the development of an organizational redesign model: a south

THE DEVELOPMENT OF AN ORGANIZATIONAL REDESIGN MODEL: A SOUTH AFRICAN CASE STUDY

By

FRANS JOHANNES BURDEN

Thesis

Submitted in fulfilment

of the requirements for the degree

DOCTOR IN PHILOSOPHY in

LEADERSHIP IN PERFORMANCE AND CHANGE

in the FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES

at the UNIVERSITY OF JOHANNESBURG

PROMOTOR: PROF. WJ SCHURINK

31 January 2006

i

STATEMENT

STATEMENT

I, Frans Johannes Burden, the undersigned, hereby confirm that the thesis submitted by

me in fulfilment of the degree D.Phil.(Leadership in Performance and Change) to the

University of Johannesburg is my independent work and has not been submitted by me

for a degree at another faculty or university.

_________________

FRANS JOHANNES BURDEN 31 January 2006

ii

ACKNOWLEGDEMENTS

I praise the Lord for giving me guidance during this study. I felt His strength throughout.

Among the many people who contributed to the successful completion of this study I

would like to thank:

- Prof. Willem Schurink, my promoter, for his support, understanding and

guidance throughout the study. Thank you for all your hard work and your

quick response to my feedback and queries, and for assisting me personally

during the final integration of the study. You became a real friend whom I will

always treasure.

- Each of the seven research participants for making time available for

participating in the study and for helping me to verify my reconstruction of

their reality.

- My employer for the financial assistance and time for doing the study.

- All my colleagues for their support during the study.

- My friend Arnold Beyleveld who assisted me with the technical design and

layout of the thesis.

- Mrs Ina Stahmer for editing the thesis.

- Helena and Ruhann for their understanding through some difficult times.

- And lastly, Arin, my dear wife. Your love, understanding, support and just

being there when I needed you sustained me beyond measure.

Johann Burden Rotsvas, Eikenhof 31 January 2006

iii

ABSTRACT

The aim of this study was to develop a model to assist a South African information

technology company with its organisation redesign interventions. A modernist qualitative

methodology, with casing as research design and grounded theory as research

strategy, was employed to develop a substantive model.

Seven employees were selected as research participants by means of purposive

sampling. Their experience of the company’s redesign was explored with a view to

developing the model. Various data collection methods were used: semi-structured and

follow-up interviews, solicited e-mail essays and policy documents. These yielded rich

descriptive data, which were systematically analysed by means of grounded theory

methodology. Manual and computer-based (ATLAS.ti 5.0) qualitative data analysis

techniques were used to develop the substantive model.

After conclusion of the data analysis, the literature on the most current organisation

downsizing typologies, models and theories was reviewed. The results of this review

informed a focus group discussion that was aimed at substantiating the model. This

discussion culminated in the formulation of the Organisation Redesign Model.

Thereafter recommendations were made for future research in this field.

The Organisational Redesign Model has implications for the information technology

sector in South Africa, and the formalisation of grounded theory and the roadmap

thereof should facilitate the application of grounded theory in future research.

Authenticity, trustworthiness, credibility and reflectivity were ensured by following the

guidelines provided in the literature.

iv

OPSOMMING

Die doel van hierdie studie was om ’n model te ontwikkel om ’n

inligtingstegnologiemaatskappy in Suid-Afrika met sy organisieherontwerpaksies by te

staan. ’n Modernistiese kwalitatiewe metodologie, met gevallestudie as

navorsingsontwerp en gegronde teorie as navorsingstrategie, is gebruik om ’n

substantiewe model te ontwerp.

Sewe werknemers is doelbewus as navorsingsdeelnemers gekies. Hul ervaring van die

maatskappy se herontwerp is verken met die oog op die ontwikkeling van die model.

Verskeie data-insamelingsmetodes is gebruik: semi-gestruktureerde en

opvolgonderhoude, versoekte e-posopstelle en beleidsdokumente. Dit het ryk

beskrywende data opgelewer, wat stelselmatig met behulp van die metodologie van

gegronde teorie ontleed is. Hand- en rekenaar-gebaseerde (ATLAS.ti 5.0) kwalitatiewe

data-ontledingstegnieke is gebruik om die substantiewe model te ontwikkel.

Na voltooiing van die data-ontleding is die literatuur oor die mees gebruikte organisasie-

afskalingstipologieë, -modelle en -teorieë in oënskou geneem. Die resultate van hierdie

oorsig is gebruik as inset tot ’n fokusgroepbespreking wat gemik was op die bevestiging

van die model. Hierdie bespreking het uitgeloop op die formulering van die Model vir

Organisasieherontwerp. Hierna is aanbevelings vir toekomstige navorsing op hierdie

gebied gemaak.

Die Model vir Organisasieherontwerp het implikasies vir die inligtingstegnologiesektor in

Suid-Afrika, en die formalisering van gegronde teorie en die padkaart daarvan behoort

die toepassing van gegronde teorie in toekomstige navorsing te bevorder.

Outentisiteit, betroubaarheid, geloofwaardigheid en reflektiwiteit is verseker deur die

navolging van die riglyne wat in die literatuur verskaf word.

v

TABLE OF CONTENT

STATEMENT i

ACKWOLEDGEMENTS ii

ABSTRACT iii

OPSOMMING iv

LIST OF FIGURES xvi

LIST OF TABLES xvii

1 CONTEXTUALIZING THE STUDY ............................................................... 3

1.1 Introduction........................................................................................................... 3

1.2 Problem Statement............................................................................................... 3

1.3 Brief Background To Downsizing.......................................................................... 5

1.4 Personal Interest in Downsizing ......................................................................... 10

1.5 Motivation For And Anticipated Contributions Of The Study............................... 11

1.6 Aim And Objectives of the Study ........................................................................ 13

1.7 Research Questions ........................................................................................... 14

1.8 Outline and Technical Presentation of the Thesis .............................................. 14

2 RESEARCH APPROACH ........................................................................... 17

2.1 Introduction......................................................................................................... 17

2.2 Defining “Research Methodology” ...................................................................... 17

2.3 Key Scientific Beliefs .......................................................................................... 18

2.3.1 Ontology................................................................................................. 19

2.3.2 Epistemology ......................................................................................... 21

2.3.3 Other personal assumptions .................................................................. 22

2.3.3.1 Research ethics ................................................................................... 22

2.3.3.2 Personal values and subjectivity .......................................................... 25

2.3.3.3 Deployment of self ............................................................................... 27

2.3.3.4 Entrée................................................................................................... 29

2.4 THEORETICAL CONCEPTS AND THE STUDY................................................ 31

2.4.1 Defining theoretical concepts ................................................................. 31

vi

2.4.1.1 Concept................................................................................................ 32

2.4.1.2 Statements ........................................................................................... 33

2.5 CONCEPTUAL FRAMEWORKS........................................................................ 34

2.5.1 Typology ................................................................................................ 34

2.5.2 Model ..................................................................................................... 35

2.5.3 Paradigm................................................................................................ 36

2.5.4 The term “theory” and its application in the study .................................. 37

2.5.4.1 Definitions of “theory” and theory types................................................ 37

2.5.4.2 Theory and logic of argumentation....................................................... 38

2.5.4.3 Grounded theory and substantive theory ............................................. 39

2.5.4.4 Grounded theory and management studies ......................................... 41

2.5.4.5 Grounded theory and symbolic tools .................................................... 41

2.6 APPLYING QUALITATIVE RESEARCH AS METHODOLOGY.......................... 43

2.6.1 Qualitative research and its key features ............................................... 43

2.6.2 Modernist qualitative research ............................................................... 46

2.6.3 Casing as research design..................................................................... 47

2.6.4 Research setting .................................................................................... 48

2.6.5 Sampling ................................................................................................ 50

2.7 DATA COLLECTION METHODS ....................................................................... 51

2.8 DATA STORAGE ............................................................................................... 53

2.9 RECORDING OF DATA ..................................................................................... 54

2.9.1 Transcriptions of taped interviews.......................................................... 54

2.9.2 Field notes ............................................................................................. 54

2.10 ANALYSING THE DATA .................................................................................... 55

2.10.1 Grounded theory .................................................................................... 56

2.10.2 Computer-assisted qualitative data analysis software (CAQDAS) ......... 61

2.11 DATA DISPLAY.................................................................................................. 64

2.11.1 Photographs........................................................................................... 64

2.11.2 Diagrams................................................................................................ 65

2.11.3 Narrative ................................................................................................ 65

2.12 STRATEGIES TO ENHANCE THE QUALITY OF THIS STUDY........................ 66

vii

2.12.1 Member checking, or host recognition ................................................... 67

2.12.2 Authenticity and trustworthiness ............................................................ 67

2.12.2.1 Credibility ............................................................................................. 68

2.12.2.2 Reflectivity............................................................................................ 68

2.12.2.3 Transferability....................................................................................... 69

2.13 CONCLUSION.................................................................................................... 70

3 OPERATIONALISATION OF THE RESEARCH METHODOLOGY AND

EXECUTION OF THE STUDY ...................................................................................... 73

3.1 INTRODUCTION................................................................................................ 73

3.2 OPERATIONALISATION OF GROUNDED THEORY ........................................ 74

3.2.1 Theoretical sampling .............................................................................. 75

3.2.2 Data gathering ....................................................................................... 75

3.2.3 Capturing, storing and securing the data ............................................... 76

3.2.4 Data analysis ......................................................................................... 78

3.2.5 Ensuring quality qualitative research ..................................................... 78

3.3 ACCOUNT OF THE EXECUTION OF THE STUDY........................................... 79

3.3.1 First negotiations and registration of the study at the University of

Johannesburg..................................................................................................... 80

