Employee Downsizing Strategies and Firm Performance: Evidence from the Kenyan Context (original) (raw)
Related papers
Research in World Economy
The study examines the effects of downsizing and employee performance in selected manufacturing firms in Anambra state, Nigeria. The study seeks to: ascertain the extent of relationship that exists between job insecurity and absenteeism in selected manufacturing firms. Examine the extent of relationship that exists between staff redundancy and employee turnover in selected manufacturing firms. The sources of data collection were primary and secondary sources. Structured questionnaire and interview were used to elicit vital information from the respondent. The data were analyzed using descriptive statistics such as mean, simple percentage and standard deviation while the hypotheses were tested using simple regression. The major findings revealed a positive and statistically significant relationship between job insecurity on absenteeism in the studied manufacturing firms. There is a positive and statistically significant relationship between staff redundancy and employee turnover in t...
2020
Downsizing is one form of restructuring strategy in which a firm reduces the number of staff, its overall size and scope permanently with the ultimate goal of greater profitability. Effects of downsizing on surviving employees in the Dominion Farms, Siaya County, Kenya is a topic conceived out of the researchers' regular interaction with senior management of their organization. The objective of the study is to provide an understanding of the effects of staff downsizing on the surviving employees and the continued performance of the Dominion Farms. This study tries to closely examine the effects of downsizing in the context of surviving employees' psychological contract with the organization. It will also contribute to the development of effective interventions for dealing with organizational change. Using the data from the survey, this paper investigates the impact of surviving employees' attitudes of affective and continuance, commitment, general and specific job satisfaction, perceived organizational support and the behavior performance, effort, turnover intention and absenteeism. Downsizing survival was directly and indirectly associated with organizational commitment, survivors reported less commitment than unaffected employees. In addition downsizing survival was positively associated with job related stress and negatively associated with organizational support which translated into surviving employees' low level of commitment. It's targeted that the study will help managers to address such questions as well as to whether downsizing is an appropriate management approach especially during an economic down turn. The limitations are acknowledged and recommendations for further studies have been suggested to enable other scholars to examine this aspect exhaustively with different points.
Downsizing – Overall Impact on Workforce and Organizational Performance
International Journal of Management Studies, 2020
Downsizing is a process through which the current workforce is reduced who are operating on a payroll basis which is permanent in nature. The following research paper is a qualitative paper that is based on secondary data and analysis the process how downsizing is conducted in an entity and the aftermath of downsizing on the performance of the organization and the mental condition of the employees who have survived the process of downsizing. The article also highlights on comparison between different countries (developed and developing nations) rate of unemployment and factors that led to unemployment and how does it affect the economy as a whole.
Effects of downsizing on surviving employees in the dominion farms - Siaya county, Kenya
2011
Downsizing is one form of restructuring strategy in which a firm reduces the number of staff, its overall size and scope permanently with the ultimate goal of greater profitability. Effects of downsizing on surviving employees in the Dominion Farms, Siaya County, Kenya is a topic conceived out of the researchers’ regular interaction with senior management of their organization. The objective of the study is to provide an understanding of the effects of staff downsizing on the surviving employees and the continued performance of the Dominion Farms. This study tries to closely examine the effects of downsizing in the context of surviving employees’ psychological contract with the organization. It will also contribute to the development of effective interventions for dealing with organizational change. Using the data from the survey, this paper investigates the impact of surviving employees’ attitudes of affective and continuance, commitment, general and specific job satisfaction, perc...
Impact of Downsizing on Organizational Performance
2016
Workforce downsizing has became very popular in the last few decades. It is a positive and useful strategy to improve organizational performance and efficiency. In this study we examine the impacts of downsizing on the performance of survived employees. In this research article the independent variable is downsizing and dependent variables are emotional stability, job satisfaction and financial rewards. The research will be conducted on a Pakistani firm.
Downsizing strategies and organizational performance: a longitudinal study
Management Decision, 2009
Purpose-How does downsizing affect long-and short-term organizational performance? The present study aims to address this important question and attempts to extend previous research by examining the effect of both personnel and assets reduction on long-and short-term firm performance. Design/methodology/approach-The paper uses data collected through secondary sources on 196 firms traded on the Tel Aviv Stock Exchange (TASE) between 1992 and 2001. Findings-Econometric analyses indicate the positive impact of a combination of downsizing strategies on short-term performance, and the negative effect of this combination on long-term performance and high-tech industry performance is negatively related to assets and personnel cutbacks. Whereas downsizing affects the short-term performance of larger and established companies positively, it generally affects long-term performance inversely. Originality/value-This study offers a first examination of the effects of simultaneous cutbacks in personnel and assets. This combined strategy goes further than dismissing employees, since layoffs are linked to the sale of such tangible assets as product lines or manufacturing facilities. By so doing, firms downscale their activities commensurate with the reduction in workforce and are less likely to generate excess workload on the remaining employees.
Methods for the Study of Downsizing: A Review
IIMA Working Papers, 2006
There has been a world-wide increase in the incidences of downsizing practice across economies and across organizations. This has been considered as the basis for coping with increasing competition. The present paper looks into some studies on downsizing. The focus of the ...
Causes and Effects of Employee Downsizing: A Review and Synthesis
Journal of Management, 2010
As employee downsizing has become increasingly ubiquitous in recent years, the study of this phenomenon has assumed greater significance. This article develops an integrative framework that incorporates environmental and organizational antecedents as well as the implications of downsizing for individuals and organizations. Key empirical studies are reviewed and major patterns and contradictions are identified. The authors identify and discuss theoretical and methodological concerns related to the extant literature and provide recommendations for future research aimed at developing a better understanding of employee downsizing.