full support to advise on the cuts and vouch for the managers’ credibility. Findings – It is suggested that managers apply two criteria to evaluate their staff, past performance and future promise, even though these criteria may be difficult to apply in practice. Argues that, when deciding which professionals are most likely to innovate, managers should be thinking systematically, since innovation often requires boundary-breaking collaboration among disciplines and the value of individuals may depend on the presence of complementary experts. Warns against inviting direct reports to vote on the evaluations and offers advice on the role of bonuses in the budget. Originality/value – Offers a brief but helpful guide to R&D managers faced with the problem of downsizing their staff. ISSN: 0895-6308 Reference: 37AR199

Keywords: Redundancy, Employees, Performance appraisal, R&D, Innovation, Dismissal, Human resource management, Downsizing, Organizations