The Gestalt of Organizational Downsizing: Downsizing Strategies as Packages of Change

This paper develops and examines a framework ofdownsizing processes at the organizational level. Itbuilds on previous frameworks and literature byintroducing new variables found to be important in a field study and by bringing empirical evidenceto bear on conceptual underpinnings related toorganizational downsizing and change. The frameworkdeveloped identifies two general approaches thatorganizations use when undergoing downsizing and redesign, aswell as patterns of activities and changes thataccompany them. Downsizing driving redesign involvesincremental and low-level change, and is associated with less communication and systematic analysis,narrow participation in change efforts, and lowermagnitude change in other organizational attributes.Redesign driving downsizing involves more fundamentalorganizational change, and is associated with high-levelchanges that involve restructuring, more communication,broad participation in change efforts, advancesystematic analysis, and the use of interorganizationalrelationships to further downsizing efforts.