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NO ORGANIZATION IS IMMUNE TO DOWNSIZING, REPORTS A NEW STUDY ON DOWNSIZING MYTHS

 NO ORGANIZATION IS IMMUNE TO DOWNSIZING,
 REPORTS A NEW STUDY ON DOWNSIZING MYTHS
 PHILADELPHIA, March 13 /PRNewswire/ -- Regardless of size, no organization is immune from the effects of downsizing, according to a new study released today by Right Associates.
 Statistics from the study also disprove six other commonly held assumptions about downsizing.
 The study of 1,204 companies showed 73 percent or 909 companies of all sizes had downsized at some point over the last five years.
 Twenty-six percent of these downsized companies had less than 500 employees; 14 percent reported 500 to 999 employees; 29 percent reported 1,000 to 5,000 employees, and 24 percent had more than 5,000 employees.
 The Right Associates study also found only 9 percent of the companies that downsized released more than 1,000 employees, despite the myth that massive layoffs are the norm. In 72 percent of the downsized companies, less than 500 employees were separated.
 "Downsizing obviously has become a tool, not just of the corporate giants where massive layoffs make front page news, but of thousands of average-sized companies all over the country," said Stanley R. Tilton, president and chief executive officer of Right Associates.
 The myth that only large companies downsize, and that massive layoffs result in leaner and meaner corporations, is just one of seven myths explored in Right Associates' new study, "Lessons Learned: Dispelling the Myths of Downsizing."
 The study also provides statistical evidence to debunk six additional myths associated with downsizing:
 -- Downsizing is a last resort measure taken after all other choices have been exhausted.
 -- Downsizing is part of a comprehensive, planned process, with goals defined to better position the organization to compete and generate profits.
 -- A downsizing is planned and reviewed by all those responsible for its implementation.
 -- Downsizing plans are communicated internally before the news is released to the public.
 -- Survivors of downsizings are lucky.
 -- When an organization downsizes, careers are destroyed.
 To help close the gap between these misconceptions and reality, the study explores not only downsizing myths but offers advice from executives who have successfully restructured. The study has found that corporate America has learned the following lessons.
 -- No organization is immune to downsizing.
 -- Investigate options to downsizing.
 -- Define the new company.
 -- Plan the downsizing strategy in advance and implement with care.
 -- Develop a comprehensive communications plan.
 -- Outplacement assistance fosters positive career growth.
 -- Nurture the survivors.
 This information and the complete analysis of the study will be presented at executive briefings being conducted at Right Associates offices across the United States. A published version of the study, "Lessons Learned: Dispelling the Myths of Downsizing," will be available to those who attend.
 Right Associates, headquartered in Philadelphia, has more than 85 offices across the United States, Canada and Western Europe. It is the world's leading publicly held consulting firm specializing in career management and human resource consulting. The firm is well-known for its career transition consulting services designed to help employers with termination issues and to help separated employees develop skills and strategies to assist them in finding new employment.
 /delval/
 -0- 3/13/92
 /CONTACT: Virginia M. Lord, senior vp of Right Associates, 215-988-1588/
 (RMCI) CO: Right Associates ST: Pennsylvania IN: SU:


MK-JS -- PHFNS2 -- 7645 03/13/92 07:32 EST
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Publication:PR Newswire
Date:Mar 13, 1992
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