Do Institutionalized Traditions Matter During Crisis? Employee Downsizing in Korean Manufacturing Organizations

This study examines the downfall of the permanent employment tradition in South Korean manufacturing organizations in the aftermath of the 1997 East Asian economic crisis. We explore whether organizations abandon their traditional institutionalized practices under discontinuous environmental change or despite the change continue these time‐honoured practices. We examine both the organizational factors that inhibit lay‐offs and performance indicators that trigger organizations to re‐evaluate their lifetime employment practices under drastic environmental upheaval. We test our hypotheses on 574 Korean manufacturing organizations and find that under discontinuous change: (1) economic and institutional factors simultaneously apply opposite forces on organizational actions; (2) organizational factors such as poor performance on productivity and export create a need for headcount reductions while factors such as size, domestic ownership, government support, and unionization create social and institutional pressures that inhibit downsizing; and (3) prior experience with downsizing moderates the relationship between institutional factors and further downsizing.     

How human resource practices can help plateaued managers succeed

As organizations downsize to increase their competitiveness, flatter hierarchies result in fewer promotional opportunities and more plateaued employees. The definition of career success needs to move away from “up is good,” yet plateauing is still shameful for many employees due to traditional assumptions about the causes and effects of plateauing. A study of 373 middle managers suggests how “successful plateauing” (effective job performance, satisfaction with the job and life in general) can be fostered. The article provides specific examples of how best practices and new approaches in several human resource areas can help plateaued employees succeed. © 1997 John Wiley & Sons, Inc.     

Management commitment and company policies on education and training

This article presents evidence from a 1991 survey of 406 large companies indicating that corporate education and training practices are shaped by four company characteristics: (1) human resource innovativeness, (2) management resistance to change, (3) work redesigns to enhance quality and involvement, and (4) firm downsizing. When managements create an innovative climate, their companies invest more in worker retraining and contribute more to public schooling; when they resist change, they find it more difficult to recruit entry-level employees. When managements redesign work, their companies place greater emphasis on training, development, and school relations. When managements downsize, their companies take more interest in entry-level training and apprenticeship programs. © 1993 by John Wiley & Sons, Inc.     

Organizational De‐development*

ABSTRACT Organizational decline prompts leaders to downsize, reducing the size of the workforce in an attempt to cut costs. This paper discusses some of the dangers of downsizing in which organizations experience an unanticipated and unwanted loss of core competencies. An alternative to downsizing is offered, showing how organizations can ‘de‐develop’ by slowly and deliberately moving to a lower order of organized complexity, retaining essential core competencies and supporting functions. To produce a ‘soft‐landing’ that preserves core competencies, a new identity is forged and connections to the new identity are uncovered. The connections point out what must be preserved, such as a crucial channel for key products, for the new identity to survive and flourish. The de‐developed organization preserves customers, products, markets, channels, revenue sources, alliances, skilled people, ways to organize, and/or image crucial to the new strategic identity before letting go of the remaining customers, products, etc. The paper identifies conditions under which de‐development can be desirable and suggests a ‘devolutionary’ process that points out some of the key moves needed to reduce organized complexity and realize a soft landing.     

Why doesn’t downsizing deliver? A multi-level model integrating downsizing,social capital,dynamic capabilities,and firm performance

Firms downsize to improve their bottom line results often in reactive response to negative external shocks, such as economic downturns, but even in proactive efforts to enhance organizational performance when they are financially ‘healthy’, such as restructuring. Research reveals, however, that not only does downsizing generally fail to improve a firm’s financial performance, but that it may even lead to reduced financial performance. To investigate this puzzling outcome, we build on previous research and integrate the concepts of downsizing, social capital, dynamic capabilities and performance in a multi-level model as well as discuss how social capital mediates the relationship between downsizing and dynamic capabilities. Thereafter, we develop (a) four propositions to elucidate how changes to the structural dimension of social capital due to downsizing, i.e. the removal of three key social network positions and changes to the firm’s network structure, negatively mediate the relationship between downsizing and a firm’s dynamic capabilities, and (b) two propositions incorporating internal (knowledge intensity) and external (institutional pressures) contextual variables in our model. We conclude by discussing how our research contributes to the downsizing and SHRM literature as well as the resource-based view and social capital literature before providing suggestions for future research and practitioners.     

