Organizational downsizing and career development

Abstract

Survivor employees and senior management perceptions of career development issues were examined in a downsizing organization. It emerged that the organization lacked a coherent strategy for survivors’ career development. The main career development structure, the performance management and appraisal scheme, was generally viewed as inadequate, while the other structures in place, although generally perceived as useful, were underutilized. A substantial proportion of employees considered lateral moves to potentially undermine advancement and security, and senior management views implied a potential lack of wide managerial support for widespread use of this tool. A senior management attitude for selective career development, targeted on an élite group of key employees, was also detected. The study concluded that proper downsizing planning must include a coherent career development strategy for survivors.

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