Case Example Sealand Service

As reported in the November 1993 issue of Personnel Journal, Sea-Land Service, a major cargo-shipping company based in New Jersey, in 1989 determined that its modest profits were due to excess staffing that had developed over the years. To overcome its inefficiency, the company decided, after careful planning, to redefine all jobs by analyzing what functions and how many people were really necessary for operating the business. By comparing the skills and abilities of its employees with its analytically determined staff guidelines, from CEO on down, the company was able to reduce its employee number by 800, or 15 percent. The restructuring of its organization eliminated five levels in its organizational hierarchy. These downsizing changes enabled the company to reduce operating expenses by $300 million and increase revenues 30 percent to $3.3 billion and increase profits by 35 percent to $151 million. All this improvement took place during a period of intense competition in this global industry.

The plan was designed to be as fair as possible by giving employees reasonable choices, with those choices being voluntary. Employees whose new positions would be two or more levels lower, or who lived over 50 miles from work, were offered severance packages and outplacement services. Those who turned down the severance arrangement would be helped in relocating within the company, though doing so made them forfeit the severance benefits. In the end, no one was laid off without benefits.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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