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Business Downsizing During Recession Period 2009 – 2017 Batziou, L. “Business Downsizing During 2018 Recession Period 2009 – 2017” SCHOOL OF SOCIAL SCIENCES Master Degree in Business Administration (MBA) DISSERTATION “BUSINESS DOWNSIZIMG DURING RECESSION PERIOD 2009- 2017” Author: Lamprini T. Batziou Supervisor: Aristeidis Bitzenis & Varvara Myloni PATRAS, 2018 HELLENIC OPEN UNIVERSITY - DISSERTATION 1 Batziou, L. “Business Downsizing During 2018 Recession Period 2009 – 2017” ΕΛΛΗΝΙΚΟ ΑΝΟΙΚΤΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΣΧΟΛΗ ΚΟΙΝΩΝΙΚΩΝ ΕΠΙΣΤΗΜΩΝ Πρόγραμμα Μεταπτυχιακών Σπουδών στη Διοίκηση Επιχειρήσεων ( ΜΒΑ ) ΔΙΠΛΩΜΑΤΙΚΗ ΕΡΓΑΣΙΑ “Συρρίκνωση των επιχειρήσεων κατά την περίοδο της ύφεσης 2009 – 2017” Λαμπρινή Θ. Μπάτζιου ΕΠΙΠΒΛΕΠΩΝ: Αριστείδης Μπιτζένης & Βαρβάρα Μυλώνη HELLENIC OPEN UNIVERSITY - DISSERTATION 2 Batziou, L. “Business Downsizing During 2018 Recession Period 2009 – 2017” Πάτρα, Σεπτέμβριος 2018 Περίληψη Το θέμα « Η συρρίκνωση των επιχειρήσεων» έχει απασχολήσει κατά καιρούς, τόσο την ακαδημαϊκή όσο και την επιχειρησιακή κοινότητα. Ο βασικός λόγος αυτής της έρευνας ήταν για να γίνουν αντιληπτά τόσο τα αίτια που οδηγούν μια επιχείρηση στη μείωση του προσωπικού, όσο και να γίνει μια σύντομη καταγραφή των συνεπειών αυτής τη πρακτικής. Η μελέτη έγινε με βάση τη θεωρία επικρατεί γύρω από αυτό το θέμα, καθώς και παρατάθηκαν ορισμένες «μελέτες περίπτωσης» εταιριών οι οποίες προχώρησαν σε βαθιά συρρίκνωση. Ακόμα, γίνεται λόγος για τα πλεονεκτήματα και τα μειονεκτήματα από μια τέτοια μέθοδο αναφέρονται εκτενώς, επίσης. Δεδομένου ότι η χώρα μας έχει μπει σε βαθιά ύφεση, θεωρήθηκε αναγκαίο να γίνει μια αναφορά τόσο στον ιδιωτικό όσο και στο δημόσιο τομέα. Κατά πόσο δηλαδή, επηρεάστηκαν οι επιχειρήσεις που δραστηριοποιούνται στον ιδιωτικό και το δημόσιο τομέα. Η Ελλάδα είναι η μοναδική χώρα στην Ενωμένη Ευρώπη, η οποία βυθίστηκε σε βαθιά ύφεση ύστερα από το έτος 2010. Γι’ αυτό το λόγο, έγινε μια σύντομη αναφορά στο βασικό αίτιο που οδήγησε την Ελλάδα να ζητήσει τη χρηματοοικονομική στήριξη από τo Διεθνές Νομισματικό Tταμείο. Το διεθνές νομισματικό ταμείο, στηρίζει οικονομικά ασθενείς χώρες οι οποίες δυσκολεύονται να διαχειριστούν τα εσωτερικά οικονομικά τους ζητήματα. Λέξεις κλειδιά: Διοίκηση Ανθρωπίνου Δυναμικού, Συρρίκνωση Επιχειρήσεων, πλεονεκτήματα και μειονεκτήματα, σύνδρομο επιβίωσης, Ελληνική Κρίση. HELLENIC OPEN UNIVERSITY - DISSERTATION 3 Batziou, L. “Business Downsizing During 2018 Recession Period 2009 – 2017” Abstract A lot of attention has been paid regarding Business Downsizing from organization and scientific world. For this reason, this research is made to understand not only the causes that force a company to downsize, but also the advantages and disadvantages of this practice. Apart from the report of case studies, there is an interview from food sector which implemented downsizing indirectly. There are negative side effects for the laid off workers, the remained employees as well as the firm, too. Moreover, on the scope of the study is Greece, where I made a critical review over 2010, when the country entered IMF; Which was the most important cause of economic crisis; why the county asked for help, the impact in private and public sector, referring to pharmaceutical industry, banking sector, and to a positive example of constructions, too. Key words: HR, HRM, business downsizing, advantages and disadvantages, survival syndrome, Greek crisis HELLENIC OPEN UNIVERSITY - DISSERTATION 4 Batziou, L. “Business Downsizing During 2018 Recession Period 2009 – 2017” Acknowledgements When you are emotionally well, even if there is a lot of pressure, all goals can be achieved. I am grateful to my supervisor, Mr Aristeidis Bitzenis, for his support and for being in constant contact with me. I appreciated his fast response in every query that I had. However, many special thanks to my family and friends for their understanding; “Niko, Emma, Iro I wouldn’t have managed it, if it wasn’t for your help.” Many thank’s again! Lamprini Batziou HELLENIC OPEN UNIVERSITY - DISSERTATION 5 Batziou, L. “Business Downsizing During 2018 Recession Period 2009 – 2017” Table of Contents: Πίνακας περιεχομένων Περίληψη ................................................................................................................................... 3 Abstract ..................................................................................................................................... 4 Πίνακας περιεχομένων .............................................................................................................. 6 Acronyms ................................................................................................................................... 8 Tables......................................................................................................................................... 