3.3.1.1 Origin of the study ................................................................................ 80

3.3.1.2 First consultations with scholars........................................................... 80

3.3.1.3 Compiling the research proposal and registering the study.................. 82

3.3.2 Unpacking the research proposal and preparing for fieldwork ............... 82

3.3.3 Inception of the fieldwork ....................................................................... 83

3.3.3.1 First negotiations with the research participants .................................. 83

3.3.3.2 Initial gathering of data ......................................................................... 84

3.3.3.3 Compiling field notes ............................................................................ 85

3.3.4 Embarking on qualitative analysis: Open coding.................................... 86

3.3.4.1 Purchasing and applying ATLAS.ti.5.0 software .................................. 87

3.3.5 Axial coding............................................................................................ 90

3.3.6 Selective coding..................................................................................... 91

3.3.7 First focus group discussion: Evaluation of the codes ........................... 93

viii

3.3.8 Dimensional analysis and conditional matrix.......................................... 95

3.3.9 Definition of the substantive model ........................................................ 97

3.3.10 Second focus group discussion ............................................................. 97

3.3.11 Matching the constructed model with theory .......................................... 98

3.3.12 Triangulation .......................................................................................... 98

3.3.13 Structuring the thesis and preparations for its examination.................... 99

3.3.14 Finalisation and obtaining the Ph.D. .................................................... 100

3.4 CONCLUSION.................................................................................................. 100

4 OPEN CODING......................................................................................... 102

4.1 INTRODUCTION.............................................................................................. 102

4.2 EXPLICATING OPEN CODING AND ITS RELATED CORE CONCEPTS....... 102

4.3 APPLYING OPEN CODING ............................................................................. 103

4.3.1 Client cannot afford services................................................................ 105

4.3.2 Contract with client terminates ............................................................. 106

4.3.3 Client restructures its business ............................................................ 106

4.3.4 Client cancels their contract ................................................................. 107

4.3.5 Change in market demands ................................................................. 107

4.3.6 Wealth of shareholders ........................................................................ 108

4.3.7 Cost savings ........................................................................................ 108

4.3.8 Poor financial performance .................................................................. 109

4.3.9 Expenses too high ............................................................................... 109

4.3.10 Lack of profitability ............................................................................... 110

4.3.11 Losses.................................................................................................. 111

4.3.12 Budget.................................................................................................. 111

4.3.13 Amalgamation of departments ............................................................. 112

4.3.14 Closing of business units ..................................................................... 112

4.3.15 Downsizing........................................................................................... 113

4.3.16 Restructuring........................................................................................ 114

4.3.17 Reorganisation..................................................................................... 115

4.3.18 Delayering............................................................................................ 115

4.3.19 Redesign.............................................................................................. 117

ix

4.3.20 Black empowerment forces.................................................................. 117

4.3.21 Growth through mergers and acquisitions............................................ 118

4.3.22 Taking on non-core businesses from clients ........................................ 118

4.3.23 Non-productivity ................................................................................... 120

4.3.24 Poor management practices ................................................................ 120

4.3.25 Ineffective business processes ............................................................ 121

4.3.26 Inefficiencies ........................................................................................ 122

4.3.27 Obstructive people ............................................................................... 122

4.3.28 Financial analysis of the business........................................................ 123

4.3.29 Implement top management decision .................................................. 124

4.3.30 Manager requests a meeting with HR in reaction to trigger ................. 125

4.3.31 Manager requests assistance from HR to take remedial action ........... 126

4.3.32 Line managers ..................................................................................... 126

4.3.33 Employee Communication Forum (ECF) ............................................. 127

4.3.34 National awareness ............................................................................. 127

4.3.35 CEO to initiate communication (e-mail)................................................ 129

4.3.36 Broad message: the company investigates under-performing units of a

specific region................................................................................................... 129

4.3.37 Affected key clients .............................................................................. 130

4.3.38 Affected non-key clients ....................................................................... 131

4.3.39 CEO and top executives for affected key clients.................................. 132

4.3.40 Account executive (most appropriate member).................................... 132

4.3.41 Contextualising the endeavour............................................................. 133

4.3.42 Human Resources Practitioner ............................................................ 134

4.3.43 Group Manager: Human Resources .................................................... 134

4.3.44 Line management ................................................................................ 135

4.3.45 Executive team .................................................................................... 136

4.3.46 Managing Executive............................................................................. 136

4.3.47 Relevant EXCO member...................................................................... 137

4.3.48 Obtain commencement date ................................................................ 137

4.3.49 Broad timeframe of process ................................................................. 138

x

4.3.50 Guide managers through broad timeline .............................................. 139

4.3.51 Emphasise expediency of execution once the decision has been taken

140

4.3.52 Emphasise speed of execution ............................................................ 140

4.3.53 Estimate cost savings .......................................................................... 141

4.3.54 Estimate cost of intervention ................................................................ 142

4.3.55 Intervention is a long-term solution ...................................................... 143

4.3.56 How to achieve the end result .............................................................. 144

4.3.57 What is the outcome? .......................................................................... 145

4.3.58 New organisational structure after the intervention .............................. 146

4.3.59 Determine the best option .................................................................... 146

4.3.60 Assess legal implications ..................................................................... 147

4.3.61 Assess contractual obligations with clients .......................................... 148

4.3.62 Ensure management buy-in ................................................................. 149

4.3.63 Moral and ethical considerations.......................................................... 152

4.3.64 Extent of disruption .............................................................................. 153

4.3.65 Assessment of impact of intervention................................................... 154

4.3.66 Assess policy implications.................................................................... 156

4.3.67 Address concerns ................................................................................ 157

4.3.68 Discuss how to minimise risk ............................................................... 158

4.3.69 Experienced manager as advisor......................................................... 159

4.3.70 Consultation with legal advisors........................................................... 160

4.3.71 Clarification of managers’ expectations................................................ 161

4.3.72 Guide managers into appropriate action .............................................. 161

4.3.73 Formulate a broad plan........................................................................ 162

4.3.74 Process should be part of normal business strategy............................ 163

4.3.75 Discuss monitoring of implementation.................................................. 163

4.3.76 Group Executive: HR provides approval for the process to commence164

4.3.77 Decide content of communication ........................................................ 165

4.3.78 Decide communication process ........................................................... 165

4.3.79 Decide communication date................................................................. 166

xi

4.3.80 Viable project plan ............................................................................... 167

4.3.81 Accountabilities .................................................................................... 167

4.3.82 Monitoring of implementation ............................................................... 167

4.3.83 Customised process............................................................................. 168

4.3.84 Design the ideal structure .................................................................... 168

4.3.85 Sharing of detailed project plan............................................................ 169

4.3.86 Elicit concerns...................................................................................... 170

4.3.87 Elicit recommendations ........................................................................ 170

4.3.88 Intention letter ...................................................................................... 171

4.3.89 Non-affected employees within business unit ...................................... 172

4.3.90 Content (checklist) ............................................................................... 172

4.3.91 Timeframe............................................................................................ 174

4.3.92 Timing of message............................................................................... 174

4.3.93 Detail.................................................................................................... 175

4.3.94 Face-to-face consultation meeting ....................................................... 176

4.3.95 Written representations by employees................................................. 177

4.3.96 Response by the company................................................................... 178

4.3.97 New organisational structure................................................................ 178

4.3.98 Invite applications for positions ............................................................ 179

4.3.99 Interviews must be scheduled for the applicants.................................. 180

4.3.100 Formalise discussion of findings .......................................................... 180

4.3.101 Populate the structure.......................................................................... 181

4.3.102 Letters of acceptance........................................................................... 182

4.3.103 Letter of regret ..................................................................................... 183

4.3.104 Positive outcomes................................................................................ 184

4.3.105 Negative outcomes .............................................................................. 186

4.3.106 Psychological support for process facilitators ...................................... 187

4.3.107 Emotional distress................................................................................ 188

4.4 CONCLUSION.................................................................................................. 188

5 AXIAL AND SELECTIVE CODING............................................................ 189

5.1 INTRODUCTION.............................................................................................. 189

xii

5.2 DEFINING AXIAL CODING.............................................................................. 189

5.3 APPLICATION IN THE STUDY........................................................................ 190

5.4 DEFINING SELECTIVE CODING .................................................................... 217

5.5 MANUAL AND ELECTRONIC CODING........................................................... 228

5.5.1 Electronic coding.................................................................................. 228

5.5.2 Manual coding...................................................................................... 229

5.6 CONCLUSION.................................................................................................. 230

6 CONDITIONAL MATRIX, SUBSTANTIVE MODEL AND LITERATURE

OVERVIEW................................................................................................................. 232

6.1 INTRODUCTION.............................................................................................. 232

6.2 DEFINING “CONDITIONAL MATRIX” .............................................................. 232

6.3 GROUNDED S-O-R THEORY.......................................................................... 234

6.3.1 Management action ............................................................................. 238

6.3.2 Cognition.............................................................................................. 238

6.3.3 Environmental stimulus ........................................................................ 239

6.3.4 Socio-cognitive model .......................................................................... 240

6.3.5 Application ........................................................................................... 241

6.4 SUBSTANTIVE MODEL................................................................................... 243

6.4.1 Step 1: External triggers....................................................................... 249

6.4.2 Step 2: Internal triggers........................................................................ 250

6.4.3 Step 3: Business audit ......................................................................... 251

6.4.4 Step 4: Manager initiates the process.................................................. 251

6.4.5 Step 5: Initial communication ............................................................... 252

6.4.6 Step 6: High-level planning meeting .................................................... 252

6.4.7 Step 7: Approval of the Group Executive: Human Resources for

commencement ................................................................................................ 254

