Leadership

How Does Leadership Style Enhance The Effect Of Responsible Downsizing Strategy On Firm Post-Downsizing Performance?

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Executive Summary

For coping with rapid changes in the business environment, firms use different strategies to create competitive advantages for survival or improve performance. Organizational downsizing is a strategy quite often used by firms, especially with the current world-wide economic recession. But after organizational downsizing, not only firm performance cannot be surly improved but also harm thousands of employees, their families and even caused social issues. In order to mitigate or solve this important issue, some scholars in the organization change field suggest that a responsible downsizing strategy could improve firm performance and also keep the hurt experienced by employees to a minimum.

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