Search results

Focuses on downsizing and reviews selected research on organizational change and downsizing. Addresses the issues of “survivors”, and also covers the strategic concerns in planning a downsizing operation and attempts to determine some specific reasons why some companies succeed at downsizing while others do not. Discusses an organization’s context, composed of culture, level of trust and level of leadership, since it has a profound effect on a company’s downsizing strategy. Examines case studies of Compaq Computer, the State of Oregon, and Patagonia and supports the need for the concerns of the surviving employees to be listened to. In the case of these downsizings, the surviving employees were successfully shown that they should not feel victimized by the downsizing process, but instead should see this process as an opportunity for personal growth.

While downsizing has become an increasingly popular organizational tool in the achievement and/or maintenance of competitiveness and increased productivity, the negative side effect known as survivor syndrome continues to plague many post‐downsizing organizations. This two‐part article examines the full spectrum of research, with the goal of producing a model. The model is based upon the problems survivors experienced and modeled after the John Wanous realistic job preview (RJP). The realistic downsizing preview (RDP), which can be effectively used before the downsizing, is implemented to prevent survivor syndrome in the aftermath of the downsizing. The foundation of the RDP model is that by addressing issues that have been observed as survivor syndromes prior to a downsizing, the negative outcomes can be minimized. Part I considers downsizing, its effects on survivors and their needs, and the importance of good communication and perceived fairness within the process.

While downsizing has become an increasingly popular organizational tool in the achievement and/or maintenance of competitiveness and increased productivity, the negative side effect known as survivor syndrome continues to plague many post‐downsizing organizations. This article series examines the full spectrum of research with the goal of producing a model. The model is based upon the problems survivors experienced and modeled after the realistic job preview. The realistic downsizing preview, which can be effectively used before the downsizing is implemented to prevent survivor syndrome in its aftermath. This two‐part article is an exploratory study intended to produce the realistic downsizing preview instrument. The second part presents a revision/validation of the model, based on the data gathered from the nine North American case organizations. As a result, the final RDP model is the product of “best practices” proposed in the contemporary research and the feedback from actual downsizing organizations.

The purpose of this research is to focus on organizational support factors that facilitate organizational commitment among downsizing survivors. High attrition by employees who “survive” layoffs is common and costly.

Using a sample of 2,751 employees, a secondary analysis of employee survey data examined the effects of perceived organizational support (POS), perceived supervisor support (PSS), and gender on downsizing survivors' organizational commitment.

Findings indicate that organizational commitment is positively related to both POS and PSS, with POS accounting for a greater increment of variance. When predicting organizational commitment subsequent to a downsizing, POS and PSS compensate for each other in that: POS moderates the association between PSS and organizational commitment, such that the relationship becomes stronger as the level of POS decreases; and PSS moderates the association between POS and organizational commitment, such that the relationship becomes weaker as the level of PSS increases. Gender moderates the two‐way interaction between POS and PSS when predicting organizational commitment such that the interaction is stronger among men than for women.

The effect sizes associated with the interactions are small and because this was a secondary analysis, we could not use established scales for some constructs. Also, the sample was drawn from one USA organization and may not generalize to other organizational settings.

The items contained in our scales suggest multiple ways that organizations can make their employees feel more supported in terms of both POS and PSS.

This study found a previously unknown interaction among POS and PSS that was moderated by gender.

Provides a literature synthesis on the impact of downsizing on the survivors and examines the experiences of three large Canadian companies. Results confirm trends that are generally reported in the literature regarding the negative aspects of downsizing. It suggests that where the company had a clear strategy to implement the downsizing, which included scheduling and a well‐specified operational plan, the impact on those dismissed as well as the survivors was buffered. The use of a downsizing plan also mitigated the negative responses on behalf of the remaining personnel. On the other hand, when the company adopts a reactive approach towards the downsizing process, numerous problems associated with the survivors are reported. The firm that applied seniority to layoff decisions received more favorable responses than firms that used criteria other than seniority.

While downsizing has become an increasingly popular organizational tool in the achievement and/or maintenance of competitiveness and increased productivity, the negative side‐effect known as survivor syndrome continues to plague many post‐downsizing organizations. This two‐part article has examined the full spectrum of research with the goal of producing a model. The model is based upon the problems survivors experienced and is modeled after the John Wanous Realistic Job Preview (RJP). The Realistic Downsizing Preview (RDP), which can be effectively used before the downsizing, is implemented to prevent survivor syndrome in the aftermath of the downsizing. The foundation of the RDP model is that, by addressing issues that have been observed as survivor syndromes prior to a downsizing, the negative outcomes can be minimized. Part II develops the RDP model and discusses the implications for managers and management.

