Key points

Question 1

Downsizing definition

Answer 1

workforce reductions which place demands on the organisation and employees within -shaw, 1997

Question 2

Purposes to downsizing

Answer 2

• reduced labour costs

- increased employee involvement

Question 3

Types of downsizing (cameron, 1994)

Answer 3

Workforce reduction -reduces headcount

work reducing - reduces workload

Question 4

Negatives of Downsizing on Organisation

Answer 4

cameron 1994

-shows vulnerability, a sign of weakness? organisation isn’t developing ?

Question 5

Positives of downsizing

Answer 5

wilkinson, 2004
- increasing efficiency and making a leaner organisation… improvements to organisation
cameron, 1994
- downsizing is natural and essential within organisaitons

Question 6

Negatives for victims

Answer 6

mabey and salman, 1995
-Suggesting that individuals may become concerned about redundancy and it is therefore important that managers carry out theses changes with consideration of the potential impacts it has upon individuals.

Question 7

Organisational disruptive theory

Answer 7

-concerns the perceptions of fairness which emerge from changes such as downsizing
-pillai et al, 2001
-Suggests that if managers adopt organisational disruptive theory, level of trust from employees may arise and therefore reduce feelings of threat or concern.
(link with leadership)

Question 8

Negatives for survivors

Answer 8

-Aswell as this, downsizing can be of concern for the remaining employees at an organisation.

“Work processes are always influenced by downsizing.” (Thornhill and Saunders,2002)

-For example, changes in workplace will occur such as increased workload, which could cause stress for remaining employees.