Unemployment & Downsizing

Question 1

Effects on Health

Answer 1

1. about 10% report improvement in health following job loss.
2. Majority report deterioration of mental and physical health. increased anxiety, depression, stress, illness and injuries.
   
   1. return to health is followed by return to work
3. Employers can help the process with communication, provide counseling resources, job training and support in job search

Question 2

Coping Strategies w/Job Loss

Answer 2

Lazarus and Folkman distinguish between 2 coping strategies w/job loss:

1. Problem-focused: managing or modifying the problem that is causing stress.
   
   1. job search activity, getting training, moving location
   2. Much better approach with better results!
2. Symptom (emotion)-focused: regulating one’s emotional response to the stressful event through venting, denial, or disengagement.
   
   1. obtain emotional suppoert from family/friends, financial assistance (dole), doing community activities.

Question 3

Downsizing

Answer 3

DOWNSIZING

organization attempts to reduce cost by reducing the size of the work force and/or eliminating divisions or businesses.

1. Negative effects for those who lose job and those that stay on:
   
   1. Survivor Syndrome: depression, anxiety, guilt, illness, decreased job satisfaction and organizational commitment.
   2. the degree of this is linked to which fair and compassionate procedures were used and if survivors view the downsizing as a breach of the ‘psychological contract’
   3. Psych Contract: beliefs that employees have about the unwritten contract between them and employers.