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Reactions of Older Employees to Organizational Downsizing

The Role of Gender, Job Level, and Time

^a Management and Labour Studies Faculty of Business Administration, University of Windsor, Ontario, Canada

Marjorie Armstrong-Stassen, Management and Labour Studies Faculty of Business Administration, University of Windsor, Windsor, Ontario N9B 3P4 Canada E-mail: mas{at}uwindsor.ca.

Decision Editor: Toni C. Antonucci, PhD

Abstract

This panel study examined the reactions of 187 federal government employees aged 45 and older during the initial phase of a large-scale downsizing and 20 months later. There were few significant differences in the reactions of older men and women. Respondents in management positions reported significantly more positive attitudes toward their job and the organization than did respondents in nonmanagement jobs. Compared with the initial phase of the downsizing, respondents reported a significant decrease in commitment to the organization 20 months later. For the two dimensions of job insecurity, perceived threat of job loss decreased, whereas sense of powerlessness over decisions affecting the future of one's job increased. A major area of concern for management is the low level of organizational trust and morale reported by the respondents at both time periods.