The impact of downsizing on the remaining employees in the organisation (original) (raw)
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Downsizing, in recent years, have assumed a commonplace in various organisations. The views of various practitioners and in fact results of various studies indicates that these initiatives, albeit, intended to produce positive results, often do more harm than good to some organisations, workforce and their performance. The unending quest for lower costs, higher productivity and fatter profits have often led to the wielding of the ''big stick''. Organisations of varying sizes and shapes have used downsizing as a cost cutting management strategy, however, the untold stories are the actual cost of these exercise to the organisation, performance and it's far reaching implications to the workforce. This paper explored the costs and implications of the massive wave of redundancies in the workforce in Nigerian banks. With the help of data obtained from open-ended interviews conducted with various stakeholders in downsizing operations and applied within a clinical framework, individual reaction patterns are explored in the victims, the survivors and the executioners. Among the victims and survivors within the Nigerian setting, a number of ways of coping can be discerned, and described as compulsive, abrasive, dissociate and depressive. Findings revealed a plethora of mixed feelings among various employees and expose the far reaching implications both to the organisations, affected individuals (victims) and the psyche of their co-workers (survivors). The article ends with a number of practical recommendations.
Organisational Downsizing and Its Effects on Surviving Employees
The sensitivity of organizational downsizing in ensuring the right number of employees in an organization in relation to the level of work is such that managers need to be alert to. The study examined how organizational downsizing affects surviving employees in connection with morale, commitment, satisfaction and career development. Qualitative research method was employed in the study covering the banking, airline, manufacturing and oil industries in Nigeria. 50 employees participated in the study, selected through convenience non-random sampling technique. The study concluded that downsizing brings fear and uncertainty on the job for survived employees; they feel they will also be laid-off in subsequent downsizing exercises, which then affects their morale, commitment, satisfaction and career development. The study will benefit the reading public, to know the reasons and effects of organizational downsizing in a competitive business environment with scare resources. Cite This Article As: AKAIGHE G, GEORGE O (2017). Organisational Downsizing and Its Effects on Surviving Employees Inter. J. Econ. Bus. Manage. 5(1): 12-23.
Organizational Ebb or Tide: An Aftermath of Downsizing
, http://www.euroasiapub.org (An open access scholarly, peer-reviewed, interdisciplinary, monthly, and fully refereed journals.) In almost every industry and business sector competition is intensifying now a day, as new business models and distribution patterns are changing the basic rules of game. The exclusive proprietary technology of IT organizations that use to guarantee their almost virtual monopoly, is being compared with new technologies of new players. The competitive advantages with corporate giants that had helped them to attain geographical proximity to customers and capital once, are being expunged due to changing demands of business in the current global economic environment. 'A lifelong relationship between employers & employees' is a thing of past in this uncertain scenario, as firms are opting " downsizing " to attain significant economic and organizational benefits of efficiency, effectiveness and performance. The present study focuses on the problem of fundamental change in the business model of Indian IT companies namely a Tata Consultancy Services Ltd (TCS) and Wipro Ltd., which have larger global footprints. An attempt has been made to investigate empirically how frequent lay-offs taking place in these organizations are affecting employees' organizational citizenship behaviour as well as their performance. With Exploratory Factor analysis technique the factors indicating employee citizenship behaviour and performance have been identified and a correlational study amongst these has been made.
Downsizing: employee threat or opportunity?
Employee Relations, 2002
This paper reports on a study of the employment implications of different downsizing approaches using 19 case studies of Belgian organizations recently confronted with downsizing. Based on the results of this empirical study, a two-dimensional categorization model is developed. The first continuum of the model represents the timeframe (reactive to proactive) of downsizing strategies, while the second continuum represents the focus of reorientation practices towards the internal or external labour market. Based on this categorization scheme, the employment implications were explored. Further theoretical, managerial and governmental implications are also suggested.
European Management Journal, 1996
In this article, individual reaction patterns to downsizing operations are explored in the victims, the survivors (those staying with a company after layoffs) and the "executioners" (those responsible for the implementation of downsizing) involved in the process. Data are obtained from open-ended interviews conducted with the various stakeholders and applied within a clinical framework. Special emphasis is given to the reactions of the executives implementing the downsizing operation. The artide ends with a number of practical recommendations about how to facilitate the downsizing process.
Learning from the Past - Downsizing Lessons for Managers
Downsizing as a change management strategy has been adopted by companies and governmental agencies since the 1970s. While workforce reductions were utilized mainly in response to organizational and economic crises prior to the mid-1980s, downsizing developed into a proactive restructuring strategy of choice for a multitude of organizations in the mid-to late-1980s. Since then, downsizing has transformed the corporate landscape and changed the lives of hundreds of millions of individuals around the world. While downsizing has attracted a lot of attention in academic circles, the business community, and the popular media, many misconceptions and mysteries surrounding the phenomenon have remained. This research study presents an overview of the reported financial, organizational, and human consequences following the conduct of downsizing. More importantly, the paper draws out implications for practicing managers and showcases four downsizing lessons that need to be considered by executives contemplating the adoption of downsizing.
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.
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.