Causes and Effects of Employee Downsizing: A Review and Synthesis

Datta, Deepak K.; Guthrie, Joanne F.; Basuil, Dynah A.; Pandey, Alankrita

doi:10.1177/0149206309346735

Cited by 394 publications

(531 citation statements)

References 122 publications

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“…Experiencing unemployment and difficulty to access the job market puts individuals' mental health at risk including depression and anxiety (Datta et al, 2010). It was demonstrated that this can also Limitations of this study include the risk of common method bias.…”

Section: Practical Applications Limitations and Future Researchmentioning

confidence: 89%

“…The economic crisis has contributed to a highly unstable employment landscape, with many people experiencing job loss or struggle to access the job market following graduation (Datta et al, 2010). For those who either lost their jobs or struggle to access the job market for the first time, the Internet has become a central tool to locate job opportunities.…”

Section: Distal Driversmentioning

confidence: 99%

“…The economic crisis in the Western world has led to organizations searching for efficiency in utilizing resources (Datta et al, 2010). This has resulted in high employment insecurity.…”

Section: Introductionmentioning

confidence: 99%

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Compulsive internet use in adults: A study of prevalence and drivers within the current economic climate in the UK

Quinones-Garcia

Korak-Kakabadse

2014

Computers in Human Behavior

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Compulsive Internet Use (CIU) refers to a maladaptive relationship with the tool, including a loss of control over the use, the use for mood change and withdrawal symptoms. Most studies have relied on student samples, thus little is known about its prevalence in adults. The first objective of this study was to examine CIU in adults that were either employed (N=260) or unemployed within the last year (N=256). Second, the drivers of CIU were examined, with a focus on attitudes that reflected the reality of long working hours and job insecurity that people experience in current workplaces. A high risk of CIU (63%) with no significant differences between employed and unemployed individuals was found. However, unemployed individuals were in the highest band of Internet use, a risk factor for CIU.Interestingly, unemployed 40-55 years old females experienced higher CIU than their male counterparts. Regarding drivers of CIU, the job attitudes working excessively and compulsively were the strongest predictors, beyond emotion stability. This was particularly true at high levels of social support. In view of this, organizations should proactively evaluate the risks associated with encouraging working excessively as ill-health consequences associated with CIU could outweigh the benefits.

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Section: Practical Applications Limitations and Future Researchmentioning

confidence: 89%

Section: Distal Driversmentioning

confidence: 99%

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Compulsive internet use in adults: A study of prevalence and drivers within the current economic climate in the UK

Quinones-Garcia

Korak-Kakabadse

2014

Computers in Human Behavior

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“…Bryson et al (2013), for example, report that changes in work organisation are associated with lower Contentment, but that this effect is ameliorated where unions with bargaining rights are consulted over the reorganisation. Datta et al (2010) review evidence that downsizing tends to lower job satisfaction and organisational commitment. Typically, studies report greater negative direct effects on survivors of downsizing the nearer they are to being involved, and the less fair are the perceived processes (Pepper et al 2003).…”

Section: Workplace Changementioning

confidence: 99%

Job-Related Well-Being Through the Great Recession

Green¹,

Felstead

Gallie

et al. 2014

J Happiness Stud

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We study how job-related well-being (measured by Warr's 'Enthusiasm' and 'Contentment' scales) altered through the Great Recession, and how this is related to changing job quality. Using nationally representative data for Britain, we find that jobrelated well-being was stable between 2001 and 2006, but then declined between 2006 and 2012. We report relevant changes in job quality. In modelling the determinants of jobrelated well-being, we confirm several previously-studied hypotheses and present some new findings: downsizing, work re-organisation, decreased choice, and linking pay to organisational performance each reduce well-being; indicators of skills challenge in jobs have more of a positive association with Enthusiasm than with Contentment, while effort has a more negative association with Contentment than with Enthusiasm. Our estimates are largely orthogonal to the effects of personality traits and demographic controls on wellbeing. Using a standard decomposition, we find that the 2006-2012 fall in job-related wellbeing is partly accounted for by accelerations in the pace of workplace change, rising job insecurity, increased effort and changing participation.Keywords Effort Á Job insecurity Á Downsizing Á Performance-related pay Á Organisational participation Á Job-related well-being Á Task discretion Á Skill IntroductionThis paper is concerned with what happens to the job-related well-being of those in employment in a major recession. Periods of economic crisis and stagnation are typically seen as occasions for accelerated changes in employment and production relations. Whether through Schumpeterian creative destruction or through a shift in the balance of power, the opportunity may be taken to renew working methods, relationships and pay bargains, with consequences for both employers and their employees. Major economic downturns are known to generate falls in general well-being (as manifested in overall life satisfaction and health indicators) which extend beyond those rendered involuntarily unemployed to the broader workforce who feel less secure and to their dependants (Burchell 1994;Di Tella et al. 2003;Green 2011). The focus here, however, is on how indicators of job-related wellbeing (feelings about one's job) are changed over a recession, and on how this is related to changing job quality. To investigate this, we examine the specific instance of employees in Britain before and after the 'Great Recession' of 2008-2009.Since job-related well-being is an end in itself, studying it needs no additional motivation. Nevertheless, there is evidence that job-related well-being is associated with productivity, absenteeism and labour turnover (e.g. De Neve et al. 2013;Warr 2007;Zelenski et al. 2008)-even if much remains to be done to determine the magnitude of the causal effects. In recent years well-being-including in the domain of work-has been assigned a place in the 'beyond GDP' agenda (Stiglitz et al. 2009). A better understanding of various dimensions of well-being at an aggregate level are re...

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“…[27] found, although research on retrenching is growing, it is still dwarfed by the magnitude of this phenomenon in the marketplace. There are a host of theoretically and practically important issues in need of additional research.…”

Section: Literature Reviewmentioning

confidence: 99%

Do Downsizing and Global Financial Crisis Affect SMIs Labour Productivity in Malaysia?

Ibrahim¹,

Suhaimi²,

Chong³

2015

JOEBM

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Abstract-This paper examines the effect of downsizing and global financial crisis on the labour productivity of the manufacturing industries in Malaysia. Due to the crisis, many industries retrenched their workers to adjust to the declining demand in their respective industries. Two distinctive subindustries that have the highest retrenchment rates are the manufacturing of radio, television and communication (27%) and the manufacturing of rubber and plastics (13.

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Causes and Effects of Employee Downsizing: A Review and Synthesis

Cited by 394 publications

References 122 publications

Compulsive internet use in adults: A study of prevalence and drivers within the current economic climate in the UK

Compulsive internet use in adults: A study of prevalence and drivers within the current economic climate in the UK

Job-Related Well-Being Through the Great Recession

Do Downsizing and Global Financial Crisis Affect SMIs Labour Productivity in Malaysia?

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