Workforce Reduction Practices in Hong Kong: Are They Efficient and Socially Responsible?

This study investigates the workforce reduction practices in four Hong Kong companies and evaluates theimpact on the organizations and the affected employees. Most companies are found efficient in implementingworkforce reduction. Though these companies meet the legal requirements of the Hong Kong law in masslayoffs, yet they are not very socially responsible. Managements make efforts in developing selectionmechanism, communication channels, and motivating survivors, which are essential to maintain normalproductivity of the companies. They however neglect other key steps in managing workforce reductionincluding exploring options to avoid layoffs and providing adequate outplacement assistance to departingemployees.