Abstract
M.Com. (Human Resource Management)
Studies clearly show that workers experience trauma when organizations rationalise.
These traumatic experiences are found to be primarily due to the uncertainty of what
will happen to workers and the impact rationalisation could have on their job security.
This has led to the assumption that rationalisation is inevitably traumatic.
This study is aimed at dispelling this assumption as a myth. The view is taken that
human and organizational behavior is complex, in that a variety of interactions
between management and workers is not only possible, but does in fact occur in
organizations today.
This study considers various approaches organizations follow in dealing with workers
during a rationalisation program. This study also investigates the experiences of
workers who have actually lost their jobs. The results indicate beyond doubt that the
experiences of trauma associated with rationalisation programmes are strongly related
to the approaches adopted by management during such programmeso Worker trauma
is therefore not a condition of rationalisation, but rather the result of a particular
approach followed by management.
The results of this study could have a profound effect on how organizations approach
rationalisation. The benefits of a reduction in industrial and legal action due the
approach adopted by management during rationalisation, is obvious. What is less
obvious, but possibly more important however, is the level of loyalty and work
performance of those workers remaining in the service of the organization. Studies
have demonstrated the devastating impact of an unsatisfactory approach followed by
management during rationalisation, on the work performance and loyalty towards the
company of remaining workers.
In order to succeed or survive, organizations must continually adjust to an everchanging
environment. This would no doubt include the need for an effective
rationalisation program...