The effect of repeated management downsizing and surplus designation on remaining managers: An exploratory study

Abstract

I present the results of an exploratory study on the long-term effects of exposure to repeated organizational downsizings and being designated a surplus employee on survivors' coping strategies, job-related strain and burnout, perceived organizational support, and organizational commitment. Participants were 38 managers employed in a major U.S. corporation that had undergone a series of downsizings of its management-level employees. Downsizing exposure had little effect on coping or the outcome variables. However, compared to managers who had not been designated surplus, managers who had been declared surplus were less likely to engage in positive thinking and direct action coping, reported higher levels of strain and burnout, perceived less organizational support, and were more likely to remain with the organization because they had to (continuance commitment). Caution is warranted in drawing strong conclusions from the findings because of the exploratory nature of the study and the small sample size, but the results suggest that companies may need to re-examine the practice of declaring employees surplus especially if the surplussed employees end up remaining with the organization.

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