Investors not concerned with how value is increased, they only want to see the market value of their stock and dividends increased. Most companies turned to restructuring and slashing jobs. Layoff announcements would cause stock market prices to rise. Allows dramatic increases in CEO compensation since can be argued that increases are from new earnings. Computers and software take over many of the functions performed by middle management.
Example is insurance claim.
One person with MIS can do the work of the claims rep, the investigator, and the adjuster. In many cases the insurance agent is not an employee but a contingent contract worker. In many cases restructuring has enhanced quality and customer service, risk taking, workforce competence, and productivity. But it has also heightened workloads, diminished morale, and undercut employee commitment. Chapter 2 Downsizing and Employment Insecurity 1.