IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i11p943-953.html
   My bibliography  Save this article

Impact of Organizational Downsizing on Psychosocial Wellbeing of Employees

Author

Listed:
  • Palmer Ilabor Ikechukwu CMIOSH

    (Member American Society of Safety Professionals (ASSP) Chartered Member Institute of Occupational Safety and Health (CMIOSH) MSc. Health, Safety and Risk Management)

Abstract

Generally, organization downsizing does not happen by fiat and it has its impact on the organizational employees. Hence, this review seeks to understand the impact of organizational downsizing on psychosocial wellbeing of employees. The review analyzes psychosocial wellbeing of employees, which encapsulate psychological and social wellbeing. The study found that organizational downsizing on employees’ mental health, distress, anxiety, employees’ burnout, despair, stress, depressive symptoms, deterioration in work conditions, and risk of depression. The study also showed that drugs used by employees downsized by organizations, which include antidepressants, hypnotics/sedatives, anxiolytics, opioid, alcohol, and antipsychotics. The findings demonstrated that the influence of organizational downsizing on employees’ social wellbeing include social reputation, social structure, social capital, and social identity. The results indicated that socially responsible downsizing is essential to ensure ethical downsizing. Meanwhile, results showed that psychosocial resilience strategies adopted by employees include psychological resilience, social service, training, increased attention to employees’ craft, communication, employee-centered approach, organizational capabilities, problem-focused coping strategies, emotion-focused coping strategies, systemic change strategies, and special leave assistant programs. It was recommended that organizations should be socially responsible in carrying out downsizing in order to mitigate the negative effects on the psychosocial wellbeing of employees.

