Establishing Theoretical Perspectives: The Significant Influence of Downsizing as an Implemented Strategy on Survivors’ Motivation

Abstract

Downsizing is a business strategyimplementedto improve an organizations’ financial position by a reduction and reorganization of the workforce. Often survivors after downsizing are not given much attention, yet the achievement of new strategic goals depends on the survivors having positive attitudes, relentless commitment and high motivation. The purpose of this paper was to describe how downsizing influences the motivation of the remaining employees from theoretical perspectives. Research indicates that employees who are motivated and committed contribute vastly to the financial-bottom-line of the organization. Therefore, downsizing organizations should continuously search for ways to increase such qualities among their survivors.