This study consists of literature research providing background and basic knowledge on layoff-related issues, and analysis of data obtained through a survey of human resources professionals in 30 mid-size Southern California cities. The survey provided information on the layoff experiences of respondents' cities and the current state of affairs pertaining to layoff policies, procedures and perceptions.

by Lee Sui-Hing Rean, Yip Chui-Ling. / Thesis (M.B.A.)--Chinese University of Hong Kong, 2003. / Includes bibliographical references (leaves 50-52). / ABSTRACT --- p.iii / TABLE OF CONTENTS --- p.iv / LIST OF FIGURES --- p.vi / LIST OF TABLES --- p.vii / ACKNOWLEDGEMENTS --- p.ix / Chapter / Chapter I. --- INTRODUCTION --- p.1 / Research Objectives --- p.3 / Significance of Study --- p.3 / Chapter II. --- LITERATURE REVIEW --- p.5 / Chapter III. --- HYPOTHESES --- p.10 / Chapter IV. --- RESEARCH METHODOLOGY --- p.11 / Research Design --- p.11 / Data Collection Methods --- p.11 / Secondary data --- p.11 / Primary data --- p.12 / Sampling Methods --- p.13 / Sample Characteristics --- p.14 / Data Analysis Method --- p.15 / Chapter V. --- RESULTS --- p.16 / Common Cost-Cutting Measures Adopted by Hong Kong Companies --- p.16 / Communication Between Employers and Employees --- p.16 / Employees' Attitude Towards Cost-Cutting Measures --- p.17 / Relationship Between Employers and Employees --- p.18 / Effects of Cost-Cutting Measures --- p.18 / Staff Morale --- p.18 / Stress at Workplace --- p.19 / Job Security --- p.19 / Work Passion --- p.20 / Popular Remedial Measures Taken by Employers and Their Effectiveness --- p.20 / Willingness to Stay at the Company in the Coming Two Years and the Reasons --- p.22 / Chapter VI. --- ANALYSES AND IMPLICATIONS --- p.23 / Hypothesis 1: Cost-Cutting Measures Negatively Affect Employer-Employee Relationship --- p.23 / Implications --- p.23 / Company Size --- p.25 / Demographic Factors --- p.26 / Hypothesis 2: Cost-Cutting Measures Have Negative Psychological Effect(s) on Employees --- p.27 / Hypothesis 2a: Cost-Cutting Measures Reduce Staff Morale --- p.27 / Hypothesis 2b: Cost-Cutting Measures Increase Job Stress --- p.27 / Hypothesis 2c: Cost-Cutting Measures Decrease Job Security --- p.28 / Hypothesis 2d: Cost-Cutting Measures Decrease Work Passion --- p.28 / Implications --- p.29 / Effects of Different Cost-Cutting Measures --- p.29 / Company Size --- p.31 / Hypothesis 3: Employers are Concerned About the Post-Effect(s) of Cost-Cutting Measures on Employees --- p.32 / Implications --- p.32 / Employers' Attitude to Different Post-Effects --- p.32 / Company Size --- p.34 / Hypothesis 4: Remedial Measures Done by Employers can Effectively Reduce the Negative Effects on Employees --- p.35 / Implications --- p.35 / Other Implications From the Survey --- p.37 / Reasons to Stay in Current Companies --- p.37 / Demographic Factors and Intention to Stay --- p.38 / Importance of Communication --- p.39 / Chapter VII. --- LIMITATIONS --- p.42 / Chapter VIII. --- CONCLUSIONS AND RECOMMENDATIONS --- p.44 / APPENDIX I --- p.46 / APPENDIX II --- p.49 / BIBLIOGRAPHY --- p.50

Submitted in partial fulfilment of the requirements for the degree of Masters in Business Administration, Durban University of Technology, 2008. / Strategic change within an organisation is inevitable. Due to the competitive global landscape, organisations have to continuously adapt their strategies to remain in the market. Strategy change is most often met with resistance, and more so when the change involves downsizing. The effects of downsizing on employee morale, performance and commitment have been studied by numerous authors and a number of models for strategy change implementation consequently suggested. However, South Africa is faced with very particular challenges when dealing with change, including a high level of unemployment, fierce resistance to change in the form of collective action such as strikes, stay-aways or go-slows, political and social transformation happening simultaneously, global competition and the conflict between social and free markets within an emerging economy. Irrespective of the vast amount of international literature available on change management, there is a distinct lack of literature investigating the impact of strategy change in an emerging economy and a knowledge gap in terms of applying existing change theories in non-Western environments. This study was aimed at determining the impact of strategy change, particularly downsizing, on employee morale, performance and commitment at a global South-African based Telecommunication Company. The objectives of the study was to determine whether employees in South Africa are negatively affected by downsizing, and provide useful information to strategic managers in terms of implementation of strategy change in a South African environment. To determine the impact of downsizing as a strategy change, a questionnaire was designed based on the literature review to ascertain responses to three sections of questions, respectively measuring morale, performance and commitment. A sample of the target population was chosen based on their position/ employment type i.e. management, supervisor or general staff. The results of the empirical study revealed some very interesting points. Although all respondents demonstrated optimism in terms of their morale, performance and commitment, it was found that comparatively, managers are more negatively impacted during times of downsizing. The Telecommunication Company’s structured nature, advances in political and social reform, and solid Training and Development policy shielded the employees from the full negative impacts of downsizing because of their positive core self evaluation. The substantial amount of neutral responses (especially under management) indicated that not all respondents revealed their true feelings, a common characteristic amongst collective people. It also surfaced that even though the majority of responses indicated positive morale and performance, most respondents were considering positions outside the organisation. Based on the literature review and results from the empirical investigation, a model was proposed to assist strategic managers in South Africa with change implementation.

