Causes and effects of employee downsizing: a review and synthesis deepak k datta university of texas, arlington researchers have generated a significant body of scholarly work on downsizing given the mul- datta et al / causes and effects of employee downsizing 285 1 environmental factors a macroenvironmental factors.
The aim of this study is to identify the effects of downsizing on employee behavior and their work life thereby having a negative effect on the productivity of an organization secondly, describing how it affects the productivity of the organization. Downsizing (rightsizing) to the employees, communities, and families of the employees overview in the recent global financial crisis, tens of thousands of companies around the world have downsized in an attempt to cut down the in-house expenses and maximize the profitability of the business so as to counter the effect caused by the financial crisis.
282 journal of management / january 2010 over the past couple of decades, employee downsizing has become an integral part of orga-nizational life. Home essays downsizing effect downsizing effect topics: employment conceptual approach to employee downsizing examining the role of social media in effective crisis management : the effects of crisis origin, information form, and source on publics’ crisis responses publics increasingly use social media during crises and. Downsizing, which constitutes the planned elimination of positions or jobs, has had and will continue to have profound effects on organizations, managers at all levels, employees, labor markets, customers, and shareholders these are just the direct effects they do not include the effects on families and communities. - downsizing is framed within the context of removing or taking out employees witch are of much use to the company’s work process, or their performance is not adequate it is almost like upgrading your old pc, and taking out the old and obsolete parts.
One of the questions in survey was regarding the effect of downsizing on the productivity and motivation of the remaining employees 52% of the respondents reported that it did effect the employees productivity and motivation which led to increased absenteeism. Employee morale after downsizing downsizing has become a significant idea in today's economy and maintaining the trust of employees when something like this takes place has also become very serious business (brockner, konovsky, cooper-schneider, folger, martin, & bies, 1994.
Downsizing is an intentional, proactive management strategy, whereas decline is an environmental or organizational phenomenon that occurs involuntarily and results in erosion of an organization’s resource base.
Effects of downsizing 4334 words | 18 pages when management must lay off fellow employees due to economics and financial reasoning these actions are faced with dire consequences the following report includes expected reactions by employees who continue to work within an organization after a company downsizing.