DOWNSIZING

Question 1

reduces the scale (size) and scope of a business to improve its financial performance (Robbins & Pearce, 1992).

workforce is one of only several possible ways of improving profitability or reducing costs.

Answer 1

DOWNSIZING

Question 2

increase in political behaviors, anger, fear - which is likely to negatively impact quality of customer service

Answer 2

MOTIVATION DISRUPTED

Question 3

leads to cynicism, lowered work commitment, fewer random acts of “good will”

Answer 3

VIOLATION OF PSYCHOLOGICAL CONTRACT

Question 4

experience more stress due to longer work hours with re-designed jobs, and increased uncertainty regarding future downsizings

an employee remaining with an
organization after a downsizing

Answer 4

SURVIVORS

Question 5

Many senior employees leave due to application of early retirement incentives:

Answer 5

LOSS OF INSTITUTIONAL MEMORY

Question 6

a short-term strategy to cut the number of employees through attrition, early retirement or voluntary severance packages, and layoffs or terminations

Answer 6

WORKFORCE REDUCTION

Question 7

a medium-term strategy in which organizations focus on work processes and assess whether specific functions, products, and/or services should be changed or eliminated

Answer 7

WORK REDESIGN

Question 8

a long-term strategy that changes the organization’s culture, attitudes, and employees’ values with the goal of reducing costs and enhancing quality

Answer 8

SYSTEMATIC CHANGE