Implementing strategic change of downsizing as an investment strategy: A study of UK based firms

Downsizing is a widely known phenomenon and has been studied by the researchers quite frequently. This research project treats downsizing as a form of strategic change and focuses on how integrated human resource practices and role of change agent can contribute to the success of downsizing strategy. By success, it is meant here the level of return earned by investing in downsizing strategy. This study considers the economic perspective of downsizing and study downsizing as investment strategy. The idea on which this research is based is that organisations downsize to manage their investments in assets. The most common assets an organisation possesses are capital and financial assets. Downsizing may include change in human assets, physical assets, both human and physical assets. Organisations investment in strategic change of downsizing in expectation of greater financial benefits as compared to the initial costs associated with the downsizing. It is a deductive study with objective stance and positivist philosophy. Methodologically, the use of survey strategy and a combination of analytical procedures including: univaraite, bivariate and multivariate analysis demonstrates that integrated strategic human resource practices and the role of change agent are actually major contributors to earn higher level of returns on downsizing strategy. The findings of the study show that it is not always possible for a well-designed or modified communication strategy – where communication strategy is a part of strategic human resource practices – to communicate organisational downsizing to its stakeholders. The study makes contribution to the body of knowledge theoretically and on the practical side, it contributes to create awareness about the effects of strategic human resource practices and role of change agent at the time of downsizing.