The Effects of Downsizing on Employees in Pakistan's Telecom Sector

Abstract

Corporations are desperate to change these days around the globe. Change is not an easy process. It takes time and can be implemented step by step by gaining employees confidence. Corporations are desperate to improve the financial health and to achieve their financial objectives; corporations are opting for the strategy of downsizing. It is presumed since a day this strategy is being practiced that downsizing helps to improve the financial performance of corporations. However, downsizing has severe effects on the employees. In this research paper, the effect of downsizing on employees in Pakistan's telecom sector will be discussed in respect with the dependent variable and independent variable. This research is conducted in Islamabad branches of telecom firms of Pakistan with respect to downsizing as an independent variable and employees' organizational commitment as a dependent variable. Employees' organizational commitment is examined along with three elements; which are employees' loyalty, employees' job satisfaction and employees' creativity. This research paper will show the negative relationship between downsizing and employees organizational commitment along with its three elements.