Consequences of Downsizing: a Lesson from the Past

This article briefly outlines the problems facing public organizations, particularly hospitals, as they attempt to survive in a turbulent environment. One solution to coping with organizational crises is downsizing. However, there are often negative effects on personnel when an organization reduces the work force or experiences major change. A model describing stages of organizational and individual crisis and coping is presented, along with suggestions for organizational development (OD) interventions to deal with these stages. One organization’s experience illustrates the negative consequences of organizational downsizing on members.