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Alternatives to Downsizing: An Organizational Innovation Approach

Author

Listed:
  • William Marty Martin

    (Director & Associate Professor, De Paul University, Department of Management, 1 East Jackson Boulevard, Chicago, Illinois 60604-2201)

  • Audrey C. Davis

    (Doctoral Student, Argosy University)

Abstract

Fifty alternatives to downsizing are offered. A brief literature review was conducted with specific emphasis on advantages and disadvantages of downsizing. Downsizing alternatives are divided into economic, institutional and socio-cognitive frameworks. Though many of the alternatives have been used in isolation, the writers provide a conceptual framework that challenges those involved in making the decision whether to downsize or not. The authors further challenge decision makers to resist the almost reflexive response to downsize when confronted with gaps in efficiency and effectiveness. Decision makers should consider alternatives to downsizing while keeping the two major goals of downsizing intact. Decision makers are charged to carefully identify the root cause of their challenges and to explore and create viable alternatives before downsizing becomes an option. Organizational leaders, human resource management and policy makers are given specific methods to conceptualize business decisions without the need for permanent employee layoffs.

Suggested Citation

  • William Marty Martin & Audrey C. Davis, 2013. "Alternatives to Downsizing: An Organizational Innovation Approach," International Journal of Business and Social Research, LAR Center Press, vol. 3(7), pages 19-27, July.
    • Handle: RePEc:lrc:larijb:v:3:y:2013:i:7:p:19-27
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    References listed on IDEAS

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    1. James P. Guthrie & Deepak K. Datta, 2008. "Dumb and Dumber: The Impact of Downsizing on Firm Performance as Moderated by Industry Conditions," Organization Science, INFORMS, vol. 19(1), pages 108-123, February.
    2. Shimon Dolan & Adnane Belout & David B. Balkin, 2000. "Downsizing without downgrading: learning how firms manage their survivors," International Journal of Manpower, Emerald Group Publishing Limited, vol. 21(1), pages 34-47, February.
    3. Art Budros, 1999. "A Conceptual Framework for Analyzing Why Organizations Downsize," Organization Science, INFORMS, vol. 10(1), pages 69-82, February.
    4. Sarah J. Freeman & Kim S. Cameron, 1993. "Organizational Downsizing: A Convergence and Reorientation Framework," Organization Science, INFORMS, vol. 4(1), pages 10-29, February.
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    Cited by:

    1. Rick Antle & Peter Bogetoft, 2019. "Mix Stickiness Under Asymmetric Cost Information," Management Science, INFORMS, vol. 67(6), pages 2787-2812, June.

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