Organizational downsizing, defined as a reduction in workforce, is a common strategy implemented by firms for the purpose of improving an organization's efficiency, work processes, or cost structure. However, previous research has shown that downsizing seldom generates positive results at a macro or micro level. It has been demonstrated that downsizing has a negative impact on financial performance, such as Return on Assets, Return on Investments, and profits in the long-term. Downsizing also has a negative impact on the remaining workers left employed, referred to as the "survivors". Survivors typically respond to downsizing by exhibiting negative attitudes and behaviors such as: decreasing employee morale, commitment, motivation, loyalty, work effort, and trust. Trust, in particular, has been shown to be critical component in survivors' responses to downsizing and is decreased through perceived violations of psychological contracts of employment and perceptions of organizational injustice. However, there is little understanding about how downsizing impacts survivors' collective trust in the long-term. The purpose of this dissertation was to examine how downsizing affects collective trust over time using a Latent Growth Curve Analysis (LCA). LCA allowed us to determine the trajectory of collective trust when downsizing occurs which we found to be nonlinear with diminishing returns. We found collective trust initially decreases in time period two but shows a slight rebound in the subsequent time. This suggests that the levels of collective trust decrease as a result of downsizing. We also found that organizational variables such as the severity of downsizing, voluntary turnover, and CEO pay moderate the relationship between downsizing and collective trust by magnifying the negative relationship between downsizing and collective trust. We also found that CEO tenure moderates the relationship between downsizing and collective trust by suppressing the negative relationship between downsizing and collective trust. Together, the theory and empirical results provide insight into the impact of downsizing on the survivors, ways to mitigate the negative consequences of downsizing, and uncover opportunities for extending management theory.

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.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The purpose of this research is to test the rationale of corporate downsizing as a method of promoting long-term profitability in South African companies. This study is similar to that conducted by Pallian & Shalhoub (2002: 436-447) on US-based companies. The sample consists of 58 JSE-listed companies, which announced their intention to downsize during the period 1995 - 1997. This period gives 10 years after the announcement to study the effect of downsizing on long-run profitability. The original sample consisted of more than 172 companies (listed, non-listed and state-owned companies). 82 of these companies were listed on the JSE, and the rest were state-owned companies, government departments, universities or small companies. Of the 82 listed companies about 24 were delisted from JSE due to number of reasons, including liquidation, winding up and failure to meet the JSE listing requirements. Thus these companies did not survive, despite downsizing. For that reason, the sample was reduced to 58 companies. The financial data for each company was collected for the period 1997-2006. The relationship between the downsizing index and the six financial variables (i.e., ROE, ROI, operating costs, cash flow from operations, earnings per share (EPS) and market share) was explored to study the impact of downsizing actions in long-run financial performance. The findings of this study suggest that downsizing is not in the best interests of financial performance in the long run. There is a very low correlation between downsizing activity and these variables. Where the correlation does exist, it is negative. Downsizing also accounts very little for the variations in these variables. That means if there is an improvement in any of these financial performance variables it could not be explained by the downsizing, but instead by other variables. Thus there are many other factors that organizations need to explore in order to improve their long-run financial performance. These findings also similar those of Pallian & Shalhoub (2002) study. Some authors like Balazas, De Vries & Manfred (2004), and Biratti & Tziner (2004), suggested some ways to prevent downsizing failures, which include: • Giving advance notice, to give the victims a chance to look for employment elsewhere, • Supporting the victims by offering them financial aid, • Counseling support, etc. Despite these measures, downsizing will still reduce the level of trust in the organization, hence the negative impact on the financial performance. It is thus suggested that downsizing should be applied only as a last resort. Based on the findings of this and the US study, downsizing is seen as a painful and costly exercise that does not benefit organizations in the long run. Organizations need to adopt strategic directions which will be able to sustain them in the future. Therefore, as an alternative to the downsizing strategy, the following model by Oosthuizen (2006) is recommended in order to formulate successful business strategy, regardless of the situation the organizations find themselves in. This process is divided into four steps, namely: 1. Strategic intent, which includes defining the vision, mission, goals and objectives of the business. 2. External environment analysis. This includes macro analysis (PESTE) and industrial analysis. 3. Internal environment analysis. This includes analysis of company’s current strategy and its past performance, the value chain and processes (resources, capabilities and competencies). 4. Formulation of business strategy. / AFRIKAANSE OPSOMMING: Die doel van hierdie navorsing is om die rationale agter korporatiewe downsizing as metode om langtermyn winsgewendheid in Suid-Afrikaanse maatskappye te bevorder. Dié studie is soortgelyk aan ‘n studie wat op VSA gebaseerde maatskappye deur Pallian & Shalhoub (2002: 436-447) uitgevoer is. Die steekproef bestaan uit 58 Johannesburgse Effektebeurs (JSE) genoteerde maatskappye wat hulle voorneme aangekondig het om tussen 1995 en 1997 te downsize. Dié tydperk laat toe 10 jaar om die uitwerking van downsizing op langtermyn winsgewendheid te bepaal. Die oorspronklike steekproef het uit meer as 172 maatskappye bestaan (genoteerd, nie genoteerd nie en maatskappye in staatsbesit). 82 hiervan was op die JSE genoteer, die res was of in staatsbesit of staatsdepartemente. Van die 82 maatskappye, is omtrent 24 van die JSE verwyder om verskeie redes, insluitend likwidasie, afwikkeling of versuim om aan JSE vereistes te voldoen. Hierdie maatskappye het dus ten spyte van downsizing nie oorleef nie. Om die rede, is die steekproef tot 58 maatskappye verminder. Die finansiële data vir elke maatskappy is vir die tydperk 1997-2006 versamel. Die verwantskap tussen die downsizing indeks en die ses finansiële veranderlikes (d.w.s wins op uitgawes (ROE), wins op belegging (ROI), operasionele kostes, kontantvloei vanaf operasies, verdienste per aandeel (EPS) en markdeel) is ondersoek om die uitwerking van downsizing op langtermyn finansiële verrigting te bepaal. Die bevinding van hierdie studie stel voor dat downsizing nie die belange van langtermyn finansiële verrigting dien nie. Daar is ‘n lae korrelasie tussen downsizing optredes en dié veranderlikes. Waar korrelasies wel bestaan, is hulle negatief. Downsizing verklaar ook min van die wisseling van hierdie veranderlikes. Dit beteken dat as daar ‘n verbetering is in enige van hierdie finansiële verrigtingsveranderlikes, dit nie aan downsizing toegeskryf kan word nie, maar wel aan ander veranderlikes. Daar is dus baie ander faktore wat organisasies behoort te ondersoek om hulle langtermyn finansiële verrigting te verbeter. Hierdie bevindings weerspieël dié van Pallian & Shalhoub (2002) se navorsing. Skrywers soos Balazas, De Vries & Manfred (2004), en Biratti & Tziner (2004), stel sekere metodes voor om downsizing mislukkings te vermy, insluitend: • Om vooruit kennis te gee, sodat slagoffers kans kry om elders indiensneming te soek; • Om slagoffers te ondersteun deur middel van om finansiële hulp aan te bied; • Ondersteunende raadgewing, ens. Ten spyte van sulke maatreëls, sal downsizing steeds die vlak van vertroue in ‘n organisasie verminder en ‘n negatiewe uitwerking op finansiële verrigting tot gevolg hê. Dit word dus voorgestel dat downsizing slegs as laaste toevlug aangewend word. Gebaseer op die bevindings van hierdie en die VSA studie, word downsizing as ‘n pynlik en duur oefening beskou wat organisasies nie in die langtermyn baat nie. Organisasies behoort strategiese rigtings te volg wat hulle in die toekoms sal uithou. Dus, in plaas van die downsizing strategie, word die volgende model deur Oosthuizen (2006) aanbeveel om ‘n besigheidsstrategie te formuleer ongeag die organisasie se omstandighede. Die proses word in vier stappe opgedeel, naamlik: 1. Strategiese bedoeling, wat definering van visie, misie, doel en spesifieke doelwitte van die besigheid insluit. 2. Eksterne omgewingsanalise. Dit sluit in makroanalise en nywerheidsanalise. 3. Interne omgewingsanalise. Dit sluit in analise van maatskappy se huidige strategie, sowel as sy vorige verrigting, die waardeketting en prosesse (hulpbronne, bekwaamhede en beskikthede). 4. Formulering van besigheidsstrategie.