6.4.8 Step 8: Detailed planning meeting ....................................................... 254

6.4.9 Step 9: Information meeting ................................................................. 256

6.4.10 Step 10: Issuing of the consultation letter ............................................ 256

6.4.11 Step 11: Second communication ......................................................... 257

6.4.12 Step 12: Consultation meeting (clarification)........................................ 258

xiii

6.4.13 Step 13: Written representations by employees................................... 258

6.4.14 Step 14: Written replies by the organisation......................................... 259

6.4.15 Step 15: Introducing the new organisational structure ......................... 259

6.4.16 Step 16: Inviting written applications.................................................... 259

6.4.17 Step 17: Schedule interviews............................................................... 259

6.4.18 Step18: Conducting interviews............................................................. 260

6.4.19 Step 19: Discussing the findings .......................................................... 260

6.4.20 Step 20: Populating the structure......................................................... 260

6.4.21 Step 21: Issuing letters to employees .................................................. 261

6.4.22 Step 22: Process evaluation ................................................................ 262

6.4.23 Step 23: Monitoring and managing the process................................... 262

6.5 REVIEWING SCIENTIFIC LITERATURE ON DOWNZISING .......................... 263

6.5.1 Definition of the different concepts related to downsizing .................... 263

6.5.1.1 Downsizing......................................................................................... 263

6.5.1.2 Restructuring...................................................................................... 264

6.5.1.3 Reorganisation ................................................................................... 264

6.5.1.4 Redundancy ....................................................................................... 264

6.5.1.5 Retrenchment..................................................................................... 265

6.5.1.6 Redesign ............................................................................................ 265

6.5.1.7 Re-engineering................................................................................... 265

6.5.1.8 Outsourcing........................................................................................ 265

6.5.1.9 Delayering .......................................................................................... 266

6.5.1.10 Integrated definition of organisational downsizing (redesign)............. 266

6.5.2 Typologies of downsizing ..................................................................... 266

6.5.3 Models of downsizing........................................................................... 285

6.5.4 A downsizing model for South Africa ................................................... 295

6.5.5 Other important contributions to the study of downsizing..................... 301

6.6 CONCLUSION.................................................................................................. 306

7 PRÉCIS, IMPLICATIONS AND RECOMMENDATIONS ........................... 309

7.1 INTRODUCTION.............................................................................................. 309

7.2 SUMMARY ....................................................................................................... 309

xiv

7.3 BRIEF NOTES ON LOCAL STUDIES THAT INFLUENCED THE STUDY....... 317

7.3.1 Donald’s downsizing study................................................................... 317

7.3.2 Key local grounded theory studies ....................................................... 317

7.4 KEY DISCOVERIES......................................................................................... 318

7.5 ASSESSMENT OF THE RESEARCH .............................................................. 319

7.5.1 General quality criteria of qualitative research ..................................... 319

7.5.1.1 Peer debriefing................................................................................... 319

7.5.1.2 Member checking, or host recognition................................................ 320

7.5.1.3 Authenticity and trustworthiness......................................................... 320

7.5.1.4 Credibility ........................................................................................... 320

7.5.1.5 Reflectivity.......................................................................................... 320

7.5.1.6 Transferability..................................................................................... 322

7.5.2 Criteria of grounded theory .................................................................. 323

7.6 IMPLICATIONS AND CONTRIBUTIONS ......................................................... 324

7.7 PERSONAL REFLECTIONS............................................................................ 327

7.8 RECOMMENDATIONS .................................................................................... 330

7.8.1 Leadership and change studies ........................................................... 330

7.8.2 Future research on organisational redesign......................................... 331

7.8.3 The company where the study was conducted .................................... 331

7.8.4 The Ph.D. course in leadership and change ........................................ 332

7.9 CONCLUDING NOTE ...................................................................................... 333

8 REFERENCE LIST.................................................................................... 334

9 STUDY PROGRESS: A VISUAL DISPLAY............................................... 360

10 LIST OF ANNEXURES.............................................................................. 361

10.1 Ethics of the Department .................................................................................. 361

10.2 Informed Consent ............................................................................................. 372

10.3 Written Essay ................................................................................................... 374

10.4 Interview Questionnaire.................................................................................... 378

xv

LIST OF FIGURES

Figure 1: Implementing the grounded theory process ............................................ 74

Figure 2: Conditional matrix for organisational redesign...................................... 242

Figure 3: Substantive model for organisational redesign ..................................... 248

Figure 4: Downsizing schema evolution and institutionalisation among managers.................................................................................................................................... 292

xvi

LIST OF TABLES

TABLE 1: DATA SOURCES ACCORDING TO RESEARCH PARTICIPANTS ...................... 85

TABLE 2: AXIAL CODING MATRIX......................................................................... 191

TABLE 3: SELECTIVE CODING MATRIX.................................................................. 219

TABLE 4: SUMMARY OF THE DOWNSIZING REDESIGN FRAMEWORK ......................... 278

1

““EEdduuccaattiioonn iiss aa kkiinndd ooff

ccoonnttiinnuuiinngg ddiiaalloogguuee,,

aanndd aa ddiiaalloogguuee aassssuummeess,,

iinn tthhee nnaattuurree ooff tthhee ccaassee,,

ddiiffffeerreenntt ppooiinnttss ooff vviieeww””

RRoobbeerrtt HHuuttcchhiinnss

((11889999 –– 11997777))

2

PPAARRTT OONNEE

This section refers to Chapter 1 and

covers the following aspects:

I contextualise the study, describe the

problem to be researched, sketch the

necessity of the study in South Africa,

indicate its anticipated contributions

and outline the aim and objectives of

the intended research.

3

CCCHHHAAAPPPTTTEEERRR 111

1 CONTEXTUALIZING THE STUDY

1.1 INTRODUCTION

In this chapter I contextualise the study. First I describe the problem I researched;

second I sketch the necessity of the study in South Africa; third I indicate its anticipated

contributions; and finally I outline the aim and objectives of the research.

1.2 PROBLEM STATEMENT

Plant closings, organisational downsizings and notices of employee layoffs have

become commonplace in the previous century (see Allen, Freeman, Russell,

Reizenstein & Rentz, 2001, pp. 145-146). There is no indication that this is abating,

as is evident from a recent report by the Society for Human Resource Management in

which it is estimated that 169 000 employees were laid off during the first quarter of

1996 in the USA in comparison with 44 000 in the first quarter of the previous year.

A giant wave of corporate restructuring1 has rolled through the global landscape ever

since the early 1980s. Much restructuring has taken place under the banner of an

attempt to increase corporate financial performance, and as significant by-product of

deep-rooted organisational change it has led to additional strain on organisations’

relationships with their employees, communities, taxpayers, governments and other

stakeholders (Heugens & Schenk, 2004).

1 From the literature it is clear that scholars apply various concepts when referring to organisational downsizing: restructuring, re-

organisation, redundancy, retrenchment, re-engineering and outsourcing. While differentiating between these concepts is clearly

important for the present study’s research objective, I will at this point refer to restructuring and downsizing. I define these as well as

the other concepts in Chapter 6.

4


In South Africa the trend to restructure organisations is no different to what occurs

elsewhere in the world. As recently as April 2005, local newspapers cited the plans of

Harmony, De Beers and Randgold to retrench 4 900 employees at their Free State

mines. This led to threats by local labour unions to strike should these companies carry

out their plans. This, in turn, led to attempts by the Minister of Minerals and Energy to

defuse the companies’ intended actions. However, delaying the retrenchment process

led to more financial loss for the companies.

Another recent example of downsizing is the local motor industry. According to Africa

News Service (2001, p. 1), local organised labour is fighting rationalisation in the motor

industry, which rationalisation is seen to cause “a job loss bloodbath” in South Africa.

This approach of local labour naturally makes it very difficult for South African

businesses to remain competitive. More specifically, mainly because of the country’s

developing economy and its inheritance of unjust apartheid practices, there has been

continued pressure on businesses to restructure their operations without retrenching

employees. Differently phrased, the complex legislative environment within which local

business operates poses a minefield of problems when companies downsize.

As far as I could establish, no downsizing model informed by social science research exists that can guide the downsizing of organisations in the complex South African situation. Therefore my modest intention with this study was to

contribute to solving the problem by establishing a process that local businesses could

apply to guide their downsizing. But what is the context of this phenomenon and

particularly its relationship with organised labour and other societal factors? In the next

section I describe this context.

5


1.3 BRIEF BACKGROUND TO DOWNSIZING

“Become leaner and meaner and do more with less” has become the battle cry in the

corporate sphere in the United States in the last decade. Competitive pressures have

forced many companies to reduce the size of their workforce as one method of cost

control. The downsizing route has been a road with many potholes, and some authors

have suggested that it does not work, or that it seriously restricts organisational

capability (Mabert & Schmenner, 1997, p. 45). Immense challenges are associated with

re-aligning an entire organisation from top to bottom with a global strategy driven by

new technologies, new markets and new entrants (Hall, Rosenthal & Wade, 1993).

There has been a clear change in corporate philosophy among United States

companies in the past two decades. Companies that once perceived employees as

long-term assets to be nurtured, developed, engaged and empowered by management

now regard employees as commodities, regardless of whether they have white-collar or

blue-collar status. Workers are short-term expendable costs and are jettisoned at a

moment’s notice to eliminate jobs. The steady drumbeat of layoffs in recent years has

made many workers feel that the days of career security are gone for good, no matter

how dedicated they may be.

Downsizing may take several forms. Companies re-organise and re-structure to

increase efficiency or economics of scale, de-layer to eliminate particular layers of

bureaucracy and reduce payroll expenses, outsource certain functions in order to focus

more resources on key competencies, and use contingent workers to meet demand

increases and help keep payroll costs down (Abbasi & Hollman, 1998).

Throughout the early 1990s, the news media issued reports of major United States

companies announcing layoffs of several thousand employees. Companies large and

small are still cutting jobs at a rate never seen before in the United States history.

6


However, the cut-and-slash tactics do not necessarily result in high performance, and

the productivity-enhancing role of downsizing has been exaggerated. In many cases,

downsizing is not only ill considered, but also inappropriate, a knee-jerk reaction to bad

times. Companies, particularly those that are bloated and non-competitive, tend to turn

to layoffs when they cannot solve fundamental problems.

