Workforce Reduction and Survivors' Psyche: A Review

Abstract

The global economic slowdown has necessitated strategies such as downsizing, restructuring, etc. This has widely affected the employees, whether they are the victims or survivors. While the victims have always been a matter of concern, the present paper examines the psychological status of the survivors. The review of literature takes into account recent empirical findings on dimensions such as motivation, commitment, etc of the survivors. Along with interpretation of existing dimension we present the possible impact on behavioral outcomes as communication, leadership, etc. These empirical studies have shown evidences contrary to commonsense rationale and linkages. While workforce reduction has become inevitable, if certain processes are taken care of, the transition becomes smoother or else the whole exercise of cutting costs might backfire.