Causes and Effects of Employee Downsizing: A Review and Synthesis

As employee downsizing has become increasingly ubiquitous in recent years, the study of this phenomenon has assumed greater significance. This article develops an integrative framework that incorporates environmental and organizational antecedents as well as the implications of downsizing for individuals and organizations. Key empirical studies are reviewed and major patterns and contradictions are identified. The authors identify and discuss theoretical and methodological concerns related to the extant literature and provide recommendations for future research aimed at developing a better understanding of employee downsizing. [PUBLICATION ABSTRACT

The adoption of downsizing during the Asian economic crisis

This study examines the adoption of downsizing during the Asian economic crisis. We use data from a large firm-level survey to examine and compare the adoption of downsizing by firms across sectors and across three countries – Indonesia, the Philippines and Thailand. The results show that country effects had a significant impact on the adoption of downsizing during the Asian economic crisis. Also, significant differences were found in the adoption of downsizing across different sectors of activities. The implications of the results for theory and practice are discussed

Downsizing and Stakeholder Orientation Among the Fortune 500: Does Family Ownership Matter?

While downsizing has been widely studied, its connection to firm ownership status and the reasons behind it are missing from extant research. We explore the relationship between downsizing and family ownership status among Fortune 500 firms. Weâ\x90£propose that family firms downsize less than non-family firms, irrespective of performance, because their relationship with employees is based on normative commitments rather than financial performance alone. We suggest that their actions are related to employee- and community-friendly policies. We find that family businesses do downsize less irrespective of financial performance considerations. However, their actions are not related to their employee- or community-friendly practices. The results raise issues related to the motivations of large multinationals toâ\x90£downsize and the drivers of their stakeholder management practices. Copyright Springer Science+Business Media, Inc. 2007downsizing, family business, performance, stakeholder orientation,