Downsizing in britain and its effects on survivors and their organizations

Abstract In this paper, we examine the psychological effects of downsizing and redundancy on those remaining within organizations after large-scale redundancy programs. While there have been a number of studies of this type in the recent past, our task is to explore two separate studies which have investigated this phenomena. The first study explores the impact of redundancy in a recently privatized organization in the UK. This, we argue, is a particularly fertile area of study given the radical changes that have affected organizations in the UK that have been subjected to privatization. The results stem from an exploratory and qualitative case study which takes an individual perspective. The second study discussed in this paper explores the results of a survey conducted in the UK that examines the implications of change in both the public and private sector organizations. This survey takes a quantitative look at the implications of redundancy from an organizational perspective. By investigating these two studies, our research explores the impact of redundancy on two levels—the individual level and the organizational level. First, we examine the emotional, attitudinal and behavioral effects of redundancy on survivors and the resultant implications for management: in particular the changing role of line managers where delayering and redundancy has taken place. Second, we explore the impact of redundancy on the organization in terms of organizational morale, motivation, organizational loyalty and job security where redundancy has and has not been used as a method of downsizing.

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