As powertrains and IC engines continue to grow in complexity, many vehicle manufacturers (OEMs) are turning to simulation in an effort to reduce design validation and calibration costs. Ultimately, their aim is to complete this process entirely within the virtual domain, without the need for any physical testing. Practical simulation techniques for the prediction of knock in spark ignition (SI) engines rely on empirical ignition delay correlations (IDCs). These IDCs are used to approximate the complex ignition delay characteristics of real and surrogate fuel compositions with respect to temperature, pressure and mixture composition. Over the last 40 years, a large number of IDCs have been put forward in the literature, spanning a broad range of fuels, operating conditions and calibration methods. However, the applicability of these tools has yet to be verified at the high brake mean effective pressure (BMEP) operating conditions relevant to highly boosted, downsized engines. Here, the applicability of 16 gasoline-relevant IDCs for predicting knock onset at high loads (BMEP > 30bar) has been investigated by comparing the knock predictions from each IDC against experimentally measured knock onset times. Firstly, a detailed investigation into cylinder pressure data processing techniques was performed to determine which knock detection and angle of knock onset (aKO) measurement methods were most appropriate at high loads. A method based on the maximum amplitude pressure oscillation (MAPO) during knock-free operation best estimated cycle classifications, whilst Shahlari’s Signal Energy Ratio technique [1] most accurately predicted knock onset. To the author’s knowledge, this is the first time that such a comprehensive study on the accuracy of these techniques at such high loads has been conducted. Importantly, these findings represent a valuable framework to inform other researchers in the field of knocking combustion on which techniques are needed to extract accurate and relevant information from measured cylinder pressure records. Secondly, the data processing techniques derived were applied to experimental data collected across a wide range of high BMEP operating conditions (up to a maximum of 32 bar) using a 1.6 litre, 4-cylinder SI engine. Trapped charge composition and temperature were predicted using a calibrated 1D model of the engine, whilst the temperature of a hypothetical hotspot in the unburned zone was estimated separately by assuming adiabatic compression from a point after intake valve closing and by mapping γ (the ratio of specific heat capacities) as a function of temperature. This revealed that none of the IDCs tested performed well at conditions relevant to modern, downsized engines. The IDC that achieved the best overall balance between aKO accuracy and cycle-classification agreement was the “cool-flame” correlation for iso-octane proposed by Ma [2]. However, this had an unacceptably high average aKO error of ±3.5° compared to the ±2°CA limit observed within the literature, and its average cycle-classification accuracy was below 60%. The main reason for this relatively modest accuracy was a large number of false-positive cycle classifications, which mainly occurred in slow or late burning cycles. Further work should therefore focus on methods to reduce the number of false positive classifications obtained with this correlation, which could be achieved using empirical correlations to describe the latest point in the cycle for which knock would be permitted to occur in terms other measureable combustion parameters. Overall, this research has generated a unique insight into combustion at very high loads, as well as an extensive dataset that can be used for future research to improve the accuracy of empirical knock modelling techniques. Furthermore, this work has demonstrated that for the purposes of virtual spark timing calibration and the avoidance of knock, the current crop of practical simulation tools is not accurate enough at the conditions relevant to modern SI engines and has provided a better understanding of their limitations. These findings represent a major contribution to the field from both a research perspective and for industrial applications.

