Downsizing is common place in today's business world. Economic conditions and dynamic markets force companies to constantly evaluate their bottom line and work toward leaner operations to create better financial returns and organizational sustainability. As a result, downsizing or reductions-in-force have morphed from being occasionally used tools with `last ditch effort' stigma and association to commonplace, every-day options of the corporate strategy toolbox.
Focusing upon the overarching theme of organizational shock and understanding voluntary turnover post-downsizing, this study attempted to determine to what extent transitional change services offered to employees during times of organizational shock (such as downsizing) affect employees' feelings of commitment toward the organization and/or their intent to leave the organization. Survey data was collected from individuals employed by pharmaceutical companies having downsized within the last 5 years. The results were analyzed to determine whether the variables of organizational commitment and the sub-types of organizational commitment normative, continuance and affective commitment as well as intent to leave were impacted by the amount of transitional change services offered by their downsizing organization.
It was determined via data analysis results that whether services were offered or not, and regardless of the amount of services offered, those retained by the organization provided responses undifferentiated from those provided by respondents who were severed. In total, these results indicate despite the level of services provided, organizations post-downsizing are staffed with employees that may share the same reduced level of organizational commitment as those having been let go from the company. In sum, these findings demand consideration as to whether large scale organizational investment in transitional change services during a downsizing is a worthwhile endeavor at all.
|Subjects||Business administration; Management; Organizational behavior|
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