Nikola Ćurčić, Nemanja Berber, Agneš Slavić, Peter Harmat

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In the context of a very turbulent environment where various challenges are more and more present, companies often apply different strategies in order to harmonize their business with new and often unfavorable conditions. One of the possible strategies of companies is the 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 the performance of organizations. On the one hand, cost are reduced as it strives to increase profitability and productivity. 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 the perceived quality of service.


downsizing, quality of service, employees, layoff

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


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