Answer to Question #100544 in Management for Shehla

Question

Started business of education with capital worth 3 lac .no of partners 3 nd hired staff are 14 . after some time 2 partners left the business .after that we downsized and the only left employees are 4 for 140 students.what are effect on revenue ? And what changes are involved?

Answer 1

Downsizing in companies often occurs as a means of cutting down costs, modification of structures, and improving workplace efficiency. As much as this is a productive strategy to increase performance as well as sales, it also negatively affects performance, growth, student satisfaction, and the increased workload on the remaining employees. These negative effects can result in bankruptcy for instance increased workload may limit time to learn new skills and lower innovation due to the reduced number of employees per student. However, downsizing may result in positivity through saving in the short term and maximization of transcendental resources.