The purpose of this paper is to analyse the simultaneous effects of perceived job insecurity and organizational commitment on the innovative behavior of workers in an announced downsizing environment.

The authors suggest and empirically test a model using the case of a firm, an innovative high technology firm, in a downsizing process.

The results show an indirect effect of job insecurity on innovative behavior, through organizational commitment.

First, the paper only examined one firm. Although the firm is a large multinational firm it may have a specific organizational culture and a track record that generates some idiosyncratic feelings in face of downsizing. Second, the context of knowledge-intensive firms limits the scope of the study, although it is reasonable to suggest that these firms are more dependent on employees’ innovative efforts for competitive advantage.

This study is a contribution to the HRM practitioners in a tense and delicate worldwide restructuring situation. The outcomes experienced by those who remain – the survivors – are important for the future competitive capabilities of firms post-downsizing.

Thus, it seems that organizational commitment directly and positively determines workers’ innovative behavior and that organizational commitment is impacted by job insecurity in an announced downsizing environment. It is, essentially, an affective commitment and job insecurity is more affected by a perceived threat to one’s total job.

A downsizing strategy warrants that the full impact on firms’ ability to innovate be assessed.

To examine the post 9/11 communication of the bond‐trading firm, Cantor Fitzgerald and its CEO Howard Lutnick, according to the discourse of renewal framework.

This case‐study of the discourse of renewal draws upon the messages and statements made by the company and its employees following the 9/11 attacks. The discourse of renewal framework emphasizes provisional responses, prospective statements, and the role of the leader as a symbol of stability in the face of a crisis.

This study provides support for viewing crisis as change‐inducing events with the potential to fundamentally alter the form, structure and direction of an organization. Renewal discourse helped the company survive an attack where over 600 employees were killed and the company offices completely destroyed. While a crisis inevitably create severe harm, it also has the potential to serve as a renewing force for the organization.

Few examples of post‐crisis discourse of renewal have been examined in the literature and more research is needed. Work needs to identify the conditions necessary for this kind of discourse.

Organizations may have the opportunity to fundamentally reframe a crisis, focusing on the opportunities that arise from these events.

This paper explores both organizational crisis and organizational discourse from unique positions. Discourse is positioned as the means whereby crisis can become a positive force for change

Research on employee ownership has focused on questions of productivity, profitability, and employee attitudes and behavior, while there has been little attention to the most basic measure of performance: survival of the company. This study uses data on all U.S. public companies as of 1988, following them through 2001 to examine how employee ownership is related to survival. Estimation using Weibull survival models shows that companies with employee ownership stakes of 5% or more were only 76% as likely as firms without employee ownership to disappear in this period, compared both to all other public companies and to a closely matched sample without employee ownership. While employee ownership is associated with higher productivity, the greater survival rate of these companies is not explained by higher productivity, financial strength, or compensation flexibility. Rather, the higher survival is linked to their greater employment stability, suggesting that employee ownership companies may provide greater employment security as part of an effort to build a more cooperative culture, which can increase employee commitment, training, and willingness to make adjustments when economic difficulties occur. These results indicate that employee ownership may have an important role to play in increasing job and income security, and decreasing levels of unemployment. Given the fundamental importance of these issues for economic well being, further research on the role of employee ownership would be especially valuable.

This article explores the effects of downsizing and the subsequent emergence of self‐managed work teams. Continuous and accelerated change has resulted in massive downsizing activities by organizations. A classical model for the planning ‐ implementing ‐ and design of the downsizing process is presented. Group structure and typology is presented in terms of formal versus informal groups. The impact of groups and group dynamics, the stages of group development, and impact upon effectiveness, environment, design and learning processes will be included. Attention is given to the survivors of downsizing who form the foundation of the self‐managed team. Leadership demands are presented in terms of leading the survivors, ensuring commitment and managing the future. The emergence of the SMT in terms of productivity, expectations and the management of conflict complete this exhaustive review of empirical data required for action‐driven organizations in a turbulent environment.