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Suzanne A. Celmer-Harter
Annotated Bibliography
Topic: Preparing Leaders to Manage Those Who Survive a Downsizing
Amundson, N. E., Borgen, W. A., Jordan, S., & Erlebach, A. C. (2004). Survivors of
downsizing: Helpful and hindering experiences. The Career Development Quarterly,
52(3), 256-271. Retrieved from
http://search.proquest.com/docview/219445312?accountid=28644
Authors designed a research study to determine if incidents that survivors experienced
during downsizing were helpful or harmful. Researchers conducted personal interviews and
asked survivors three questions about the changes s/he experienced and what either helped or
hurt adjustment to change. Information was classified into 436 negative and 212 positive
incidents and placed into 11 themes, divided across a timeline of downsizing. The authors
proposed the best ways to handle downsizing with respect to: employee participation; coworker
relationships; leadership; communication; value; morale; home and health issues; job security;
training or education opportunities; challenges of new jobs including possible lack of skills, and
issues related to having new coworkers.
This article will provide statistics to support statements concerning the viewpoints of
those who have been downsized. Management can use the information effectively to prevent
negative incidents from occurring.
Burke, R. J., Ng, E. W., & Wolpin, J. (2011). Hospital restructuring and downsizing: Effects on
nursing staff well-being and perceived hospital functioning. Europe's Journal of
Psychology, 7(1), 81-98. doi:10.5964/ejop.v7i1.106
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This research was a qualitative study that examined the effects of downsizing on hospital
quality, well-being, and job performance. A sample of 289 nursing staff was asked sixteen
questions to access participation in downsizing initiatives. Responses from downsized nurses
evaluated the effects resulting from the actions. Inquiries addressed undesired outcomes while
downsizing such as job dissatisfaction, absenteeism, and intent to quit. Other questions included
ones about work engagement to determine dedication, intensity and energy levels. Burnout,
physical and psychological well-being and medication use were assessed. A final set of
questions was rated using a Likert scale to determine the effects of downsizing on hospital
function, cleanliness, and job security. Results demonstrated those going through downsizing
had less job satisfaction, not as engaged, “burned out,” more apt to quit, experienced more
psychological stress effects, but were not absent more often nor used more drugs. In addition,
downsizing led to a nursing perception of decreased hospital functions, cleanliness issues, and
less job security. The authors summarized a list of management suggestions to minimize
downsizing effects.
This research study will provide support for the discussion of effects of downsizing on
hospital staff and opportunities for management to decrease these effects.
Chadwick, C., Hunter, L. W., & Walston, S. L. (2004). Effects of downsizing practices on the
performance of hospitals. Strategic Management Journal, 25(5), 405-427.
doi:10.1002/smj.383
Researchers performed a qualitative study of hospitals undergoing restructuring to
determine if downsizing practices could affect financial outcomes. Research focused on four
downsizing strategies: support of employee morale and well-being; amount of time given before
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a layoff occurred; increased benefits available for victims and reconfiguration of jobs after
restructuring. They listed four hypotheses, tested by four surveys. Two surveys determined the
hospitals that downsized and amount of financial success post downsizing. Two additional
surveys with Likert scored questions were given to employees of the hospitals from the first two
surveys to measure consideration, job security, survivor marketability, employee dignity, and
communication. Assessment of the amount of advanced notice was determined, as well as the
existence of increased severance pay and extended insurance benefits for victims. Results from
114 surveys showed support for two of the four hypotheses. Downsized organizations that cared
about employee morale and well-being, and gave advanced notice to staff, performed better
financially. The researchers concluded that there were no successful financial gains made by
extending insurance benefits beyond the typical 18 months or increased amount of severance
because results would not be visible to the survivors. Respondents valued and included planning
for job redesign as a strategy, although researchers could not correlate financial success to it.
Research will support discussion of creating organizational plans that positively
contribute to employee morale, well-being, dignity, communication efforts, job security, and
advanced notice, resulting in fewer adverse effects for survivors.
Devine, K., Reay, T., Stainton, L., & Collins-Nakai, R. (2003). Downsizing outcomes: Better a
victim than a survivor? Human Resource Management, 42(2), 109-124.
doi:10.1002/hrm.10071
Researchers developed a model for evaluating downsizing stress in health care victims
and survivors. From reviewing literature and performing observations, researchers proposed six
hypotheses about what occurs after downsizing concerning stress levels, amounts of job control,
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and levels of psychological and behavior issues in survivors and victims, which were evaluated
by scale questions in mailed surveys. Returned surveys included 435 from surviving staff and
173 from displaced victims, most of which had already found new employment. Questions were
asked about workload, decision-making, opportunities for advancement, perception of
occupational stress and job control, behavior (tardiness and absenteeism), physical (overall
health and frequency of drug use), and psychological (job satisfaction and quality of life). Data
supported all hypotheses. Survivors had increased negative outcomes with respect to stress,
satisfaction, quality of life, health, job control and issues such as increased amounts of tardiness
and absenteeism than victims did.
