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Friday, January 13, 2023

Ethical Conundrums Concerning Environmental Sustainability

 Benjamin S. Mercado Jr.

Divine Word College of Laoag

Abstract

The area of environmental philosophy known as "environmental ethics" examines the moral relationship between people and the environment. It includes a developing body of applied ethics that is crucial for assisting individuals, organizations, and governments in choosing the principles that will direct their way of life, their course of action, and their position on a variety of environmental issues. This is one of the ethical frameworks that allow us to make choices that benefit the environment. It is crucial to comprehend how environmental ethics can be practised at work and eventually ingrained into daily life. The objective is to achieve a sustainable environment by increasing awareness of the risks posed by rising pollution levels and climate change. Also, to ensure that human actions do not further harm the natural world, environmental ethics are studied. This is essential if we want future generations to enjoy all that Mother Nature has to offer, including a happy, prosperous life in harmony with the environment. Every single one of us has a responsibility to act now to save the earth for future generations 

Keywords: environment, ethics, sustainability, issues, earth

Introduction

 

The term "environment" refers to everything that surrounds us, both natural and man-made. When we think of "environmental ethics," we usually think of the non-human natural environment. "Environmental ethics" refers to human attitudes and values toward nature that influence individual behaviour and government policy.

Environmental ethics is the study of normative concerns and principles about human interactions with the environment, as well as their context and outcomes, and how these interactions should be handled in light of ecological difficulties. It includes a significant area of applied ethics that is essential for guiding agents like people, businesses, and governments in forming the values that influence their way of life, their course of action, and their policies regarding the full spectrum of environmental issues.

One central tenet of environmental ethics is that humans should protect the environment for future generations, as well as to respect and honour the human-nature relationship. This means that people must take precautions to ensure that they do not harm the environment in any way. People must work to conserve and protect natural resources for the benefit of current and future generations. This is especially important given the world's growing population. If people do not act now, future generations will be left to deal with the consequences of human actions on our planet. Another crucial ethical principle is that humans are Earth's stewards. This means that people are accountable for environmental protection.

Business ethics education included a study of environmental ethics. This is done to make commercial organizations more conscious of how their actions affect both people and the environment. Business exists to serve people as well as make a profit. Any business decision should always take into account its ethical implications for the surrounding environment and community.

If environmental ethics are strictly followed and produce good results, the environment will be able to sustain itself and provide a good life for future generations. The United Nations (UN) defines sustainability as "meeting current needs without jeopardizing future generations' ability to meet their own." Environmental ethics determine the state of environmental sustainability. It depends on whether human attitudes toward nature are positive or negative. There is no question regarding the need for sustainability. In “The Concept of Environmental Sustainability,” Robert Goodland substantiates a history documenting this need, presenting proponents ranging from Mill and Malthus to Meadows and Brundtland et al., and puts forth a definition of “environmental sustainability as the maintenance of natural capital” and as a concept apart from, but connected to, both social sustainability and economic sustainability. These arguments are not repeated here but rather accepted as valid, supported, and used as a basis from which to proceed to further develop this concept.  (Morelli, 2021)

Environmental sustainability is a hotly contested topic, and people must take an ethical approach to it. To create a sustainable environment, this paper aims to raise awareness of the dangers posed by escalating pollution levels and climate change. Additionally, to educate people about various environmental ethics, their effects, and solutions.

The following are some ethical issues that need to be addressed to have a sustainable environment.

Patterns of resource consumption and the need for equitable utilization

How should we balance the environmental impact of manufacturing versus distribution? Environmental ethics is concerned with issues concerning how we use and distribute resources. Can individuals justifiably use resources so differently that one individual uses resources many times more lavishly than another who barely has enough to survive? A just world must have more equitable resource sharing than we currently have. We are concerned about the equitable distribution of resources at the global, national, and local levels. There are rich and poor countries that must be addressed. Every country has both rich and poor communities. This unequal distribution of wealth and access to land and its resources is a major source of concern for the environment. The basis between the people and the common property resources is an equitable sharing of resources. We will need to learn a lot from our traditional cultures in this regard. (Swain, 2020). The gap between haves and have-nots is growing. The use of resources varies between individuals, communities, and countries. The well-to-do, educated urban dweller consumes far more resources and energy than the traditional rural person. This unequal distribution of wealth and access to land and its resources is a major concern for the environment. Sustainable development for urban, rural, and wilderness communities is based on equitable resource sharing.

