Why doesn’t downsizing tend to work? One reason revolves around the organizational
commitment levels of the so-called “survivors.” The employees who remain in the organization
after a downsizing are often stricken with “survivor syndrome,” characterized by
anger, depression, fear, distrust, and guilt. 101 One study found that downsizing survivors
actually experienced more work-related stress than did the downsizing victims who went
on to find new employment. 102 Survivor syndrome tends to reduce organizational commitment
levels at the worst possible time, as downsizing survivors are often asked to work
extra hard to compensate for their lost colleagues.
The change in employee–employer relationships brought about by a generation of
downsizing makes it more challenging to retain valued employees. The most obvious challenge
is finding a way to maintain affective commitment. The negative emotions aroused
by survivor syndrome likely reduce emotional attachment to the organization. Moreover,
if the downsizing has caused the loss of key figures in an employee’s social network, then
his or her desire to stay will be harmed. However, a second challenge is to find some way
to maintain normative commitment. The sense that people should stay with their employer
may have been eroded by downsizing, with personal work philosophies now focusing on
maximizing marketability for the next opportunity that comes along. Even if an employee
felt obligated to remain at a firm in the past, seeing colleagues get dismissed in a downsizing
effort could change that belief rather quickly