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1 results

  • When responsible downsizing strategy meets employee-oriented leadership: Implications for downsizing performance

  • Philip Cheng-Fei Tsai, Chih-Ting Shih
  • Journal:
    Journal of Management & Organization / Volume 19 / Issue 5 / September 2013
    Published online by Cambridge University Press:
    21 May 2014, pp. 583-597

  • This study examines whether a responsible downsizing strategy and employee-oriented leadership are complementary in strengthening firm performance after downsizing. This study investigated 154 firms that have used an organizational downsizing strategy with surveys and follow-up focus groups. Results of both the empirical evidence and qualitative data demonstrates that for firms adopting an employee-oriented leadership style, the level of responsible downsizing strategy is high and firm performance is significantly increased. Specifically, the results of the focus groups indicate that a responsible downsizing strategy deepens the loyalty and faith of employees to their employer. These theoretical and practical implications are also discussed.