Downsizing Organizations: Uses, Outcomes and Strategies

TL;DR: In recent years, in response to calls for reduced costs and higher productivity, down sizing has become an increasingly common human resource management strategy as discussed by the authors, with a particular focus on the attitudes, behaviour and organiza tional commitment of those employees who remain after downsizing (sur vivors), and those who lose their jobs (victims).

Abstract: This paper reviews the contemporary literature on organizational downsizing. It is not intended that the review be definitive. Instead, the objective is to provide an overview of the field with a view to informing future research directions and possible human resource management practice. In recent years, in response to calls for reduced costs and higher productivity, down sizing has become an increasingly common human resource management strategy. The paper begins with brief look at the language used to describe organizational downsizing, together with a discussion of downsizing as pur posive managerial action. Tbe research on downsizing outcomes is then reviewed, with a particular focus on the attitudes, behaviour and organiza tional commitment of those employees who remain after downsizing (the 'sur vivors'), and those who lose their jobs (the 'victims'). Different strategies for downsizing and their outcomes are then reviewed, followed by conclusions and suggestions for further research.