Organizational learning processes in downsizing

The purpose of this article is to explore organizational learning processes by examining how companies learn to do something new, namely downsize, on the basis of a small sample of companies in Europe. In a first step, the range of possible responses to downsizing, as discussed in the literature, is presented and compared with the responses described in the interviews. Significant gaps between the options described in the literature and the activities undertaken by the sample companies were found. In a second step, models of organizational learning are presented, specifically focusing on knowledge acquisition, information distribution and interpretation, and compared with the learning processes described by the sample companies. The article suggests that had the companies used a broader range of knowledge acquisition strategies, they might have expanded their range of responses to downsizing. A revision of organizational learning models to include a greater variety of perspectives in a problem definition phase before knowledge acquisition is undertaken is recommended. -- Um erfassen zu können, wie europäische Firmen lernen, die für sie neuen Aufgaben des Downsizing zu planen und durchzuführen, wurden zunächst die Erfahrungen in der US-amerikanischen Wirtschaft anhand einer Literaturanalyse und durch Sekundärstudien ausgewählter Untersuchungen ausgewertet. Anschließend wurde eine Primärerhebung durchgeführt. Es wurden Expertengespräche in 13 Unternehmen aus unterschiedlichen Branchen in vier westeuropäischen Ländern (vorrangig in Deutschland) durchgeführt. Die Auswertung der Interviews mit Führungskräften zeigt, daß in Europa die Erfahrungen der USA bisher so gut wie nicht wahrgenommen worden sind. Dieser Beitrag stellt die Lernstrategien der untersuchten Firmen dar und zeigt die Lücken auf, die sowohl für die Praxis wie auch für die Theoriebildung im Bereich Organisationslernen entstehen.

Effects of organizational communication on employee perceptions during organizational change

This research study examines the effects of organizational communication, a sub-dimensional construct on employee outcomes. It was proposed that organizational communication as indicated by timelines, reliability, and comprehensiveness of communication would predict the employee outcomes of intention to leave, job insecurity, and organizational cynicism in a negative direction. Participants, representing employees from several customer service organizations in Southern California experiencing orgaizational change, completed a questionaire consisting of multiple measurements in the areas of interest

Recruiting Older Workers: Realities and Needs of the Future Workforce

This chapter examines literature pertaining to the recruitment of older workers. It begins by addressing the question of relevance and why older worker recruitment matters. It then examines what is known about older workers, including their attitudes, motivations, and behaviors. Next the chapter addresses what employers are looking for in older workers and, more specifically, discusses the continuum of employers’ practices from those that aggressively try to attract and retain older workers and apply a conservation model of older worker management to those that apply a depreciation model and focus primarily on retrenchment and downsizing older employees. Finally, it addresses how employers can recruit older workers through changes in organizational policies and practices

Strategic I/O Psychology and the Role of Utility Analysis Models

In the 1990’s, the significance of human capital in organizations has been increasing,and measurement issues in human resource management have achieved significant prominence. Yet, I/O psychology research on utility analysis and measurement has actually declined. In this chapter we propose a decision-based framework to review developments in utility analysis research since 1991, and show that through lens of this framework there are many fertile avenues for research. We then show that both I/O psychology and strategic HRM research and practice can be enhanced by greater collaboration and integration, particularly regarding the link between human capital and organizational success. We present an integrative framework as the basis for that integration, and illustrate its implications for future research

Managing Employee Morale After Organizational Downsizing

Business leaders who lack effective strategies to manage employee morale after downsizing may encounter feelings of distrust, disloyalty, and job insecurity from employees, resulting in decreased productivity. This decrease in productivity can cost an organization millions of dollars. Grounded in transformational leadership theory, the purpose of this qualitative single case study was to explore strategies business leaders use to manage employee morale after organizational downsizing. The participants comprised three business leaders in central Maryland who successfully used a strategy to improve employee morale after downsizing within the past 5 years. Data were collected through semistructured interviews and a review of public financial reports and company information. Thematic analysis was used to analyze the data, and three themes emerged: effective communication, team building, and training and support. A key recommendation for business leaders is to open lines of upward communication to understand the emotional state of the employees better. The implications for positive social change include the potential to protect the emotional and physical health of the employees in support of the local communities and families

Revitalization, Reinvigoration and Motivation of Survivors in Changed, Restructured and Downsized Organizations: A Study of Leadership Challenges in Local Government

