Three competing models of downsizing—the “rational,” asymmetrical/hysteretic, and institutional approaches—were tested, using data from large Canadian companies. Although none of the approaches was fully supported, it was noted that there was no consistent relationship between past profit and propensity to downsize, nor was there any consistent relationship between extent of downsizing and future profit.
Résumé
l'auteur examine trois modèles différents duphénomène de la réduction des effectifs des enterprises, soit les modèles “rationnel,” asymétrique‐hystérésique et institutional, à l'aide de données sur diverses grandes sociétés canadiennes. Aucune des trois approches n'est complètement validée par les données étudiées. l'analyse révèle aussi qu'il n'y a pas de relation systématique entre la rentabilité antérieure et la tendance d'une entreprise à réduire ses effectifs, d'une part, ou d'autre part, entre l'ampleur des réductions de personnel et les bénéfices futurs.
During organizational decline, the administrative component grows in some organizations and shrinks in others. Why do such differences occur? In a study of U.S. railroads, efficient organizations were found to be most prone to make administrative cuts. Furthermore, railroads making such cuts improved their chances of long-term survival. When an organization is faced with organizational decline, the results suggest that managers must cut to survive.
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