Rightsizing: Is this a Right Strategy for Surviving Workforce in IT Industry?

Dr. Anju Batra

doi:10.65301/dias.2023.19.2.9

Articles 38th Edition of DTR Oct 2022 – Mar 2023

DOI 10.65301/dias.2023.19.2.9

Rightsizing: Is this a Right Strategy for Surviving Workforce in IT Industry?

Authors

DR

Dr. Anju Batra

93 Views

124 Downloads

Published 2023-03-30

Pages 63-73

Abstract

The pandemic-driven disruptions and geo-political disturbances at global level are exacerbating macroeconomic uncertainties ensuing sluggish growth for business world-wide. The information technology and information technology enabled services appeared as a savior during challenging times of COVID-19. Some crucial sectors of economy like healthcare, education, research and development, supply-chain, business, and financial sector were facilitated by technology and digitalization. The technology industry outperformed all other sectors remarkably, but in recent times this industry is trying hard to weather out the recessionary trends. Most of the IT companies are restructuring their work models and trimming workforce in the name of "rightsizing" to grapple with uneven demand, soaring costs and efficiency issues by. The current research paper makes an analysis of select IT companies, which have adopted 'rightsizing strategy' and made sizable lay-offs since past few years to achieve cost rationalization and improve organizational performance with efficiency and effectiveness. The author has opted for a descriptive cum diagnostic research design and has used both primary and secondary data to assess the impact and efficacy of rightsizing strategies on surviving employees of IT Industry with the help of statistical tools of correlation, regression, and path analysis in this study.

Keywords

Rightsizing pandemic-driven disruptions layoffs geo-political tensions Cost-rationalization restructuring performance

References

Allen, T. D., Freeman, D.M., Russell, J.E.A., Reizenstein, R.C. and Rentz, J.O. (2001). Survivor Reactions to Downsizing: Does Time Ease the Pain? Journal of Occupational and Organizational Psychology, 74(2),145-64.
Appelbaum, S.H., Simpson, R. and Shapiro, B.T. (1987). The Toughest of Organizational Downsizing. Organizational Dynamics, 16(2), 68-79.
Batra, A. B. (2017). The Influence of Organizational Downsizing on Organizational Performance. DIAS Technology Review-The International Journal of Business & IT, 13(2), 22-31.
Batra, A. B. (2017). Organizational Ebb or Tide: An Aftermath of Downsizing. International Journal of Research in Economics and Social Sciences, 7(9), 138-154.
Bhattacharyya, S. and Chatterjee, L. (2005). Organizational Downsizing: From Concepts to Practices. Vikalpa, 30(3), 65-78.
Brockner, Joel. (1988). Managing the Effects of Layoffs on Survivors. California Management Review, 34(2). https://doi.org/10.2307/41166691
Bruton, G.D., Keels, J.K. and Shook, C.L. (1996). Downsizing the Firm: Answering the Strategic Questions. Academy of Management Executive, 10(2), 38-45.
Cameron, K. S. (1986). Effectiveness as paradox: consensus and conflict in conceptions of organizational effectiveness. Management Science, 32(5), 539-553.
Carswell, P.J. (2005). The Financial Impact of Organizational Downsizing Practices—The New Zealand Experience. Asia Pacific Journal of Management, 22(1), 56-78.
Cascio, W.F. (1993). Downsizing: What Do We Know? What Have We Learned? Academy of Management Executive, 7(1), 95-104.
DeMeuse, K.P., Bergmann, T.J., Vanderheiden, P.A. and Roraff, C.E. (2004). New Evidence Regarding Organizational Downsizing and A Firm’s Financial Performance - Long-Term Analysis. Journal of Applied Business Research, 16(4), 63-72.
Gandolfi, F., & Hansson, M. (2010). Causes and Consequences of Downsizing: Towards an Integrative Framework. Journal of Management & Organization, 17(4), 498-521.
Labib, N., & Applebaum, S. H. (2022). The Impact of Downsizing Practices on Corporate Success. Journal of Management Development, 11(7), 50-84.
Le Pine, J.A., Hanson, M.A., Borman, W.C., & Motowidlo, S.J. (2000). Contextual performance and teamwork: Implications for teamwork. Research in Personnel and Human Resources Management, 19, 53-90.
MacKenzie, S.B., Podsakoff, P. M., & Fetter, R. (1993). The impact of organizational citizenship behavior on the evaluations of salesperson performance. Journal of Marketing, 57, 70-80.
Marques, T. (2014). Surviving downsizing and innovative behaviors: a matter of organizational commitment. International Journal of Manpower, 35(7), 930-955.
Mishra, J. (2021). Rightsizing in an Organization: With special reference to current Covid-19 and post Covid-19 Scenario. International Journal of Law, Management and Humanity, 4(3), 2689.
Organ, D.W., & Ryan, K. (1995). A meta-analytic review of attitudinal and dispositional predictors of organizational citizenship behavior. Personnel Psychology, 775-780.
Podsakoff, P. M., & MacKenzie, S. B. (1997). Impact of organizational citizenship behavior on organizational performance: A review and suggestions for future research. Human Performance, 10, 133-151.
Podsakoff, P. M., MacKenzie, S. B., Paine, J. B, & Bachrach, D. G. (2000). Organizational citizenship behaviors: A critical review of the theoretical and empirical literature and suggestions for future research. Journal of Management, 26(3), 513-563.
Shivangi, S. (2021). Rightsizing and Downsizing. Economics Discussion.
Slaughter, Q. (2020). Right-Sizing the Workforce for a New Reality. Visier Inc.
Van Scotter, J.R., Motowidlo, S.J., & Cross, T.C. (2000). Effects of task and contextual performance on systematic rewards. Journal of Applied Psychology, 85(4), 526-535.
Williams, Larry J., & Stella E. Anderson (1991). Job satisfaction and organizational commitment as predictors of organizational citizenship and in-role behavior. Journal of Management, 17.