Gender equity is essential.

Another ethical concern is the need for gender equity. If gender equality is the aim, gender equity is the means to that goal. Gender equality "does not imply that men and women will become the same, but rather that men's and women's rights, responsibilities, and opportunities will not be determined by whether they are born male or female." Gender equity refers to the equitable treatment of men and women based on their respective needs, which may include equal treatment or treatment that differs but is considered equivalent in terms of rights, benefits, obligations, and opportunities.

According to the Gender and Development Network (GADN), gender inequalities and barriers prevent women from participating in environmental debate and action at all levels. Along with unequal access to resources, this limits women's ability to adapt to climate change and respond to events such as drought, soil degradation, and deforestation. It also results in gender-blind, ineffective environmental policies.

Gender and environmental considerations are critical for enabling communities to achieve resilience and adapt to and recover from environmental challenges. Women are powerful change agents who can play an important role in protecting the resources on which they and all of us rely.

Keeping resources safe for future generations

Preserving resources for future generations is one environmental ethic that we fail to follow. This ethical issue must be considered when we use resources in an unsustainable manner. If we overuse and misuse resources and energy from fossil fuels, future generations will struggle to survive. Environmental protection is critical to reducing the destruction of ecosystems caused by a variety of anthropogenic activities. Humans have a moral obligation to protect the environment from pollution and other activities that contribute to environmental degradation. It is part of human obligations to protect their natural habitat. Failure to do this concerns the sustainability of the earth and also the lives of future generations. According to National Ocean Service, these are ten things to do to preserve resources. (a) Reduce, reuse, and recycle. Reduce waste. Follow the three "R's" to save natural resources and landfill space; (b) Volunteer. Participate in community cleanups by volunteering; (c) Educate. Help others understand the importance and value of natural resources; (d) be water-wise. The less water used, the less wastewater and runoff will ultimately end up in the ocean; (e) Choose sustainably. Learn how to make smart choices; (f) Shop carefully. Bring a reusable shopping bag and purchase fewer plastic items; (g) Use light bulbs with a long life. Greenhouse gas emissions are reduced by using energy-efficient light bulbs; (h) Plant a tree. Air and food are produced by trees. They aid in energy conservation, air purification, and halting climate change; (i) No chemicals should be put into our waterways. Pick non-toxic chemicals for your home and workplace; and (j) Less drive, bike more.

Environmental sustainability is acting in a way that preserves the environment while not endangering the ability of future generations to meet their own needs. Environmental sustainability is a feasible objective if we band together as people and companies right away. A few examples of environmental sustainability that can be put into practice right now include conserving renewable resources by promoting sustainable farming, planting home gardens to grow your food and buying local products, buying carbon offsets to support reforestation and other regenerative projects, avoiding the use of fossil fuels by switching to renewable energy sources, and reducing pollution by composting and supporting other environmentally friendly practices. 

Conclusion

The idea of environmental ethics offers more than just the chance for passionate discussion on the merits of sustainable development. It has had a significant impact on the development of viewpoints and ideas that are new to global governance and that aim to express the true beliefs and values that should, in an ideal world, guide decision-making for the benefit of people and the rest of the living world. 

Concern for the carrying capacity of natural systems and the social issues that humanity faces are intertwined with sustainable development. As we have lost the significance of sustainable living in modern society, we have also somehow lost the deeper metaphysical dimension of sustainability. Sustainable living is a way of life that aims to minimize how much a person or society uses their resources as well as the natural resources of the planet. The goal of those who live sustainably is to live in a way that respects the Earth's natural cycles and ecology maintains natural balance and honours humanity's symbolic connection to it.

The health and well-being of future generations will be severely jeopardized if decisive action is not taken today to achieve environmental sustainability. As intensive farming affects the fertility of the land and the capacity of the water supply, the food supply will become unstable. The effects of climate change will be amplified by global warming brought on by greenhouse gas emissions from the burning of fossil fuels, resulting in more extreme weather, floods, droughts, and changes in growing seasons that will upend society. Our quality of life, as well as the ability of local communities and the larger society to thrive, will be significantly hampered by pollution of the land, air, and water. Environmental sustainability, in other words, is essential to both our survival and that of the planet.    