Downsizing is one of the most common organisational reactions to organisational change. The effects of global competition, mergers, and the privatisation of public sector companies, among others, are forcing organisations in South Africa to resort to workforce reduction. The purpose of the present study was to address the lack of research on the impact of downsizing on survivors. Specifically, the study examined the interactive effects of job insecurity, locus of control and sense of coherence on the organisational commitment of survivors.

Until recently South Africa experienced an economic decline, however, despite the current positive trends, many large corporations are compelled to reduce personnel costs. Retrenchments have therefore become an increasingly common occurrence within South Africa. This has had an impact on the level of organisational commitment, absenteeism and turnover. Studies support the link between the levels of organisational commitment of employees, absenteeism and subsequently labour turnover. There is a relative lack of research in South African organisations into the influence of retrenchments on employees within call centre environments that have undergone retrenchments. The aims of this study was therefore to identify the levels of organisational commitment amongst call centre employees who survived a retrenchment that occurred in 2001.

Major changes in organizational structural paradigms have been occurring. Recent journal articles propose that the older philosophies of expanding organizations and increasing internal specialization are no longer viable means to enhance competitiveness as espoused in earlier journal articles. Downsizing, rightsizing, and business process reengineering have all been used as methods of accomplishing organizational work force reduction (OWFR) and enhancing organizational posture. It has been established that as organizations grow, specialization increases. Causes for OWFR have not been established nor have effects upon structure been studied. Previous structural factor studies have focused upon organizations engaged in end-game strategies done during periods of internal and economic growth. This study evaluates the impacts of OWFR and its relationship to the structural factor of specialization during a non-munificent economic period. Three independent variables, dis-integration, change in the number of employees, and change in technology, were used as measures to determine whether specialization decreased when organizations downsized. The dependent variable, specialization, was obtained through a pre-tested questionnaire. The three independent variables were obtained using the Compustat data base as a secondary source of information. The Compustat data was verified using data from Compact Disclosure. Questionnaires were mailed to fifty-one fully integrated oil companies. Forty were returned after three mailings yielding a response rate of seventy-eight percent. The unit of analysis for the data collected was the firm. The data were analyzed using multiple regression to determine the strength of the relationship between the variables. Results indicate a significant relationship between two of the independent variables and the dependent variable: dis-integration and specialization and change in the number of employees and specialization. Findings were insignificant for the third independent variable and the dependent variable: change in technology and specialization. Analysis of the quantitative results and the qualitative responses of the participants show that dis-integration and a change in the number of employees are both useful for measuring structural change for organizations engaged in organizational work force reduction.

The purpose of the study was to identify and describe the approach and strategies used to downsize a mental health organization. This ethnographic study was conducted at a psychiatric hospital that is beginning the 4th year of a 10 year downsizing plan. Data were gathered through interviews, informal observations, and field documents. This research design facilitated an understanding of the phenomenon in the context of the practices and beliefs of the executive management team. Semistructured interviews were conducted with six executive and four middle managers who were involved in the downsizing decision making process. Freeman and Cameron's (1993) definition of downsizing was broadened to encompass not-for-profit reasons for downsizing. Cameron's (1994) downsizing model was supported and an additional best practice called alignment of purpose was proposed in which the leadership of an organization attempts to align the stakeholders with similar goals and objectives for downsizing. The emotional process of downsizing emerged as a key area to address concurrently with job security and other more pragmatic consequences of downsizing. Empathy was suggested as one method of dealing with the emotional process of downsizing.

Until recently South Africa experienced an economic decline, however, despite the current positive trends, many large corporations are compelled to reduce personnel costs. Retrenchments have therefore become an increasingly common occurrence within South Africa. This has had an impact on the level of organisational commitment, absenteeism and turnover. Studies support the link between the levels of organisational commitment of employees, absenteeism and subsequently labour turnover. There is a relative lack of research in South African organisations into the influence of retrenchments on employees within call centre environments that have undergone retrenchments. The aims of this study was therefore to identify the levels of organisational commitment amongst call centre employees who survived a retrenchment that occurred in 2001.

Downsizing is one of the most common organisational reactions to organisational change. The effects of global competition, mergers, and the privatisation of public sector companies, among others, are forcing organisations in South Africa to resort to workforce reduction. The purpose of the present study was to address the lack of research on the impact of downsizing on survivors. Specifically, the study examined the interactive effects of job insecurity, locus of control and sense of coherence on the organisational commitment of survivors.

Retrenchment, as a form of dismissal, is regulated by section 189 and 189A of the Labour Relations Act 1995. In order for a retrenchment to be fair, it must comply with both the substantive and procedural requirements stipulated in the Act. After an employee has proved the dismissal, the onus rests on the employer to comply with these two requirements by providing proof thereof. One of the most important procedural requirements that must be complied with by the employer is that the employer cannot merely make a decision to retrench. This decision may only be made once the employer, when contemplating a retrenchment, followed the lengthy consultation process as required in section 189. Recent amendments to section 189 introduced a distinction between a small and big employer and further between a large-scale and small-scale dismissal. If the employee is of the opinion that the employer did not comply with either the procedural or substantive requirements or both, he/she may refer such a dispute for conciliation and thereafter for arbitration or adjudication, according to a dispute resolution process contained in the Act, during which process certain remedies are available to the dismissed employee. The Labour Relations Act 1995 also introduced important amendments which have the effect that employees are allowed to, in certain circumstances, to strike over collective retrenchment disputes.