While downsizing holds to potential to create outcomes (higher profits) that will please stockholders, downsizing almost always is perceived as creating adverse outcomes for employees. Employees either are downsized out of a job, or surviving employees are forced to assume greater organizational responsibilities. When downsizing does cause operations to become more productive, such productivity improvement is attained at the expense of an often extensive reorganization and employee discontent.Bilts, J. H., and Gottfredson, L. S. "Equality or Lasting Inequality?" Transaction Social Science and Modern Society 27 (1990), 4-11. Studies also have found that stress is often higher among blue-collar workers than among managerial personnel. Job level, associated with job status, was found to be tied to self-esteem. Lower self-esteem was associated with higher levels of stress and lower levels of employee morale. Even on the job, job underload creates as much stress as does job overload. Job underload means that an individual is not challenged in his or her work, and may be subject to periods of boredom, or fatigue stemming from boredom. Job underload was found to create higher levels of anxiety, depression, and physical illness than did job overload. |
