Stress-related outcomes of organizational downsizing

The purpose of this systematic review was to identify and examine the 21st century literature on stress-related outcomes of downsizing. Our objective was to answer the research question: What are the stress-related outcomes of downsizing in the workplace? A transparent method of identifying literature was undertaken and a selection of 33 articles met the criteria for inclusion. As the topic is multidisciplinary, the authors captured articles from three complementary and comprehensive databases. As such, diverse and distinct viewpoints were found. Further, the authors interpreted the articles independently and then deliberated their findings together, adding to the richness of the findings. The findings indicate devastating effects on victims and survivors of downsizing. Mental and physical health issues abound; increased workload and decreased work commitment are pervasive. Further, evidence discussed in related literature has indicated that positive financial outcomes for organizations are negligible. Conclusions of the present review are that options to financial woes exist and should be considered prior to downsizing. Instead of permanently downsizing positions, organizations can cut salary expenses by instituting a hiring freeze, cutting overtime or reducing the hours of work. Other options include encouraging or instituting time off or shutting down operations temporarily or offering exit incentives. If deemed necessary to institute downsizing, corporate leaders should adopt an action plan to communicate the situation to employees as soon as possible and as fully as possible in order to curtail the devastation