UPSI Digital Repository (UDRep)
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Abstract : Universiti Pendidikan Sultan Idris |
Since the major economic turmoil in 1997 and 2008, organisational
downsizing has been relatively common in Malaysia. The Human Resource Minister
stated that 2015 recorded the highest number of corporate downsizings within a five-year
span and the number is expected to rise due to the current economic uncertainty
both globally and nationally (Mallow,2016). Given its popularity in Malaysia,
surprisingly little attention has been given on downsizing, particularly on the remaining
employees (the survivors). Downsizing often exacerbates survivor's mental and
physical health while in reality, successful downsizing depends on them, as they are
responsible for carrying forward the new organisation's objectives (Schaeffer,
2012). Predominantly, empirical studies and established frameworks on organisational
change were derived from Western societies. Malaysian culture is blatantly different,
and evidently, people's attitude, perception and receptive towards change vary by
culture (Hofstede,2001). Guided by Colquitt et al. 's (2013) organisational
justice framework, the primary aim of this study was to explore and understand
Malaysian survivors cognitions, emotions and behavioural outcomes in
relation to their personal organisational downsizing experiences.
Whereby the secondary aim of the research was to identify personal factors that may
influence survivor's responses to such experiences.
A sequential exploratory mixed-methods approach was adopted. The first
study collected qualitative data from survivors through 20 sessions of
in-depth semi-structured interviews. It aimed to examine the aims mentioned above.
Through a thematic an alysis, the results of Study 1 yi elded organisational justice
theme (as expected from the interview guide questions), together with 8 other
themes namely, psychological contract, perceived organisational support, negative
and positive emotions, locus of control, optimism, task performance, organisational
citizenship behaviour (OCB), and counterproductive work behaviour (CWB). In all, most
participants recognised the extinction of cradle to grave employment. As the
situation was perceived as something beyond the management's control, it eased
them to get onboard with the downsizing efforts. However, what le the bad taste in
their mouth was the way it was handled. Overall, the results showed (a) most
participants disappointed with the lack of elimination criteria, the absence of
participation and limited communication regarding the downsizing, (b) negative emotions
were the most common reactions,(c) as a collectivist nation, participants inclined
towards passive- aggr essive destructive behaviour for instance, by withdrawing
themselves from the situation through absenteeism, tardiness and focusing on
non-work interests and activities, and d) one's personal resources serve as a beacon
of light in an unpleasant downsizing situations.
Subsequently, preceded by qualitative findings in Study 1, eight hypotheses were
formulated to clarify the relationship between survivors cognitions, emotions,
behaviours and personal factors. By using an online survey, 244 self-reports and 125
co-worker-reports were completed by the remaining employees at a large oil and gas
organisation in Malaysia. Overall, in both surveys, the findings showed that compared to
the social exchange variables, emotions predominantly explained the
relationship between one's justice perception on one's work behaviours. Finally, in regards of moderated mediation model, only
optimism was found to have significant impact on the mediation relationship between
organisational justice and work behaviours either via social exchange
variables or emotions.
In conclusion, results from Study 1 and Study 2 combined, show that survivors
perceptions of justice are a crucial factor to consider when implementing
downsizing. Consideration must also be given to survivors emotional needs as it showed
to be powerful in explaining the impact of justice perceptions on work behaviours
within a Malaysian context. This thesis is also hoped to pave the way and provides
recommendations for a more culturally appropriate downsizing practice and also serve
a guide for future scholars that is interested in this field.
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