Downsizing And Employee Normative Commitment From A Developing Country’s Logistics Organizational Context

Abstract

This study investigates the impact of downsizing on employee normative commitment in a logistics organisational context. Downsizing is a prevalent strategy employed by organisations to streamline operations and reduce costs, but its consequences on employee commitment and loyalty have been a subject of concern. Previous research has shown that downsizing events can affect employees' perceptions and attitudes towards their organisations. However, this study aims to comprehensively analyse normative commitment following downsizing in a logistics organisational setting. A diverse sample of organisations from the transport and logistics sector that have undergone downsizing was selected. Quantitative data was collected through a survey instrument, and descriptive statistical analysis was conducted to examine employees' responses to the normative commitment scale. A comprehensive analysis was used to identify significant differences in normative commitment across organisational contexts. Additionally, qualitative insights were obtained through interviews and focus groups to better understand the findings. The study's findings add to the corpus of knowledge by providing an understanding of the intricate interactions between downsizing and employee normative commitment. The findings can help human resource professionals and organisational leaders build plans to lessen the negative consequences of downsizing and increase employee engagement and loyalty. Additionally, the study's thoroughness offers insights into contextual elements that affect how downsizing and normative commitment are related.