The role of communication in managing reductions in work force

Abstract

Reductions in work force (downsizing, delayering, resizing, outplacement, layoffs, demassing) are used by organizations to achieve desired economic goals and ensure survival. However, these reductions often negatively affect the work behaviors and attitudes of continuing employees and thus, may detract from the success of the reduction in work force. The purpose of this study was to increase our understanding of the effects of multiple workforce reductions on survivors by extending Brockner's (1988) model and outlining the role of communication in the process so that researchers and practitioners can better predict and control for the effects of workforce reductions. In pursuit of this goal, a causal model of effects on survivors was developed and then tested with data collected in a large, midwestern insurance company that implemented two workforce reductions.

The hypothesized model was inconsistent with the data and subsequently was rejected. A revised model was then tested and found to fit at three time periods. The revised model demonstrates survivor reactions to reductions are complex and change over time and in response to multiple reductions. The main conclusion was that managers can influence survivor information deprivation, career future uncertainty, work satisfaction, and propensity for turnover by paying attention to, and if possible controlling, organizational identification, financial rewards, work team communication support, and manager communication support. The results also suggest that survivor reactions to prior organizational interventions may influence the success of current interventions.