One of the major challenges of business leadership is to heighten competitive

advantage through a smoother management process that involves less employee

dislocation. Given the corrosive effect and poor record of downsizing, many companies

are searching for more handsome ways to become mean and lean and more

competitive in the global marketplace. Traditional business is changing faster than most

people can comprehend. Information is being created, and technology is growing at an

exponential rate. These changes are creating new stress for management, as it

constantly struggles to improve its productivity and profit in a fast-changing global

market. Management’s response to this rapidly changing environment is predictable.

Managers contend that they have the freedom to restructure their companies to make

them more efficient, and that downsizing is an internationally accepted strategy to

achieve that. They see downsizing as a strategy for achieving greater earnings and

productivity and improving their financial position. Downsizing is particularly tantalising

to companies that are deeply in debt (Fisher & White, 2000).

In the independent but related empirical research stream on organisational downsizing,

some researchers suggest that downsizing has positive effects on post-downsizing

profitability (Bruton, Keels & Shook, 1996; McKinley, Schick, Sun & Tang, 1999), but

other studies show downsizing to have had little influence on profits or financial status

(Barker, Mone, Mueller & Freeman, 1998; Cascio, Young & Morris, 1997; Mentzer,

1996; Norman, 1995). Despite anecdotal evidence that layoffs boost stock prices (Dial &

Murphy, 1995), large sample studies indicate that layoff announcements generally have

a negative effect on market-adjusted equity values (Franz, Crawford & Dwyer, 1998;

Lee, 1997; Ursel & Armstrong-Stassen, 1995; Worrell, Davidson & Sharma, 1991). In

7


examining the influence of downsizing on creativity and on social networks that support

innovation and learning in organisations, Amabile and Conti (1999), Dougherty and

Bowman (1995), Fischer and White (2000) and Shah (2000) also conclude that

creativity recovers only marginally after a downsizing intervention.

In appreciating the downsizing phenomenon in South Africa, an open systems perspective of employment relations (see Nel, Swanepoel, Kirsten, Erasmus, &

Tsabadi, 2005), is quite helpful. From this framework it makes sense to state that

employment relations in democratised national states are confronted with various social

changes. From Nel et al.’s (2005, pp. 25-31) excellent discussion of the possible

interplay between employment dynamics and workplace variables in South Africa, the

following can be drawn:

• Socio-economic factors. South Africa’s economic growth rate, inflation, taxation

and interest rates could affect its employment relations, which in turn may result

in various interrelated phenomena, such as (1) too few job opportunities; (2)

unemployment; (3) envy, conflict and violence; (4) employee stress; (5)

absenteeism; (6) low employee performance; (7) poor organisational

competitiveness; (8) restructuring of business processes and downsizing of staff;

(9) poor economic growth; (10) labour action, which negatively impacts on

foreign investment; and (11) organised mass stay-away or protest actions, which

contribute to management-employee conflict.

• Social and political dynamics. The political transformation culminating in South

Africa’s first democratic election in 1994 led to various legislative changes,

including those dealing with the country’s labour market and employment

relations. Not only employer representatives but also trade unions have a major

interest in labour legislation. Organised labour, particularly Cosato (Congress of

South African Trade Unions), a federation of trade unions, is actively involved not

only in general local political processes but also in international politics. The

8


particular nature of trade unions in organisations and in the broader South

African society is influenced by developments in the country’s socio-political

dispensation, including (1) greater involvement of workers in management

decisions; (2) inflated expectations resulting from election processes which, in

turn, lead to workers and the unemployed pressurising both government and

employers to “deliver”; (3) pressure on the private sector to substantially

contribute towards reducing poverty and raising living standards and on

employers to ensure that “not only all employees, irrespective of race, gender,

etc., share in the same housing assistance benefits, but that even those who

have traditionally been deprived of such benefits should now be treated more

favourably” (Nel et al., 2005, p. 28); (4) the spilling over of crime into

organisations, often exacerbated by violence and intimidation, resulting in

organisations taking measures to ensure the safety and security of staff; (5)

increasing involvement of business in the education and development of their

workforce and the communities in which they are located (“if employees are not

developed, it may not only lead to inferior productivity levels and

capacity/competency-related cases for the termination of their services, but may

also threaten the continued existence of the organisation, affecting job creation

which is so necessary for socio-economic growth and social stability in the

country” (Nel et al., 2005, pp. 28-29), and making provision for changing societal

values, e.g. increasingly involve women in the business and professional world

and introducing devices to deal with maternity and paternity leave, childcare and

flexitime); (6) increasing transparency and democratic decision-making in

organisations; and (7) pressure on organisations to illustrate that they care about

the environment and the impact of their operations on it.

• Organisation-related variables. The following factors within the workforce may

interact with the dynamics of employment relations: (1) management’s decision

on how to grow the organisation over the short, medium and long term, which

might entail entering new markets, expanding the organisation by establishing

9


new operations in new regions, regaining market share, reducing labour costs

and cutting back on certain activities, amalgamating with other organisations, and

dismissing workers, fair staff retrenchment practices and consultation with

workers and/or their representatives; (2) organisational structuring, including

structures for communication and control, decentralisation and collective

bargaining; and (3) ownership, size, geographic distribution and location of the

organisation.

The preceding variables clearly illustrate the multi-facetedness of employment

relations dynamics and their interrelationship with various factors within and outside

businesses, spanning from local political and economic developments to global trends.

It should already be clear that South Africa as a recently democratised nation has

particular complexities with regard to employment relations.

Marais (2001, p. 276) points out that many of the later battles of the labour movement in

South Africa have been against regressive changes in the labour regime, notably

retrenchments and efforts to restructure the labour market. Cosatu has even lost

members through job-shedding in sectors that form the core of its organisational base.

The federation is therefore seeking legislative amendments that would outlaw

replacement labour and labour brokers, and would secure the right to strike over

dismissals. If enacted, such rights will make it extremely difficult for organisations to

align themselves with the demands of globalisation and the competitive quest.

Given South Africa’s urgent need to meet global demands, the extreme complexity of its organisational restructuring, the frequency and haphazardness of its downsizing initiatives, and the resultant protracted litigation and delays in restructuring, the lack of scientific work on the practice of downsizing is astonishing.

According to Budros (1999, p. 69), this is also the case in the United States, where

there is little serious theoretical or empirical work on the issue. As Cameron (1994a, p.

183) puts it, “downsizing may be the most pervasive yet understudied business

10


phenomenon; we have approached this phenomenon atheoretically and the number of

systematic studies on it is paltry”. However, according to Moore, Grunberg and

Greenberg (2004), the pervasiveness of organisational downsizing, as well as the toll it

takes on employees, has been well documented. The completed work reflects a

generally negative picture (Capelli, Bassi, Katz, Knoke, Osterman & Useem, 1997;

Ferrie, Shipley, Marmot, Stansfield & Smith, 1998a, 1998b; Kivimaki, Vahtera, Pentti &

Ferrie, 2000).

Now that I have sketched the background to the proposed study, I turn to explaining

why I decided to launch research on downsizing to obtain my doctorate.

1.4 PERSONAL INTEREST IN DOWNSIZING

I joined a company within the information technology sector during 1995 in the capacity

of Group Executive: Human Resources. In the course of 1997 this company merged

with another South African company. At the time of the merger, the new entity employed

about 6 500 employees. As part of the integration the company had to rationalise its

operations by eliminating duplication, which existed in both the former companies. The

rationalisation necessitated large-scale retrenchments. Hence I was tasked by the

Executive Committee to design a downsizing process that would minimise economic

and legal risks. In turning to international social science literature on the issue in order

to assist me, I found none. This resulted in the company depending on its own expertise

to design the process.

During 2002 this company decided to revise its restructuring process and

accompanying policies by aligning them with the Labour Relations Act 1995, as

amended in 2002. However, it was not possible at the time to base the restructuring on

sound social science research. To consolidate this apparently successful intervention, it

was necessary to subject it to social science scrutiny and to construct a scholarly

process for implementing other local downsizings. To the best of my knowledge Donald

11


(1995) was the only local scholar who had developed a retrenchment process, although

it was not aligned with the amended Labour Relations Act 1995. As local organisations

were intermittently faced with the reality of downsizing, it was reasonable if not

important to devise a theoretical concept that would ensure optimally fair and cost-

effective downsizing.

Towards the end of 2004 my commitment to make a contribution to the development of

a process by means of which local organisations could apply more effective downsizing

turned into the topic of my empirical research and doctoral study.

1.5 MOTIVATION FOR AND ANTICIPATED CONTRIBUTIONS OF THE STUDY

I believe the proposed study is unique in that it provides the prospect of obtaining the

insights of local users of a recent downsizing application. The envisaged research

findings, their implications and the conclusions of eminent human resources and

leadership literature provide a golden opportunity to develop an innovative downsizing

process based on social science, new to at least the local human resources

management and leadership fields.

I believe I was ideally positioned to undertake this study. First, as the Group Executive:

Human Resources I obtained the co-operation of senior executives who were using this

innovation in their respective business units to study their employees’ social

construction of this downsizing. Moreover, my insider involvement in the intervention

was invaluable for the proposed qualitative study. Not only was I directly involved in

devising my company’s downsizing, but I also had the privilege to closely observe many

employees’ experiences of the innovation over a number of months. These insider

understandings inter alia assisted in identifying rich data sources for the research that

is, selecting the most suitable research participants. My own experiences of the

construction and implementation of our downsizing innovation as detailed in auto-

ethnographical notes were drawn from practically gained knowledge, which in turn

12


served as “a reality test” of the relevancy and feasibility of available abstract scholarly

constructs, and promoted the design of themes that, in the local context, would be most

useful in guiding the research.

As to the study itself, I anticipated it to make social science, practice and policy contributions.

First, the information obtained would add important additional scientific knowledge

about this relatively unexplored phenomenon in South Africa (as already indicated, only

Donald (1995) had locally undertaken a study on this phenomenon at the time I initiated

my study).

