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Study of remaining employees' continuance commitment after downsizing from the perspective of job satisfaction

Author

Listed:
  • Philip C.F. Tsai
  • Shu-Ling Wu
  • Yu-Fang Yvonne Yen
  • Chin-Ming Ho
  • Ing-Chung Huang

Abstract

Downsizing has gradually become a popular practice for firms struggling to compete and survive since the 1980s. Downsizing affects and harms employees to a great extent. Losing trust would mean that survived employees could not bear to stay with the firm in the long run and possibly seek other ways out. Therefore, after downsizing, developing strategic human resource practices to maintain and motivate the vital human capital is very important for firms to remain competitive advantage. Starting from two psychological concepts "job satisfaction" and "continuance commitment", this study explores the factors that significantly influence the commitment among remaining employees. These factors will be critical for downsized firms to design motivating HR practices after downsizing. We have conducted quantitative and qualitative researches simultaneously on seven factories, for 15 months. The finding reveals that "support to employee's personal health and family life", "pay and benefits" and "the nature of the work" affect significantly employees' continuance commitment. This finding provides meaningful implications to practices and researches of human resources management.

Suggested Citation

  • Philip C.F. Tsai & Shu-Ling Wu & Yu-Fang Yvonne Yen & Chin-Ming Ho & Ing-Chung Huang, 2005. "Study of remaining employees' continuance commitment after downsizing from the perspective of job satisfaction," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 5(1), pages 99-124.
    • Handle: RePEc:ids:ijhrdm:v:5:y:2005:i:1:p:99-124
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    Citations

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    Cited by:

    1. Mansour Alshrif Al-Hammali & Nasser Ahmed Nasser Habtoor & Mohamed Mihlar Abdul Muthaliff, 2017. "Establishing Theoretical Perspectives: The Significant Influence of Downsizing as an Implemented Strategy on Survivors¡¯ Motivation," International Journal of Learning and Development, Macrothink Institute, vol. 7(1), pages 1-7, March.
    2. Ralf Bebenroth & Jose O.L. Berengueres, 2020. "New hires' job satisfaction time trajectory," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 20(1), pages 61-74.

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