Survivors of downsizing in the automotive industry and how their behavior affects productivity following a workforce reduction

Downsizing has become a common practice in the automotive industry. However, there is evidence that productivity decline after the firm downsizes. This is particularly true if the organization has had a long history of downsizing. Resistance to change is a phase that is often used to explain the deterioration in productivity. The perspective of this research suggests the behaviors of survivors are also a major contributor to the decline in productivity after the organization downsizes. To test this viewpoint the research centered on a manufacturing facility that had undergone a series of downsizings within one year. Through analysis of the comments from semi-structured interviews and pre-tested questionnaires, this research uncovered some of the underlining causes for the decline in productivity after the firm downsizes. The results of this research provided an academic explanation to the deterioration in productivity that occurs after the firm downsizes.