Second, insights obtained from the everyday experiences of colleagues and employees

involved in the organisation’s downsizing innovation would be applied to align the

organisation’s practices and policies to ensure the continued optimisation of the

intervention.

Third, the research was expected to contribute towards the local study of human

resources management/leadership and change by describing and illustrating how a

particular qualitative research design, the case study, and the popular grounded theory

approach to analysing “soft” data may be implemented.2

Finally, this authentic case study, once properly documented, might serve as a

blueprint for South African organisations during the implementation of downsizing

interventions in their respective environments.

2 I discuss case study design and grounded theory in detail in Chapter 2.

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1.6 AIM AND OBJECTIVES OF THE STUDY

By now it should be clear that the aim of the study was to develop a process for

downsizing in South African businesses. More particularly, the objectives of the study

were as follows:

1) To employ a qualitative methodology to establish and describe the experiences

and views of staff on a downsizing intervention recently implemented by their

organisation in order to generate knowledge to determine its feasibility, including

shortcomings and proposals for improvement.

2) To apply insights gained from employees’ experiences and perspectives as well

as usable abstract scholarly concepts found in the literature on organisational

and human resource management and leadership so as to re-define the

downsizing practices and policies of the organisation.

3) To compile guidelines that will facilitate the implementation of downsizing

interventions by South African businesses.

4) To refine the applicability of modernist qualitative research in general and the

operationalisation of grounded theory in the local study of human resource

management and leadership in organisations.

5) To fulfil my ideal as senior executive of the company to share my experiences

with South African organisations in the same situation.

6) To obtain my doctoral study as a reward for all my efforts during this study.

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Before concluding this section, I would like to point out that although most definitely

valuable, it was not the intention to reflect on the social implications of the

implementation of the downsizing model. The objective of the study was also not to

evaluate this model

1.7 RESEARCH QUESTIONS

From a social science research perspective the following broad questions emerged:

• How should South African businesses manage downsizing?

• How can social scientists assist local organisations in these endeavours; differently put, how can scholarly processes or theoretical constructs guide local businesses when they embark on downsizing?

1.8 OUTLINE AND TECHNICAL PRESENTATION OF THE THESIS

In this chapter (Chapter 1) I have contextualised the study by providing the background

to the research problem, indicating its relevance and its anticipated contributions.

In Chapter 2 I refer to the key considerations applied during the research process and

outline the following: qualitative research and its key features, my key scientific beliefs

and ethical considerations during the study, my approach to “research methodology”,

theoretical concepts used during the study, qualitative research as research approach,

the case study as research design, the research setting and the research steps.

In Chapter 3 I first describe how I operationalised the central approach applied in the

study, namely grounded “theory”,3 and then present a chronological exposition of the

most important decisions I took during the actual execution of the research.

3 While I focus on grounded “theory” here, it is not possible to do this without dealing with the modernist research tradition of which it

is very much part.

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Chapter 4 deals with the first phase of executing grounded theory namely open coding,

whereas Chapter 5 offers a description of axial coding and how I applied it, selective

coding and how I used it and the manual and electronic coding processes that I

employed.

In Chapter 6 I first apply the conditional matrix. Second I incorporate socio-cognitive

theory into the diagram and therefore also attend to its applicability to the model. Then I

outline the model. Finally I contextualise the model within the downsizing literature.

Chapter 7 provides a synopsis of the study: I discuss the most significant contributions

of the study and their implications, offer my assessment of the study, reflect upon my

experiences of it and, finally, outline areas that in my view deserve further attention.

16

PART TWO

This section refers to Chapter 2 and covers the following aspects:

I refer to the key considerations regarding the

research, namely

(1) discussing qualitative research and its key

features;

(2) explaining my key scientific beliefs and ethical

considerations;

(3) defining “research methodology”;

(4) clarifying theoretical concepts utilised during

the research;

(5) outlining qualitative research as research

approach;

(6) presenting case study as research design;

(7) describing the research setting; and

(8) outlining the research steps.

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2 RESEARCH APPROACH

2.1 INTRODUCTION

In this chapter I deal with the key considerations applied during the research. First I

define “research methodology”. This is followed by an explanation of my key scientific

beliefs and ethical considerations, a clarification of the theoretical concepts used during

the study, an outline of qualitative research as research approach, a discussion of the

case study as research design, a description of the research setting and, finally, an

outline of the research steps.

2.2 DEFINING “RESEARCH METHODOLOGY”

Collis and Hussey (2003, p. 55) refer to research methodology as the overall approach

to the research process, from its theoretical underpinnings to the collection and analysis

of the data.

Arkava and Lane (1983, p. 194) are of the opinion that the description of the research

methodology utilised by the researcher should be viewed as a separate section of the

research report. According to De Vos, Strydom, Fouché and Delport (2005, p. 255) this

section, which is normally the second chapter of the report, should describe the

research methodology comprehensively so that the reader develops confidence in the

methods used. The context and purpose for which the data were collected should be

spelled out clearly (Cross & Brodie, 1998, p. 19). It is further suggested that descriptions

of the participants, research design, sampling plan, data collection procedures, and

apparatus and measuring instruments be included (McBurney, 2001, p. 80).

Furthermore, particular care should be taken that the relationship between the research

question and the data is clear. Finally, the steps according to which the data were

gathered should be described (De Vos et al., 2005, p. 255).

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In developing a new downsizing process for a South African organisation, I applied a

“bricoleur’s method” (Denzin & Lincoln, 2003, p. 5), which is similar to the ‘making of

quilts’ by deploying whatever strategies, methods, or empirical materials are required to

execute this qualitative study. However, before outlining how I accomplished this, I turn

to my key scientific beliefs and positions.

2.3 KEY SCIENTIFIC BELIEFS

Until quite recently researchers displayed reluctance to outline their scientific beliefs in

their reports. Potter (1996, pp. 35-36) summarises this state of affairs:

“The issues of ontology and epistemology are so fundamental to our everyday behaviour that we may rarely bother to examine them; in fact, the questions are so fundamental that we might think it silly even to ask them seriously in everyday conversation. We tell ourselves that, of course,

we believe in an external reality that exists apart from us. If a tree falls in the

woods and we do not hear it, was there a sound? We answer: Of course! A

tree can make a sound even if we aren’t there to hear it. Furthermore, if

someone tells us there is a tree in the woods, we can accept this to be true.

We don’t have to see the woods or tree to accept their existence. We don’t

have to perceive something directly to be convinced that it exists; indirect

evidence will do, especially in our mediated world. … In the case of our

everyday thinking, the question of existence is not dependent on our

perceiving something directly. For example, we believe we have a brain

although we will never see it, touch it, taste it, or hear it. We accept certain

rules and follow certain conventions in the belief that it will allow us to

organize and integrate our world into a shared community with others. For

example, when we see a long piece of bark-covered wood with branches

sprouting on one end and roots on the other, we know this means tree. We

19


also have faith that other people in our culture share the same meaning for

this object and will use the same word to express this meaning.

For most of us in everyday life, the words ontology and epistemology do not arise, nor do the questions they pose. Our lack of concern for them derives from axiomatic nature; they require us to take a position based on belief, not proof. Similar axiomatic questions include, Is there a supreme being? What is beauty?, and

What is moral life? The answers to these questions are beyond fact and logic; they

require an answer based on belief. Once we have recognized our belief, then we can

use logic to fashion arguments and practices to follow from it. When these practices

become established we need not think about them; we take them for granted.

However, when we enter the world of formal scholarship, it is essential that we examine the foundations of our thinking. When we do this, we discover that there exist alternative answers to each foundational question. Two scholars who hold different beliefs of ontology and epistemology may be interested in examining the same phenomenon, but their beliefs will lead them to set up their studies differently because of their differing views of evidence, analysis, and purpose of research.” (Emphasis added.)

2.3.1 Ontology

According to Mouton and Marais (1996, p. 11) the term “ontology” refers to the study of

being or reality, in other words the reality that is investigated in the social sciences.

From a social research perspective this refers to whether social reality exists independently from human conception and interpretation, and whether there is a common, shared, social reality or just multiple context-specific realities, and whether or not social behaviour is governed by laws that can be seen as unchangeable and generalised. Ritchie and Lewis (2004, pp. 11-23) argue that social

reality implies three broad but distinct positions: (1) realism, i.e. claiming the existence

20


of an external reality existing independently from people’s beliefs about or

understanding of it; (2) materialism, i.e. posing the existence of a real world but

emphasising only the material features that embrace reality; and (3) idealism, i.e.

asserting that reality is only knowable through the human mind and specifically by

means of socially constructed meanings.

I believe that it is only through experience and understanding of their social environment

that individuals are able to attach meaning to it. This belief informed my wish to study

the construction of the managers and some executives of my company in respect of the

downsizing interventions they had experienced in the company (as reflected by their

meanings, experiences, understandings, ideas, views, stories, biographies, words,

actions, reactions, interactions, situations, social relations, social and cultural practices

and processes, rules and ethical values and belief systems). More particularly, I wanted

to explore, describe and appreciate their concrete experiences and perspectives of a

new downsizing process. Therefore I set out to explicate their everyday experiences

and viewpoints to the best of my ability, illuminated these with the aid of abstract

concepts extracted from the literature and developed a scientific process that could be

applied by the company in refining its downsizing innovation.

But what precisely does organisational downsizing, the topic of my thesis, imply?

As defined by Davis, Savage and Stewart (2003, p. 181) downsizing is the loss of

employees, positions, departments or product lines. It is aimed at cutting waste,

improving profitability and productivity, and enhancing local, national or international

competitiveness. However, as I found this definition too limiting, I developed an

integrated one that approaches downsizing as an organisation’s reaction to economic,

social and socio-cognitive triggers to reduce its permanent workforce within a complex

regulatory business environment so as to improve its profitability and productivity and

enhance its local, national or international competitiveness.

