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Downsizing survivors: The role of perceived organizational support on organizational commitment during post-downsizing era
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School.
2015 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Downsizing has been adopted as a common business strategy even though its outcomes can be negative for the remaining employees and even to the company as a whole. The remaining employees are one of the company's most valuable asset when the company tries to revitalize itself after the downsizing process. However this can be problematic, as the downsizing process can affect negatively on the organizational commitment of  the remaining employees also known as downsizing survivors. The decreased commitment can lead to survivors’ decreased performance level in their work tasks and increase their intention to leave. In order to enhance the organizational commitment level the downsizing survivors need to perceive that they are supported by their organization.There are several activities that the organization can undertake concerning the improvement of the perceived organizational support. These activities are included in the different dimension of perceived organizational support.

This Master’s thesis examined the perceived organizational support and it’s effects on organizational commitment from the following three dimensions: perceived organizational fairness, perceived supervisor support and perceived job rewards and job conditions. These different dimensions are also known as the building blocks of perceived organizational support. This research offers insights about how the different building blocks affect on the downsizing survivors’ organizational commitment.

The empirical findings of the study were gathered by conducting sixteen interviews in four different firms. The findings from the interviews supported the theoretical framework of the study, which stressed the importance of the three building blocks of perceived organizational support on one's organizational commitment. Surprisingly interviewees did not raise a significant amount of other topics which would have increased their organizational commitment level after downsizing.

Nevertheless, the findings of the study differed from the theoretical framework of the research. One of the most interesting finding was the way the survivor’s perceived the importance of the building blocks compared to one another. The last building block,job conditions and job rewards, was found to be the most important dimension. Whereas supervisor support  was perceived as very important and the perceived fairness as the least important building block regarding the organizational commitment. However the downsized organizations should evaluate their actions in all of the dimensions during and after downsizing, especially in the last two building blocks. These activities were found to have an enhancing effect on the organizational commitment: internal communication, supervisor support and job conditions. 

Place, publisher, year, edition, pages
2015.
Keyword [en]
downsizing, survivors, organizational commitment, perceived organizational support
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:hj:diva-27533ISRN: JU-IHH-FÖA-2-20150143OAI: oai:DiVA.org:hj-27533DiVA: diva2:839172
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Available from: 2015-07-20 Created: 2015-07-02 Last updated: 2015-07-20Bibliographically approved

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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
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More styles
Language
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