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Dr. Anju Batra . (2023). Rightsizing: Is this a Right Strategy for Surviving Workforce in IT Industry?. DIAS Technology Review, 19(2), 63-73.

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[1] Allen, T. D., Freeman, D.M., Russell, J.E.A., Reizenstein, R.C. and Rentz, J.O. (2001). Survivor Reactions to Downsizing: Does Time Ease the Pain? Journal of Occupational and Organizational Psychology, 74(2),145-64.

[2] Appelbaum, S.H., Simpson, R. and Shapiro, B.T. (1987). The Toughest of Organizational Downsizing. Organizational Dynamics, 16(2), 68-79.

[3] Batra, A. B. (2017). The Influence of Organizational Downsizing on Organizational Performance. DIAS Technology Review-The International Journal of Business & IT, 13(2), 22-31.

[4] Batra, A. B. (2017). Organizational Ebb or Tide: An Aftermath of Downsizing. International Journal of Research in Economics and Social Sciences, 7(9), 138-154.

[5] Bhattacharyya, S. and Chatterjee, L. (2005). Organizational Downsizing: From Concepts to Practices. Vikalpa, 30(3), 65-78.

[6] Brockner, Joel. (1988). Managing the Effects of Layoffs on Survivors. California Management Review, 34(2). https://doi.org/10.2307/41166691

[7] Bruton, G.D., Keels, J.K. and Shook, C.L. (1996). Downsizing the Firm: Answering the Strategic Questions. Academy of Management Executive, 10(2), 38-45.

[8] Cameron, K. S. (1986). Effectiveness as paradox: consensus and conflict in conceptions of organizational effectiveness. Management Science, 32(5), 539-553.

[9] Carswell, P.J. (2005). The Financial Impact of Organizational Downsizing Practices—The New Zealand Experience. Asia Pacific Journal of Management, 22(1), 56-78.

[10] Cascio, W.F. (1993). Downsizing: What Do We Know? What Have We Learned? Academy of Management Executive, 7(1), 95-104.

[11] DeMeuse, K.P., Bergmann, T.J., Vanderheiden, P.A. and Roraff, C.E. (2004). New Evidence Regarding Organizational Downsizing and A Firm’s Financial Performance - Long-Term Analysis. Journal of Applied Business Research, 16(4), 63-72.

[12] Gandolfi, F., & Hansson, M. (2010). Causes and Consequences of Downsizing: Towards an Integrative Framework. Journal of Management & Organization, 17(4), 498-521.

[13] Labib, N., & Applebaum, S. H. (2022). The Impact of Downsizing Practices on Corporate Success. Journal of Management Development, 11(7), 50-84.

[14] Le Pine, J.A., Hanson, M.A., Borman, W.C., & Motowidlo, S.J. (2000). Contextual performance and teamwork: Implications for teamwork. Research in Personnel and Human Resources Management, 19, 53-90.

[15] MacKenzie, S.B., Podsakoff, P. M., & Fetter, R. (1993). The impact of organizational citizenship behavior on the evaluations of salesperson performance. Journal of Marketing, 57, 70-80.

[16] Marques, T. (2014). Surviving downsizing and innovative behaviors: a matter of organizational commitment. International Journal of Manpower, 35(7), 930-955.

[17] Mishra, J. (2021). Rightsizing in an Organization: With special reference to current Covid-19 and post Covid-19 Scenario. International Journal of Law, Management and Humanity, 4(3), 2689.

[18] Organ, D.W., & Ryan, K. (1995). A meta-analytic review of attitudinal and dispositional predictors of organizational citizenship behavior. Personnel Psychology, 775-780.

[19] Podsakoff, P. M., & MacKenzie, S. B. (1997). Impact of organizational citizenship behavior on organizational performance: A review and suggestions for future research. Human Performance, 10, 133-151.

[20] Podsakoff, P. M., MacKenzie, S. B., Paine, J. B, & Bachrach, D. G. (2000). Organizational citizenship behaviors: A critical review of the theoretical and empirical literature and suggestions for future research. Journal of Management, 26(3), 513-563.

[21] Shivangi, S. (2021). Rightsizing and Downsizing. Economics Discussion.

[22] Slaughter, Q. (2020). Right-Sizing the Workforce for a New Reality. Visier Inc.

[23] Van Scotter, J.R., Motowidlo, S.J., & Cross, T.C. (2000). Effects of task and contextual performance on systematic rewards. Journal of Applied Psychology, 85(4), 526-535.

[24] Williams, Larry J., & Stella E. Anderson (1991). Job satisfaction and organizational commitment as predictors of organizational citizenship and in-role behavior. Journal of Management, 17.