Effects of Downsizing

4334 Words18 Pages
Executive Summary
Work atmosphere is an important aspect when analyzing working conditions of a company. Positive business culture can correlate with effective and efficient productivity, thus leading to an organizations’ financial success. Unfortunately, there are times when management must lay off fellow employees due to economics and financial reasoning. These actions are faced with dire consequences. The following report includes expected reactions by employees who continue to work within an organization after a company downsizing. The report is further directed towards management efforts to repair the torn work atmosphere, as it includes cases that both convey ineffective downsizing practices and outline successful downsizing
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The main objective of this report is to educate management about the effects of survivor syndrome, and allow them to formulate a plan to reduce them whenever organizational downsizing is necessary. This report is not providing alternatives or analyzing the ethical issues behind downsizing; rather we are giving insight on how to deal with the effects of downsizing from a managerial standpoint. However, when assessing this report, we must keep in mind that statistics vary by the industry, and the size of a company. Statistics also vary by an organization’s business culture, which consists of employee norms for expected social behavior (Appelbaum & Close, 1999). Furthermore, it’s difficult to adequately measure employee’s perceived emotions from surveys, as often respondents of surveys only reveal what they want you to know.
Databases and Sources
This report’s resources include academic articles written by Dr. Steven H. Appelbaum. Dr. Appelbaum is a professor at Concordia University, and has won numerous awards writing articles regarding organizational restructuring. Appelbaum’s articles discussing survivor syndrome are well-known and commonly cited by researchers to support evidence in other articles. This report also integrates the organizational downsizing opinions of Dr. Shreekumar Nair, a professor at the National Institute of Industrial Engineering. His
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