21


According to McKinley, Zhao and Rust (2000, pp. 227-229) there are basically three

theoretical perspectives on organisational downsizing: economic, institutional and socio-

cognitive. With the economic perspective, scholars assume that downsizing is caused

by a search for productivity and efficiency. This perspective has been questioned

recently because of researchers’ inability to find a consistent positive relationship

between layoffs or downsizing and subsequent financial performance. As a complement

to the economic account of downsizing, scholars recently called on institutional theory

to help explain widespread downsizing. McKinley, et al. (2000) implies that downsizing

is impelled by social conventions defining it as “good” or “effective” management.

Although helpful, this model has to be complemented in turn by the socio-cognitive perspective. This perspective focuses on managers’ mental models of downsizing and

how these models are collectivised and reified through social construction (Walsh,

1995).

As one or more of the three constructs may illuminate managers’ decisions to embark

on or proceed with downsizing in their organisation, I employed all three theoretic

concepts to explain possible stimuli to organisational downsizing. Therefore, in my study

I examined the applicability of these constructs to the social constructions of my

company’s managers.

2.3.2 Epistemology

Dick (1999, p. 306) believes that epistemology, or the theory of knowledge, is a branch

of philosophy concerned with a general treatment of the nature, origins, scope and limits

of human knowledge, its presuppositions and basis. In short, epistemology investigates

the methods of inquiry by the knowledge that is required. It is traditionally devoted to the

study of the justification or, more generally, the evaluation of the beliefs we have on the

basis of some given body of evidence. The definition of epistemology therefore reflects

a tension between its autonomous and interdisciplinary conceptions. Easterby-Smith,

Thorpe and Lowe (2002, p. 31) describe epistemology as a “general set of assumptions

22


about the best ways of inquiring into the nature of the world”. Bryman (2004, p. 11) is of

the opinion that an epistemological issue concerns the question of what is (or should

be) regarded as acceptable knowledge in a discipline.

In this study my epistemological perspective is that a valid process for organisational

downsizing can be developed by employing unstructured flexible methods of inquiry to

capture, describe and appreciate the rich experiences of current users of my company’s

downsizing process. Furthermore, in following Mouton and Marais (1990) and many

other scholars, I believe that the practice of social science research can never provide full proof of scientific claims. Therefore, one should consciously engage in a

quest to minimise mistakes as far as possible to raise the quality and truth value of

research. I identify with Murphy and Dingwall (2003, p. 2004): “The hallmark of science

is the pursuit of truth and the limitation of error. As such, science is an attitude of mind rather than a set of procedures. The defining characteristic of that attitude is a commitment to subject any claim to rigorous evaluation and the conscientious seeking out of evidence that might contradict or modify that claim.”

(Emphasis added.)

2.3.3 Other personal assumptions

There are quite a few other principles that I regarded important in my study. I first turn to

perhaps the most important of these, namely my ethic assumptions while conducting

this research.

2.3.3.1 Research ethics

“Ethical issues are the concerns and dilemmas that arise over the proper way to

execute research, more specifically not to create harmful conditions for the subjects of

inquiry, humans, in the research process” (Schurink, 2005, p. 43). Neuman (1994)

23


correctly points out that these issues involve trade-offs between competing values and

are typically situational, that is they depend on the research subject or topic and

research participants. Jones (1996, p. 33) describes this quite well: “Although

researchers may agree that knowledge and understanding are ideals worthy of pursuit,

there are other ideals that they may, at times, value even more highly. When such a

conflict of ideals occurs, the issue of whether or not one should conduct the research in

question may be said to pose an ethical dilemma. Quite literally, the researcher must

ask him-or herself, ‘Can this research be ethically justified?’”

Schurink, (2004d) mentions that it is clear that ethically responsible research depends

on the integrity of the individual researcher and his or her values. “Ethics begins and

ends with you, the researcher. A researcher’s personal moral code is the strongest

defence against unethical behaviour. Before, during, and after conducting a study, a

researcher has opportunities to, and should, reflect on research actions and consult his

or her conscience … Ethical behaviour arises from sensitivity to ethical concerns that

researchers internalise during their professional training, from a professional role, and

from personal contact with other researchers. Moreover, the norms of the scientific

community reinforce ethical behaviour with an emphasis on honesty and openness.

Researchers who are orientated toward their professional role, who are committed to

the scientific ethos, and who interact regularly with other researchers, are likely to act

ethically” (Neuman, 1997, p. 443).

Schurink (2005) emphasises the complex nature of research ethics and states that it is

very unlikely that there will ever be one clear solution to this issue. Therefore he advises

researchers to follow a practical approach in which they ask questions and push

themselves hard to reach answers. “The researcher needs to be honest about the

purpose of his or her research. The study is likely to include not only the advancement

of knowledge or understanding of some aspect of the social world, but also factors

involving personal gain such as the achievement of a personal qualification, of a

24


promotion, of some standing in a discipline (amongst colleagues, friends, rivals,

relatives, etc.), and/or of some research funding” (Schurink, 2005, p. 44).

I fully agree with the position generally held in social science research communities

regarding ethics and with the ethical code of the Department of Human Resource

Management at the University of Johannesburg specifically. Therefore I (1) conducted

the research overtly; (2) together with my promoter, Prof. Willem Schurink, drafted an

informed consent form4 outlining the aim of the research, its nature, what was expected

from research participants, and assurances that all information obtained in the study

would be used only for research purposes and that all participants’ names, including my

company’s name, and identifying particulars would be treated confidentially at all times;

(3) accepted no person’s research contribution unless the informed consent form had

been duly signed by Prof. Schurink and myself on the one hand and the research

participant on the other; and (4) negotiated responsibilities and guarantees with my

company before I began the study.

The research participants were continuously reminded that they could withdraw from the

research without any negative consequences to their careers, and at no point was their

privacy invaded. When visual material was collected, it was done with the prior consent

of each participant. All the participants were given assurances that their identity would

not be disclosed in any way during the discussion of the results. Prof. Schurink and I

were indeed confronted with this dilemma during the discussion of the layout of the

chapters of the thesis and eventually had to change the presentation of the inputs of the

research participants in order to ensure that confidentiality and the anonymity of the

participants would be maintained.

4 Although the insistence upon signed consent forms is certainly not sufficient for ensuring the autonomy of qualitative research

participants, it does give some reassurance to both the subjects and the researcher. “Genuine protection comes from the

researcher’s ongoing commitment throughout the research process and willingness to withdraw, amend, or constrain the emergent

research design whenever there is irresolvable conflict with the wishes of the research participants. The rights of participants in

qualitative research are protected more by the moral sense of the researcher than by the prescriptive rules or rituals of regulatory

codes” (Murphy & Dingwall, 2003, p. 163).

25


From my literature review I became quite aware that qualitative research often poses

particular challenges to ethical norms and, following Mason (1996), considered the

implications of my decisions for the research participants and the company continuously

throughout the study.

2.3.3.2 Personal values and subjectivity

Since the researcher is considered the instrument in qualitative research, his or her

presence in the lives of those studied is fundamental (see Marshall & Rossman, 1999).

Particularly important is the management of one’s personal values or one’s

subjectivity. Not surprisingly, this aspect has been receiving increased attention

among qualitative researchers, resulting in quite a substantial literature. I am not going

into detail here; the following will suffice:

“Different to quantitative researchers when we study social reality qualitatively, we do

not believe that we can be detached from our research in an attempt to limit, if not

avoid, bias. We are convinced that we need to become immersed in people, social

situations, and any social reality we study. Amongst others, we assume varying

interactive social roles when we observe, interview and interact with people in order to

collect and capture data, interpret them, and finally validate our reconstructions of social

worlds. In our interaction with our research participants we put the main emphasis on

the necessity of a skilled and properly prepared person in contrast to some instrument

like a questionnaire. But how do we deal with our own experiences and viewpoints? We

explicate them as far as possible, inter alia, in memoirs, project diaries or natural

histories and/or auto-ethnographic notes. In short, we strive towards what Erickson

(1973) and Mason (1996) respectively term disciplined subjectivity and reflexivity. This

implies a critical self-examination of our roles as researchers throughout the entire

research process (McMillan & Shumacher, 2001)” (Schurink, 2005). (Emphasis in the

original.)

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As an insider I was acutely aware of my potential bias during the study and therefore

decided to regularly reflect on my thoughts and research plans in discussions with Prof.

Schurink. This strategy is called “peer debriefing” (see McMillan & Shumacher, 2001).

Another peer debriefer I decided to use and who became invaluable in facilitating my

critical self-examination was the CEO of my company. Finally, I intermittently discussed

my views and approaches with fellow students and colleagues. I am of the opinion that

these debriefers not only enabled me to make objective decisions during the research

but also assisted me to refrain from influencing the outcome of the study.

As for objectivity, I found Smaling’s (1989, p. 307) approach particularly useful. He

developed a conceptualisation of objectivity which is particularly relevant to qualitative

research. He states that it is possible to define objectivity at a higher level of

abstraction, where paradigms are no longer determinant of the nature of objectivity. He

briefly describes this objectivity as doing justice to the object of study. One of the

methods often used to ensure objectivity is triangulation. Denzin (1989, p. 236) defines

this as a plan of action that will raise sociologists (and other social researchers) above

the personal biases that stem from single methodologies. By combining several

methods and the inputs of several researchers in the same study, observers can

partially overcome the deficiencies that flow from one researcher or method5. I also

employed this strategy.6

Other strategies I employed and to which I return at a later stage include:

1) Selecting participants on the basis of theoretical sampling, a qualitative

research practice that is defined by Ritchie and Lewis (2004, p. 80) as a kind

5 Although employing multiple methods in a single study can limit errors, one must caution against the notion that the weakness of

one method can be compensated for by the strengths of another. “[S]imply because the findings from two different data sources are

identical is no guarantee that they are true. It is quite possible that both are incorrect as a result of either systematic or random error

…” (Murphy & Dingwall, 2003, p. 185). 6 In Chapter 3 I discuss the multiple data collection methods I applied in the study.

