Evaluation of the level of organizational commitment after downsizing : a case study of an international air carrier

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Evaluation of the level of organizational commitment after downsizing : a case study of an international air carrier


Author: Lee, Ho-kei
Title: Evaluation of the level of organizational commitment after downsizing : a case study of an international air carrier
Degree: M.B.A.
Year: 1999
Subject: Cathay Pacific Airways
Airlines -- China -- Hong Kong -- Case studies
Organizational commitment -- China -- Hong Kong -- Case studies
Organizational behavior -- China -- Hong Kong -- Case studies
Downsizing of organizations -- China -- Hong Kong -- Case studies
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Management
Pages: v, 59, [4] leaves : ill. (some col.) ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1479877
URI: http://theses.lib.polyu.edu.hk/handle/200/600
Abstract: The Asian financial crisis in late 1997 caused the burst of the economic bubble in most of the Asian countries including Hong Kong and the sudden decline of the Hong Kong economy triggered the wave of redundancy in many organizations. As more and more organization announced their redundancy plan, study of the negative impacts brought by organization restructuring become more popular in the research of organizational behaviour. Cathay Pacific Airways ("CPA"), the well-established international air carrier in Hong Kong, announced its historical redundancy plan in January 1998 which involved a layoff of 760 staff. As the airline industry is highly competitive and the margin is comparatively leaner than other services industry, how to maintain the organizational effectiveness which depending on the performance of the remaining staff ("Survivors") became a critical agenda of the CPA management. This study aimed to assess the post-layoff organizational commitment level of CPA staff. In addition to the analysis between organizational commitment and those common independent factors such as age, gender etc., this study try to link the three-component conceptualization of organizational commitment to the concept of individual learning capacity and attitudes through the Response Factor Model constructed by Noer (1997). Furthermore, they study also aimed to assess the turnover intent existed in CPA after the redundancy. The results revealed the average organizational commitment in CPA was low, in particular for the normative component. However, no relationship was shown between both the capacity and readiness for change and organizational commitment. Furthermore, the turnover intent was quite high as the average period which staff would like to stay only slightly over two years. The limitations of measuring change capacity and readiness, together with the reason of only one organization being study, the result was incapable to make any generalization. However, this study served as an initial start of linking organizational commitment with the growing concepts of learning organization and individual.

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