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Journal of Management Research
Year : 2010, Volume : 10, Issue : 1
First page : ( 3) Last page : ( 14)
Print ISSN : 0972-5814. Online ISSN : 0974-455X.

New Developments in Reduction-in-Force: A Brief Historical Analysis of a Business Strategy

Gandolfi Franco, Director

MBA/EMBA Programs, Regent University, School of Global Leadership & Entrepreneurship, 1333 Regent University Drive, Suite 102, Virginia Beach, VA, 23464-5048 (USA)

Abstract

After nearly three decades of corporate restructurings and reorganizations, the modern organization has continued to resort to reductions-in-force (RIF) strategies. This article presents an overview and a brief historical analysis of some of the most popular RIF concepts that have been adopted by firms and governmental agencies on a global scale since the late 1970s. The review found that most RIF tools have their root in the core-periphery model. While some of the more traditional RIF strategies have remained popular, the paper showcased two contemporary practices; the traditional (nonselective) layoffs and stealth layoffs. A discussion of modern-day restructuring and RIF practices was deemed timely given the high levels of layoffs currently occurring in the global automotive, retail, and finance-related industries. Finally, a particular focus is placed on presenting practical implications of the conduct of RIF for the firm, the managers, and the individual employees.

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Keywords

Reduction-in-force (RIF), layoff, strategy, restructuring, typology.

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