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of purposive sampling in which the researcher samples incidents, people or

units on the basis of their potential contribution to the development and

testing of theoretical constructs.

2) Taking care during the research process that my analyses and interpretations

can be traced to their sources and are supported by the inquiry.

2.3.3.3 Deployment of self

Following Patton’s (1990) and Marshall and Rossman’s (1999) beliefs and approaches,

I considered how far I would take part in activities in the research setting (i.e.

participation in the activities of the research participants); what I would disclose about

the research, the duration of the research and the amount of time I would spend in the

research setting or with the research participants; and the “directiveness” of the

research questions. In other words, how should one deploy the self to maximise data collection opportunities.

It was clear from the outset that my position as senior executive within my company

would provide me with the opportunity of being part of the social worlds of my

colleagues who would be participating in the research. Perhaps the most important

advantage of my insider position was my intimate knowledge of the organisation and

our downsizing process, and where to find information on it. On the negative side was

the well-known problem of reactivity, that is people being aware of being studied and

therefore modifying their behaviour.

These pros and cons are closely related to the role the researcher plays and its “transparency”. As to whether and when one reveals to those one is studying one’s

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research intentions, one may immediately or at a later stage reveal this, or may never

do so.7

Apart from carrying out the everyday activities associated with the role(s) informed by

the research, the researcher may not participate in any social interaction and may even

avoid any involvement apart from getting together with the research subjects for

interviews. Prof. Schurink and I decided that I would make it clear to my colleagues

participating in the research that although I would be undertaking the research I would

also incorporate my own experiences and viewpoints in the study. Obviously this also

posed problems. Babbie and Mouton (2004, p. 299), for example, write: “You could

participate fully with the group under study but make it clear that you were undertaking

research … There are dangers in this role also, however. The people being studied may

shift much of their attention to the research project rather than focus on the natural

social process, making the process being observed no longer typical. Or, conversely,

you yourself may come to identify too much with the interests and viewpoints of the

participants. You may begin to ‘go native’ and lose much of your scientific detachment.”

Amongst others it was clear to me that as researcher I had to develop my roles carefully

to suit different situations during the gathering of data.

I anticipated that it would be difficult to explain my own position in the study that is my

being overt, without my executive position in the organisation inhibiting the research

participants in sharing their experiences and viewpoints with me, and without this

compromising their work or their position in the organisation. Nevertheless, I was

convinced that conducting the study overtly and as complete participant (a covert or

7 Many ethical issues are amplified by covert research. Although the overwhelming majority of qualitative researchers reject covert

research, a minority justifies deliberately misleading their research subjects about the true reason for their participation in research

events. These researchers believe that by not revealing their identities or the object of their research they reduce reactivity to the

absolute minimum. Perhaps the most well-known covert study utilising mainly qualitative methods is Humphreys’s (1970) study of

sexual encounters between homosexual men in “tea rooms” (public lavatories).

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secretive role was not an option to me) would provide me with the best opportunity to

develop a full appreciation of the social construction of downsizing in our company.

2.3.3.4 Entrée

As a senior executive of the company I was tasked a couple of years ago by its

Executive Committee to develop a fair and objective process for downsizing. Together

with a number of colleagues I did so, but once applied, the process came to be

questioned in terms of its scientific legitimacy by the labour tribunal in South Africa.

Litigation became very expensive. To counter this situation I was requested by the CEO

to undertake further research (this study).

Bogdan and Biklen (2003, pp. 75-76) state that the researcher normally gains access to

an organisational setting obtaining the permission of gatekeepers, that is those in

charge. As is clear from the preceding exposition I obtained official permission from the

CEO of my company to begin with the study. In fact, the CEO issued a letter that

granted me permission to approach and negotiate with identified research participants.

Furthermore, in a meeting with these employees he indicated the importance of the

research to the company. All the prospective participants agreed to participate in this

study. I had a personal relationship with each of the senior executives who had a vested

interest in the study. It was important to them that the company’s downsizing process be

reviewed and refined by systematically scrutinising their past experiences and

viewpoints of the process. For example, the regional human resources practitioner who

reported to me was interested in the study because the sooner we could develop an

organisational downsizing process the easier it would be for him to monitor an official

process that could be justified during future downsizing interventions.

My intimate knowledge of the company, its downsizing process and rich sources of information on the process on the one hand and my reactivity on the other hand

were integral to my role as researcher and my relations with the research participants.

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In this regard Potter (1996, p. 109) asks to what extent qualitative researchers can

collaborate in gathering evidence. He refers to three types of collaboration: sharing of

analysis among researchers, or what he calls horizontal collaboration; collaboration of

researchers with the subjects being examined, or what he calls vertical collaboration;

and collaboration among researchers, each of whom arrives at his or her conclusions

independently but presenting them together though unsynthesised across researchers,

or what is called compartmentalised collaboration. In my opinion vertical

collaboration occurred in my study where I discussed my insights on downsizing with

the participants. I did this because some of the participants were regarded as authorities

on the downsizing process adopted by my company.

What I could possibly be criticised for in the study is gender bias, which criticism might

be forthcoming from what Babbie and Mouton (2004, pp. 37-38) refer to as critical feminism: standpoint epistemology. Critical feminism speaks out against the under-

representation of women and women’s experiences within the social sciences, both as

the subjects of research and the producers of theory. Other feminist theorists examine

the construction of gender and sex roles in modern society in order to show how the

female world is systematically ignored in scientific scholarship. Subsequent critiques go

further in using the concept of gender and patriarchy to emphasise masculine (or

androcentric) biases in social research methodology, that is there is structured forms of

power in modern societies and through them ruling groups maintain and reproduce their

positions of dominance. My apparent androcentrism in this study derives from the fact

that no female executive in our company went through the process of downsizing

(neither did any black executive).

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2.4 THEORETICAL CONCEPTS AND THE STUDY

My own professional experience reinforced by my literature review made me acutely

aware of the more often than not confusing social science terminology. Furthermore, the

literature on qualitative research made it clear that there is no consensus on the place

of literature reviews in qualitative research and that qualitative researchers hold different

positions as to using existing scientific concepts in research. In addition, although the

clarification of concepts emerging during qualitative research is a continuous process

and the concepts can only be presented when the research has been concluded, I

believe that the typical symbolic tools the researcher uses have to be clarified at the

outset of the research process.

Below I present my definitions of the concepts I used in this research by citing the views

of scholars on these, and then I describe how I used existing theoretical concepts in the

study. To this effect I apply Mouton’s (2002) “building blocks of science” below, as

these clarify the relationship between core theoretical concepts.

2.4.1 Defining theoretical concepts

Mouton (2002, p. 180) mentions that, at the most basic level, scientific knowledge is

made up of concepts that are our links with the social world. Concepts act as “carriers”

of meaning that is they enable us to identify and refer to social phenomena on the basis

of their defined characteristics. But concepts as such do not make any claims about the

world. For this we have to combine concepts into sentences that make statements or

propositions, and distinguish between sentences that make semantic or meaning claims

(definitions) and those that make epistemic or knowledge claims (empirical propositions

or statements). On their own, individual statements (even generalisations) are

insufficient if we wish to understand and explain social phenomena. In order to reach a

higher level of generality, we need to combine statements (definitions and empirical

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statements) into more complex conceptual frameworks, namely typologies, models and

theories, and eventually very broad theoretical paradigms or research traditions.

I will now move to the definition and explanation of the term “concept”.

2.4.1.1 Concept

Mouton (2002, p. 181) defines concepts as the most elementary symbolic constructions by means of which people classify or categorise reality. Concepts

are, as it were, the “pigeonholes” into which we sort our unstructured empirical

experiences; they are the primary analytical instruments by means of which we come to

grips with reality. One could say that concepts are the symbolic constructions by means

of which people make sense of and attribute meaning to their worlds. A concept is thus a symbol of meaning.

Copi (1972, in Mouton, 2002, p. 181) distinguishes between two sides of the word

“meaning”, namely connotative and denotative. He argues that a class denotes the

objects to which it may be correctly applied, and the collection or class of these objects

constitutes the extension or denotation of the term. The collection of properties shared

by all and only those objects in a term’s extension is called the intention or connotation

of the term.

The specific connotation that a person attaches to words such as “fair” and “objective”

would be closely associated with how these words took shape in his or her social world.

The conventional connotation of the meaning of a word is assumed to be accepted for

the purposes of daily communication.

Mouton (2002, p. 181) holds that many of the key concepts of the social sciences tend

to be highly abstract. Many of them came into being when a new theory, usually a highly

complex one, was developed and are therefore also referred to as theoretical

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concepts or constructs. An important observation is that the denotations of theoretical

concepts are largely, if not entirely, determined by their connotations.

According to Kuhn (1970, cited in Mouton, 2002, p. 184) the fact that scientists operate

within different conceptual frameworks makes communication between them impossible

and excludes any comparison between theories. Qualitative researchers argue that a

significant proportion of social science concepts are derived directly from social actors

in the social world. One of the distinctive aspects of qualitative research is the fact that

the researcher attempts to understand people in terms of their own definitions and

concepts of the world. Typically, the concepts generated in qualitative studies are

therefore concrete concepts. Next I move to statements or propositions.

2.4.1.2 Statements

Mouton (2002, p. 187) describes a definition (concept) as a statement that delimits or

demarcates the meaning of a word in terms of its sense and reference. The

specification of the connotative meaning of a concept, namely the general intention or

idea that it incorporates, is usually referred to as the theoretical or connotative definition.

Through the theoretical definition the relationships between a given concept and related

concepts within a specific conceptual framework (model or theory) are brought into

focus. The relevance of a concept is specified by an operational definition of that

concept. The aim of an operational definition is to identify the indicators (the specific

events or phenomena) that truthfully represent an abstract concept.

