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• W29381317 abstract "Downsizing is a management tool aimed at staff reduction so as to make government work better and cost less. Rather than using the conventional personnel technique of reduction-in-force to thin the bureaucracy, public agencies have offered buyouts to employees who leave voluntarily, especially those who are close to retirement. Downsizing the bureaucracy through buyout has some appeal because it helps to meet mandated personnel ceilings without resorting to massive lay-offs. However it involves loss of expertise. Unless agencies engage in strategic workforce planning, their ability to carry out their missions may be diminished. Downsizing is the process of shrinking the size of a bloated bureaucracy by reducing its personnel, reinventing its organizational framework and re-engineering its work procedures. To downsize or not to downsize is not the question for management. The question is where the cuts should be made. One point of view favors cutting across the board to spread the pain, but this is easier said than done due to the force field created by political actors involved in the process. For example, congressional intervention prevented a cutback in the Department of Veterans Affairs and the closure of some field units of the National Weather Service. One solution is to rely on attrition because of its kinder and gentler nature (Ban, p. 274), but this is a slow process. Consequently, management may have difficulty in reaching the time frame set by legislative mandate. The more certain but painful way to reduce personnel is to resort to an outright reduction in force (RIF). When this happens, there will be suffering and pain for those who lose their jobs, and those who survive may lose their will to work in fear of another possible cutback. The negative effects of a reduction-in-force challenge the skills of cutback managers. Alternatives to RIF The experience of academic administrators in softening the weight of a mass lay-off can be replicated in the civil service system. When a comparative study of faculty-student ratios and workloads shows that departmental overstaffing exists due to low student enrollment or a disproportionate share of student credit hour production, some institutions have advised members of the faculty to consider retooling themselves to take a year off to re-train themselves to teach in other areas. However, this usually necessitates providing financial support to the faculty member during the re-training period, the existence of under-staffed departments, and the willingness of its members to work effectively with the new member. A more effective way to cut back is to sweeten the pie by means of an early retirement program. Under this program, employees are induced to leave by adding several credits to the length of service, for those who qualify, so as to increase their annuity benefits. Potential early retirees are enticed by a continuation of state-paid insurance for health and dental care. The program will increase the budget modestly in the short term, but the long-term savings will offset the total cost. An example of a buyout program was the voluntary incentive separation program under the Federal Workforce Restructuring Act of 1994 (Public Law 103-226). Under this program, federal agencies were authorized to pay early retirees up to a total sum of $25,000 if they agree to leave the federal service by March 31, 1995. Congress extended the deadline to December 31, 1997, to allow more employees to take advantage of the program and to improve its implementation (see Table 1). A Senate committee report projected a significant drop of federal employees from 2,095,182 at the start of the program in 1994 to 1,883,086 by the time the program ends in 1999 - a reduction of 212,096 employees over five years (see Table 2). Only a few unintended consequences have been observed, including among other things the loss of institutional memory as a result of the departure of experienced specialists and the return of a few former employees to their agencies as consultants from an outside management consulting firm or government contractor. …" @default.
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• W29381317 date "1997-10-01" @default.
• W29381317 modified "2023-09-23" @default.
• W29381317 title "Downsizing Bureaucracy: A Caveat Emptor" @default.
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