Organizational downsizing and its perceived impact on quality management practices

Abstract

PurposeMany organizations with quality management programs in place have also engaged in downsizing. Aims to show how employees' perceptions of their organization's quality management practices provide some indication of how organizational downsizing affects an organization's quality management initiative.Design/methodology/approachManagerial and professional employees from 343 Canadian organizations completed a questionnaire assessing their perceptions of the extent to which their organization was currently engaging in quality management practices.FindingsRespondents in organizations that had downsized their workforce perceived significantly lower organizational‐level quality management practices (management commitment to quality management program, management communication of mission and goals, customer service focus, provision of quality‐related training) than respondents in organizations that had not downsized. Respondents in downsized organizations also perceived significantly lower employee‐level quality management practices (empowerment, employee commitment to quality management, job security).Research limitations/implicationsThe cross‐sectional research design does not allow insight into whether prior differences existed in quality management practices. Future research is needed to investigate how other issues related to organizations and to downsizing influence employees' perceptions of their organization's quality management practices following downsizing.Practical implicationsFor practitioners and managers, this study illustrates the need for careful planning of downsizing efforts to avoid their organization's quality management practices being seriously undermined.Originality/valueLittle research has been conducted on the effect of downsizing on an organization's quality management program. The findings show that employees from diverse organizations perceive organizational downsizing to have a detrimental effect on those factors that are critical in promoting and sustaining quality management.

Customer dissatisfaction and defection: The hidden costs of downsizing

“…This is consistent with Lewin (2009). Research using the magnitude of downsizing has found that the greater the downsizing, the greater the negative impact on employee attitudes (Armstrong-Stassen et al, 2005). The magnitude of downsizing in our study was 15%, a reasonably significant workforce reduction.…”

“…While there is no clear definition of the magnitude of reduction necessary to qualify as downsizing, the general range of reduction is from 3% to over 30% of the workforce (Armstrong-Stassen et al, 2005;Cascio, 1998;Sronce & McKinley, 2006;Williams, 2004). DeMeuse, Bergmann, Vanderheiden and Roraff (2004), in a study of 78 downsizing events, found that the median reduction was 15%.…”

“…The majority of the Fortune 500 firms have downsized since 1990, and most of these firms have done so repeatedly (Armstrong-Stassen, Reavley, & Ghanam 2005;Buch, 1992;Cascio, 1993;Morris, Cascio, & Young, 1999). Millions of jobs in the US have been lost annually through downsizing (US Dept of Labor, Bureau of Labor Statistics, 2002), and the incidence of downsizing appears to be increasing.…”

Organizational factors, environmental climate, and job satisfaction among police in Slovenia

“…As a result of their analysis, Zeitz and colleagues suggest capturing management quality and organizational culture through measures of management support, supervision, job challenges, work innovation, and attitudes towards clientele. Following the publication of Zeitz et al (1997), survey instruments based on their analysis have been utilized in numerous recent studies (for example, Armstrong-Stassen et al, 2005;Chen et al, 2005).…”

A socio‐cognitive interpretation of the potential effects of downsizing on software quality performance

“…(2005), in a study of software developers, found evidence for a link among a developer's environment, cognitive factors and productivity, albeit from a different theoretical lens (cognitive style and person–environment fit theories). Finally, Armstrong‐Stassen et al. (2005), in a non‐software development context, found a positive relationship between downsizing and quality management practices, from an organizational perspective (P9).…”