Organizational and Employee Responses to Surviving the Downsizing

ABSTRACT

This study investigated organizational and employee response to downsizing of companies. Overall, employees responded positively to downsizing. Specifically based on perceptions of human resource specialists, approximately three-fourths of employees worked competently, maintained productivity, were committed to the company, and viewed separation as fair. Almost two-thirds of employees were able to work as teams. In terms of organizational response to downsizing, we found that 60 percent of the companies provided the employees with information on the new direction of the company while a little more than half of the companies provided information and clear definitions of reporting relationships (54%), the current future note of the company (53%), and clear definitions of new responsibilities (51%). However, companies provided skill training in only a little more than a fourth (26%) of the companies while empowerment and decision making were provided in only 22% of cases. Less than a fifth of the companies provided team building seminars (18%), training or career management (16%) and how to work smarter (12%). The authors conclude by suggesting that the organization provide more training and development opportunities for survivors at the workplace following downsizing.