THE RETROACTIVE EFFECT OF DOWNSIZING ON THE SURVIVOR EMPLOYEES IN THE INFORMATION TECHNOLOGY (IT) SECTOR

Abstract

ABSTRACT

This article depicts theeffect of downsizingon the employees who remain in the IT sector and highlights some key challenges they face.The aftermath of downsizing can negatively impact the morale and job satisfaction of the employees who survived in the process. Witnessing colleagues and friends lose their jobs definitely creates an atmosphere of uncertainty and fear. Survivors may experienceguilt, as they question themselves why they were chosen to stay while others were asked to leave. This sense of guilt can lead to demotivation and decreased job satisfaction which indirectly shows on the performance of the employees. The researcher has collected over 118 samples for the study. The statistical tools used were percentage Analysis, Descriptive statistics and factor analysis. The study concluded that majority of the employees were well aware of downsizing and has also experienced the same. Most of them have agreed to the fact that downsizing has affected their Job performance and Job satisfaction.

Keywords: Downsizing, Survivor Employees, Guilt