Rships after Downsizing :: essays research papers

organizational VIRTUES AND ORGANIZATIONAL PERFORMANCERELATIONSHIPS AFTER DOWNSIZINGTHE PREVALENCE OF DOWNSIZING in advance 911Almost all medium and large firms downsized in the last fivesome years.More than 90 share of firms downsized in the last five years. A large majority downsized more than once in the last ecstasy years.Downsizing is not a star-time action.Approximately 62 percent of firms that downsized two years ago downsized again last year.Downsizing is not move solely by bad economic news.Only 37 percent of firms downsized last year because of economic difficulties compared to 71 percent at the branch of the 1990s. Only five percent downsized because of decreased market demand.In one third of all U.S. households, a family member lost a job. or so 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 total of all previously announce layoffs for the year. 416,000 lost jobs in Septem ber alone.RESULTS OF DOWNSIZING IN AMERICA less than half the companies that downsized between 1990 and 2000 had short or long-term profit increases. less than a quarter reported increases in employee productivity, product and service quality, and stockholder 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 laid off the a couple of(prenominal)est workers exhibited the largest generate on assets.Almost all organizations that downsizedin the public sector and the mystical sectorexperienced an emergence of the dirty cardinal as a result of downsizing.THE DIRTY DOZENUniversal Consequences of Downsizing, Trauma, CrisisCentralizationThe Threat-Rigidity Response deviation of InnovativenessDecreasing MoralePoliticized EnvironmentLoss of TrustIncreased bookingRestricted CommunicationLack of TeamworkLoss of LoyaltyScapegoating Leaders lea ders AnemiaShort-term Perspective Resistance to Change THE ABUNDANCE guesswork A decade of downsizing research led to the supposition that organizations characterized by virtuous behavior would predict superior performance 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 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 exception to usual organizational behavior. They feature characteristics that seemed to foster extraordinary value, remarkable performance, and high levels of excellence. Especially on the pitying dimension, they engendered virtuousness in relationships and in treatment of people. When they downsized they did so with caring and c ompassion.