EFFECTS OF DOWNSIZING ON PERCEIVED SERVICE QUALITY

Nikola Ćurčić, Nemanja Berber, Agneš Slavić, Peter Harmat

DOI Number
https://doi.org/10.22190/TEME181127025C
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Abstract


In the context of a very turbulent environment where various challenges are more and more present, companies are often applying different strategies in order to harmonize their business with new and often unfavorable conditions. One of the possible strategies of companies is a downsizing strategy. Downsizing as an organizational strategy usually involves a reorganization that can be implemented in different ways, but in which the resulting outcome often causes a reduced number of employees. Research around the world has highlighted the various effects of this strategy on performances of organizations. On the one hand, cost are reduced, it strives to increase profitability and productivity, while on the other hand, various problems often arise in the form of attitudes and behavior of employees, reflected in the changed quality of service that is provided, employee satisfaction, their loyalty and willingness to leave the company. The aim of this paper is to explore the relation between the application of different approaches to the downsizing strategy in organizations and the perceived service quality. The survey was carried out on a sample of 160 companies in Serbia, based on the data collected during the Cranet project, from 2015 to 2016. The methodology used during the research included research of the available literature and results of previous studies, as well as the application of statistical techniques for data analysis, factor analysis, Spearman's correlation and hierarchical linear regression. The results of the research indicate that there is a negative link between the observed variables, that is, the implementation of the downsizing in certain forms is associated with a lower level of perceived quality of service.


Keywords

downsizing, quality of service, employees, layoff

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References


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DOI: https://doi.org/10.22190/TEME181127025C

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