Network Destruction: The Structural Implications of Downsizing

Published on Feb 1, 2000in Academy of Management Journal7.19
· DOI :10.2307/1556389
Priti Pradhan Shah7
Estimated H-index: 7
(UMN: University of Minnesota)
Downsizing disrupts existing social networks in organizations. Layoff survivors' reactions to losses of both friends and coworkers in similar structural positions (structural equivalents) are examined here. A field study conducted in a consumer electronics firm revealed negative reactions to the loss of friends and positive reactions to the loss of coworkers in similar structural positions. The loss of friends weakened survivors' network centrality, but the loss of structural equivalents benefited network position and increased satisfaction with promotion opportunities.
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  • Citations (186)
Published on Jun 1, 1971in Administrative Science Quarterly8.02
Mary E. Sheldon1
Estimated H-index: 1
The purpose of the study was to test the hypothesis that investments in a utilitarian organization will produce commitment to the organization regardless of other features of the relationship of the members to the organization. A survey study of Ph.D. scientists in a private laboratory supported this hypothesis. It was also found that professional commitment increased with work experience, and especially with a medium degree of length of service, operated to reduce commitment to the organization...
Published on Jun 1, 1998in Academy of Management Journal7.19
Priti Pradhan Shah7
Estimated H-index: 7
(UMN: University of Minnesota)
A social network perspective was used to determine whom brokerage firm employees selected as social referents. In particular, this study focused on cohesive actors (friends) and structurally equivalent actors (individuals occupying the same position in a network) as sources of social information. Results on the social networks of brokers, sales assistants, and operations employees (support staff) indicate distinct differences in interaction patterns, information seeking, and social comparison pr...
Published on Nov 1, 1995in Academy of Management Perspectives3.86
Hugh M. O'Neill12
Estimated H-index: 12
D. Jeffrey Lenn3
Estimated H-index: 3
Executive Summary Middle managers play a crucial role in corporate downsizing and restructuring as they evaluate and implement a strategy that is emotionally demanding and non-traditional. They are often ill-prepared to make a full commitment, especially if they are confused about the reasons for the downsizing and their role in its implementation. To “hear” their concerns, we extensively interviewed middle managers from one corporation engaged in a significant downsizing effort. We focus on the...
Published on Jun 1, 1993in Group Decision and Negotiation2.01
Pri Pradhan Shah3
Estimated H-index: 3
(NU: Northwestern University),
Karen A. Jehn38
Estimated H-index: 38
(UPenn: University of Pennsylvania)
This article examines the influence of friendships among group members, intragroup conflict, and task on group performance. Previous research has found that friendships among group members (operationalized as group affinity, comraderie, or cohesion) has both positive and negative effects on performance. The effect of friendship on performance is contingent on many factors. The focus of this article is on the different types of conflict experienced by groups and on the type of task that the group...
Published on Jun 1, 1993in Administrative Science Quarterly8.02
Herminia Ibarra24
Estimated H-index: 24
Steven B. Andrews3
Estimated H-index: 3
Funding for this study was generously supplied by the Organizational Behavior Department of Yale University and the Harvard Business School Division of Research. Earlier versions of this paper were presented at the Sunbelt International Social Network Conference, San Diego, 1990 and the Academy of Management Annual Meetings, Miami, 1991. The authors are grateful to Paul DiMaggio, David Krackhardt, Peter Marsden, and Ron Rice for helpful suggestions. We also profited greatly from comments provide...
Published on Feb 1, 1993in Academy of Management Perspectives3.86
Wayne F. Cascio40
Estimated H-index: 40
(CU: University of Colorado Boulder)
Executive Overview Downsizing, the planned elimination of positions or jobs, is a phenomenon that has affected hundreds of companies and millions of workers since the late 1980s. While there is no shortage of articles on “How To” or “How Not To” downsize, the current article attempts to synthesize what is known in terms of the economic and organizational consequences of downsizing. We argue that in many firms anticipated economic benefits fail to materialize, for example, lower expense ratios, h...
Published on Jan 1, 1993in Journal of Personality and Social Psychology5.92
Joel Brockner54
Estimated H-index: 54
(Columbia University),
Batia M. Wiesenfeld22
Estimated H-index: 22
(Columbia University)
+ 2 AuthorsChristopher Martin3
Estimated H-index: 3
(LSU: Louisiana State University)
A field survey and laboratory experiment examined the determinants of survivors' reactions to job layoffs. Independent variables included (a) change in the perceived intrinsic quality of the content of survivors' jobs relative to before the layoffs and (b) context favorability,as determined by (a) the perceived fairness of the layoffs and (b) survivors' perceptions of their co-workers' reactions to the layoffs. Both studies revealed similar Job Content × Context interaction effects on the primar...
Published on Jan 1, 1993in Academy of Management Review10.63
Herminia Ibarra24
Estimated H-index: 24
(Harvard University)
Despite voluminous research indicating that women and minorities have limited access to or are excluded from organizational networks, two central questions remain unanswered: (a) In what specific ways, if any, do the interaction networks of men and women and whites and racial minorities differ? and (b) What mechanisms produce those differences? The central thesis of the article is that the organizational context in which interaction networks are embedded produces unique constraints on women and ...
Published on Jun 1, 1992in Social Psychology Quarterly1.75
Linton C. Freeman33
Estimated H-index: 33
This paper shows that people are aware of who is affiliated with whom in their immediate social world. Their perceptions of the patterning oh affiliation, however, do not correspond to the patterning actually displayed by interacting humans. Affiliation is not categorical; perceptions of affiliation are, however. On the basis of experimental evidence about errors in learning simple social structures, a theory that accounts for this discrepancy is proposed. This theory suggests that people impose...