Survivors' reactions to downsizing: the importance of contextual factors

Downsizing has been a recurrent theme in corporate life for the last 20 years. Literature in this area has evolved sporadically and covers many aspects of it. Although this has resulted in rich data, there is a lack of robust research that integrates the strategic and operational elements of downsizing. Furthermore, downsizing results in negative outcomes such as loss of skills, learning and innovation. It can also result in negative emotions including anger, frustration and guilt. However, there is insufficient data about the specific conditions or contextual factors that influence survivors reactions. This article presents the findings of a study conducted in four large organisations in the UK that have undergone downsizing. It proposes a theoretical model encapsulating the organisational context, and argues that the two key factors that determine the context are frequency of downsizing and the degree of control that the organisation exercises in making the decision to downsize. A broad set of propositions is presented as to the likely reactions of ‘survivors’ in the various organisational contexts of downsizing.     

Coverage and effectiveness of family-responsive workplace policies

In this article, we review what is and what is not known about “family-responsive” employment practices. What is claimed about the benefits of these practices? What evidence is available to evaluate the effectiveness of new employment practices in fostering increased employee productivity or lowered business costs? What do we still need to know, and what is the best way to obtain good evaluative information? This essay is divided into three parts: The first covers the market-based model for accommodating employee family responsibilities and available information on unmet employee needs, the second covers the literature on the types of new employment practices and their effectiveness in fostering organizational productivity, and the third provides a framework for future evaluation research that might better provide us with the information that we need to effectively fashion family-responsive workplaces that best meet the needs of employees and employers.     

The role of mutual trust in effective downsizing strategies

Several factors that explain differences in the downsizing strategies utilized in organizations are examined in this study of 91 organizations in the automotive industry. Specifically, mutual trust within a top management team is positively associated with a strategy based on organization redesign. Mutual trust between members of an organization and its key customers and suppliers is positively associated with a strategy based on systemic change. Moreover, these two strategies are positively associated with performance outcomes in the areas of cost reduction and quality improvement.     

Labor union negotiations: stepping stones or stumbling blocks for a responsible downsizing strategy? Empirical tests in Taiwan

Firms have used organizational downsizing strategies for years. But organizational downsizing not only cannot surely improves firm performance, but also harms thousands of employees and their families. A number of scholars investigating organizational change suggest that ‘a responsible downsizing strategy’ can mitigate or solve this issue. As the major stakeholder in downsizing, labor unions naturally negotiate with firms to protect employee rights and benefits. Their negotiation, therefore, may either enhance or mitigate the effect of responsible downsizing strategy on firm performance. This study used a sample of 154 downsized local firms and multinational corporations in Taiwan to examine the research construct, and invited focus groups to have a further validated explanation. The findings show that labor union negotiation may act as either stepping stones or stumbling blocks. The results indicate that firms employing labor union negotiation experience higher downsizing performance than non-unionized firms do. However, labor union interventions can also become stumbling blocks. Labor union negotiation neutralize the positive effect of employee-caring practices on downsizing performance, leading to a decline in downsizing performance when firms increase employee participation and justice consideration in the downsizing process. The research findings provide implications for further scholarly research and management practices in terms of organization change, stakeholder management and labor–management relationship.     

Better practices in managing layoffs

This article presents eight case studies that illustrate “better practices” in how layoffs are managed in organizations. These examples incorporate such policies and programs as early notification of layoffs, provisions for severance pay and extended benefits, education and retraining for displaced workers, outplacement assistance, clear and direct communication of layoff information, and support services for “survivors” of layoffs. These examples highlight the benefits of collaboration among downsizing businesses, public sector organizations, and unions in helping laid-off employees adjust to unemployment and obtain satisfactory reemployment.     

Relationships between self-concepts,aspirations, emotional responses,and intent to leave a downsizing organization

This study examines how individual-level factors, such as task self-confidence, self-esteem, personal goals, job satisfaction, and organizational commitment affect workers' decisions concerning intent to leave the downsizing organization. Results indicate that task self-confidence and role self-esteem had positive, largely direct effects on intent to leave, which can be contrasted with the inverse relationship between the self-concept and intent to leave typically found in non-downsizing organizations. From this investigation, several implications for managing human resources in the downsizing organization are drawn and discussed in the context of planning for downsizing, implementing downsizing, and managing the downsized organization.     