References

Ellevate. (n.d.). Why We Need Gender Equity Now. Forbes. Retrieved January 11, 2023, from

https://www.forbes.com/sites/ellevate/2017/09/14/why-we-need-gender-equity-now/?sh=4559e2a677a2

 

EM101_1: Environmental ethics: issues and possible solutions. (n.d.).Ecoursesonline.iasri.res.in. http://ecoursesonline.iasri.res.in/mod/page/view.php?id=26200

 

Environment. (n.d.). Gender and Development Network. Retrieved January 11, 2023, from https://gadnetwork.org/issues/environment#:

 

Morelli, John (2011) "Environmental Sustainability: A Definition for Environmental  

Professionals," Journal of Environmental Sustainability: Vol. 1: Iss. 1, Article 2. 

National Ocean Service. (2019). Protecting Our Planet Starts with You. Noaa.gov. https://oceanservice.noaa.gov/ocean/earthday.htm 

Patterson, N. (2022, April 22). What is Environmental Sustainability? Goals with Examples.Www.snhu.edu.https://www.snhu.edu/aboutus/newsroom/stem/what-is-environmental-sustainability#

 

Öhman, J. (2016). New ethical challenges within environmental and sustainability

education. Environmental Education Research22(6), 765–770. https://doi.org/10.1080/13504622.2016.1165800

 

Swain, N. (2020). Issues in Environmental Ethics7.

https://www.jetir.org/papers/JETIR2005099.pdf

 


Sunday, December 25, 2022

Organization turnover and how to prevent it

 JAY-MHAR C. GAOIRAN

Master in Business Administration

Academic Paper - Human Resource Management

ABSTRACT

The word "employee turnover" is commonly used in commercial contexts. Even though there have been many studies on this topic, very little research has been done on examining the causes and contributing factors of turnover as well as providing some practical strategies that managers can use to ensure that employees remain in their respective organizations to increase organizational effectiveness and productivity.

The main objective of this paper is to understand the motivations behind employee turnover as well as its causes and essential components as shown in the relevant literature. This conceptual paper also provides several potential strategies for preventing employee turnover and keeping people with the organizations.

Thus, this paper has discussed key factors in explaining the occurrence of staff turnover and discusses reasonable retention strategies to deal with these concerns.

Keywords: employee, turnover, factors, causes, retain, strategies, organization.

INTRODUCTION

Employee turnover rate can influence a company's bottom line. High turnover typically indicates a problem because satisfied employees tend to stay with their company. For some reasons, not all employees who leave the company is unhappy - others may retire, move away, leave for personal reasons, want to change careers, or even start their own business. A company's finances and morale may suffer from a high employee turnover rate. Business owners should take action to discover probable causes, assess turnover rates, calculate turnover costs, and then handle turnover issues if management has reason to believe that staff turnover is a problem within the organization.

Based on the research conducted by Al-Suraihi, et al., (2021), there are numerous factors, including job stress, job satisfaction, job security, work environment, motivation, pay, and benefits, might cause individuals to leave their jobs. An organization's productivity, sustainability, competitiveness, and profitability can all be adversely affected by personnel turnover, which also has a significant financial impact on businesses.

Consequently, to adopt specific tactics in enhancing employee performance and lower turnover, businesses must first understand the demands of their workforce. Implementing solutions will boost employee's motivation, productivity, and job satisfaction, which can lower employment issues, absenteeism, and employee turnover.

The Negative Outcome of Employee Turnover to Businesses

Markovich (2019) emphasized that high turnover rates can have a negative impact on a company and its employees' well-being in many ways. It is easy to stray away from the organization's primary mission and vision given the constant requirement to hire and train new employees. Businesses may provide a higher-caliber staff that improves their bottom line by keeping their current employees. Businesses may lower employee turnover by providing staff with the right training, rewarding them for a job well done, and building a culture of trust within the workplace.

Similarly, according to Nielsen (2021), she pointed out in her article titled Identifying and Addressing Employee Turnover Issues, that when an employee leaves the organization, it costs the company mainly in productivity, money, and time.

·         Productivity – when a person leaves, productivity typically suffers because other employees may have to temporarily take on some of the previous employee's responsibilities.

