Human Resource Management 1988

Downsizing: Practices in manufacturing firms

Joseph T. McCune¹; Richard W. Beatty²; Raymond V. Montagno³

¹ New York State School of Industrial and Labor Relations · ² Care Resource · ³ Division of Human Resource Management

Abstract

Downsizing is a competitive strategy which many organizations use, yet little is known about organizational policies related to downsizings. A survey of mid‐western personnel directors in manufacturing firms was conducted to capture organizational policies and assess perceptions and attitudes regarding downsizing. Seniority was cited as the overwhelming criterion used to determine layoffs. Nonunion firms considered performance significantly more than did unionized organizations in determining layoffs. Few alternatives to layoffs were actually considered, which is not surprising because 94% of the HR managers had less than two months to plan and implement the downsizing. Implications for white collar employees, prescriptions for HR practice, and future research are discussed.

DOI

10.1002/hrm.3930270203

Sources

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