Organizational Downsizing: A Convergence and Reorientation Framework

Abstract

Organizational downsizing is becoming pervasive as a characteristic of modern organizations, yet little scholarly literature has addressed the processes and outcomes associated with this phenomenon at the organizational level. Downsizing has often mistakenly been confused operationally with concepts such as decline, layoffs, or nonadaptability, indicating that the definition of the concept remains imprecise. This paper offers a straightforward, operational definition of downsizing. Then the literature on organizational downsizing is used to build a theoretical framework of the process of effective downsizing and the organizational changes that may accompany it. Important organizational processes, characteristics, and outcomes associated with downsizing are identified.

The Digital Technology and the Threat of Downsizing into Indonesia‘s Banking Industry Performance

“…Downsizing is a deliberate organizational decision to reduce the workforce that is intended to improve organizational performance and organizational effectiveness [11]; is typically aimed at improving efficiency and is the result of a combination of organizational factors and environment [12]. Downsizing is one of the modern key concepts of manpower planning.…”

“…The reason advanced for downsizing is also to improve service delivery and promote good governance. Some of benefits of downsizing include faster decision making, greater flexibility or improvement in quality and increase efficiency and productivity [3], [12]. Downsizing is also an intentional, proactive, and often reactive managerial strategy aimed at generating sustainable fit and adequate responses to external-environmental turbulence and uncertainty [16].…”

“…Organizations must consider all some facts and works within their strategic framework when deciding to utilize the information technology, include the employee support, adequate infrastructure, and also cost. This advancing technology will results in the displacement of the employee, which can be also make some disruptions in the productivity, efficiency, loss of morale, lack of innovation and competitiveness [5], [12], [13]. Therefore, there's some urgency to make the smooth transition from the existing into new business process.…”

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

“…Retrenching or downsizing is defined as an intentional management action involving a reduction in personnel designed to improve a company's competitive position in the market place [1], [2]. During the current global financial crisis, firms and corporations are searching for strategies to enable them to survive and sustain their profitability.…”

Living on Both Sides of the Fence: A Phenomenological Study of Human Resource Development Professionals as Downsizing Survivors and Strategic Human Resource Development Facilitators

“…Downsizing is an intentional action (Freeman, 1999;Freeman & Cameron, 1993) that can be implemented reactively to bring an organizational out of decline or proactively to enhance organizational performance (Cameron, 1994). It is typically implemented to improve organizational efficiency (i.e., cut costs), effectiveness (i.e., performance), or both (Freeman & Cameron, 1993).…”