·         Money – along with the financial expenses of lower production, employer might need to pay staff overtime to pick up the slack left by the former employee until a replacement is located. Additionally, employer can be required to pay for the costs of hiring a replacement and filing for unemployment benefits.

·         Time – replacing a former employee will also need to invest time and money in advertising, doing interviews, and other recruitment methods. Employers must keep in mind the time and effort they put into finding and educating the former employee. When they lose a lot of staff, they waste time and money.

Hence, even after a company recruits and hires a new employee, productivity will still suffer as the person adjusts to their new position. Depending on the job, temporary employees may occasionally be able to pick up the slack. In other words, losing an employee cost the company money because it requires more resources to resume productivity or performance at the previous level. Given the high costs involved in turnover, businesses generally want to avoid it as much as they can.

Sources of Job Dissatisfaction

Employees do not always switch jobs because they are unhappy in their current position. They can be drawn away by higher income, better benefits, or better employment opportunities if the talents they possess are in demand. Employers can take efforts to boost morale in their companies and make individuals be satisfied and productive, since they have no control over what is happening with other businesses, how much they pay, or which perks they provide. Because of this, it is crucial to distinguish between employees who quit because they are dissatisfied and those who do so for other reasons.

The following are some of the most common reasons for high turnover in businesses as explained by Nielsen (2021):

·         A mismatch in the job's requirements and the employee's skills – Employees who are given tasks that are too challenging for them or whose skills are not fully used may get demoralized and leave their jobs. Lack of knowledge of the qualifications needed to fill a position may lead to the hiring of either underqualified or overqualified employees.

·         Inadequate equipment, tools, or facilities – If working circumstances are poor or if the workplace lacks necessary amenities like enough lighting, furniture, restrooms, and other health and safety regulations, employees won't be ready to put up with the inconvenience for very long.

·         Lack of potential for growth or advancement – Before hiring, this should be stated to avoid misleading the employee if the role is essentially a dead-end proposition. It is important to give a clear description of the job without giving the employee unrealistic expectations of future growth or progress.

·         A sense of being unappreciated – It makes sense that since most employees want to do a good job, they would also like to be acknowledged and commended for it. Companies must make sure to show they value their employees.

·         Inadequate or poor training and supervision – Employees require direction and instruction. An unfamiliar job may require additional assistance for new hires to learn. Similarly, employees may have performance gaps and a lack of confidence in their skills if there is no training program in place.

·         Unfair or inadequate wage arrangements – Low compensation or unequal pay are major sources of frustration that can lead some employees to leave their jobs.

Even businesses with strong employer branding are not going to be perfect. The objective is to establish a positive work atmosphere where employees feel supported. Business owners can build a company where problems can be rapidly addressed and remedied when they encourage employees to share their knowledge and comments.

Factors to Consider Before Terminating Employees

Companies must take immediate action if one of their employees is failing to live up to expectations. Acting hastily to fire an employee is harmful for a company. To lessen the liabilities and offer the employee plenty of room to develop, business owners may use a reasonable and fair method.

According to an online article published in staffleasing-peo.com, the following can be considered before terminating an employee. A company should find out when the employee began underperforming. Managers should review the employee's work to determine when the performance problems started if they feel employees are not performing according to expectations. Another is if companies ever need to defend their choice to fire an employee, documentation will be their strongest ally. These records demonstrate efforts to support employee's success. It is crucial to be thorough because this evidence of mediocre performance might be what prevents companies from facing legal action.

Another consideration is setting clear expectations. Managers cannot just assume that their employees are aware of what is required of them. It is important to communicate expectations clearly, which can be greatly helped by effective performance assessments. Also, one must be a helpful coach. Business owners serve as their staff members' coaches in numerous ways. It may be less expensive to improve their skills than to start the hiring process over. Managers may also create a performance improvement plan. when mentoring an employee at the same time noticing significant performance difficulties.

With the right human resource support, managers may decrease some of the risks and responsibilities associated with being an employer. They should make sure to attract, retain, and develop the best employees. To explore strengthening human resource practices, most business owners provide trainings to human resource personnel especially on trends in human resource development and management.

How to Prevent Employee Turnover

If a business wants to retain its personnel on board, it must identify the advantages of its operations that motivate them to do so. Employees' desire to stay may be influenced by a few internal factors such as desirable benefits, pleasant working conditions, opportunity for growth or advancement, pay, and job security.

