The interest towards managing structural change successfully through downsizing activities has increased as a result of globalization and the recent economic, technological and demographic changes occurring across Europe. As a result of downsizing activities companies often break a Psychological Contract that an employee has established with the organization when starting the employment contract. This results in employees experiencing negative feelings, lack of motivation, inability to re-motivate oneself after the downsizings and uncertainty about one’s future within the organization. If an employee is unable to rebuild the psychological contract, one might decide to resign from the organization as a consequence. Since employees are companies most valuable asset for companies and the key asset to remain competitive, companies should focus on preventing the violation of the psychological contract. The purpose of this study is to understand why some downsizing survivors decide to voluntarily resign during the post-downsizing era. A collective case study was conducted in a form of interviews from two cases. The results from the primary and secondary data illustrated that employees who are unable to rebuild the psychological contract are more likely to voluntarily resign.

Abstract The ratio of unemployment in 2000 is 2.99%. The ratio of unemployment in 2001 is 4.57%. The ratio of unemployment in 2002 is 5.17%(narrow sense). The ratio of unemployment in 2002 is 7.26% (broad sense). They achieve the highest record in history at the same time. Mention as above we know unemployment has become the most serious problem in Taiwan now. The top three motorcycle companies in Taiwan are KYMCO, SYM, and YAMAHA which have different business styles, so there must be some differences in design and practice of downsizing programs. Finding the same points and the differences in downsizing programs are the motives of this research. And forming experience rules for business to use can show the value of this research. On the other side, we can find manpower market problems in manufacturing industries in Taiwan from researching Taiwan motorcycle industries. The quantities method researches about quitting are very popular recently. Although the research contents can provide many ideas for business, the business truly needs the know-how of planning in advance and implementing steps in downsizing programs that are key factors whether the downsizing programs can smoothly succeed or not. But we seldom read such descriptive researches that business readers really want to consult. This research tries to discuss with process design and tasks of every stages of downsizing programs according to time axis. Secondary data are from newspapers, periodical, thesis, books, company publication, and network. Primary data come from case companies interview (the first step) and questionnaire (the second step). The objects who this researcher interviews are HR department managers of KYMCO, SYM, and YAMAHA. The in-depth interview of the first step¡Gthis research analyzes the origin of downsizing programs from business condition, gets together the practice process and situation of downsizing programs from history vestige, records the improved activities after downsizing programs from holding the present situation, and describes business vision from future chance. The questionnaire of the second step¡Gtry to understand the feeling that personnel matters workers feel at heart in carrying out downsizing programs, the opinions that personnel matters workers think about downsizing programs, the belief that decision-making managers have to personnel matters workers¡¦ professional performance in downsizing programs. From the comparison and analyses of interview data of case companies, we can clearly know the cause, entire process, and effect of downsizing programs of the top three motorcycle companies in Taiwan. At last this research submits the related proposals from different views¡Gthe proposal for employees (create high additional value), the proposal for government (create occupation advantage by improving political and economical environment), the proposal for business (laws side. human kindness side. management side. implementation side ), the proposal for case companies (strategy. internation. system. science and technology).