Psychological and physical well-being during unemployment: A meta-analytic study

10.1037/0021-9010.90.1.53Journal of Applied Psychology90153-76JAPG

Choices and constraints: individual perceptions of the voluntary redundancy experience

This article considers how voluntary redundancy influences individual perceptions of retrenchment. Semi-structured interviews were conducted with people who had taken voluntary redundancy from a range of Australian public and private sector organisations. The article argues that, although some employees may feel pressured into accepting voluntary redundancy, for most people it provides a better alternative to involuntary retrenchment, enabling them to maintain self-esteem and reducing the negative psychological, physical and financial impacts normally associated with retrenchment. However, it also suggests that redundancy programmes need to be managed strategically to avoid creating a 'package culture' mentality in which turnover becomes contingent on receiving a redundancy package. © 2007 The Authors.Marilyn Clark

The Financial Impact of Organisational Downsizing Practices—The New Zealand Experience

Partly in response to the Asian economic crisis, many organisations in the Asia Pacific rim reduced staff numbers. This research examines the New Zealand experience of this change intervention from 1997 to 1999. This includes an examination of the impact on financial performance, and how the process followed may moderate such an impact. A questionnaire instrument was designed to measure this, to which responses were received from 155 New Zealand for-profit organisations employing fifty or more people. There is some evidence to suggest that those respondents who had downsized over the period of the study reported lower measures of profitability than those who did not (p > .05). Also, ensuring the procedure was perceived as just by the employees, and offering outplacement help to those who lost their jobs, went some way to improving the financial performance of downsized firms (p > .05). This may suggest that if downsizing is necessary then attention needs to be given to how the process is implemented in order to maximise the financial return. Copyright Springer Science + Business Media, Inc. 2005organizational downsizing, effective downsizing practices,