35. Communication Networks after Downsizing
Alex Susskind
Alex M. Susskind, Hotel Administration, found that one of the effects of a corporate layoff is the interruption of communication networks for employees who remain in the workplace. Because information that passes along informal networks is a vital part of the workplace, it is difficult for remaining employees to reestablish connections after a layoff. Workers’ access to information and status as central points in a communication network are key elements in job satisfaction and have a strong influence on turnover intentions. This study measured pre- and post-downsizing information flow, as well as post-downsizing turnover intentions of downsizing survivors in the corporate office of an international hotel company. Using a combination of network and path analysis, the study examined the relationship between changes in downsizing survivors’ “betweenness”—the extent to which information transmits through them—and perceptions of information adequacy, relating these factors to reported turnover intentions at two months and four months after the layoffs. The study found that an increase in network members’ centrality augmented their perceptions of information adequacy, which in turn reduced their intentions to seek new employment. The study also found that turnover intentions diminished at some point between two and four months after the layoff, correlating with stabilization of the communication network. The study implies that managers should consider ways to help remaining employees establish communication pathways after a corporate downsizing.