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Impact of Organizational Downsizing on Psychosocial Wellbeing of Employees

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  • Palmer Ilabor Ikechukwu CMIOSH

    (Member American Society of Safety Professionals (ASSP) Chartered Member Institute of Occupational Safety and Health (CMIOSH) MSc. Health, Safety and Risk Management)

Abstract

Generally, organization downsizing does not happen by fiat and it has its impact on the organizational employees. Hence, this review seeks to understand the impact of organizational downsizing on psychosocial wellbeing of employees. The review analyzes psychosocial wellbeing of employees, which encapsulate psychological and social wellbeing. The study found that organizational downsizing on employees’ mental health, distress, anxiety, employees’ burnout, despair, stress, depressive symptoms, deterioration in work conditions, and risk of depression. The study also showed that drugs used by employees downsized by organizations, which include antidepressants, hypnotics/sedatives, anxiolytics, opioid, alcohol, and antipsychotics. The findings demonstrated that the influence of organizational downsizing on employees’ social wellbeing include social reputation, social structure, social capital, and social identity. The results indicated that socially responsible downsizing is essential to ensure ethical downsizing. Meanwhile, results showed that psychosocial resilience strategies adopted by employees include psychological resilience, social service, training, increased attention to employees’ craft, communication, employee-centered approach, organizational capabilities, problem-focused coping strategies, emotion-focused coping strategies, systemic change strategies, and special leave assistant programs. It was recommended that organizations should be socially responsible in carrying out downsizing in order to mitigate the negative effects on the psychosocial wellbeing of employees.

Suggested Citation

  • Palmer Ilabor Ikechukwu CMIOSH, 2024. "Impact of Organizational Downsizing on Psychosocial Wellbeing of Employees," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(11), pages 943-953, November.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:11:p:943-953
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    References listed on IDEAS

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