Lay-offs and downsizing
Summary :
Table of Contents
- Introduction - the knowledge economy and culture.
- Downsizing vs. layoffs.
- Ratuonale.
- The problems of downsizing.
- Blue-collar study.
- Morale (and a white-collar study).
- Conclusions.
Abstract
Sweeping economic, technological, and social changes during the last two decades have begun to transform how work is organized in modern society. The shift from an industrial to a knowledge economy, the globalization of markets, and the rapid proliferation of new technologies have dramatically increased the pace and unpredictability of change. In response, firms dismantled rigid hierarchies to enhance their responsiveness to new environmental demands. Through downsizing and restructuring, organizations eliminated layers of management and expanded the responsibilities of remaining employees. These societal changes had direct consequences for employment structures and practices in organizations. Gone are stability, vertical advancement, and employment security that defined industrial era careers. Greater flexibility, performance demands, and extensive job mobility characterize twenty-first-century employment.
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