This research defines the issues that survivors face after downsizing and will be used to
support the discussion of the negative effects.
Erickson, R. A., & Roloff, M. E. (2007). Reducing attrition after downsizing. International
Journal of Organizational Analysis, 15(1), 35-55. doi:10.1108/19348830710860147
This article examined a company that after downsizing, had an attrition rate double the
standard rate. Researchers wanted to find the causes of the attrition. They sent out an email with
a link to an online survey and got 2751 responses. The survey consisted of 31 Likert scale
questions grouped into six categories: collaboration, commitment, environment, leadership,
reward, and values. Researchers devised five hypotheses that correlated the six categories into
relationships with perceived organizational support (POS) or perceived supervisor support (PSS)
and tested them. All five hypotheses were proven which defined certain relationships.
Commitment to survivors related to the amount of perceived support of the company, and
management and support of the company were more important than that of the supervisor. If the
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commitment of the company decreased, support of management needed to increase. As
supervisor support increased, the relationship between POS and the organization weakened. If
POS and PSS did not support men, commitment levels decreased, and they may look for another
job. Survey responses scored high on the need for trust, communication, knowing goals and
objectives, skills required to be successful, opportunities for additional training, and honest
evaluation of performance and behavior, and recognition. All of these items were noted as being
important to survivors.
The data provides support for discussion of post downsizing findings that organizational
and management support does make a difference in the attitudes of survivors and may help
decrease employee turnover. Survey responses support the definition of what is important to
survivors after downsizing and will be used for validation in discussion.
Hareli, S., & Tzafrir, S. S. (2006). The role of causal attributions in survivors' emotional
reactions to downsizing. Human Resource Development Review, 5(4), 400-421.
doi:10.1177/1534484306293386
This paper was a psychological discussion that used various specific positive and
negative emotions not previously studied as they related to organizational citizen behavior. The
feelings evoked were dependent on what the survivor perceived caused the controlled outcome
related to downsizing. The authors stated that there were four reasons for an outcome to a
downsizing: ability, effort, help from another person and luck. They issued nine propositions to
describe how these causes related to emotions. They concluded that identification and
understanding of these behaviors in survivors could determine workplace behavioral issues.
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This discussion indicated an alternative method of evaluating survivor issues because of
the choices used to recognize negative causes. In addition, this analysis for determining complex
emotions or groups of emotions of surviving employees is not something that could easily be
done by management without training, or it may have to be done by a consulting firm. Finally,
organizations that rely on seniority to downsize would not be able to utilize these particular
emotions for evaluation of negative survivor issues.
Luthans, B. C., & Sommer, S. M. (1999). The impact of downsizing on workplace attitudes.
Group & Organization Management, 24(1), 46-70. Retrieved from
http://search.proquest.com/docview/203378044?accountid=28644
Researchers utilized a longitudinal, quasi-experimental field study that measured three
types of downsizing strategies in a healthcare organization taken annually over a period of three
years. Authors proposed two hypotheses concerning adverse effects on staff and leadership work
attitudes (e, g., job satisfaction, commitment, interactions with management and coworkers), and
significant attitude changes in management versus staff during downsizing. A sample of 848
managers and employees were surveyed. The survey had five categories: commitment, job
satisfaction, supervisor support, workgroup trust, and demographics. Likert questions were
asked in each category. Results concluded that older, tenured staff were more satisfied and
committed than younger, newer members. Females were more committed than males, which
upheld the study done by Erickson and Roloff. Results supported hypothesis one, but hypothesis
two was only partially supported. The authors indicated management and staff might turn
against the organization before each other. Authors listed successes for this organization as
managers made it a point to use communication effectively to provide information on plans and
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updates on progress, and patient satisfaction scores had gone up 2.5% in the third year of the
study, even though the overall impact to the organization was negative in regards to management
and employee attitudes. Suggestions given to improve communication included open dialogue,
use of well-informed managers to prepare staff and responding to problems in a face-to-face
setting, allowing for venting, and asking questions.
This study supports the importance of communication in the downsizing process and
offers suggestions used to disseminate information to staff to make them feel involved in the
process.
Makawatsakul, N., & Kleiner, B. H. (2003). The effect of downsizing on morale and attrition.
Management Research News, 26(2-4), 52-62. Retrieved from
http://search.proquest.com/docview/223547707?accountid=28644
A descriptive analysis of problems associated with the survivors of downsizing including
decreased morale, loyalty, motivation, productivity, job control and satisfaction. Other observed
effects were increased attrition, absenteeism, and lack of trust. Survivors exhibited emotions
such as fear, anger, sadness, guilt and hopelessness. The authors proposed suggestions to
increase morale, rebuild teams, effectively communicate, and other initiatives. They remarked
that managers have to be honest, give as much notice as possible in regards to downsizing, have
empathy and compassion for both the victims and survivors, and offer support. Makawatsakul
and Kleiner developed strategies to plan a downsizing process divided into four steps.
This research article will provide information about the downsizing process. It also has
statistical data with percentages of employees that have decreased morale, loyalty and job
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satisfaction after a reduction, which will be used to stress the importance of addressing these
issues of the survivors.
