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Article
Publication date: 1 August 1994

Larry R. Smeltzer and Marie F. Zener

A prescriptive model for announcing layoffs is presented. The model isbased on a thorough literature review and indepth case analysis of eightcompanies which announced…

Abstract

A prescriptive model for announcing layoffs is presented. The model is based on a thorough literature review and indepth case analysis of eight companies which announced layoffs. Based on the model, ten recommendations for effective layoff announcements are presented and discussed. Because the cases′ analysis revealed that most strategies relating to the announcements were superficial, the major recommendation is to develop a thorough strategy. This model should help to develop an appropriate strategy. The nature of the layoff and organizational dynamics are first considered in this model. Other variables considered are the source of the announcement, the channel used to present the message, the timing of the announcement and the message itself.

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Employee Councelling Today, vol. 6 no. 4
Type: Research Article
ISSN: 0955-8217

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Book part
Publication date: 13 September 1999

Wolter H J . Hassink

Abstract

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The Creation and Analysis of Employer-Employee Matched Data
Type: Book
ISBN: 978-0-44450-256-8

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Book part
Publication date: 18 September 2006

Kevin F. Hallock

This paper uses data on over 4,600 layoff announcements in the U.S., covering each firm that ever existed in the Fortune 500 between 1970 and 2000, along with 40…

Abstract

This paper uses data on over 4,600 layoff announcements in the U.S., covering each firm that ever existed in the Fortune 500 between 1970 and 2000, along with 40 interviews of senior managers in 2001 and 2002 to describe layoffs in large U.S. firms over this period. In order to motivate further work in the area, I investigate six main issues related to layoffs: timing of layoffs, reasons for layoffs, the actual execution of layoffs, international workers, labor unions, and the types of workers by occupation and compensation categories. The paper draws on literature from many fields to help further understand these issues.

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Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-84950-426-3

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Book part
Publication date: 11 July 2019

Annette Bergemann, Erik Grönqvist and Soffia Guðbjörnsdóttir

We investigate how career disruptions in terms of job loss may impact morbidity for individuals diagnosed with type 2 diabetes (T2D). Combining unique, high-quality…

Abstract

We investigate how career disruptions in terms of job loss may impact morbidity for individuals diagnosed with type 2 diabetes (T2D). Combining unique, high-quality longitudinal data from the Swedish National Diabetes Register (NDR) with matched employer–employee data, we focus on individuals diagnosed with T2D, who are established on the labor market and who lose their job in a mass layoff. Using a conditional difference-in-differences evaluation approach, our results give limited support for job loss having an impact on health behavior, diabetes progression, and cardiovascular risk factors.

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Health and Labor Markets
Type: Book
ISBN: 978-1-78973-861-2

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Book part
Publication date: 11 August 2014

Núria Rodríguez-Planas

This paper is the first to present empirical evidence consistent with models of signaling through unemployment and to uncover a new stylized fact using the 1988–2006…

Abstract

This paper is the first to present empirical evidence consistent with models of signaling through unemployment and to uncover a new stylized fact using the 1988–2006 Displaced Worker Supplement (DWS) of the Current Population Survey (CPS), namely that, among white-collar workers, post-displacement earnings fall less rapidly with unemployment spells for layoffs than for plant closings. Because high-productivity workers are more likely to be recalled than low-productivity ones, they may choose to signal their productivity though unemployment, in which case the duration of unemployment may be positively related to post-displacement wages. Identification is done using workers whose plant closed as they cannot be recalled, and no incentives to signal arise.

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New Analyses of Worker Well-Being
Type: Book
ISBN: 978-1-78350-056-7

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Article
Publication date: 1 February 2000

P.C. (Peggy) Smith and Janet W. Walker

This paper proposes that the development of a layoff policy gives an organization a competitive advantage over organizations without such a policy. How an organization…

Abstract

This paper proposes that the development of a layoff policy gives an organization a competitive advantage over organizations without such a policy. How an organization communicates concern to employees is often through procedures and policies developed by the human resource department. Survey questionnaires were mailed to 1,400 vice presidents of human resources that held membership and whose names were provided through the Society of Human Resource Management. Over half of the organizations surveyed (57%) did not have layoff policies. By type of organization, healthcare had the greatest number of policies in their organizations with 70% affirming their existence. The study concludes with the following five proposed reasons why layoff policies do not exist: (1) “It can't happen here” syndrome (2) The cover‐up syndrome (3) If you plan for it, people will panic, (4) Managers are trained to focus on growth and to avoid decline, (5) There would be loss of control, and accompanying organizational sabotage, and (6) More policies equal less humane treatment.

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Competitiveness Review: An International Business Journal, vol. 10 no. 2
Type: Research Article
ISSN: 1059-5422

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Article
Publication date: 7 August 2007

Meghna Virick, Juliana D. Lilly and Wendy J. Casper

The purpose of this research is to examine how increased work overload of layoff survivors relates to their work‐life balance and job and life satisfaction.

Abstract

Purpose

The purpose of this research is to examine how increased work overload of layoff survivors relates to their work‐life balance and job and life satisfaction.

