HR strives in a challenging environment. Downsizing. Evidence from the International Public Organizations area

• Author: Drumea C.
• Pages: 95-102

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 10 (59) No. 1 - 2017

HR strives in a challenging environment. Downsizing.

Evidence from the International Public Organizations

area

Cristina DRUMEA 1

Abstract: The present paper presents new and unexpected movements on the international

organizations labor market under the pressure of budget cuts. It focuses on the

administration field of work, emphasizing on the staff resizing and the associated stress for

the personnel under the effects of the automation and ultimately the effects of a new reality.

A brief analysis of the staff downsizing processes and effects in large public organizations

highlighting the difficulties and the stress, along with productivity changes, is performed.

The research is empirical, but lead by factual observations and data on institutional strain

prompted by change in large public organizations. It stays mainly onto the HR input as both

promoter and dissuader of the process, while wider organizational implications are being

conveyed as part of the equation.

Key-words: downsizing, organizational change, public organizations

1. Introduction and literature review

The main definition we find while searching for the concept of downsizing is

„intentional reduction in the size of a workforce at all staffing levels, to survive a

downturn, improve efficiencies, or become a more attractive candidate for

acquisition or merger” (Business Dictionary)

This is quite to be expected, we see the concept utilized on our current life,

but we can only guess its impact while seeing it from the other side of the barricade,

meaning as personnel about to be affected by it. What is further interesting is the

carryover of the concept towards another one: rationalization. Seen not only as a

need to save on resources when they become scarce, but also as a way to find a

rationale on maintaining an unmodified level of service agreements with the

stakeholders.

Is it rational to size down the staff under the pressure of budget reduction,

automation, or externalization? It certainly is, but then again it depends a lot on the

angle on which we judge it.

1 Transilvania University of Braşov, cristina.drumea@unitbv.ro