Downsizing: an examination of some successes and more failures

Abstract

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.

Citation

Appelbaum, S.H., Close, T.G. and Klasa, S. (1999), "Downsizing: an examination of some successes and more failures", Management Decision, Vol. 37 No. 5, pp. 424-437. https://doi.org/10.1108/00251749910274207