Organizational Downsizing as a Stressor Event and Psychological Strain Among Survivors: The Role of Work Condition

Refita Nabila Yusan, Wiwiek R. Adawiyah, Najmudin Najmudin


Organizational downsizing, commonly known as workforce reduction or layoffs, has become a prevalent strategy in the modern business landscape due to various economic, technological, and competitive factors. Downsizing involves a deliberate reduction in an organization's workforce, often aimed at achieving cost efficiency, enhancing competitiveness, or adapting to changing market conditions. While downsizing may provide short-term benefits to organizations, it often creates a challenging and stressful environment for the employees who remain, leading to significant psychological strain. This paper explores the relationship between organizational downsizing and psychological strain among surviving employees, with work conditions (specifically focusing on job demands like job insecurity and job overload) as a mediator. By investigating the mediating variable, this research aims to shed light on the mechanisms through which downsizing influences psychological strain, offering insights that can guide organizations in managing downsizing processes more effectively and mitigating the negative consequences on employees. This study uses quantitative methods using descriptive analysis were data are collected through surveys distributed to employees who had experienced downsizing within the last year. These surveys included validated scales to measure psychological strain, work condition, and downsizing gain deeper insights into the subjective experiences and perceptions related to downsizing. Further details about the research findings will be elaborated in this paper. Keywords: Organization downsizing; Psychological Strain; Work Condition; Job Insecurity; Job Overload

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