But it has also heightened workloads, diminished morale, and undercut employee commitment. Chapter 2 Downsizing and Employment Insecurity 1. Current downsizing not a reaction to market forces but represents strategic and structural changes that will continue. Roughly 1 in 5 saw their jobs disappear in the 1980's Effects of downsizing spreading throughout the economy but still concentrated in the manufacturing and goods producing sectors. Easier in service area.
Minorities suffer more from downsizing than do whites.
Authors conclusion is that high performance work organizations can deliver higher levels of performance. Pays for the company to invest in specific training. The highly educated have fared well, the less educated have suffered. US has weak link between high school or college and the workforce. The workforce is increasingly divided between those with demanding but potentially rewarding jobs held by educated workers and short term, low pay, low skill and often contingent jobs held by less educated workers.