Impact of Downsizing on Employee Commitment and turnover intentions in Public and Private Sector: Moderating role of social support

Authors

  • Naveed Iqbal Chaudhry Assistant Professor at University of the Punjab, Gujranwala
  • Irfana Shah Assistant Professor, Department of Psychology at University of Sindh, Jamshoro
  • Hakim Ali Mahesar Assistant Professor, Institute of Commerce at University of Sindh, Jamshoro
  • Usman Tariq M.Phil. Scholar at Quaid-e-Azam University, Islamabad

DOI:

https://doi.org/10.31384/jisrmsse/2015.13.2.3

Keywords:

Downsizing, Employee Commitment, Turnover intentions, Social support

Abstract

Due to economic crisis, organizations all over the world are adopting a number of different schemes to handle emerging problems. Downsizing or retrenchment of employees is frequently used by organizations when they face hardships at the marketplace. Under these circumstances, lack of commitment is the most crucial counter action which organizations have to face. This study intends to examine the impact of downsizing on organizational commitment and turnover intentions of surviving employees in the moderating role of social support. The target audience for this study was four public and private sector organizations located in Islamabad. The sample size consisted of 333 employees of upper and middle level management which were selected through simple random sampling. The result shows that downsizing is positively related to employee turnover intention and has significant negative impact on employee commitment. However, social support as a moderator enhanced employee commitment. This study will help the managers to comprehend when and how to apply downsizing so as not to harm the employee’s commitment. The study will further assist managers to implement downsizing and social support to achieve the objectives.

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Published

2015-12-31

How to Cite

Chaudhry, N. I., Shah, I., Mahesar, H. A., & Tariq, U. (2015). Impact of Downsizing on Employee Commitment and turnover intentions in Public and Private Sector: Moderating role of social support. JISR Management and Social Sciences & Economics, 13(2), 35–47. https://doi.org/10.31384/jisrmsse/2015.13.2.3

Issue

Section

Original Articles