Correlation Between Survivor Responses to Downsizing and Organizational Commitment

Abstract

One of the most prevalent organizational change strategies used around the world is organizational downsizing. Organizational downsizing has been believed to successfully increase organizational productivity, improve organizational competitiveness, and reduce organizational costs. Amidst all the said positive and negative effects of organizational downsizing, several literature and studies suggest the multitude of positive and negative effects of organizational downsizing to the organization’s remaining employees that seem to be related to one of the most important aspects of an employee’s organizational life: organizational commitment. Given this, the study aimed to determine the correlation between the survivors’ responses to organizational downsizing and their organizational commitment in terms of the Four Archetypes of Survivor Responses towards Organizational Downsizing by Mishra and Spreitzer (1997) and the Three Component Model of Organizational Commitment by Allen and Meyer (1991). In order to do so, the researcher conducted a survey in four (two private and two government) chosen organizations in the Philippines that have implemented downsizing. Statistics were analyzed using SPSS, and the findings revealed that each of the survivor responses towards downsizing had different, significant relationships with the three components of organizational commitment. Specifically, the two constructive responses archetypes (Hopeful and Obliging) positively correlated with Affective and Normative commitments and the two destructive responses archetypes (Fearful and Cynical) positively correlated with Continuance and Normative commitments.