8 CHAPTER 1 ............................................................................................................................. 9 Introduction ............................................................................................................................... 9 1.1 The Object of this thesis ............................................................................................. 11 1.2 Questions over Business Downsizing...................................................................... 11 1.3 Objective of the thesis ................................................................................................ 11 1.4 Methodology ............................................................................................................... 11 1.5 Conclusions ................................................................................................................. 12 CHAPTER 2 ............................................................................................................................... 13 LITERATURE REVIEW OF “BUSINESS DOWNSIZING” ............................................................... 13 2.1 Causes of employee downsizing .................................................................................... 14 2.2 Downsizing and HRM ..................................................................................................... 16 2.3 Advantages and disadvantages of Downsizing a company ........................................... 19 2.3.1 A list of Advantages .................................................................................................... 19 2.4 A list of Disadvantages................................................................................................... 23 2.4.2.1 “Survival Syndrome” ............................................................................................ 27 2.4.3.1 The possibility of Bankruptcy .............................................................................. 30 2.5 Examples of Downsizing in the real world..................................................................... 31 CHAPTER 3 ............................................................................................................................... 33 RESEARCH METHODOLOGY ..................................................................................................... 33 3.1 QUANTITATIVE METHOD ............................................................................................... 33 HELLENIC OPEN UNIVERSITY - DISSERTATION 6 Batziou, L. “Business Downsizing During 2018 Recession Period 2009 – 2017” 3.1.1 Main advantages of Quantitative research ............................................................ 35 3.1.2 Main disadvantages of a quantitative method/ research ...................................... 35 3.2 QUALITATIVE METHOD .................................................................................................. 36 Basic Characteristics: ....................................................................................................... 36 3.3. STATISTICAL ANALYSIS .................................................................................................. 38 3.4 OTHER STAITSTICAL TOOLS ........................................................................................... 40 3.5 LITERATURE REVIEW ...................................................................................................... 40 3.6 DESK RESEARCH METHODOLOGY .................................................................................. 41 CHAPTER 4 ............................................................................................................................... 43 RESEARCH ANALYSIS ................................................................................................................ 43 4.1 Companies that have downsized in Real Economy – America ...................................... 43 4.1.1 WALLMART CASE .................................................................................................... 45 4.1.2 UNILEVER CASE ................................................................................................ 47 4.2 Overall study in Greek companies & Greece ................................................................. 51 4.3 First Business Bank (FBBank) went bankrupt ................................................................ 54 4.4 Pharmaceutical sector and downsizing in Greece ......................................................... 56 4.4.1. “Alapis” Pharmaceutical Company ............................................................................ 56 4.4.2 “Rizakos” company – a positive case in constructing sector.....................................
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