The Downsizing of an Army Organization: An Investigation of Downsizing Strategies, Processes and Outcomes

An investigation of downsizing in an Army organization was conducted in 1992 and 1993. The purpose of the study was to examine four questions 1 What is the generalized orientation of this Army organization toward downsizing- -convergence or reorientation 2 What downsizing procedures and strategies are being implemented 3 What is the impact of these strategies on organizational performance and on employees 4 What strategies and tactics are especially effective in producing desirable results Results revealed that the strategy developed and implemented by top managers in this Army organization was consistent with the most effective strategies used in private sector firms. Anticipating the need to downsize before a crisis occurs, downsizing based on mission and core competencies instead of headcount, redesigning and eliminating work as well as numbers of employees, and investing in human resources through training and recognition instead of thinking of people as liabilities all were among the steps implemented in this organization that match best practices from past research. In addition, researchers found that the organizations subunits with the lowest performance scores focused primarily mechanisms to reduce size and decrease headcount. Subunits with the highest performance scores focused more broadly on process improvements, involvement of employees, visible and visionary leadership, broad sharing of information, and equal attention to those who stayed in the organization and those who left. Organizational downsizing, Organizational effectiveness, Strategic management, Restructing