Rships after Downsizing :: essays research papers

ORGANIZATIONAL VIRTUES AND ORGANIZATIONAL PERFORMANCERELATIONSHIPS AFTER retrenchmentTHE PREVALENCE OF furloughBEFORE 911Almost all medium and king-sized firms downsized in the perish five years.More than 90 percent of firms downsized in the last five years. A large majority downsized more than once in the last ten years.Downsizing is not a one-time action. some 62 percent of firms that downsized two years ago downsized again last year.Downsizing is not motivated solely by bad stinting news.Only 37 percent of firms downsized last year because of economic difficulties compared to 71 percent at the beginning of the 1990s. Only five percent downsized because of reduced foodstuff demand.In one third of all U.S. households, a family particle lost a job.Nearly three quarters of all U.S. households had a close encounter with layoffs in the last decade.AFTER 911The number of layoffs has equaled the constitutional of all previously announced layoffs for the year. 416,000 lost jobs in September alone.RESULTS OF DOWNSIZING IN AMERICAFewer than half the companies that downsized between 1990 and 2000 had short or long-term profit increases.Fewer than a quarter reported increases in employee productivity, product and service quality, and shareholder value.Three years after downsizing, the market share prices of downsized companies were an average of 26 percent below the share prices of their competitors.Among companies that downsized, those that rigid off the fewest workers exhibited the largest return on assets.Almost all organizations that downsizedin the public sector and the private sectorexperienced an emergence of the blue dozen as a result of downsizing.THE DIRTY DOZEN popular Consequences of Downsizing, Trauma, CrisisCentralizationThe Threat-Rigidity Response firing of InnovativenessDecreasing MoralePoliticized Environment outlet of TrustIncreased ConflictRestricted CommunicationLack of TeamworkLoss of LoyaltyScapegoating Leaders Leadership AnemiaShort-ter m Perspective defense to Change THE ABUNDANCE HYPOTHESIS A decade of downsizing seek led to the supposition that organizations characterized by virtuous behavior would predict best carrying into action after downsizing. Impressionistic data led to the presumption that indicators of performance such as employee satisfaction, productivity, quality, organizational innovation, and shareholder value would increase all over timeand the dirty dozen would decreasein organizations that fostered and facilitated the demonstration of organizational virtues.In fact, a few firms were observed that displayed positive deviance, that is, an affirmative riddance to usual organizational behavior. They possessed characteristics that seemed to foster extraordinary value, remarkable performance, and in high spirits levels of excellence. Especially on the human dimension, they engendered virtuousness in relationships and in handling of people. When they downsized they did so with caring and compa ssion.