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Abstract
This paper focused on the evaluation and analysis of 50 recent studies (2000-2008) of
literature search on the downsizing effects on survivors at the individual level, of the
organization. Most of the empirical studies in previous years before year 2000 had
focused on negative responses of survivors. 50 relevant studies in the literature search
within the year 2000 until 2008 were analyzed and be compared to the studies that
had been done before year 2000. The findings show that almost all 50 relevant studies
of the downsizing practices have direct and indirectly negative consequences on
survivors emotionally and behaviorally which were then grouped under ‘Survivor
Syndrome’ reactions table. This downsizing effects were known to be almost similar
with the findings of other researchers in previous years (1980 until 1999) suggesting
that negative effects of downsizing on survivors are unavoidable. Several
recommendations derived from the study to find gaps in the literature for future
research.
Introduction
The literature has drawn on various theories originate from psychological and social
sciences about downsizing. Downsizing is an extremely applicable issue to
organizations today in that it has become the most common problem in recent years.
Downsizing can be defined as a purposeful reduction in the size of an organization’s
workforce (Cascio 1993; Spreitzer & Mishra 2002). Sometimes, it alternatively
termed as rightsizing, reorganization, restructuring, and rationalization downsizing
(Cummings & Worley 2002) in which mostly the reason is to strengthen
competitiveness (Freeman & Cameron 1993; Kozlowski et al. 1993; Leung & Chang
2002). The current tendency of organizations to downsize has a major impact on
everyone; to the government, society, organizations, terminated employees and even
the remaining employees, the survivors. It seems to have become more the rule than
the exception today and for the future since survivors react to the change in numerous
ways (Appelbaum & Donia 2001).The involuntary job loss experienced by the
survivors also has a number of psychological, social, and financial effects not only on
themselves, but on their families as well. This article examines downsizing as a
“problem” or “stressor” because, as will be seen, it is a painful process for the
survivors, and its success or failure has major implications for all concerned. More
specifically, the purpose of this research is therefore to investigate the effects of
current downsizing practices on survivors and to find gaps that exist in the recent
literature compared to previous literature.
Methodology
14 2005 Mirabal and DeYoung Downsizing as a Strategic Intervention Workplace social relationships and destructions
26 2003 Devine et al. Downsizing Outcomes: Better a Victim than a Survivor Employee loyalty, motivation and morale
The perceived impact of organizational layoff on Working relationships from familial to competitive,
27 2003 Lo, Yen-Fen.
organizational morale: Study of a Taiwanese company negative attitudes (low morale)
The effects of past and anticipated future downsizing on
28 2003 Kalimo, Taris & Schaufeli Job insecurity. Intent to quit, health
survivor well-being: An equity perspective
Downsizing and Health at the United States Department
29 2003 Pepper et al. Survivor syndrome, health problems
of Energy
Effects of chronic job insecurity and change in job
Ferrie, Shipley, Stansfeld, and security on self-reported health, minor psychiatric Job Insecurity of downsizing leads to poor health and
30 2002
armot morbidity, physiological measures, and health related depression
behaviors in British civil servants: The Whitehall II study
To stay or to go: Voluntary turnover following an
31 2002 Spreitzer and Mishra, Individual stress, empowerment and trust
organizational downsizing
Survivor reactions to reorganization: Antecedents and
32 2002 Kernan and Hanges consequences of procedural, interpersonal, and Lower organizational commitment and decreased trust
informational justice
Organizational justice, change anxiety, and acceptance of
33 2002 Paterson and Cary Lower motivation and productivity
downsizing: Preliminary tests of an AET-based model
Survivors of downsizing: Informal learning of older adults
34 2002 Mau, Dianne Cheryl who remain in the workplace after their organization Survivor syndrome, cognitive and emotional reactions
experiences a downsizing
Successful career management in a downsizing
35 2002 Trochiano, William Charles Fear of lose job, loss and grief
organization
36 2002 Henkens and Van Solinge Spousal influences on the decision to retire Workplace relationship and marital tension at home
Stress in survivors. Perceive that any demands placed
Emotional barriers to successful reemployment:
37 2002 Guindon and Smith exceed their ability to function within the organization’s
Implications for counselors
structure
Time to grieve and adjust essential for successful
38 2002 Michael Cook Grief reactions
restructuring
Stress and coping among layoff survivors: A self-
39 2001 Wiesenfeld et al. Decreased self-est
affirmation analysis
Deterioration of health, risk of conflict between
Kivimaki, Vahtera, Pentti Downsizing, changes in work, and self-rated health of
40 2001 coworkers, upper management and other groups of
and Ferrie, employees: A 7-year 3-wave panel study.
