Organizational Downsizing: A Convergence and Reorientation Framework

Sarah J. Freeman · Kim S. Cameron

418 citations0/0 files storedOrganization Science

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Organizational Downsizing and Restructuring Organizational Change and Leadership Organizational Management and Change

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.

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References

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2009Character, Conformity, or the Bottom Line? How and Why Downsizing Affected Corporate Reputation 2000Downsizing in a Learning Organization: Are There Hidden Costs?2005Reducing slack: the performance consequences of downsizing by large industrial firms, 1977–93 2013Organizational Decline and Turnaround 2005Understanding the Human Side of Merger and Acquisition 2000A Sociocognitive Interpretation of Organizational Downsizing 2000

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