The impact of downsizing on organizational commitment for merchandisers in garment trading companies

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The impact of downsizing on organizational commitment for merchandisers in garment trading companies

 

Author: Wong, Tin-lok
Title: The impact of downsizing on organizational commitment for merchandisers in garment trading companies
Degree: M.Sc.
Year: 1997
Subject: Clothing trade -- China -- Hong Kong -- Employees
Downsizing of organizations -- China -- Hong Kong
Commitment (Psychology)
Hong Kong Polytechnic University -- Dissertations
Department: Multi-disciplinary Studies
Pages: vi, 57, [28] leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1403614
URI: http://theses.lib.polyu.edu.hk/handle/200/3571
Abstract: The demand for garment was slackened during the year 1994 to 1996. Companies have to struggle in order to survive. Some companies attempted to reduce their operating cost by using suppliers from other countries while others chose downsizing. This study was conducted to examine the impact of downsizing on organizational commitment and its antecedent factors among the surviving merchandisers in garment trading companies. It was found that for most merchandising companies, organizational commitment and job satisfaction of employees were decreased significantly after downsizing. Study of the changes in the antecedent factors of commitment revealed that goal difficulty and negative group attitude of employees were increased while goal clarity, management receptiveness, organizational dependability, equity and commitment norms were decreased. Even many antecedent factors have changed after downsizing, not all of them affect organizational commitment to the same extent. The current research attempts to find out what antecedent factors contribute significantly to change employee's commitment. It was found that role clarity, equity, personal importance and management receptiveness are important determinants of commitment after downsizing. By manipulating these variables, it should be possible for managers to restore employees' commitment. Although the research is not a longitudinal study, the results do help us to understand why commitment was affected and showed that most companies are unable to achieve desired cost reduction through downsizing mainly due to insufficient consideration being given to the 'people factor'. The research extents our knowledge of downsizing and its effect on organizational commitment.

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