The Impact of Organizational Layoff by Anum Zahoor
THE IMPACT OF ORGANISATIONAL DOWNSIZING: PYSCHOLOGICAL DYNAMICS ON SURVIVING MANAGERS
Alicia S.M. Leung and Ludwig M.K. Chang Hong Kong Baptist University
The First International Conference on Critical management studies University of Manchester
July 14-16, 1999
Conference Steam: Organisation Studies
Correspondent address: Alicia S.M. Leung, Ph.D. Department of Management School of Business Hong Kong Baptist University Kowloon Tong Hong Kong Tel: (852) 2339-7560 Fax: (852) 2339-5583 Email: alicia@hkbu.edu.hk
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THE IMPACT OF ORGANISATIONAL DOWNSIZING: PYSCHOLOGICAL DYNAMICS ON SURVIVING MANAGERS
The nature, form and functioning of employment relationships in Hong Kong is undergoing change. The changes, in part, are attributable to global competitive pressures, but are also a function of the specific conditions that pertain in Hong Kong. Companies now operate in much more dynamic and complex business environments than in the past. For much of the last decade, during periods of economic growth, the employee market was very favourable, particularly for skilled workers and professionals. To cope with expansion and increased productivity, many companies recruited many more employees and added layers to their organisational structure, leading to tight labour market conditions and high job turnover.
A spokesperson of the Hong Kong Institute of Human Resources suggested, critically, that the long period of prosperity in Hong Kong had made people more concerned with extrinsic rewards than with acquiring the necessary skills and knowledge for the job. As a result, people did not take initiatives to improve themselves (Hong Kong Standard, Sept, 28, 1998, p.25). However, owing to the drastic change in the business environment – the Asian financial crisis and the decline in companies’ performance – the past year has seen many examples of organisational restructuring and downsizing. Hong Kong’ unemployment rate s deteriorated from a low of 2.2% in
Alicia S.M. Leung and Ludwig M.K. Chang Hong Kong Baptist University
The First International Conference on Critical management studies University of Manchester
July 14-16, 1999
Conference Steam: Organisation Studies
Correspondent address: Alicia S.M. Leung, Ph.D. Department of Management School of Business Hong Kong Baptist University Kowloon Tong Hong Kong Tel: (852) 2339-7560 Fax: (852) 2339-5583 Email: alicia@hkbu.edu.hk
1
THE IMPACT OF ORGANISATIONAL DOWNSIZING: PYSCHOLOGICAL DYNAMICS ON SURVIVING MANAGERS
The nature, form and functioning of employment relationships in Hong Kong is undergoing change. The changes, in part, are attributable to global competitive pressures, but are also a function of the specific conditions that pertain in Hong Kong. Companies now operate in much more dynamic and complex business environments than in the past. For much of the last decade, during periods of economic growth, the employee market was very favourable, particularly for skilled workers and professionals. To cope with expansion and increased productivity, many companies recruited many more employees and added layers to their organisational structure, leading to tight labour market conditions and high job turnover.
A spokesperson of the Hong Kong Institute of Human Resources suggested, critically, that the long period of prosperity in Hong Kong had made people more concerned with extrinsic rewards than with acquiring the necessary skills and knowledge for the job. As a result, people did not take initiatives to improve themselves (Hong Kong Standard, Sept, 28, 1998, p.25). However, owing to the drastic change in the business environment – the Asian financial crisis and the decline in companies’ performance – the past year has seen many examples of organisational restructuring and downsizing. Hong Kong’ unemployment rate s deteriorated from a low of 2.2% in