Employee Reactions to Forms of Downsizing: Are There Any Lesser Evils?

Abstract

The article focuses on employee reactions to different forms of organizational downsizing. It examines how job layoffs, outsourcing of jobs, and offshoring is perceived by job survivors compared to workers who do not experience downsizing. It states that employees who survived organizational layoffs had an increased likelihood of negative attitudes toward employers and poorer perceptions of their work environment. It mentions that outsourcing and offshoring did not result in a similar effect as employees may perceive these as less harmful for their jobs. It comments that outsourcing is considered more benign than offshoring to employees. It talks about the effect managerial ethics and management communication to employees did counterbalance some of the negative influence of downsizing.