Organizing and Delegating-Management of Organizations Essay

Organizing and Delegating-Management of Organizations - Essay ExampleAn effective be decrease plan should extend to results that flow from top to the bottom line of financial matters (Mosley, 2008). The plan should be designed in much(prenominal) a manner that its implementation does not damage the organization itself. In fact, it is argued that a good make up simplification program should focus much on damage fancy as it involves cutting apostrophizes. The ways of communicating these measures are equally important, especially if it concerns salaries of the employees. Cost Reduction Plan All monetary value reduction plans aim at reducing costs in order to improve profitability. It is apparent that by reducing expenses, profits are increased. In the current scenario, it is apparent that most of the companys expenses go to employee salaries. With 90 percent of the companys expenses being channeled in one department, it becomes tricky to have an effective cost reduction plan in place. In this regard, it is advisable to have a cost reduction team up comprising all departments. In the beginning, the head of the cost control team should ensure that the idea of cost reduction is well discussed with the team members. In the current scenario, since cost reduction measures will mainly focus on reducing salaries of the employees, it is also advisable to have all departments represented by employees in the cost control team (Mosley, 2008). However, the meeting should be frequent, probably once in a week. This helps the effort not to abide momentum. Every meetings legal proceeding should be published and availed to the chief executive and the heads of each department. The minutes should include the status of each task in the meeting. Cost reduction team members should discuss ideas in a free flowing manner. The ideas should primarily focus on the agenda of the meeting with a constituent from team members being well recorded. Since the main area of concern is sa laries, it is equally important to consider a review of other areas that could also be highly contri provideding to losses. For example, the cost of raw materials, electricity, travel, maintenance, etc. whitethorn as well be reviewed (Suzue, 2002). However, the next step involves cost necessity assessment. In this regard, evaluation of the order of magnitude of necessity of cost items identified is done. Most crucial items should be retained, but suggested reduction should be applied. Items with slight magnitude of necessity should be evaluated for other options. Issues concerning salaries range from labor costs and morale initiatives to training costs. The prorogue below indicates a cost reduction proposal that can be used to reduce cost associated with employee salaries and benefits. Item Classification Risks Decision Labor Necessary None Keep but reduce cost Supervision Necessary None Keep Overtime Necessary team spirit impact Keep but reduce Coffee Unnecessary Morale impact E liminate Department party Unnecessary Morale impact Keep but reduce Communication Plan Before any decisions are do on the measures to use in cost cutting, it is vital to consider the number of permanent employees and those that are in contract. This sets a pace in evaluating implementation negotiations (Coombs et al., 2005). The first step involves analysis of the situation that has led to seeking the option of cost reduction. This could be termed as