Downsizing is the planned elimination of jobs and positions in order to decrease the number of workers employed by an organization; it is often a response to changing technology, market demands, and institutional pressures. Downsizing occurs in a large number of organizations, and it is increasingly being accepted as a legitimate management tool even in economically healthy organizations. The effects of downsizing extend beyond employees who lose their jobs. Downsizing alters the work environment of the workers who remain in the organization, who are described in the literature as survivors. Downsizing can alter the conditions of survivors’ jobs and change their perceptions of the organization. Some studies show that after downsizing, survivors become narrow-minded, self-absorbed, and risk averse. Furthermore, morale sinks, productivity drops, and distrust—especially ...

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