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What does it mean when a company downsizes?
Downsizing is a corporate practice that many employees are concerned about. This process can be described as a practice whereby firms reduce the number of employees and the scope of their business in order to achieve improved service and financial performance (Baumol, Blinder, & Wolff, 2003).
What are the psychological effects of downsizing a family?
Other psychological impacts of downsizing that affect the entire family include low self-esteem, stigma, the feeling of being isolated, and depression (Cascio, 2002). The psychological effects may give rise to real health issues in the affected families. However, there are families that work through the difficulties and come out as a stronger unit.
What are the effects of organizational downsizing and layoffs?
As a result, some new concepts and initiatives, such as organizational downsizing, began to take place in the field of management and organizations.
How does downsizing affect morale of the employees?
Downsizing has been known to impact negatively on the morale of the remaining employees. Most employees acquire friends and mentors among people at their place of work. Such close people might be affected during a downsizing activity. The remaining employees may be affected in a number of ways that will impact his/her confidence levels]
Last Update: Oct 2021
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