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Workforce Reductions in Theory and Practice: The Swedish Tobacco Monopoly in the 1920s

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  • Karlsson, Tobias

Abstract

The aim of this paper is to clarify and discuss the various ways firms can make workforce reductions. This aim is accomplished by an in-depth study of an historical case; the downsizing process undertaken in the 1920s by the Swedish Tobacco Monopoly, a state-owned company that had to balance between rational business conduct and social responsibility. The paper makes use of qualitative sources, such as board minutes and memos, and a database covering all blue-collar workers in one of the company’s factories. The paper adresses conceptual questions concerning how to theoretically and empirically distinguish between various reduction strategies and tactics. Its main contribution is to move beyond the simple characterization of reductions as being either smooth or harsh and instead emphasize the multitude of management choices involved in reducing headcount and, consequently, the diversity of downsizing processes.

Suggested Citation

  • Karlsson, Tobias, 2012. "Workforce Reductions in Theory and Practice: The Swedish Tobacco Monopoly in the 1920s," MPRA Paper 39235, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39235
    as

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    File URL: https://mpra.ub.uni-muenchen.de/39235/1/MPRA_paper_39235.pdf
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    References listed on IDEAS

    as
    1. Cox, Howard, 2000. "The Global Cigarette: Origins and Evolution of British American Tobacco, 1880-1945," OUP Catalogue, Oxford University Press, number 9780198292210.
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    3. Victoria Wass, 1996. "Who Controls Selection under ‘Voluntary’ Redundancy? The Case of the Redundant Mineworkers Payments Scheme," British Journal of Industrial Relations, London School of Economics, vol. 34(2), pages 249-265, June.
    4. Parsons, Donald O, 1972. "Specific Human Capital: An Application to Quit Rates and Layoff Rates," Journal of Political Economy, University of Chicago Press, vol. 80(6), pages 1120-1143, Nov.-Dec..
    5. Hamilton, Barton & MacKinnon, Mary, 1996. "Quits and Layoffs in Early Twentieth Century Labor Markets," Explorations in Economic History, Elsevier, vol. 33(3), pages 346-366, July.
    6. Peter Turnbull & Victoria Wass, 1997. "Job Insecurity and Labour Market Lemons: The (Mis)Management of Redundancy in Steel Making, Coal Mining and Port Transport," Journal of Management Studies, Wiley Blackwell, vol. 34(1), pages 27-51, January.
    7. Lewis, Robert, 2009. "The Workplace and Economic Crisis: Canadian Textile Firms, 1929–1935," Enterprise & Society, Cambridge University Press, vol. 10(3), pages 498-528, September.
    8. Owen, Laura J., 2001. "Gender Differences in Labor Turnover and the Development of Internal Labor Markets in the United States during the 1920s," Enterprise & Society, Cambridge University Press, vol. 2(1), pages 41-71, March.
    9. Eric W. Zitzewitz, 2003. "Competition and Long–run Productivity Growth in the UK and US Tobacco Industries, 1879–1939," Journal of Industrial Economics, Wiley Blackwell, vol. 51(1), pages 1-33, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    personnel management; workforce reductions; downsizing; tobacco industry; Sweden; inter-war period;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • N8 - Economic History - - Micro-Business History
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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