Nikolaou, I., Vakola, M., & Bourantas, D. (2011). The role of silence on employees' attitudes
"the day after" a merger. Personnel Review, 40(6), 723-741.
doi:10.1108/00483481111169652
Authors noted that organizational trust was critical to the success of a merger or
acquisition. They defined three types of organizational trust and developed post-downsizing
hypotheses based on confidence in an organization, leadership, and supervision. In addition, the
researchers discussed lack of communication in organizations or silence and its negative effects
and proposed two additional hypotheses that related organizational silence to employee
commitment, satisfaction, and trust. Data were collected via two studies during two periods.
There were 327 employees in study one and 285 in study two. Studies were conducted via
questions graded on a scale. All five hypotheses were supported. Of the three trust issues, trust
in leadership led to highest organizational commitment levels. Trust in the supervisor resulted in
increased levels of employee satisfaction and morale. Organizational silence demonstrated a
lack of trust for the company, senior management or direct supervisor, which led to the lack of
discussion about issues. Silence indicated decreased commitment and satisfaction or morale.
Data from this study will be used to support the necessity of trust in an organization long
before a downsizing occurs. It will also defend the development of communication plans, not
only to provide information to staff during restructuring, but to obtain, evaluate and quantitate
feedback from staff to ensure there is not an element of organizational silence present.
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Obilade, S. (2009). Motivating downsizing survivors in small businesses. Southern Business
Review, 34(1), 19-35. Retrieved from
http://search.proquest.com/docview/228242421?accountid=28644
The article was a qualitative study used to determine negative effects and motivation of
survivors. A sample size of 74 employees from a variety of businesses, including a hospital,
participated. A series of questions were developed that asked how downsizing affected them,
how motivated they were with job performance and as committed members of a team, and what
were their preferred incentives for motivation. Also accessed were overall thoughts and feelings
towards organizations about downsizing, and the general impression of how communication was
handled. Included in the survey were open-ended questions that were conducted in follow-up
interviews. Questions were scale graded. A second tool used was a ranking mechanism that
compared what employees wanted with what their employers gave them. Results provided
statistical evidence of the negative effects of downsizing and presence of low motivational levels
due to poor communication and failure to recognize and address the needs of survivors.
The information from this study will be used to support the discussion of negative effects
of downsizing, need for effective communication, and the requirement to address the emotional
and motivational issues of survivors. Statistics in the form of percentages will be used to support
discussion.
Rondeau, K. V., & Wagar, T. H. (2001). Managing the consequences of hospital cutbacks: The
role of workforce reduction practices. Journal of Health and Human Services
Administration, 23(4), 443-469. Retrieved from
http://search.proquest.com/docview/199999154?accountid=28644
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The journal article was an observational and quantitative study of downsized of Canadian
hospitals to determine if it was done in a negative manner, thus causing survivors to have high
levels of job dissatisfaction, loss of organizational identity and decreased efficiency. CEO’s of
325 downsized hospitals across Canada were sent surveys to determine based on perception, if
the sizes of a workforce reduction more important than how the reductions were conducted.
Questions with scale measurements were used to determine overall operating efficiency, quality
of patient care, organizational flexibility, reputation, access to services, changes in productivity,
employee satisfaction that included morale, quality of work life, and job security. Hospitals
were classified by bed size to determine the effect based on the number of workforce reductions,
which turned out, not to be significant. Results determined how the reduction was carried out
was vital to outcomes. Hospitals that had a positive approach, communicated with staff, treated
staff fairly, cared for victims and survivors, gave more time between announcement of
downsizing and actual lay-off, and offered support options for victims had higher overall hospital
efficiency scores and employee satisfaction ratings. In addition, authors indicated that
performing one larger workforce reduction would have fewer negative effects on survivors than
multiple smaller downsizings.
These research findings will be used to support discussion on how to prevent negative
effects of downsizing on survivors.
Virick, M., Lilly, J. D., & Casper, W. J. (2007). Doing more with less: An analysis of work-life
balance among layoff survivors. Career Development International, 12(5), 463-480.
doi:10.1108/13620430710773772
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This journal article provided data from a quantitative study of survivors who were
surveyed regarding changes in post downsizing work-life balances and job and life satisfaction.
Researchers developed hypotheses relating the effects of downsizing to survivor outcomes. An
online survey was sent to 510 survivors of two downsizings. Results supported that survivors
had increased workload, but not enough time to complete their tasks causing addition stress.
Authors suggested that excessive job responsibilities might need to be reallocated possibly
through job redesign, which was also supported by respondents to Chadwick et al. survey.
Survivors reported having work-life balance issues that may be due to increased workload
resulting in reduced life satisfaction. Authors proposed that an organization could assist
employees by offering flexibility in scheduling and other staffing alternatives.
The discussion resulting from this survey will be used in the analysis of negative survivor
outcomes with respect to additional workload and subsequent increase in stress levels and its
negative effects on health and behavior.
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