The meanings, consequences and implications of the management of downsizing and redundancy: a review

Abstract

Review paper which draws together the various theoretical and disciplinary strands used in the literature to evaluate downsizing and redundancy. Defines downsizing and redundancy within the organisational context. Explores complexity of the relationships with performance and effectiveness at both organisation and sub‐organisation levels. Evaluates downsizing strategies and implementation methods that organisations may use. Utilises the individual perspective to examine and discuss the consequences of downsizing relative to survivors. Considers the implications of this for managers. Relates theories of equity, organisational justice, job insecurity, job redesign and organisational stress to approaches which may mitigate negative responses to downsizing that impact on organisations’ performance and effectiveness.

Citation

Thornhill, A. and Saunders, M.N.K. (1998), "The meanings, consequences and implications of the management of downsizing and redundancy: a review", Personnel Review, Vol. 27 No. 4, pp. 271-295. https://doi.org/10.1108/00483489810213874