employees
Differences in psychological and physical health among
41 2001 Grunberg et al. Lost friends and co-workers, symptoms of depression.
layoff survivors: The effect of layoff contact
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Human Resource Development on Research and Practice
Discussion
Table 2 below are the summarized tables of survivor reactions reviewed from recent
literature of 2000-2009;
Anger (Bravenec 2006; Montgomery 2005; Rone 2005; Fong & Kleiner 2004; Amundsen et al. 2004;
Mau 2002; Pepper et al. 2003; Kinicki et al. 2000)
Anxiety/Fear (Bravenec 2006; Montgomery 2005; Fong & Kleiner 2004; Kaiser 2004; Amundsen et
al. 2004; Mau, 2002; Trochiano 2002; Hubbard 2001; Pepper et al. 2003)
Guilt (Bravenec 2006; Montgomery 2005; Rone 2005; Fong & Kleiner 2004; Amundsen et al. 2004;
Mau 2002; Hubbard 2001; Pepper et al. 2003; Kinicki et al. 2000)
Depression ( Cemalcilar et al. 2003; Ferrie et al. 2002; Mau 2002; Grunberg et al. 2001; Pepper et al.
2003; Kinicki et al. 2000)
Increased work stress/load (Holmes 2007; Chadwick et al. 2004; Buhler 2003; Spreitzer & Mishra
2002; Kinicki et al. 2000)
Job insecurity (Sahibzada 2006; Montgomery 2005; Rone 2005; Chadwick et al. 2004; Kaiser 2004;
Lahner 2004; Kalimo et al. 2003; Trochiano 2002; Hubbard 2001; Campbell et al. 2000)
Job satisfaction (Brewer 2006; Lahner 2004; Calderone 2004)
Lower morale (Holmes 2007; Montgomery 2005; Chadwick 2004; Amundsen et al. 2004; Devine et al.
2003; Lo 2003; Campbell et al. 2000; Pieplow 2000)
Organizational commitment/loyalty (Erickson 2007; Spangenburg 2004; Calderone 2004; Devine
2003; Kernan & Hanges 2002; Campbell et al. 2000)
Perceived fairness/justice ( Rone 2005; Calderone 2004)
Trust (Sears 2008; Pfaff 2004; Calderone 2004; Spreitzer & Mishra 2002; Kernan & Hanges 2002;
Appelbaum & Donia 2001).
Self esteem, Self concept (Sears 2008; Amundsen et al. 2004; Cemalcilar et al. 2003; Trochiano 2002;
Wiesenfield et al. 2001)
Grief /Bereavement ( Lahner 2004; Corr et al. 2003; Trochiano 2002; Cook 2002)
Behavioral Reactions
Most of the findings from the reviewed literature indicate ‘survivor syndrome’ as the
common effects of downsizing. As stated by the previous researchers of (Kozlowski
et al.1993; Cascio 1993; Noer 1993) which refer survivor syndrome as the survivor’s
emotional and attitudinal characteristics, Doherty and Horsted (1995 p.26) also
defined survivor syndrome as “mix bag of behaviours and emotions following an
organizational downsizing” . It also is characterized by the feelings of guilt, anger,
loss of motivation, loss of morale, questioning of self worth and anxiety (Amundsen,
Borgen Jordan and Erlebach 2004), self preservation, guilt, anger, hatred were also
common emotional themes present in survivors (Guiniven 2001). Survivor syndrome
manifested by feelings of loss, anxiety, anger, insecurity, mistrust and stress
11th International Conference on
Human Resource Development on Research and Practice
(McGarvey 2001). All this reactions and behaviors have been linked with survivor
syndrome.
