The legacy of downsizing: Putting the pieces back together

Abstract

Based on a study of survivors in many different organizations, a paper focuses on how downsizing has affected employees' psychological and physical health and how their condition affects organizations. The results suggest that the consequences of downsizing are not short-lived. Unless the problems are addressed directly, organizations may, in the end, be the biggest victim - even when the immediate threat of downsizing has subsided. Several suggestions for putting the pieces back together and striking a balance between the financial and human resources sides of the issue are provided, including: 1. Listen and take responsibility. 2. Reengineer to maintain psychological control, and 3. Treat all employees fairly.