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

Philip Cheng-Fei Tsai and Chih-Ting Shih

Journal of Management & Organization, 2013, vol. 19, issue 5, 583-597

Abstract: 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.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jomorg:v:19:y:2013:i:05:p:583-597_00

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