JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Establish and Optimize the Enterprise Downsizing Model
Author(s): Jiali Lin, Dazhi Jiang, Hui Cheng
Citation: Jiali Lin, Dazhi Jiang, Hui Cheng, (2012) "Establish and Optimize the Enterprise Downsizing Models," Vol. 13, Iss. 4, pp. 125-135
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Downsizing is a process of reducing staff in order to improve a firm’s efficiency, which is widely used by
enterprises when their profitability is declining. This paper discusses and probes a relatively perfect
index system for downsizing through investigation. Based on the index system discussed, a downsizing
model is proposed to maximize the average core value of the enterprise. A new and efficient evolutionary
algorithm is presented and applied to determine the downsizing objective. The outcome of demonstrating
simulation indicates that the solution can improve the validity and rationality of decisions and then offer
enterprises a valuable solution of downsizing management.