Cited By186
Published on 2019in Psychological Reports1.02
Jun Yang (UNCG: University of North Carolina at Greensboro), Chao Liu (PKU: Peking University)+ 1 AuthorsQinghong Zhang (Beijing Wuzi University)
We examined the interaction between motivation (political will) and gender in affecting employees’ embeddedness of advice network. We found, for males, these with high political will have higher ou...
Published on Jul 1, 2019in Journal of Business Research4.03
Hendrik Leendert Aalbers3
Estimated H-index: 3
(Radboud University Nijmegen),
Wilfred Dolfsma1
Estimated H-index: 1
(WUR: Wageningen University and Research Centre)
Abstract Based on a unique before-and-after research design for a study of a large financial services provider, this paper demonstrates how a sudden and substantial reduction in the number of formal positions affects an organization's voluntary ideation network in unexpected ways. The network of relations maintained to voluntarily (informally) exchange new ideas within a firm is more resilient to exogenous restructuring than the current literature suggests. Drawing on network theory, we show tha...
Published on May 1, 2019in Journal of Management9.06
Matthias Brauer9
Estimated H-index: 9
(UMA: University of Mannheim),
Martin Zimmermann1
Estimated H-index: 1
(UMA: University of Mannheim)
Building on behavioral decision-making theory, we study the extent to which current industry downsizing intensity, changes in future macroeconomic outlook, and a firm’s past performance trend influence the relationship between downsizing magnitude and investor response. Based on the analysis of a large-scale sample of downsizing announcements in the United States over a period of 12 years, our results indicate that negative investor responses to downsizings are amplified in periods of industry d...
Published on Mar 4, 2019in Journal of Management Development
Mohamed Mousa (Cardiff Metropolitan University), Rami M. Ayoubi5
Estimated H-index: 5
(Cardiff Metropolitan University)
Purpose The purpose of this paper is to focus on three Egyptian public business schools in an attempt to explore the effect of inclusive/exclusive talent management on the organizational downsizing of academics and the mediating role of responsible leadership. Design/methodology/approach A total of 330 academics were contacted and given a set of questionnaires. After three follow-ups, a total of 240 responses were collected with a response rate of 72.73 percent. Multiple regressions were employe...
Published on Nov 1, 2018in Long Range Planning3.36
Rick Aalbers7
Estimated H-index: 7
(Radboud University Nijmegen)
Abstract Drawing on the literature on structural embeddedness and self-determination, I assess the impact of the sudden loss of discretionary maintained ties on the aptitude to establish new discretionary ties. I propose that an individual's relational and global structural embeddedness predict the creation of new discretionary ties. The results, based on a natural event study observing a voluntary network for ideation over time at a leading information technology service provider, confirm these...
Published on Feb 2, 2017
Dalam proses penggabungan perusahaan dihadapkan pada beberapa tantangan yang berat. Kepuasan kerja karyawan yang meningkat dan komitmen kerja yang tinggi diperlukan agar proses penggabungan perusahaan berjalan sukses dan lancar. Isu strategis dalam proses perubahan organisasi akan berkaitan erat dengan perilaku karyawannya Tujuan penelitian ini adalah untuk menguji dan menganalisis pengaruh positif signifikan: (1) keterlibatan kerja terhadap kepuasan kerja, (2) keterlibatan kerja terhadap komitm...
José David Vicente Lorente5
Estimated H-index: 5
(University of Salamanca),
José Angel Zúñiga Vicente8
Estimated H-index: 8
(URJC: King Juan Carlos University)
AbstractThis study explores an empirically untested issue: the relationship between the level of a firm’s R&D intensity and employee downsizing. Basing our conceptual development on the Resource-Based View of the firm, we argue that a linear relationship is a poor approximation of the proposed relationship. Instead, we find theoretical insights supporting the logic that employee downsizing decreases as firms shift from low to moderate levels of R&D intensity but increases as firms change from mo...
Published on Jul 26, 2018in Public Organization Review
Genevieve Graaf1
Estimated H-index: 1
(University of California, Berkeley),
Evelyn Hengeveld-Bidmon1
Estimated H-index: 1
(University of California, Berkeley)
+ 2 AuthorsMichael J. Austin24
Estimated H-index: 24
(University of California, Berkeley)
Budget cuts in public sector organizations create additional strain for employees, often contributing to uncertainty, rumors, and low morale. This study examines the dynamics of communicating about organizational changes in public human service organizations during the cutbacks of the Great Recession from 2008 to 2013. Drawing from in-depth interviews of 45 senior managers in eleven San Francisco Bay Area county public human service agencies, the findings focus on perceived employee responses to...
Dimitrios Hatjidis1
Estimated H-index: 1
(American University of Kuwait),
Andrew Parker16
Estimated H-index: 16
(Grenoble School of Management)
ABSTRACTThis study examines whether the quality of an employee's relationships, within the context of the hotel industry, has an influence on their behavioral intention towards organizational change. The researchers suggest that the quality of relationships is an important element of an individual's social capital and can be evaluated using five key dimensions: the extent to which relationships are tangible, responsive and reliable, as well as the extent to which they offer empathy and assurance...
Published on Jun 1, 2018
Volker G. Kuppelwieser9
Estimated H-index: 9
(NEOMA Business School),
Phil Klaus (International University of Monaco)+ 1 AuthorsAikaterini Manthiou7
Estimated H-index: 7
(NEOMA Business School)
Fairness is widely considered a key driver of human behavior. Organizational behavior (OB) research focuses on fairness as an employee attitude driver. Marketing research highlights fairness perceptions as a key determinant of both purchase intentions and purchase behavior. Yet, to our best knowledge, no explicit attempt has been made to bridge the two phenomena. Using deductive reasoning and delineation methods, we posit that, through the diffusion of customer experience, value perception, atti...