Abstract

The author has proposed a conceptual model of the after-effects of the downsizing on the survived employees of the organization. The proposed model is the logical integration of the inevitable after-effects of the downsizing and is supported by previous researches on the consequences of the downsizing. The downsizing affected employees’ loyalty, perception about the job insecurity and their commitments toward the organization and resulting in the poor performance of the employees as well as the organization. This model has potential implications for further research both empirical testing of the model as well as improvement in the model.

Key words: Downsizing, loyalty, job insecurity, performance and commitment.