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Health and Social Effects of Downsizing: A Review

Published online by Cambridge University Press:  01 January 2023

Lakshmi Bose  and
Philip Bohle
Philip Bohle
Affiliation:
School of Industrial Relations and Organisational Behaviour, The University of New South Wales
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Abstract

Extensive organisational downsizing and restructuring has occurred in many countries since the 1980s. The negative consequences for workers forced into unemployment are well recognised. However, a growing body of evidence suggests there are also substantial, though less obvious, negative effects on workers who are retained. These effects may include impaired teamwork and productivity, damaged social networks and diminished social support, negative attitudes to work, elevated work-life conflict, a greater prevalence of negative health behaviours and impaired physical and psychological health. A cluster of behavioural and health effects observed amongst retained workers, described as ‘survivor syndrome’, is characterised by demoralisation, risk aversion, diminished organisational commitment and poorer health. These negative effects may be moderated to some extent by factors such as personality, gender, organisational level and age. A focus on more specific research questions and methodological refinements are likely to enhance future research in this area.

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Type
Research Article
Information
The Economic and Labour Relations Review , Volume 13 , Issue 2 , December 2002 , pp. 270 - 287
Copyright
Copyright © The Author(s) 2002

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Footnotes

*

The authors wishes to thank Gautam Bose for his valuable comments on earlier drafts of this paper.

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