Downsizing and Restructuring in Organizations: Research Findings and Lessons Learned – Introduction

"Newcourt could axe more than 500 jobs" Financial Post, January 13, 1998 "Mergers set blistering pace" The Globe and Mail, December 22, 1997 "Owens Corning to close Quebec insulation plant" Financial Post, January 10, 1998 "CN employees riled by holiday layoff notices" Toronto Star, December 28, 1997 "KMart Canada to close 10 stores" The Globe and Mail, December 14, 1997 "RJR Nabisco to cut 3,000 jobs in restructuring" The Globe and Mail, December 14, 1997 "Raytheon to close 12 defense plants, downsize eight" Financial Post, November 20, 1997 Hardly a day goes by without a story about job loss appearing in the Canadian media. Organizations in Canada and throughout the industrialized world have undergone a decade of downsizing, restructuring, and transition brought about by a number of forces sweeping through developed economies (Martin & Freeman, 1998). These wide-reaching organizational transitions are likely to be with us for some time to come. Downsizing has affected hundreds of companies and millions of workers since the late 1980s (Cascio, 1995). Initially, downsizing was undertaken by failing companies, and its victims were primarily blue-collar workers. Today, downsizing is being undertaken by relatively successful companies, and its victims are primarily white-collar professionals. In addition, firms that have downsized are also likely to downsize again. "Downsize first, ask questions later" has become the dominant theme. Unfortunately, the effects of downsizing and restructuring have produced a grim picture. As often as not, downsizing organizations fail to achieve their performance, productivity, and financial performance goals (Casio, 1993). In addition, a number of dysfunctional organizational consequences almost always appear (Cameron, Whetten, & Kim, 1987; Noer, 1993). Finally, the consequences of organizational downsizing may be negative for the larger society as well (New York Times, 1996). In view of this increasingly large body of evidence, most of the consequences of downsizing and restructuring for individuals, organizations, and society appear to be negative. Can downsizing and restructuring ever have positive outcomes? Do organizations have other, more effective, options to deal with global forces necessitating change? This collection, with its emphasis on the new Canadian organizational reality, grapples with these and other questions. The seven manuscripts in this Special Issue are diverse in content and methodology. They contain qualitative (Karambayya; Wright & Barling) and quantitative (Armstrong-Stassen; Wagar) contributions. Data were collected in the public and private sectors. The samples range from a single site to hundreds of organizations. The content is relevant for both research and practice. Organizational researchers make a significant contribution to our understanding of downsizing and restructuring efforts; in addition, they assist in the implementation and evaluation of such efforts. They also make an important teaching contribution. Many Canadian schools of business offer courses in change management and organizational development that devote attention to the management of downsizing efforts. This collection offers useful conceptual and case study material for such courses. This Special Issue also includes innovative selections. To date, very little attention has been devoted to the unique concerns of particular groups of employees during downsizing. Karambayya takes a step in this direction in her study of the experiences of managerial and professional women. Although downsizing has been found to have significant effects on both victims and survivors, its effects on those who implement downsizing efforts has received much less attention. The paper by Wright and Barling tackles this subject head on, demonstrating that the implementors of downsizing efforts also pay a price. …