Downsizing Review and Synthesis

 Downsizing Review and Activity Essay

Journal of Supervision

http://jom.sagepub.com/ Causes and Associated with Employee Downsizing: A Review and Synthesis Deepak K. Datta, James P. Guthrie, Dynah Basuil and Alankrita Pandey Journal of Management 2010 36: two-hundred eighty-one DOI: 12. 1177/0149206309346735 The internet version of this article can be found at: http://jom.sagepub.com/content/36/1/281

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Causes and Effects of Employee Downsizing: An overview and Activity University of Texas, Arlington

Deepak E. Datta

University of Kansas

James P. Guthrie Dynah Basuil Alankrita Pandey

University of Texas, Arlington

As employee downsizing has become progressively ubiquitous in recent years, the study of this phenomenon provides assumed greater significance. This article develops a great integrative structure that features environmental and organizational antecedents as well as the implications of downsizing for individuals and organizations. Essential empirical studies are analyzed and major patterns and contradictions will be identified. The authors recognize and talk about theoretical and methodological worries related to the extant materials and provide recommendations for future research aimed at making a better understanding of employee downsizing. Keywords: worker downsizing; layoffs; redundancy; assessment

The thing that you need to remember is that downsizing may be back on the front web pages, but the downsizing never slowed up. Downsizing has become a constant and regular feature of the fresh working globe, and it will remain. —Bruce Tulgan, founder and CEO of RainmakerThinking Related author: Deepak K. Datta College of Business Division of Administration University of Texas, Arlington Arlington, TX, USA 76019-0467 E-mail address: [email protected] edu Journal of Management, Vol. 36 No . 1, January 2010 281-348 DOI: 10. 1177/0149206309346735 В© 2010 Southern Administration Association. Most rights set aside.

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Log of Management / First month of the year 2010

Over the past handful of decades, employee downsizing has become an integral part of company life. Global competitive challenges coupled with evolving demand conditions have triggered firms to critically analyze their cost structures, which includes those associated with human resources. Once confined generally to the Us, employee downsizing has, after some time, become the tradition in many countries. The magnitude of the downsizing activity has been exacerbated by the current recession. The extent of job loss has been incredible. In the United States exclusively, more than 6. 5 mil jobs have been " downsized” since the recession began in December 3 years ago, with the figures expected to grow in the foreseeable future (Krugman, 2009). In 2008, the U. S. Bureau of Labor Statistics recorded 21, 137 " mass layoff events” in the United States concerning more than a couple of million work losses (Bureau of Labor Statistics, 2009). 1 Different countries possess witnessed their share of job reductions, including countries that have customarily shunned the practice of employee downsizing. The past 12 months has observed significant staff reductions in countries such as Japan, Hk, South Korea, and Taiwan. Even the economical juggernaut of China has become affected, with major layoffs in a number of sectors (e. g., among export-oriented firms and labor-intensive small businesses in China's coastal areas). Large-scale layoffs have also turn into commonplace in Europe, causing a spike in...

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