Thesis (M. Dev.) -- University of Limpopo, 2001 / Refer to document

<p>Finanskrisen år 2008 drabbade fordonsindustrin hårt. Scania var ett av företagen som tvingades skära ner på kostnader för att svara för reducerad försäljning. När många andra företag valde att säga upp personal valde Scania att införa en fyradagarsarbetsvecka med 10 procent löneminskning för samtliga anställda. Syftet med denna uppsats är att utreda varför Scanias ledning valde att finna alternativa tillvägagångssätt för att spara kostnader istället för uppsägning av personal. Vi har ämnat undersöka vilka omständigheter som låg till grund för genomförandet av fyradagarsveckan samt vilka målen med valt tillvägagångssätt var. Tyngdpunkten i uppsatsen ligger i att utreda vilka olika strategier det finns för kostnadsbesparing och vilka effekter dessa leder till. Utifrån teorin sammanställs en modell som beskriver de faktorer som har betydelse för vald strategi. Modellen och intervjuer visar att förutsättningarna för fyradagarsveckans införande var Scanias ekonomiska situation, svårigheten att bedöma finanskrisens längd samt ägarnas möjliggörande till långsiktigt företagande. Utgångspunkten var att behålla kärnkompetensen i personalen samt att kunna nyttja en stark konkurrenskraft. Utifråndessa variabler ämnade företagsledningen säkra långsiktig framgång samt att få en omedelbar effekt på kassaflöde och resultat.</p>

Finanskrisen år 2008 drabbade fordonsindustrin hårt. Scania var ett av företagen som tvingades skära ner på kostnader för att svara för reducerad försäljning. När många andra företag valde att säga upp personal valde Scania att införa en fyradagarsarbetsvecka med 10 procent löneminskning för samtliga anställda. Syftet med denna uppsats är att utreda varför Scanias ledning valde att finna alternativa tillvägagångssätt för att spara kostnader istället för uppsägning av personal. Vi har ämnat undersöka vilka omständigheter som låg till grund för genomförandet av fyradagarsveckan samt vilka målen med valt tillvägagångssätt var. Tyngdpunkten i uppsatsen ligger i att utreda vilka olika strategier det finns för kostnadsbesparing och vilka effekter dessa leder till. Utifrån teorin sammanställs en modell som beskriver de faktorer som har betydelse för vald strategi. Modellen och intervjuer visar att förutsättningarna för fyradagarsveckans införande var Scanias ekonomiska situation, svårigheten att bedöma finanskrisens längd samt ägarnas möjliggörande till långsiktigt företagande. Utgångspunkten var att behålla kärnkompetensen i personalen samt att kunna nyttja en stark konkurrenskraft. Utifråndessa variabler ämnade företagsledningen säkra långsiktig framgång samt att få en omedelbar effekt på kassaflöde och resultat.

In today’s business environment, cost-cutting practices such as downsizing and layoffs remains a widespread phenomenon. Although, the understanding of the effects that these practices has on the remaining individuals, defined as the survivors, is poor. The focus in this paper is therefore to examine how survivors of layoffs can be affected on an individual level, and by what causes. The study was conducted using open-ended, qualitative interviews with three individuals with different experiences of layoffs. The empirical data was analyzed by extracting quotations from the interviews. The study found that layoffs affected the morale and attitude towards management of the individual, and that perceived justice and uncertainty are two causes of negative effects from layoffs.

Thesis (M.S.)--Air Force Institute of Technology, 2007. / AFIT/GCA/ENV/07-MI. "March 2007." Includes bibliographical references (leaves 41-44).

Thesis (Ph. D.)--Indiana University of Pennsylvania. / Includes bibliographical references.