Managerial Responses to Challenges Facing Survivors of Downsizing: a Survey of Manufacturing Firms in Nairobi
Abstract
Many organisations are going through massive shifts as they face the new global
environment and in an attempt to remain competitive in an cver-increasing global
marketplace, firms see few alternatives to downsizing. This is where the logic of lean
organisations breaks down. In lough times people issues often take a back scat to more
pressing problems. Organisational needs take priority over employee needs every time.
However, it is not tenable in the long term simply to expect higher outputs from people in
terms of performance with fewer inputs in terms of resources, people, training, time and
support. Many organisations arc waking up to the need to address issues of employee
motivation, but managers often express a sense of impotence about how to deal with
them. Several studies have shown some of the challenges survivors lace as being low
morale, low employment commitment and concern about job security. It is with this kind
of scenario that the study set out to determine how Kenyan firms from the manufacturing
scctor have responded to challenges faced by survivors of downsizing and also establish
how survivors of downsizing perceive actions taken by their employers to deal with the
challenges they faced.
A survey of 30 firms was used for this study and the data was obtained through the use of
a structured questionnaire. The questionnaire was then distributed to the Human Resource
Managers or anyone in charge of the IIR function and two employees in each firm. Over
80% of the firms that responded used several responses in trying to deal with the
challenges that employees faced after downsizing. 36% of the firms had survivors
participate in decision making. 59% of the firms used effective communication to refocus
employees. 32% of the firms were able to compensate their employees equitably and
share the burden of downsizing across all levels of the organisations and 56% of the firms
empowered their employees to enhance personal control. On the other hand all
employees agreed to having experienced challenges to various degrees. 44% of
employees experienced low morale. 45% of them experienced job dissatisfaction. 49% of
them lacked the confidence to take on new responsibilities and 42% of them had intended
to leave the organisation, indicating that any downsizing proccss always leaves
employees with different experiences.
Both management and survivors of downsizing were in agreement with regard to the
need lor management to use strategies thai would largely be perceived positively by
employees and sustain the organisation long after the immediate effects of downsizing
arc experienced. It is important that organisations involve all interested stakeholders as it
makes major decisions on such sensitive issues like downsizing. This ensures that
employees own the process and help the organisation move forward with its future plans.
If leaner organisations and Hatter structures are here to stay, the challenge is to make
them work from the point of view of meeting employee needs, so that in turn
organisational needs arc met.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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