Some strategies that businesses or managers can use to prevent employee job dissatisfaction at work are providing clear set of goals and instructions, constant communication with subordinates, maintaining no favoritism policy, and giving employees recognition.

Along with internal reasons that influence whether employees want to leave or stay, external influences might also have an impact on turnover rate. A company may try to make the job as desirable as they can to lessen the probability that unnecessary causes may tempt employees away, even while employers cannot do much about these conditions. Reducing undesired turnover by providing employees with perks that they regard as privileges that "make or break" a position.

Honing and Developing Employees

The most valuable asset in any company is probably its employees. Employee development is the process of assisting them in honing and improving their abilities in accordance with personal and organizational objectives. The performance of a firm is directly impacted by the skilled and motivated staff that results from employee development.

Working toward professional growth is the responsibility of each employee. But both the company and the employee gain from promoting and allowing opportunities for growth. According to Herrity (2021), there are many key tactics for developing employees such as train for success, coaching, nurturing professional networks, and others.

·         Train for success – for the development of current employees as well as the onboarding of new ones, training is a significant task. Training promotes both hard and soft abilities, knowledge, and confidence necessary to execute jobs. An employee is more likely to perform well at work when their confidence is increased.

·         Coaching - it entails a senior staff member collaborating closely with junior or less seasoned workers, which contributes to the continual development of organizational leaders in the future. Employees that receive coaching gain new perspectives and learn how to solve challenges on their own.

·         Nurturing professional networks - giving employees the chance to network with others in the industry helps to develop them. Managers may introduce mentors, businessmen, and professional organizations to their staff. Their minds are widened, and their perspectives are changed by networking.

Other ways companies develop their employees include setting as a good example and encouraging self-development, creating individual development plans, setting performance metrics, simulating situations, giving regular feedback, delegating responsibilities, engaging in cross-training, taking career progression seriously, dedicating resources, retention, and eliminating barriers.

CONCLUSION

An organization's success and the output of other, apparently loyal employees suffer from high employee turnover. Having a high turnover rate results in losing valuable employees who are expensive to replace. Additionally, high employee turnover reduces productivity since surviving employees may be forced to perform many tasks at once or be given assignments that are outside the scope of their training.

Employers must use certain tactics to increase employee retention through increased job satisfaction. An employer should first evaluate his compensation packages, interpersonal dynamics at work, opportunities for career and professional growth, and workplace assistance. Depending on the qualifications, experience, and length of employment of their staff, employers should provide competitive wage packages.

Both employee productivity and attrition rates are impacted by the company culture. Since a supportive work environment increases job satisfaction and decreases turnover, management must foster it. The quality of the workplace is also impacted by relationships at work. Employers must therefore develop plans that encourage internal harmony. Additionally, a good workplace must have supplies and equipment, and the personnel must be trained in how to use the supplies that are available.

 

 

 

REFERENCES

Al-Suraihi, W., et al, (2021). Employee Turnover: Causes, Importance and Retention Strategies. Retrieved from https://www.researchgate.net/publication/352390912_ Employee_Turnover_ Causes_Importance_and_Retention_Strategies

Carey, S. (2017). 6 Ways to Overcome Job Dissatisfaction. Retrieved from https://www.inspiringinterns.com/blog/2017/11/6-ways-to-overcome-job-dissatisfaction/

Charaba, C. (2022). The real cost of losing an employee. Retrieved from https://www.peoplekeep.com/blog/employee-retention-the-real-cost-of-losing-an-employee

Five Things to Do Before Terminating an Employee. (2020). Staff Leasing. https://staffleasing-peo.com/employer/5-things-to-do-before-terminating-an-employee/

Herrity, J. (2021). 14 Effective Tips for Developing Employees. Retrieved from https://www.indeed.com/career-advice/career-development/developing-employee 

How to Improve Employee Satisfaction. (n.d.). Talent Bridge. https://talentbridge.com/blog/how-to-improve-employee-satisfaction/

Markovic, M. (2019). The Negative Impact of a High Turn Over Rate. Retrieved from https://smallbusiness.chron.com/negative-impacts-high-turnover-rate-20269.html

Nelson, N. (2021). Identifying and Addressing Employee Turnover Issues. Retrieved from https://www.wolterskluwer.com/en/expert-insights/identifying-and-addressing-employee-turnover-issues

Panda, I. (2019). Employee Retention in Workplace. Retrieved from https://ivypanda.com/essays/employee-retention/

Wroblewski, M. (2018). Negative Effects of Turnover. Retrieved from https://smallbusiness.chron.com/negative-effects-turnover-18531.html

 


Friday, September 9, 2022

Rightsizing and ethical challenges

 SHEENA MAE P. PALASPAS, MBA

Divine Word College of Laoag

(The content of the paper belongs to the author).  

