Consumers' preference for downsizing over package price increases

In this paper, I study how and why consumers react differently to package downsizing and package price increases that result in the same degree of unit price increases. Utilizing differential responses of South Korean milk manufacturers to the production cost rise in 2018, I first show that consumers strongly prefer downsizing to package price increases, and this tendency does not diminish over time. Then, I develop a theoretical model whose prediction is consistent with the empirical findings, providing a simple but novel explanation of why fully informed consumers would be less sensitive to downsizing than package price increases.     

Institutional determinants of downsizing

This study analyses the institutional determinants of downsizing in an economy with a highly rigid labour market: Spain. Our focus is first placed on the impact that the system of severance payment has on downsizing adoption. In particular, we analyse whether the regulatory environment can explain variations in employers' downsizing use. In addition, we analyse how organisations imitate one another in implementing downsizing, presumably in a quest for legitimacy. The evidence provided indicates that low levels of severance payments incurred by downsizers in the past promotes downsizing in the present, but too high severance payments discourages downsizing. Therefore, firms in Spain are constrained by regulatory forces stemming from labour law. Our results also reflect the importance of rational myths in downsizing because companies imitate the decisions on downsizing widely used in their industry and, particularly, those adopted by industry leaders.     

Managing careers in downsizing firms

The literature on managing careers has traditionally been based on the twin assumptions of organizational growth and increased opportunities for individual advancement. Large-scale layoffs in the 1980s and continued downsizing in the 1990s, however, have left organizations questioning how to develop the careers of their employees under conditions of diminished resources and have left employees wondering how to manage their own careers under conditions of diminished opportunities. This article examines the issues involved in managing careers in downsizing firms from both the organization's and the individual's perspective. In addition, it explores not only short-term tactics for handling career disruptions which occur at the time of downsizing but also longer-term strategies for managing careers during times of little or no organizational growth. © 1996 by John Wiley & Sons, Inc.     

Building traits for organizational resilience through balancing organizational structures

This paper describes and explains how balancing organizational structures can build traits for organizational resilience. Organizational resilience is a holistic and complex concept. In this paper, we move beyond focusing on sudden and disruptive events in favour of anticipating the unexpected in daily organizing. Organizational resilience is understood here as building traits of risk awareness, preference for cooperation, agility and improvisation and is analysed by means of a longitudinal qualitative case study. The paper contributes to the field by showing how balancing organizational structures can foster organizational resilience traits. We show that power distribution and normative control can create preparedness for unexpected events and foster action orientation at the same time as supporting organizational alignment.     

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.     

Preparing for organizational death: Proactive HR engagement in an organizational transition

This article describes an HR team's call to action in managing an organization's transition from healthy, vibrant, and financially successful workplace to its death after being acquired. The HR team countered conventional practice in two key ways. First, despite being from the seller's side, it acted unusually early in the company's acquisition and operated proactively throughout the integration process. This constructive approach stemmed from the self‐confidence developed in the HR function over years of process improvement and culture change. Second, the HR professionals were motivated (rather than threatened) by the high stakes involved in this organizational transition. Their company—with its industry‐leading business results and a loyal, long‐tenured workforce—was slated to be closed, dismantled, and auctioned off in pieces to other firms. The HR team's mission was to help people deal with the death of their current employer and prepare for life afterward while maintaining a focus on business results. This article shows how HR helped senior leadership handle the challenge of retaining the talent needed to meet customer commitments and keep the business running while also readying people for an uncertain future with many eventual layoffs. © 2008 Wiley Periodicals, Inc.     

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.     

A model for diagnosing organizational behavior

This article has presented a general approach for thinking about organizational functioning and a process for using a model to analyze organizational problems. This particular model is only one way of thinking about organizations; its clearly not the only model, nor can we claim it's definitively the best model. It is one tool, however, that may be useful for structuring the complexity of organizational life and helping managers create, maintain, and develop effective organizations.     

Employee communication strategies for organizational crises

Perhaps at no time is it more important for an organization to communicate sensitively and openly with its employees than during a crisis. Such efforts, however, are driven by management's view of a crisis situation, which frequently fails to consider employees' stress-induced responses to management communication behavior. This paper draws on research findings on life situations, crisis management, communication, stress, psychology, and information processing, to analyze employees' emotional, cognitive, and information needs when confronted by organizational crises. The authors present a receiver-oriented Employee Crisis Communication Model. This model outlines employees' stress-invoked perceptual and behavioral responses to major crises, which may, among other things, seriously impair their ability to handle information and make decisions. The authors then discuss the implications of applying certain communication strategies to crisis environments.     

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.     

The role of organizational justice in organizational citizenship behavior

This special issue highlights the relationships between the concepts of organizational justice and organizational citizenship behavior. The articles advance our understanding of these concepts and their relevance to organizational behavior by describing the theoretical and empirical relationship between them. The present article sets the stage for the papers that follow by providing background on the concepts of organizational justice and organizational citizenship behavior and explaining various connections between them.     

Resource link: Re-establishing the employment relationship in an era of downsizing

This article examines AT&T's efforts to deal with force management issues by developing Resource Link^sm, an internal service unit that uses payroll management employees to help meet the variable work force needs of AT&T. Resource Link is discussed in terms of its contributions to increasing employment stability, improved learning, better governance, and helping to renew the psychological contract between employees and employers. The paper calls for future research in four major areas: skills development, teamwork, reward systems, and career management. It also addresses the potential applicability of this type of program to other firms. © 1995 by John Wiley & Sons, Inc.     

External organizational commitment

Building on the organizational commitment literature and recent management practices like relationship marketing and total quality management, a new focus of work commitment is proposed: external organizational commitment (EOC). It is envisioned as a global construct and defined as an employee's identification and involvement with another organization. A model of EOC specifying its antecedents, consequences, and moderating factors is offered and 28 propositions emanating from the model are articulated. Implications for human resource practitioners are discussed.