Staff Restructuring: Old Methods, New Challenges

Staff Restructuring: Old Methods, New Challenges

Enrique Claver-Cortés (University of Alicante, Alicante, Spain) and José Antonio Fernández-Sánchez (University of Alicante, Alicante, Spain)
Copyright: © 2017 |Pages: 18
DOI: 10.4018/IJIDE.2017010101
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Abstract

The number of staff restructuring processes has considerably increased worldwide in recent years, and their effects are increasingly dramatic. Furthermore, the global economic context is becoming more and more turbulent. All this poses a series of new challenges for firms that they will only be able to face if they utilize the traditional tools which are available to them. However, the research works about staff restructuring processes offer highly disparate results with regard to the effects of the methods used. This is precisely the reason which led us to focus the present work on analyzing those ‘old methods' applied to restructuring with the aim of checking how they could be successfully utilized to cope with the ‘new challenges' arising from this new economic context.
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2. The Staff Restructuring Process: Definition And Contextualization

The authors dealing with this topic have generally found that the effects caused by staff restructuring on business activity are not good. However, these negative data may be influenced by other factors (Guthrie and Datta, 2008) that mask or confuse the actual outcome of restructuring. As explained by these authors, staff restructuring processes lead to different results in different situations.

Precisely this was proved in the thorough analyses performed by McMahan, Pandey and Martinson (2012) and by De Mouse and Dai (2013), which bring together the outcomes of numerous empirical works where researchers have identified positive effects, negative effects, and no effects whatsoever.

Two studies can be mentioned as illustrative of these different results being obtained in various situations (Fernández Sánchez, 2006; and Fernández and Manresa, 2012) which precisely confirmed that for firms located in Spain during the periods 2003-2005 and 2008-2010. Results improved with any of type of restructuring, regardless of whether they were measured subjectively (according to managers’ opinions) or objectively (based on the economic data corresponding to organizations). Nevertheless, another study in the same field –though referring to the period 1995-2001– identified negative results (Muñoz-Bullon and Sánchez-Bueno, 2010).

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