Abstract

In today’s fast-changing business environment, the capacity to adapt and respond quickly is essential for surviving and sustaining development. Further to this, according to Daft and Marcic (2011), a big part of the success of every organization and business rests, at large, on managing human resources. By adopting various strategies for restructuring the workforce, each organization can possibly become flexible in allocating resources more efficiently to achieve the best possible economic results.

Although, many organizations try as much as possible to reorganize their workforce to address their dynamic business problems and cut-throat competition, however, not all strategies implemented by these organizations resulted in successful adoption. Oftentimes, if the selected strategy is not the right thing nor fitted to do, then, these acts of the management will only implicate issues on the organization’s corporate values which creates an ethical dilemma that needs to be taken care of.  

In this regard, this article would like to focus on further understanding rightsizing of the workforce as a justified business strategy, and its impacts, and present various ethical perspectives revolving around this management tool.

Keywords: rightsizing, restructuring, workforce, ethics

Introduction

As cited by Brillantes and Ruiz, (2022), since the 1930s during the administration of President Quezon up to President Duterte in 2017, streamlining efforts on the bureaucracy has been on the priority agenda of every administration in the Philippines. Various strategic terms such as “reengineering,” “reorganization,” “reinventing,” and “rationalizing” were initiated which aimed at improving financial management and delivery of public service but all these interventions turned out to be failed attempts

It has been noted that personnel services allocation continued to consume a large amount of the total budget fund of the government every year (Franco, 2005). Moreover, as cited by Pulse-Asia’s Survey on Filipinos’ Views on Fiscal Crisis, the number of personnel continued to grow but the delivery of services remained dismal and unsatisfactory due to the increased issues on red tape and corruption in various government sectors.

In this regard, it was expected that President Ferdinand Marcos Jr. during his First State of the Nation Address (SONA) will put emphasis on the need for reforming the government and other organizations through a rightsizing process. These prevalent issues triggered the administration to prioritize several rightsizing studies accompanied by legislative proposals for the bureaucracy.of 

Rightsizing of Workforce 

It can be inferred that rightsizing term is not new, it can be compared to be with the same aim as rationalization and other previous streamlining reforms. It can be recalled that it has been one of the priority areas of the Legislative-Executive Development Advisory Council (LEDAC) and the Duterte administration. As defined by Diokno-Sicat (2018), rightsizing is a reform which aims to create a leaner, efficient and effective government organization by reducing or, if possible, eliminating, overlaps, redundancies and duplications in existing agencies, rules and regulations, systems and processes.

 

This intervention has been noticeably supported and underscored by President Marcos Jr. By rightsizing the government, institutional capacity will be enhanced to perform its mandate and be able to provide better services to be delivered while ensuring that there is optimal use of resources. He also pointed out the need for fundamental management principles of efficiency, economy, and effectiveness when restructuring the workforce.

 

Aside from that, the company culture website defines rightsizing as the process of reshaping the workforce to improve business performance and profitability, regain profit, and reduce operational costs in order to address and manage the changing needs of an organization.

Furthermore, Anjali, (2021), defined rightsizing as a strategic tool to remain competitive. By optimizing a skilled, abled and knowledgeable workforce. She further added that it doesn’t necessarily mean laying off or decreasing the workforce rather, it also includes the recruitment and selection of fresh talents and the upgrading of existing roles and responsibilities of current employees.

Factors affecting the Rightsizing of the Workforce 

The changing market conditions, fluctuating customer needs and new internal goals may cause some companies to rethink and optimize their workforce, moreover, to establish if rightsizing is the right move for your business, it is essential to review your overarching goals and objectives. As cited by Sigue-Bisnar, (2020) in her article, each organization and business must assess various internal and external factors affecting rightsizing:

Internal Factors:

1.  Business Strategy. To maintain operating efficiency, many business resorts to the implementation of business expansion or contraction which can lead to rightsizing of the workforce.

