Downsizing Challenges and OD Interventions: A Matching Strategy

Abstract

This article identifies the psychological and behavioural effects associated with corporate downsizing and the managerial challenges they present. These challenges include renewing psychological contracts, reversing threat‐rigidity tendencies, building post‐downsizing teams, and creating new corporate cultures. A strategy for matching specific Organisation Development (OD) interventions to each challenge is proposed which might aid managers and consultants in providing interventions best suited to the needs of each organisation.