The aftermath of downsizing

Abstract

Describes the impact of ongoing downsizing activities as an established organization attempts to develop a new corporate culture. Objective of this undertaking was to recommend an action plan and feedback loop to assist this complex procedure. An organizational climate survey was developed via a review of the literature utilizing a nonprobability sample design and utilizing an ordinal scale. A questionnaire (N = 30) was developed to explore downsizing practices, compensation, satisfaction and morale in this particular hybrid case and field study. Attention was given to changing culture leadership, communication systems, decision‐making, incentives ‐ satisfaction, gainsharing and the surveyor syndrome. The results indicated that corporate culture was incongruous with employee culture, thus impeding the downsizing process. Recommendations for management to correct this structural and process problem are given in addition to an action plan to implement all variables previously described in the literature and tested in this case study.

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