功在当下 造福千秋——珠三角绿道网建设的调查报告

广东于2010年1月开始建设珠三角绿道网,效果初显,深受民众欢迎。许多省市也开始规划建设绿道网。通过实地考察、调查,试图回答什么是绿道、广东为什么要下大力气抓绿道网、是怎么做的、有什么成效经验和启示,以期给各地提供参考。     

Managers, leaders, and teams in a team-based environment

In order to succeed in today's dynamic environment, abundant with corporate restructuring and downsizing, into what must today's manager transform? Part of the answer lies in "leadership." Some managers are leaders, some leaders are managers, but the two are not synonymous. There are notable differences between managers and leaders, particularly in the role each plays in the transition towards organizations that are customer-focused, empowered, and team-based. The evolution towards team-based organizations begins with three different, concurrent transitions: of managers into leaders, of employees into teammates, and of functional hierarchical organizations into those of team empowerment.     

Managing change strategically: the technical, political, and cultural keys.

Managing strategic change is increasingly a way of life for organizations faced with the turbulent economic, political, and cultural forces of the 1980s. To manage such change, organizations and their managers will have to confront basic questions regarding the organization's technical, political, and cultural foundations. The technical questions include: What business(es) should we be in? How should we be organized to accomplish our strategy? What kinds of people do we need, and how will they be acquired, developed, and rewarded? The political questions include: Who gets to influence the mission and strategy of the organization? How is power allocated both vertically and horizontally across the organization? Who gets promoted to what key positions? The cultural questions include: What values and beliefs are necessary to support the organization's strategy? What subcultures are desirable, and should there be an overarching corporate culture? How should the human resources system shape and mold the culture?     

Generation Y

We at RainmakerThinking, Inc., have been conducting ongoing in‐depth research on the attitudes and experiences of young people in the workplace since 1993. When we began, the oldest among Generation Y (the generation born 1978 to 1990) were just arriving in the workplace as teenagers. Since then, we've followed Generation Y as they became the new young workforce, began coming of age in the early stages of their careers, and of late as they have increasingly been assuming leadership roles in organizations of all shapes and sizes. When it comes to identifying, retaining, and developing the best leadership talent among Generation Y, what are the key pitfalls to avoid? And what are the best practices? These are among the issues we've been tackling with business leaders in a wide range of organizations over the past several years.     

Assessing the social impact of charitable organizations—four alternative approaches

• There is increased societal pressure on charities to improve performance. The questions that they must ask are: (1) Who is our audience? (2) What evaluation measures are important to the organization? and (3) What evaluation measures are best for the organization? There are a number of different approaches available for assessing performance, ranging from social accounting to more informal qualitative assessments of whether the organization's mission is being achieved. This paper draws on the industry and academic discussion of evaluations of nonprofit organizations to develop a four‐category typology of alternative approaches for audiences. It then identifies the benefits and limitations of each. The goal is to identify the steps that charities should use to determine which approach is most suited to their specific circumstances. It is proposed that a collaborative development of evaluation criteria, of whichever type, may be most appropriate as will draw together the experiences and resources of multiple parties, and may have broader appeal than evaluations proposed by individual nonprofits.

Copyright © 2010 John Wiley & Sons, Ltd.     

Survival strategies in the era of managed care

The era of managed care has forced an unprecedented restructuring of the health care environment. As hospitals downsize in response, materiel managers should consider adopting strategies that may help ensure their survival, including innovative approaches to supply management and the development of individual responses that will best position them to succeed in this new reality.     

Organizational downsizing as convergence or reorientation: Implications for human resource management

This article proposes that there are two basic approaches to organizational downsizing. Downsizing as reorientation is the proper approach when organizations undertake major downsizing programs. In this approach, many elements of the organization are questioned and changed simultaneously. The goal is a fundamentally different, not just smaller, organization. Downsizing as convergence is part of continuous improvement, and its goal is to refine and streamline all ongoing organizational processes. Each of these approaches to downsizing involves a particular pattern of downsizing tactics, implementation processes, and organizational changes. Thus, each approach to downsizing generates different implications for human resource management.