Over the past two-plus decades, corporate mergers, government consolidations, workforce downsizings and plant closures have increased dramatically; as a consequence, millions of workers around the nation have lost their jobs. Not surprisingly, researchers have begun to focus considerable attention on downsizing, restructuring and revitalization efforts as a means for understanding organizations undergoing major transformation. Although the studies that have been conducted have dealt with a wide range of issues associated with organizational downsizing and restructuring, there is an absence of research examining mid and upper level managers\u27 perceptions of the efficacy of their efforts to revitalize their downsized organizations and, in particular, their surviving subordinates. Likewise, empirical research into public sector downsizing and restructuring has been sparse. This study was designed to respond to these gaps in the literature. More specifically, the research studied fiscally driven change efforts in two cities over a period of four years. Both individual interviews with key participants and stakeholders and extensive analysis of government documents and newspaper accounts were used to reconstruct what happened in the financially stressed cities. The technique of narrative analysis, which involves reconfiguring data as a story complete with plot and literary-like themes, was used to analyze the data. The stories suggest that, in most instances, government officials in both cities did not so much downsize their organizations as find ways to avoid the need for downsizing. The methods ranged from convincing voters to approve a sales-tax increase to restructuring departments to decreasing the number of city employees by not filling positions when retirements or departures occurred. Despite the absence of substantial downsizing efforts, employee morale in each city suffered. The study documents leaders\u27 attempts to confront the morale problem. Strategies employed included leaders: keeping employees informed about the fiscal crisis and what was being done about it; soliciting employee input and feedback about what to do to respond to crisis situations; redesigning jobs and providing professional development opportunities related to an employee\u27s new responsibilities and long-term career aspirations; and articulating a positive vision of the future and the reasons that this vision would likely come to pass

Downsized Survivors: Areas of Loss and Work Behaviors

This research design used factor analysis to develop subscales related to areas of loss, and subscales related to work behaviors of survivors following a downsizing. Five loss subscales were revealed as a result of factor analysis. They were loss of sense of justice and supervisory support; loss of security and support; loss of positive outlook; loss of territory; and loss of control and identity. There were two work behavior components identified through factor analysis. They were lack of productivity and sabotage; and intention for flight. The loss components, sense of justice and supervisory support; security and competence; and territory, were found to have a statistical relationship with the downsized survivors\u27 lack of productivity and inclination to sabotage. The loss components positive outlook, control and identity, and loss of sense of justice and supervisory support were found to have a statistical relationship with the intention for flight. Marginalized populations (i.e. female, disabled, first generation immigrants, and non-Caucasian populations) did not report statistically significant differences in loss or productivity, sabotage or intention for flight work behavior areas. This dissertation is accompanied by a spreadsheet file in .xlsx format, 120 k. The electronic version of this dissertation is at Ohiolink ETD Center, www.ohiolink.edu/et

Effects of downsizing strategies on survivors’ organizational commitment: the case of Ethio Telecom

The study sought to analyze the effects of downsizing strategies on survivors ’ organizational commitment (affective, continuous, and normative) at Ethio Telecom. This study used descriptive and causal effect type of study. It focused on both qualitative and quantitative approaches for collection and analysis of data. This research made use of both primary and secondary sources of data. The researcher employed simple random sampling technique to select 362respondents from each zone and headquarter offices. In this study, Structural Equation Modeling (SEM) was employed. As the findings depict that positive and significant effect of exogenous variables (organizational justice: procedural and distributive justice) with the standardized estimate for procedural justice on affective, continuous, and normative commitment effects were all significant but they are not that much strong (fi =0.22, 0.18, 0.17) while distributive justice had high effect on affective, continuous, and normative commitment0.97, 0.99, 0.98 and respectively. Based on the above findings the researcher inferred that there was organizational procedural injustice in the time of downsizing at Ethio Telecom. Consequently, these perceptions affected adversely survivors ’ organizational commitment. As a result, survivors are neither emotionally attached nor have feeling of continuous commitment to the company. Hence, the researcher recommends that the strategists should do the following in order to make it effective: plan the process properly, study the overall scenario prior to the attempt, do human resource planning industriously, set clear selection criteria, make the process transparent, communicate timely, conduct behavioral trainings, align each unit activity with company’s strategic objectives, and prepare victims for other jobs

Downsizing Survivors’ Communication Networks and Reactions: A Longitudinal Examination of Information Flow and Turnover Intentions

The pre- and postdownsizing information flow and postdownsizing turnover intentions of downsizing survivors were examined in the corporate office of an international hotel company. Using a combination of network analysis and path analysis, the relationship between changes in downsizing survivors’ betweenness centrality and perceptions of information adequacy relative to reported turnover intentions were examined across two postdownsizing time periods. Results of the path analyses provided general support for the model as hypothesized, indicating in postdownsizing periods that changes to network members’ network centrality positively influenced changes in their perceptions of information adequacy, which then negatively influenced their turnover intentions. The article concludes with a discussion of the support for the hypotheses and the study’s limitations and pragmatic implications