2.  Conflict. Misunderstanding among stakeholders, managers and employees that can happen from mergers and acquisitions hampers productivity, growth and business reputation. Through rightsizing, the management can inspect and determine equal corrective measures to solve the issue.

3.  Declining Profitability. Firms resort to rightsizing when they notice that there is a continuous decline in productivity and an increase in operational costs.

4.  Multiskilled workers. Retaining employees who are multi-skilled are beneficial criteria for rightsizing. Retaining them, reduce the cost of hiring other people and reduces the duplication of positions. 

External Factors

1.  Automation and Technology. Technological advancements help in coping with different organizational business needs. Therefore, rightsizing is the key to determining the right size and right people to be retained in the company to fully optimize its resources.

2.  Economic Status.  Economic factors like interest rate, demand, supply, and all other related terms may generate the need for rightsizing.

3.  Political-Legal Aspect. Companies and organizations may be required to comply with rightsizing according to the political initiative reforms and relative changes in company law and labour laws. 

Aligning the workforce with the company’s strategic direction is critical, organizations and businesses need to be prepared to manage the shift in direction. To determine if the workforce has the right and enough skills, many companies should conduct an organizational audit to see if they have the best roles and people within their business. From there, they will also have to eliminate redundancies, and look into or adopt the emerging trends in the industry, so that, the business runs efficiently. It should be noted that when rightsizing is done strategically, then it is the right choice.

Benefits of Rightsizing the Workforce

According to Thangjam, (2022), the process of determining the benefits of rightsizing organizations and businesses can be distinctively seen from two perspectives:

Point of View of the Businesses or Organizations:

1.    Time Efficient. The process of Rightsizing involves less time in comparison to Downsizing.

  1. Maintain Competitiveness. Continuous strategic choices in managing human resources according to the changing environment helped the company to remain competitive.
  2. Attract Proficient Applicants. The profitability and growth achieved through rightsizing attract top talent to seek employment in the organization.
  3. Increased Productivity and Revitalize Workforce. Rightsizing is the process of removing people from a company who aren't doing their job. It can either be because they don't have the skill set to do it effectively or are unwilling to put in the work. The restructuring of organizational structure results in an overall increment in productivity.
  4. Better Hiring Decisions. Rightsizing is all about getting rid of the people who aren't a good fit for your company. It helps you simplify the decision process by questions like: Do we really need this person? Does this person possess the skills needed? Can we pay them?

Point of View of the Employees:

1.     Recognition. During the rightsizing process, some employees get credit for their efforts towards the organization.

2.     Self-Awareness. The employees become aware of their capabilities when management assigns more responsibilities to them.

3.     Commitment. Retained employees renew their commitment to work and organization.

4.     Creativity. Job rotation within the organization helps to increase the creativity of the individual.

5.     Replenished Energy. By removing unproductive employees and simultaneously finding more productive ones, it will fill new energy and uplift the morale of performing employees. The retained and new employees refill the organization with new ideas and energy

Challenges of Rightsizing the Workforce

According to Miller, (2022), the following are risks and challenges that may be faced when implementing rightsizing of the workforce:

1.    High Employee Turnover. Oftentimes, rightsizing can backfire and lead to high attrition among employees. A case cited in Better.com. In late 2021, the CEO of Better.com laid off 900 employees over a Zoom call. Several other remaining employees chose to voluntarily leave as a sign of protest and distrust. The downside of this restructuring is the risk of losing some of the high-performing employees, and they might choose to leave as a sign of protest.

2.    Impacted Business Image. Employees have a negative perception of a company that is going through the rightsizing process. It could prevent new employees from joining the organization and cause existing employees to leave.

3.    Possible Breach of Business Privacy. Every company has its own share of confidential information, without which it cannot function. Some resentful employees might opt to disclose confidential company information to their competitors. This might result in a high cost for the firm and a loss of data security

4.    Possible threat of Legal Suite. Some employees may even file a lawsuit against their employer in the worst of cases. If rightsizing is not effectively handled, it might make matters worse rather than better for the company.

5.    Effect on Client Relations. Because rightsizing can harm the company's image, it can jeopardize existing client relationships and can lead to confusion and miscommunication.

