Unit 3 - Downsizing

Downsizing can severely affect the morale, commitment and performance of remaining employees.

These effects have been captured under the term ‘survivor syndrome’ and include:

•        decreased motivation

•        low morale

•        reduced loyalty

•        increased stress

•        scepticism towards management initiatives.

Moreover, remaining workers may be asked to do work they are not trained to do and to take on additional workload.