THE EFFECT OF DOWNSIZING ON ORGANIZATIONAL PERFORMANCE A CASE STUDY OF JOHN HOLT PLC

ABSTRACT

This project in on the effect of downsizing on organizational performance. The Statement of Problem identified was that downsized organisations have not improved significantly in their performances and have failed to produce the desired results which thereby undermine the effectiveness of performance in the organisation. To meet the general objective, the study is focused on the following specific objectives, to determine the effect of downsizing on the quality of output, to determine the effect of downsizing on the volume of sales and to determine the effect of downsizing on the span of control. The descriptive survey method was used and the research tool was questionnaire. In the analyses, the simple percentage technique was applied to analyse the questionnaires and presentation was done by the use roof tables. The data analysis used was Chi-square formula .The findings from the study shows that Downsizing results in decline in quality of output, volume of sales volume and increases span of control consequently, affecting the effectiveness and efficiency of  the organisation. The study concluded that reduction in size of workforce has not improved corporate organisational performance. Finally, the solutions and recommendation for this study emphasized that downsizing exercise needs to be carefully planned and executed in order to produce its expected result of expense reduction, increased effectiveness and efficiencies restructuring.