Peer-Reviewed Open Access Journal

DIAS Technology Review

The Institute has a unique distinction of publishing a bi-annual International journal DIAS Technology Review – The International Journal for Business and IT. The Editorial Board comprises of...

ISSN: 2231-2498 Quarterly English Since 2011
Current Issue

Vol. 16 No. 1 (2019)

Articles 31th Edition of DTR Apr 2019 – Sep 2019

Organizational Retrenchment & Downsizing Strategy: Panacea orPain

Authors

Assistant Professor (Senior) , Delhi Institute of Advanced Studies Delhi, Rohini, India

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Published 2026-04-04
Abstract

The business world is enduring change of myriad forms, almost every minute of the day. As the competition is amplifying at domestic as well as global level, each industry or business is confronting with obstacles and ambiguity at every juncture. Modern organizations are striving hard in deciphering how to manage the change within internal or external environment appropriately. Disruptive strategic changes are being opted and implemented by the organizations as a norm today, to get a compatible internal architecture and gear up their performance. The present study quizzes whether retrenchment ad downsizing is a right strategy for achieving organizational goals in Information Technology industry in India2An empirical investigation has been attempted to find out how recurrent lay-offs in IT organizations in India are influencing their financial performance as well as employees' performance. The financial performance has been probed with financial ratios namely ROA and ROS. With the help of Exploratory Factor analysis technique, the factors representing employee citizenship behavior and performance have been recognized and a correlational study has been made amongst these factors.

Keywords
Disruptive strategic changes, retrenchment, downsizing, recurrent lay-offs, organizational citizenship behavior
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