A Conceptual Framework for Assessing Organization, Work Group, and Individual Effectiveness During and After Downsizing

Abstract

The need for a unified, cross-level (organization, work group, individual employee) model of organizational downsizing has been suggested by several authors (e.g., Kozlowski et al., 1993). The definition of downsizing, in terms applicable only at the organization level, prevents researchers from developing a more cohesive view of the interactive impact of downsizing for the organization, work groups, and individuals. In this paper, we define downsizing more broadly as a constellation of stressor events centering around pressures toward work force reductions which place demands upon the organization, work groups, and individual employees, and require a process of coping and adaptation. This stress-based view of downsizing allows researchers to develop concepts to guide research on downsizing that are more broadly applicable across levels of analysis. To show the advantages of this stress-based view of downsizing, this paper uses concepts from the stress coping literature to identify a set of critical dependent variables that should be studied in downsizing research. We argue that these variables are applicable for organization, group, and individual employee-level research.

Rigid Response in an Age of Accountability

“…Largely unexplored in the research literature is the idea of a threat-rigid response within organizational settings and the factors that are associated with a less rigid response (Griffith, 2004;Shaw & Barrett-Power, 1997).…”

“…Scholarship from the business and political literature, albeit limited (Lansisalmi, Peiro, & Kivimaki, 2000), suggests that individuals within an organization may experience a collective sense of perceived threat (Lansisalmi et al, 2000;Mellahi, Jackson, & Sparks, 2002;Shaw & Barrett-Power, 1997). This phenomenon has been documented outside of organizations as well-namely, in the response of large groups to catastrophes (Barton, 1969;Gill & Picou, 1991;Mann, 1979).…”

“…Examining how educators perceive threat from sanction has been understudied (Griffith, 2004;Rosenblatt, 2004;Shaw & Barrett-Power, 1997). The threat-rigidity thesis postulates that when faced with significant threat, organizations (like individuals) may close down, reduce information flow, engage in poor decision making, and limit divergent views (Staw et al, 1981).…”

Surviving Job Loss: Papermakers in Maine and Minnesota

“…not because of their lack of com- petence, but because of sweeping changes in America's technology, production, and marketing." Our definition of job loss follows that of Shaw and Barrett-Power (1997), who characterize it as a constellation of stressor events around the termination of paid work that demands a process of coping and adaptation. The paper industry is and has been involved in significant technological changes, caught up in overproduction when markets have disappeared, and involved in a continuing search for new product development.…”

“…Shaw and Barrett-Power (1997) maintain that displacement without outplacement assistance is more severe for job losers than when assistance is provided. They point to several individual, work group, or organizational aids that could help:…”