Downsizing And Organizational Culture

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Downsizing and Organizational Culture

Table of Contents

Chapter 1........................................................................................................................1

Chapter 2........................................................................................................................2

Organizational Culture Defined........................................................................2

Downsizing Defined............................................................................................3

Culture Change..................................................................................................4

Connecting the Literature..................................................................................7

Organizational Level Analysis...........................................................................7

Organizational/ Individual Level Analysis......................................................10

Downsizing’s Impact on Culture.....................................................................12

Chapter 3......................................................................................................................13

Downsizing And Organizational Culture

Introduction

A noted scholar recently assessed downsizing as "probably the most pervasive yet understudied phenomenon in the business world" 1. While we have become numbed by the near daily accounts of new layoffs, a New York Times national survey finding is perhaps more telling: since 1980, a family member in one-third of all U.S. households has been laid off 2. By some measures, downsizing has failed abjectly as a tool to achieve the main raison d’etre, reduced costs. According to a Wyatt Company survey covering the period between 1985 and 1990, 89 percent of organizations which engaged in downsizing reported expense reduction as their primary goal, while only 42 percent actually reduced expenses. Downsizing for the sake of cost reduction alone has been castigated intellectually as ...

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...bruary 26 1996). "The hit men," Newsweek, pp. 44-48.

36. Sutton, R.I. and D’Aunno, T. (1989). "Decreasing organizational size: Untangling the effects of money and people," Academy of Management Review 14(2), pp. 194- 212.

37. Tichy, N. and Sherman, S. (1994). Control your destiny or someone else will. New York: HarperCollins.

38. Tomasko, R.M. (1990). Downsizing: Reshaping the corporation for the future. New York: AMACOM.

39. Washington Post (March 5 1996). "CEO’s at major corporations got 23 percent raise in ‘95," p. c1.

40. Washington Post (May 5 1997). DIGEST, p. c1.

41. Waterman, R., Waterman, J., and Collard, B. (July-August 1994). "Toward a more career- resilient workforce" Harvard Business Review, pp. 87-95.

42. The Wyatt Company (1993). Best practices in corporate restructuring: Wyatt’s 1993 survey of corporate restructuring.

43. Vroom, V. (1964). Work and motivation. New York: Wiley.

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