The problems experienced by organizations in managing the survivors of downsizing: A study of selected parastatals in Nairobi, Kenya

Abstract

Downsizing has been the most adopted practice of organizational restructuring within the last decade.

First witnessed in the private sector, this approach has spread to all levels of government and knows no sectorial or geographical boundaries (Burke and Cooper, 2000). No longer are organizations inclined to maintain the status quo for the sake of employee loyalty and thus lives and careers have been destroyed as a result of downsizing.

Here in Kenya pressure from Donors and other trade partners to liberalizethe markets, and the inability of the Government to continue subsidizing its parastatals due to reduced donor finding are the main reasons of downsizing.

The putpose of this study was to gain qualitative insights on the problems the managers involved in downsizing organizations in Kenya experience in handling the survivors and what effects this have on the performance of organizational roles. Out of one hundred and sixty questionnaires which we sent out eighty two were received back The questionnaire was divided into three sections; section A captured Demographic data on the respondents while section Band C was on environmentalanalysis.

The findings suggested that most managers handled the problems of survivors with ease. However, some lessons were learned that would improve future management of downsizing. Involvement of staff in the planning and management of their work, communication and feedback between management and staff, cohesion between management and the staff, articulation of the vision and mission of the organization and

looking into new ways of doing things, are among the important things to consider when downsizing.

Finally, recommendations were made which would benefit future downsizing organizations.