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Downsizing Effects on Survivors: Layoffs, Offshoring, and Outsourcing

Authors

  • CARL P. MAERTZ JR,

  • JACK W. WILEY,

  • CYNTHIA LeROUGE,

  • MICHAEL A. CAMPION

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       The authors’ affiliations are, respectively, Department of Management, John Cook School of Business, Saint Louis University; Kenexa Research Institute; Decision Sciences/IT Management Department, John Cook School of Business and Health Care Management and Policy – School of Public Health, Saint Louis University; Krannert Graduate School of Management, Purdue University. E-mail: maertzcp@slu.edu.


Abstract

In a representative sample of 13,683 U.S. employees, we compared survivors of layoffs, offshoring, outsourcing, and their combinations to a group who experienced no downsizing. Survivors of layoffs perceived lower organizational performance, job security, affective attachment, calculative attachment, and had higher turnover intentions. Offshoring survivors perceived lower performance, fairness, and affective attachment, but outsourcing survivors generally did not have more negative outcomes than the no-downsizing group. Layoffs generally had more negative outcomes than other downsizing forms.

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