International Journal of Applied HRM (ISSN: 1742-2604) Volume 2 Issue 1
Ms. Deborah Simpson and Dr. Martyn Lowe
Change in organisations is a frequent event for many people working in the public sector today. Many theorists have argued that when organisations are downsized, there is a negative impact on all those employed there, both those directly affected by the change exercise and those who survive and continue in their jobs.
Some theorists have used the concept of the psychological contract to explore how workers might perceive downsizing and change as a breach of that contract and a betrayal of trust. Such a view may well create resistance to change from those continuing their employment with the organisation and reduced performance and commitment.
This study found that by using the appropriate human resources strategies staff experiencing downsizing and change, both those leaving the organisation and those staying, could come through the exercise less damaged.