The trade-off between Deontological Aspect and Utilitarian Aspect

It cannot be denied that the mentioned definitions are very idealistic to the extent that it sheds us hope that by embracing this intervention will uplift our economic and social lives which were being disrupted by the recent pandemic. By being able to see the different impacts of rightsizing, positive and negative, we gain more understanding of it and when to really use it.

In addition to this realization, Perante-Calina (2018) suggested that the process of reorganization and rightsizing should go beyond the deontological aspect, where traditional duties on the economy, efficiency and effectiveness are always put into consideration, ignoring what is at stake will just create more implications. As commonly understood, “economy” is about determining the ideal means of achieving goals and objectives quickly and at the lowest possible cost. “Efficiency” is competently finishing tasks (programs, projects, activities) with the least time and effort. “Effectiveness” is accomplishing an organization’s goals following sound processes anchored on its overall mission, with the pertinent national and local authorities capably providing public goods.

Over the years, based on studies and interactions with many academics and practitioners in public administration at the local, national, and global levels, we have concluded that it is equally important — and relevant — to include the principles of equity, ethics, and accountability in any reform intervention. Which more embraces the utilitarian approach as we need to put consideration on the possible consequences of our actions.

In this regard, “Equity” has two dimensions: one is a preference for the poor and the vulnerable, and the other is an effort to reform governance and administration. On the other hand, “Ethics” means knowing what is right from wrong. In public service, as provided for in the Code of Ethics and Accountability (RA 6713), civil servants are expected to fulfil their duties with responsibility, righteousness, honesty, and impartiality as much as possible. Finally, “accountability” is about an obligation or willingness to accept responsibility — and when called for, the consequences — for such actions.

There should be a trade-off between the intentions of delivering duties and responsibilities with giving due care diligence to the consequences it may bring. It is true that the President and administrators and managers of different organizations and businesses have the authority and the widest latitude of discretion of power to hire and remove employees. However, such power is not absolute, it must be exercised within the bounds of civil service and labour laws and regulations and should be in consideration of his ethical accountability.

Conclusion

Strategic rightsizing is a useful tool in boom times but is necessary in challenging times. Rightsizing also enables businesses to plan and meet their strategic objectives more effectively.  Moreover, rightsizing efforts are not only considering the present problems and issues but should also consider the long-term effects of such interventions. Furthermore, rightsizing efforts should not only have long-term perspectives but also it should be sustainable (Naval, 2022).

Needless to say, graft and corruption continue to be among the biggest and longest-running challenges confronting the Philippines. Despite the many reorganization interventions of all administrations, corruption remains a reality that exists even in the smallest income-earning business.

With these, there is a need to take a more planned approach that stays true to the company’s intent and minimizing any impact on quality and customers could well be the differentiator that better prepares your organization for the next normal. Moreover, ethics and accountability MUST be always EMBEDDED in designing and implementing reforms and rightsizing strategies.

References:

Anjali, J. (2021). Rightsizing. https://theinvestorsbook.com/rightsizing.html#Conclusion

Brillantes, A. and Ruiz, K. (2022). Principles in Government Rightsizing: 5 Es and an A. https://www.bworldonline.com/opinion/2022/08/02/465530/principles-in-government-rightsizing-5-es-and-an-a/

Daft, R. and Marcic, D. (2011). Management: The New Workplace, 7th Edition. South-Western Cengage Learning

Diokno-Sicat, C.J. (2018). Economic Principles for Rightsizing Government. https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1846.pdf

Miller, T. (2022). What is rightsizing? Definition and meaning. https://marketbusinessnews.com/financial-glossary/rightsizing-meaning-definition/

Naval, G. (2022). State workers: Rightsizing must start from the top. https://malaya.com.ph/news_news/state-workers-rightsizing-must-start-from-the-top/

Pulse Asia’s October-November 2004 Ulat ng Bayan National Survey on Filipinos’Views on the Fiscal Crisis. Retrieved from: http://pulseasia.newsmaker.ph

Sigue-Bisnar, M. (2020). Rightsizing done right. https://www.grantthornton.com.ph/insights/articles-and-updates1/from-where-we-sit/rightsizing-done-right/

Thangjam, T. (2022). Understanding Rightsizing in HRM in the Right Way. https://blog.vantagecircle.com/rightsizing/

 

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