Survivors' reactions to organizational downsizing Essay

Survivors' reactions to organizational downsizing - Essay Example Each organizational downsizing event could result to predictable outcomes in terms of having similar issues related to the feelings of betrayal, loss of trust in the management of the company, and experiencing internal conflicts between the corporate management and employees in line with retaining and losing their job. (Strom, 2008) As a result, the lack of organizational commitment among the stakeholders of the company becomes a major problem that top management needs to solve. For this study, the researcher will first discuss the theory and concept behind the organizational downsizing. Aiming to address whether the implementation of organizational downsizing could create a positive impact to the business, the researcher will discuss the possible effects of implementing organizational downsizing in terms of the long-term profitability of the firms and employee performance. Prior to the conclusion, the researcher will discuss the proper handling of ‘resistance to change’ particularly on the affected employees. organization’s conscious use of permanent personnel reductions in order to improve its efficiency and/or effectiveness.† In other words, the main idea of an organizational downsizing is intentionally and permanently reduces the number of employees within a business organization. (Budros, 1999; McKinley et al., 1995; Mishra and Mishra, 1994) Organizational downsizing is related to the increase in the managers’ compensation in terms of having a positive growth in sales. (Jensen, 1986; Murphy, 1985) This strategy could enable the company to eliminate unnecessary levels needed to enhance the overall effeciency required to keep the business competitive in the markets. (Koretz, 1997; McKinley et al., 1995; Bryne, 1994) Basically, cutting down the operational cost by reducing the size of the work force could increase the profitability of the