Title of paper

Effects of Downsizing Strategies on Survivors’ Organizational Commitment: The Case of Ethio Telecom

Presenter's country

Ethiopia

Start Date

28-5-2016 12:00 PM

End Date

28-5-2016 1:05 PM

Location

Hall I

Submission type

Presentation

Abstract

The study intended to examine the effects of downsizing strategies on survivors’ organizational commitment at Ethio Telecom. This study used descriptive and causal-effect type of study. It focused on both qualitative and quantitative approaches for collection and analysis of data. The researcher employed simple random sampling technique to select 362 respondents. In this study, multiple linear regression, and simple descriptive statistics were employed. Findings portray majority respondents (60-80 percent) confirmed that there was injustice in organizational procedure i.e., non-transparent; the criteria for employees’ separation were not fair and inconsistent; representatives were not involved; and there was no prior notice and employees were not treated with respect and dignity. Contrasting to procedural justice, although it is at the margin, the analysis result of distributive justice depicts that survivors’ perception is positive for most of the variables. Furthermore, regression analysis result depicts that positive and significant effect of independent variables (procedural and distributive justice) with P-values (Sig.)=0.000 on dependent variables: affective commitment, continuous commitment, and normative commitment with R2 value of 0.64, 0.54 and 0.67 respectively. Based on the above findings the researcher inferred that there was organizational procedural injustice in the time of downsizing at Ethio Telecom. Thus, the researcher recommends that the company should study the overall scenario prior to the attempt, do human resource planning industriously, set clear selection criteria, make the process transparent, conduct behavioral trainings, align each unit activity with company’s strategic objectives, and prepare victims for other job.

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May 28th, 12:00 PM May 28th, 1:05 PM

Effects of Downsizing Strategies on Survivors’ Organizational Commitment: The Case of Ethio Telecom

Hall I

The study intended to examine the effects of downsizing strategies on survivors’ organizational commitment at Ethio Telecom. This study used descriptive and causal-effect type of study. It focused on both qualitative and quantitative approaches for collection and analysis of data. The researcher employed simple random sampling technique to select 362 respondents. In this study, multiple linear regression, and simple descriptive statistics were employed. Findings portray majority respondents (60-80 percent) confirmed that there was injustice in organizational procedure i.e., non-transparent; the criteria for employees’ separation were not fair and inconsistent; representatives were not involved; and there was no prior notice and employees were not treated with respect and dignity. Contrasting to procedural justice, although it is at the margin, the analysis result of distributive justice depicts that survivors’ perception is positive for most of the variables. Furthermore, regression analysis result depicts that positive and significant effect of independent variables (procedural and distributive justice) with P-values (Sig.)=0.000 on dependent variables: affective commitment, continuous commitment, and normative commitment with R2 value of 0.64, 0.54 and 0.67 respectively. Based on the above findings the researcher inferred that there was organizational procedural injustice in the time of downsizing at Ethio Telecom. Thus, the researcher recommends that the company should study the overall scenario prior to the attempt, do human resource planning industriously, set clear selection criteria, make the process transparent, conduct behavioral trainings, align each unit activity with company’s strategic objectives, and prepare victims for other job.