The degree to which the company uses the downsizing strategy to better its financial positions and relieve excess expenses also determines the commitment level of the staff and human resource who are left employed after the downsizing activity. A research by Jaewon & Corbett points out that “the more severe the extent of downsizing, the lower is the employees’ affective commitment to the organization. Moreover, downsizing has an impact on employees’ affective commitment to the organization through several of the daily work experiences of employees. Thus, downsizing affects employees’ affective commitment to the organization both directly and indirectly. However, its indirect impact is much stronger.” (Jaewon & Corbett, 2006)
Change often has to deal with resistance to change form the employees as well as the management of the organization. “A major problem in driving change in organizations is dealing with and managing the resistance that will be encountered. A major element to consider in organizational resistance, is countering those who see resistance only as a negative response to change” (Atkinson, 2005). The change management team would be responsible for managing the resistance to the change on part of the employees as well as the management. It will educate the management on the benefits that downsizing will bring to the company and the surviving human resource as well as guide and counsel the resource that has been laid off.
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