Case Study Report: The Perils of Downsizing essay sample

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Case Study Report: The Perils of Downsizing

Table of Contents


Perils of Downsizing

Case Summary: “The Perils of Downsizing”

External Factors Affecting the University’s Labour Profile

HR Planning Function and Decision Making at the University

Advantages and Disadvantages of Downsizing at the University




Our primary purpose in putting together a report on Human Resource Management (HRM) Planning is to develop and apply skills used in HRM planning, and integrate theories and models that apply in business situations particularly in the midst of organisational change or transition, specifically downsizing. Furthermore, the secondary purpose of this case study report is to apply skills in conducting research, assessment or evaluation of situations in business and organisational change, critical thinking, and report writing. As such, the report will focus on a case – “The Perils of Downsizing” – which narrates an Australian university’s transition following changes within the organisation as the institution’s response to macro-economic factors such as the high value of the Australian dollar, changes in the student visa application for foreign students, and the Government’s new policies on the distribution of resources or funding for universities across Australia. The report will encapsulate critical and informed responses to the questions following the case study.

Perils of Downsizing

Case Summary: “The Perils of Downsizing”

Australian universities used to fare well and high education significantly contributed to the country’s economy in the past. The increasing rate of international student enrolments since 2002 and 2009 contributed to the growth of higher education as well as the national economy in Australia during these years. Based on data gathered, international students brought in $9.6 billion in the country in 2009. Things changed, however, in 2010. The rate of international student enrolments fell due to various macro-economic reasons.

Some of the reasons that led to the decline of Australian higher education are the growing international competition brought about by the escalating value of the Australian dollar, the changes in Australia’s visa regulations for students and the General Skilled Migration Program, and the Australian Government’s new policies in the distribution and funding of universities across Australia. The foregoing factors forced the university’s Human Resource Department (HRD) to implement downsizing in two different schemes – the voluntary redundancy and target redundancy schemes (Kramar, De Cieri, Hollenbeck & Wright 2014). Outcomes of the foregoing factors led to the decline in international student enrolments in Australian universities. Changes in Australia’s visa regulations and requirements for students made it difficult for international students to acquire a visa. The Australian government implemented the General Skilled Migration Program, also known as Skill Select, which tasked Australian migration to thoroughly assess visa applicants based on their skills, experience, and expertise.

Australian immigration adopted a point system to select visa applications who would be granted a visa. Aside from the strict selection of migrants, foreign students also chose to enroll in other universities, particularly those in the United Kingdom, the United States, and in Asian regions …

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