The Victims and Survivors of Downsizing

Paper Summary:

This paper takes a look at some of the problems of downsizing, a common trend among organizations all over the world since the early 80s. The paper points out that downsizing, also known as, layoffs, rightsizing, or restructuring, has many names, but has a clear meaning, which is, the loss of employment for some select employees in organizations. Mergers, acquisitions, technological changes and global competition contribute to the organization's decision to downsize which forces employees to be the survivors or the victims of this process. This paper explores the problems faced by post-downsizing victims and survivors, and how the management of an organization can help the employees work through this phase. It concludes that downsizing is a constant trend that is thought to bring in some benefits to the organizations, however, cutting back on job positions leaves a negative impact on both victims and survivors.

From the Paper:

"In the post-downsizing phase, the management of an organization needs to deal with victims and survivors in a very tactful way, as employees are one of the most important elements which contribute to an organization's productivity, competitiveness, effectiveness and efficiency (Manfred et. al, 1997). When employees are faced with job insecurity, it is said that the "psychological contract" between the employer and employee has been broken. This contract ensures the employees job satisfaction and security, and when this is broken, it is very difficult for management to win back the trust of its employees. Organizations have different ways of helping the victims and survivors of downsizing, but there are a few which are more efficient than the others."

Sample of Sources Used:

• Brockner, J. (1988a). The effects of work layoffs on survivors. Research, theory and practice. In B.M. Staw & L.L. Cummings (Eds.), Research in Organizational Behavior, 10; pg. 234-235
• Clarke, M., & Patrickson, M. (2001). Does Downsized mean down and out? Asia Pacific Journal of Human Resources, 39), pgs. 67-69
• Delery, J.E., & Shaw, J. D. (2001). The strategic management of people in work: Review, synthesis and extension. Reseach in Personnel and Human Resources Management, 20: 167-171.
• Manfred, F. R., De Vries, K. & Balazs, K. (1997). The Downside of Downsizing. Journal of Human Relations. Vol. 50, No.1, pgs. 12-14, 18-19, 44-45.. Springer Netherlands.
• Noer, D.M. (1993). Healing the wounds: Overcoming the trauma of layoffs and revitalizing downsized organizations. San Francisco: Jossey Bass.

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