Design/methodology/approach

Survey methodology was used to collect data from 510 layoff survivors in a high tech company. Regression analyses and structural equation modeling were used to test the hypotheses.

Findings

The study found that layoff survivors experience higher levels of workload which impact overall role overload that negatively affects work‐life balance. Findings suggest that high workloads experienced by layoff survivors contribute to reduced job and life satisfaction through reduced work‐life balance as a mediating mechanism.

Research limitations/implications

The data used in this paper is cross‐sectional and conducted within a single organization. Also, most of the data is obtained from self report survey data and subject to common method bias. As such, longitudinal studies are recommended for future research.

Originality/value

This study makes a contribution by joining two distinct research streams – the job loss literature with research on work‐family issues. Findings suggest that high workloads experienced by layoff survivors contribute to reduced job and life satisfaction with work‐life balance acting as a mediator. Future research should determine whether these findings generalize to diverse layoff survivors in distinct industries, and assess whether these phenomena change over time.

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Career Development International, vol. 12 no. 5
Type: Research Article
ISSN: 1362-0436

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Article
Publication date: 16 October 2019

Sarah M. Miller, JungHwan Kim and Doo Hun Lim

This study aims to explore how employees’ emotions after downsizing impact their learning that they partook in after the downsizing event.

Abstract

Purpose

This study aims to explore how employees’ emotions after downsizing impact their learning that they partook in after the downsizing event.

Design/methodology/approach

The methodological approach was a qualitative case study. Nine employees, considered layoff survivors in a downsized organization, participated in semi-structured interviews. For data analysis, authors performed an initial, focused and axial coding.

Findings

The findings highlight three themes: “resilience,” “loyalty” and “moral support.” These themes show the empathy that layoff survivors experienced and the impact the layoff had on their commitment to the organization, as well as the social learning that occurred after downsizing.

Practical implications

Downsized organizations need to consider the emotions of employees who survive layoffs and how layoffs impact their behavior at work, particularly their learning behavior. Organizations need to understand how to positively impact layoff survivors’ emotions to influence the survivors’ willingness to learn and implement the changes within the organization. Providing outlets for survivors to network within the company, as well as meaningful opportunities, is one of the few ways of addressing employees’ emotions and ensuring they will be encouraged to change with the organization.

Originality/value

Research that explores how emotions resulting from an organizational downsize impact employees’ learning is minimal. Although much of the downsizing research does explore layoff survivors’ experiences after a downsizing, it does not address the emotional factors or the learning experiences. This study seeks to fill this gap.

Details

European Journal of Training and Development, vol. 44 no. 2/3
Type: Research Article
ISSN: 2046-9012

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Article
Publication date: 1 July 2006

Steven E. Abraham

The purpose of this paper is to compare the market reaction to layoff announcements of union and nonunion employees.

Abstract

Purpose

The purpose of this paper is to compare the market reaction to layoff announcements of union and nonunion employees.

Design/methodology/approach

Event study methodology was utilized to assess the effects of layoff announcements of union versus nonunion employees. The union status of the laid‐off employees was determined for 135 layoff announcements reported in the Wall Street Journal in 1993 and 1994 and shareholder returns between the two groups was compared.

Findings

Over each event period tested, the market reaction was more negative when nonunion employees were downsized than when the announcement concerned unionized employees. Over the two days surrounding the announcement, the market reaction to the layoff announcement of unionized employees was actually positive, while the reaction was negative when nonunion employees were the subject of the announcement.

Research limitations/implications

The sample included layoff announcements from 1993 and 1994 only. The market reaction to announcements in different years might be different.

Originality/value

While many papers have examined the market reaction to layoff announcements, this is the first paper that compares the reaction to union versus nonunion employees.

Details

International Journal of Manpower, vol. 27 no. 5
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 2 November 2012

Marjo‐Riitta Parzefall

Drawing on the concept of psychological contract and organizational justice, this exploratory case study seeks to examine how companies' attempts to handle layoff

Abstract

Purpose

Drawing on the concept of psychological contract and organizational justice, this exploratory case study seeks to examine how companies' attempts to handle layoff pressures with alternative HR arrangements are perceived and experienced by the affected employees.

Design/methodology/approach

The study draws on 19 interviews of employees affected by job loss. The interviewees were employees in a case organization that had implemented a HR practice called the “Competence pool” as an alternative to layoffs.

Findings

Although contract breach occurs, alternative HR arrangements can mitigate the negative effects of job loss for the affected employees and help restore the psychological contract. Such arrangements have to be implemented with care in order to avoid injustice perceptions.

Research limitations/implications

As HR arrangements are by nature unique and company‐specific, this study is limited by its focus on one organization and national context. It however provides future directions for research on layoffs and their consequences.

Practical implications

By exploring how the affected employees perceive an alternative to layoffs, this study has several implications for organizations interested in managing layoff pressures with alternative HR arrangements.

Originality/value

By investigating the experiences and perceptions of employees whose jobs were terminated but whose employment relationship continued under specific conditions, this study provides new insights into layoff and HR literatures from psychological contract and justice perspectives.

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