Downsizing and the Organizational Performance: A Case Study from Stakeholders’ Perspectives

Rasha Odeh (Birzeit University, Palestine) and Samah Abu-Assab (Birzeit University, Palestine)
Copyright: © 2014 |Pages: 293
EISBN13: 9781466659131|DOI: 10.4018/978-1-4666-5067-1.ch016
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This case study sheds light on the disputable organizational and behavioral management issues which occurred when one of the leading educational centers in the West Bank in Palestine began a process of downsizing. The case explores in a comprehensive approach the downsizing process that took place at the EDU-X Center in 2011 and its impact on the stakeholders of the organization before, during, and after one and a half years of the downsizing. The opinions, arguments, and reasons of top management’s decision to downsize are presented as well as the opinions, arguments, and despair of the employees who survived, were laid off, or resigned. Based on the comprehensive model by Kammeyer-Mueller, Liao, and Arvey (2001), the case shows that the downsizing decision at EDU-X was inevitable and turned out to be the right decision. In conclusion, a number of recommendations are proposed to lessen the undesirable effects of the downsizing process for all stakeholders.
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