Table 3 below are the summarized tables of survivor reactions reviewed from
previous years of 1980-1999;
Anger (e.g. Armstrong-Stassen 1993; Noer 1993; Leana and Feldman 1992; Brockner et al. 1986)
Anxiety (e.g. Astrachan 1995, Noer 1993;
Guilt (e.g. Brockner et al. 1986; Young & Brown 1998)
Depression (e.g. Greenhalgh & Rosenblatt 1984; Noer 1993; Kets de Vries & Balazs 1997; Young
& Brown 1998; Noronha & Sharma 1999)
Increased work stress/load (e.g. Tombaugh and White 1990; Armstrong-Stassen, 1994)
Job insecurity (e.g. Greenhalgh and Rosenblatt 1984; Brockner et al. 1985; Davy et al. 1991;
Brockner et al. 1992; Armstrong-Stassen 1993; Noer 1993).
Job satisfaction (e.g.; Tombaugh and White 1990; Davy et al. 1991; Noer 1993, Verdi 1996)
Lower morale (e.g. Sutton et al. 1986; Koonce 1991; Armstrong-Stassen 1993, Mishra & Mishra
1994)
Organizational commitment/loyalty (e.g. Brockner et al. 1987; Davy et al. 1991; Brockner et al.
1992; Armstrong-Stassen 1993; Noer 1993; Mishra & Mishra 1994; Naumann et al. 1995, Young &
Brown 1998)
Perceived fairness/justice (e.g. Greenhalgh and Rosenblatt 1984; Brockner 1998 and 1990; Brockner
and Greenberg 1990; Brockner et al. 1990; Davy et al. 1991; Armstrong-Stassen 1993; Noer 1993;
Brockner et al. 1994; Daly and Geyer 1994; Verdi 1996)
Trust (e.g. Noer 1993, Young & Brown 1998)
Self esteem, self concept (Noer 1993; Greenhalgh and Rosenblatt 1984; Brockner et al. 1985 and
1992; Armstrong-Stassen,1994; Kets de Vries & Balazs 1997; Noronha & Sharma 1999)
Grief ( Conti 1998)
Behavioral Reactions
Most of the empirical studies above show findings of negative effects of downsizing
on survivors mainly psychological distress for example anxiety, depression, anger and
guilt (Amundsen et al. 2004). Psychological distress is a mental health disorder
involves the body, mood, and thoughts (Tourish et al. 2004). This is also aligned with
Noer (1993) who noted that higher levels of depression is still in layoff survivors
even five years after the downsizing incident.
motivation and satisfaction and other behavior problems also found in the literature
indicate some of the behavioral responses of the survivors.
Some findings state the effects on employees’ well-being by social interactions both
at work and at home. Previous literatures have least findings on socialization impact
on survivors however during recent years; many literatures have come out with the
role of social support as the moderator and mediator. Perhaps, survivors are trying to
adapt to the new working environment. The loss of a co-worker also relate to
bereavement or grief situation.
Overall, the reviews on the 50 literatures were almost similar to the findings of
previous years (below 2000) of literature mainly on survivor’s emotions,
psychological, attitudes, behavioral well-being and health. However, there are some
recent review of literature indicate on positive effects of downsizing on survivors
which could not be found in the previous literature search suggesting that the gap of
downsizing effects on survivors need to be studied more. Although survivor’s
reactions might vary based on individual’s differences (perception, demographic,
adaptive behavior or social support received), the outcomes of downsizing are clearly
negative on the remaining employees and very limit studies indicate the positive side
of downsizing on survivors (e.g. Pomponio 2008) for example; career alternate path,
learning new skills, further education, optimistic). There is also lack of findings on the
effects of downsizing on career decisions and planning on survivors (e.g. Marshall
and Bonner 2003).
Acknowledgement
The authors would like to express their gratitude and appreciation to Universiti
Malaysia Sarawak for supporting and allowing them embarking for this research.
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