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International Journal in Management & Social Science
Year : 2015, Volume : 3, Issue : 7
First page : ( 283) Last page : ( 293)
Online ISSN : 2321-1784.

The Study of Survival Syndrome & Impact of Downsizing on Survived Employees: A Review of Literature

Prof. Jadhav Rutuja D.1, Dr. Charak Kuldip S.2

1Sinhgad Institute of Management & Computer Application, Pune, India

2Navsahyadri Group of Institutes, Bhor, Pune, India

Online published on 22 June, 2018.

Abstract

Downsizing literature suggests that layoffs are implemented for several reasons. Some organizations probably use the announcements of layoffs to obtain legitimacy. Some take up the strategy of employee reductions because they believe that it will increase organizational performance and profitability. However, the results from past studies reviewed have indicated that downsizing and layoffs may not necessarily bring about the productivity gains they are projected to achieve. Rather, they generate several negative impacts for the employees who leave organizations as well as those who remain.

The term" survivor syndrome" was coined by the psychiatrist W.G. Nederland in 1968 (Peters, 1989). The disorders observed in individuals who have survived after downsizing is collectively referred as post traumatic Stress Disorder, under the category of mental illness (Bourque, 1995). Symptoms ranging from fear of harassment, inner tension, diminished self-esteem, and lack of initiative and general lethargy leads to depression and contradictory sense of guilt at having survived (Peters, 1998) are directly observable in survivors.

The study attempts to critically examine the negative effects of downsizing on surviving employees with the help of literature published in this area. A survey instrument will be designed with the help of factors identified in the literature review.

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Keywords

Downsizing, Organizations, Employee Reductions, Layoffs, Survivor Syndrome, Depression, Guilt of Surviving.

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