Suggested Citation

  • Palmer Ilabor Ikechukwu CMIOSH, 2024. "Impact of Organizational Downsizing on Psychosocial Wellbeing of Employees," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(11), pages 943-953, November.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:11:p:943-953
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-11/943-953.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/impact-of-organizational-downsizing-on-psychosocial-wellbeing-of-employees/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rosanne Freak-Poli & Claryn S J Kung & Joanne Ryan & Michael A Shields, 2022. "Social Isolation, Social Support, and Loneliness Profiles Before and After Spousal Death and the Buffering Role of Financial Resources," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 77(5), pages 956-971.
    2. Alexander Ahammer & Dominik Grübl & Rudolf Winter-Ebmer, 2020. "The health externalities of downsizing," CDL Aging, Health, Labor working papers 2020-05, The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria.
    3. Michael R. Frone & Ann-Renee Blais, 2020. "Organizational Downsizing, Work Conditions, and Employee Outcomes: Identifying Targets for Workplace Intervention among Survivors," IJERPH, MDPI, vol. 17(3), pages 1-22, January.
    4. Eve Caroli & Mathilde Godard, 2016. "Does job insecurity deteriorate health?," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 131-147, February.
    5. Haobin Fan & Xuanyi Nie, 2020. "Impacts of Layoffs and Government Assistance on Mental Health during COVID-19: An Evidence-Based Study of the United States," Sustainability, MDPI, vol. 12(18), pages 1-23, September.
    6. Franco GANDOLFI & Magnus HANSSON, 2015. "A Global Perspective on the Non-Financial Consequences of Downsizing," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 185-204, May.
    7. Devika Narayan, 2023. "Manufacturing Managerial Compliance: How Firms Align Managers with Corporate Interest," Work, Employment & Society, British Sociological Association, vol. 37(6), pages 1443-1461, December.
    8. Danijela Godinic & Bojan Obrenovic & Akmal Khudaykulov, 2020. "Effects of Economic Uncertainty on Mental Health in the COVID-19 Pandemic Context: Social Identity Disturbance, Job Uncertainty and Psychological Well-Being Model," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 6(1), pages 61-74, April.
    9. Zorn, Michelle L. & Norman, Patricia M. & Butler, Frank C. & Bhussar, Manjot S., 2017. "Cure or curse: Does downsizing increase the likelihood of bankruptcy?," Journal of Business Research, Elsevier, vol. 76(C), pages 24-33.
    10. Emmanuelle Negre & Marie-Anne Verdier & Charles H. Cho & Dennis Patten, 2017. "Disclosure strategies and investor reactions to downsizing announcements: A legitimacy perspective," Post-Print halshs-01698634, HAL.
    11. repec:hal:pseose:halshs-01311366 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Sihong & Zalewski, Maureen & Lengua, Liliana & Gunnar, Megan R. & Giuliani, Nicole & Fisher, Philip A., 2022. "Material hardship level and unpredictability in relation to U.S. households’ family interactions and emotional well-being: Insights from the COVID-19 pandemic," Social Science & Medicine, Elsevier, vol. 307(C).
    2. Adrian Chadi & Laszlo Goerke, 2023. "Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership," Economica, London School of Economics and Political Science, vol. 90(359), pages 1041-1088, July.
    3. Thomas Barnay, 2016. "Health, work and working conditions: a review of the European economic literature," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(6), pages 693-709, July.
    4. Clémentine Garrouste & Mathilde Godard, 2016. "The lasting health impact of leaving school in a bad economy : Britons in the 1970s recession," Post-Print hal-01408637, HAL.
    5. Boratyńska, Katarzyna & Grzegorzewska, Emilia, 2018. "Bankruptcy prediction in the agribusiness sector: Lessons from quantitative and qualitative approaches," Journal of Business Research, Elsevier, vol. 89(C), pages 175-181.
    6. Johanna Pangeiko Nautwima & Asa Romeo Asa, 2021. "The Relationship Between Inflation and Unemployment in Namibia Within the Framework of the Phillips Curve," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 7(5), pages 7-16, December.
    7. Colombo, Emilio & Rotondi, Valentina & Stanca, Luca, 2018. "Macroeconomic conditions and health: Inspecting the transmission mechanism," Economics & Human Biology, Elsevier, vol. 28(C), pages 29-37.
    8. Vivien Lefebvre, 2024. "Layoffs in SMEs: The Role of Social Proximity," Journal of Business Ethics, Springer, vol. 190(4), pages 801-820, April.
    9. Rohde, Nicholas & Tang, K.K. & Osberg, Lars & Rao, Prasada, 2016. "The effect of economic insecurity on mental health: Recent evidence from Australian panel data," Social Science & Medicine, Elsevier, vol. 151(C), pages 250-258.
    10. Rui Yao & Weipeng Wu, 2022. "Mental Disorders Associated with COVID-19 Related Unemployment," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 949-970, April.
    11. Fiona Köster & Oliver Lipps, 2024. "How loneliness increased among different age groups during COVID-19: a longitudinal analysis," European Journal of Ageing, Springer, vol. 21(1), pages 1-12, December.
    12. Ionela Andreicovici & Nava Cohen & Silvia Ferramosca & Alessandro Ghio, 2021. "Two Wrongs Make a ‘Right’? Exploring the Ethical Calculus of Earnings Management Before Large Labor Dismissals," Journal of Business Ethics, Springer, vol. 172(2), pages 379-405, August.
    13. Thomas Barnay & François-Olivier Baudot, 2023. "Work accident effect on the use of psychotropic drugs: the case of benzodiazepines," Health Economics Review, Springer, vol. 13(1), pages 1-12, December.
    14. Tajana Guberina & Ai Min Wang, 2021. "Entrepreneurial Leadership Impact on Job security and Psychological Well-being during the COVID-19 Pandemic: A conceptual review," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 6(6), pages 7-18, February.
    15. Andrea Bassanini & Federico Cingano, 2019. "Before It Gets Better: The Short-Term Employment Costs of Regulatory Reforms," ILR Review, Cornell University, ILR School, vol. 72(1), pages 127-157, January.
    16. Abdou, Rawayda & Cassells, Damien & Berrill, Jenny & Hanly, Jim, 2020. "An empirical investigation of the relationship between business performance and suicide in the US," Social Science & Medicine, Elsevier, vol. 264(C).
    17. Andrew E. Clark & Anthony Lepinteur, 2022. "A Natural Experiment on Job Insecurity and Fertility in France," The Review of Economics and Statistics, MIT Press, vol. 104(2), pages 386-398, May.
    18. Barili, E. & Bertoli, P. & Grembi, V. & Rattini, V., 2021. "COVID Angels Fighting Daily Demons? Mental Health of Healthcare Workers and Religion," Health, Econometrics and Data Group (HEDG) Working Papers 21/05, HEDG, c/o Department of Economics, University of York.
    19. Bertoni, Marco & Brunello, Giorgio & Da Re, Filippo, 2023. "Pension reforms, longer working horizons and depression. Does the risk of automation matter?," Labour Economics, Elsevier, vol. 85(C).
    20. Xavier Bartoll & Joan Gil & Raul Ramos, 2018. "“Has the economic crisis worsened the work-related stress and mental health of temporary workers in Spain?”," AQR Working Papers 201808, University of Barcelona, Regional Quantitative Analysis Group, revised Oct 2018.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:11:p:943-953. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.