As a general rule, however, the term “concept” should be used when referring to the

connotation of a word (the idea conveyed by the word), and the term “variable” when

referring to the observable and measurable manifestations of a concept. It is therefore

more correct to refer to indicators of variables (and not of concepts).

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Mouton (2002, p. 190) refers to empirical statements as sentences that contain

demonstrable, testable claims about the world. He distinguishes between two main

types of empirical statements: descriptive statements that make factual claims and

explanatory statements that make causal claims.

2.5 CONCEPTUAL FRAMEWORKS

Mouton (2002) refers to the following three types of conceptual frameworks: typologies,

models and theories.

2.5.1 Typology

According to Mouton (2002, p. 195) a typology may be defined as a conceptual

framework in which phenomena are classified in terms of characteristics that they have

in common with other phenomena. Classification is one of the more basic functions of

conceptual frameworks. The major characteristics of a typology are the following:

• The basic unit of a typology is the “type”, which emphasises the common or

outstanding characteristics of a social phenomenon and eliminates its trivial or

incidental features. This emphasising and elimination require abstraction.

• Abstraction, however, involves “selection”, which in turn implies that no type is

ever an exact reproduction of all the features of a phenomenon.

• Classification or typologies are assessed by applying exhaustiveness and mutual

exclusiveness.

• Typologies present static images or cross-sections of specific sets of events

whereas models represent the dynamic aspects of phenomena by illustrating the

relationships between their elements in simplified forms.

• Typologies serve various functions in research. Sometimes the development of a

typology resembles the first step in systematic data collection, thus serving as a

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frame of reference, implying that data collection is guided by the typology and

that data analysis is being simplified.

It should be clear that although classification is one of the more basic functions of all

conceptual frameworks, it is the specific function of typologies.

2.5.2 Model

Mouton (2002, p. 196) states that the term “model” is probably one of the most

ambiguous in the vocabulary of the social scientist. Achinstein (1968) and Gorrell (1981)

both cited in Mouton, (2002, p. 196) maintain that the differences between models and

theories are largely differences of degree. The heuristic function8 is the most common

characteristic of models, whereas the explanatory function is usually attributed to

theories.

A model is an attempt to represent the dynamic aspects of a phenomenon by illustrating

the relationships between its elements in a simplified form. The model is used to

suggest new areas of research because certain relationships and dimensions are

highlighted. Smeltzer and Zener (1992, p. 446) have developed a model to

communicate layoffs within organisations that will minimise the trauma. Their layoff

announcement model has four major elements: the source of the message, the content

of the message, the channel used to convey the message and the timing of the

announcement. The model also considers organisational dynamics and the nature of

the organisational change.

From the preceding discussion it should be clear that there is a close relationship

between typologies (which basically have a classifying or categorising function based

on single variables) and models (which provide a systematic representation of

8 Literally “heuristic” means to discover or reveal.

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phenomena by identifying patterns and regularities among variables). Theories, which

explain phenomena by postulating an underlying causal mechanism, are closely related

to the two concepts. See the exposition below.

2.5.3 Paradigm

Mouton and Marais, (1996, p. 15) refers to a paradigm as a model that typically

provides a solution to some grammatical problem, while Collis and Hussey (2003, p. 17)

see a paradigm as the progress of scientific practice based on people’s philosophies

and assumptions about the world and the nature of knowledge and in this context about

how research should be conducted. De Vos et al. (2005, p. 44) refer to a paradigm as a

model or pattern according to which a scientist views his objects of research within his

particular discipline.

According to Mouton and Marais, (1996, p. 204), normal science may be defined as the

practice of scientific research within and from the frame of reference supplied by a

dominant paradigm that is from a collection of mutually accepted achievements

(including theories, exemplary solutions, predictions and laws). In this sense, a

paradigm is primarily a model for conducting normal research. He distinguishes the

following components of a paradigm:

1) Scientists commit themselves to a specific theory or law, or to a set of

theories or laws. These are explicit statements of scientific law, and

statements about scientific concepts and theories.

2) The researcher espouses a given methodology or set of research techniques

as dictated by the paradigm.

3) Scientists commit themselves to specific metaphysical assumptions and

preconceptions, that is assumptions concerning the research object (that

which is to be studied) and assumptions concerning the manner in which it

should be researched (criteria for an acceptable view of science).

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4) Scientists make certain assumptions as scientists.

Mouton and Marais, (1996) refers to behaviourism as a paradigm and to socio-cognitive

theory as a theory within psychology.

2.5.4 The term “theory” and its application in the study

In this section I address definitions of the term “theory”, various issues arising from

these definitions and my own use of existing theoretical concepts in this study.

2.5.4.1 Definitions of “theory” and theory types

Kerlinger (1986, p. 9) defines “theory” as a set of interrelated constructs (concepts),

definitions and propositions that present a systematic view of phenomena by specifying

relations among variables, with the purpose of explaining and predicting the

phenomena. De Vos et al. (2005, p. 37) state that a theory is an attempt to explain

and/or predict a particular phenomenon. They add that a theory must be testable, at

least ultimately.

Bryman (2004, p. 5) correctly points out that characterising the nature of the link

between theory and research is by no means a straightforward matter. “Theory” is used

in a variety of ways, but its most common meaning is perhaps an explanation of

observed regularities. Bryman (2004) distinguishes between grand theories and middle-

range theories. Grand theories operate at a more abstract and general level and offer

few indications to researchers as to how they might guide or influence the collection of

empirical evidence. It is therefore not a grand theory that typically guides social

research, but middle-range theories, which are much more likely to be the focus of

empirical inquiry. The grand/middle-range distinction does not entirely clarify the issues

involved in asking the deceptively simple question: “What is theory?” This is because

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the term “theory” is frequently used in a manner that means little more than the

background literature in an area of social inquiry.

Social scientists are sometimes prone to being dismissive of research that has no

obvious connection with theory in either its grand or middle-range sense. Such research

is often referred to as naïve empiricism. According to Bryman (2004, p. 7) the term

“empiricism” denotes a general approach to the study of reality that suggests that only

knowledge gained through experience and the senses is acceptable, that is ideas must

be subjected to the rigours of testing before they can be considered knowledge. A

second meaning of the term is related to this, namely a belief that the accumulation of

“facts” is a legitimate goal in its own right. It is this second meaning that is sometimes

referred to as “naïve empiricism”. It would however be harsh, not to say inaccurate, to

brand as naïve empiricism the numerous studies in which the publications-as-theory

strategy is employed, simply because their authors have not been preoccupied with

theory. The overall approach of the aforementioned is where theory mainly guides and

influences the collection and analysis of data. This means that research is done to

answer questions posed by theoretical considerations.

2.5.4.2 Theory and logic of argumentation

An alternative position to the answer of questions posed by theoretical considerations is

to view theory as something that occurs after the collection and analysis of some or all

of the data associated with a project. The importance here is the significance of a

second factor in considering the relationship between theory and research, whether one

refers to deductive (theory after) or inductive (theory before and guiding) theory.

Deductive theory represents the commonest view of the nature of the relationship

between theory and social research. The researcher, on the basis of what is known

about a particular domain and of theoretical considerations in relation to that domain,

deduces a hypothesis (or hypotheses) that must then be subjected to empirical scrutiny.

Embedded within the hypothesis are concepts that have to be translated into

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researchable entities. The social scientist must both deduce a hypothesis and then

translate it into operational terms. This view of the role of theory in relation to research

is very much the kind of role that Merton (1967, p. 39) had in mind in connection with

middle-range theory, which, he argued, is principally used in sociology to guide

empirical inquiry.

In contrast to deductive theory, inductive theory holds that the researcher feeds back

the findings of the research into the stock of theory that prompted the research in the

first place. With an inductive stance, theory is the outcome of research. However, just

as deduction entails an element of induction, induction is likely to involve an element of

deduction. Once theoretical reflection on a set of data has been carried out, the

researcher may want to collect further data in order to establish the conditions in which

a theory will and will not hold. This weaving back and forth between data and theory is

often described as “iterative”; it is particularly evident in grounded theory (Bryman,

2004, p. 10).

2.5.4.3 Grounded theory and substantive theory

Locke (2003, p. 35) mentions that theorising in grounded theory begins with the creation

of theories that are substantive. Glaser and Strauss (1967, p. 32) make much of the

difference between substantive and formal theory: “By substantive theory we mean that

developed for a substantive, or empirical, area of sociological inquiry, such as patient

care, race relations, professional education, delinquency, or research organizations. By

formal theory, we mean that developed for a formal, or conceptual, area of sociological

inquiry, such as stigma, deviant behaviour, formal organization, socialization …” They

view formal theory as the sociologist’s (scientist’s) goal. However, they insist that to be

valid formal theory must be developed from a substantive grounding in concrete social

situations.

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Substantive theory comes before formal theory, and is closely linked to the practice

domain. It represents the close connection to empirical reality that the originators and

others working in the Chicago tradition were arguing for in the 1960’s. In organisation

studies many of our theories are substantive; decision-making and leadership are two

instances of such theories. Today, substantive theories may be developed for issues

associated with working in virtual organisations or managing contingent workers. When

we speak of formal theory we usually refer to those areas of inquiry that operate at a

high level of generality, such as systems theory, agency theory and contingency theory.

However, the notion of “theory” seems to be taken for granted, to such an extent that

many criticisms of analyses that are presented as grounded theories revolve around

concerns of their not being properly developed theories (Locke, 2003, p. 35).

Researchers work to generalise their empirical observations in a linguistic device that is

conceptual categories and frameworks. A conceptual category has analytic

generalisability when it can plausibly account for a large number and range of empirical

observations. Glaser and Strauss (1967) speak of this when they describe a theory as

being generally applicable (Locke, 2003, p. 39). However, although Glaser and Strauss (1967) argue that the grounded theory style of research is especially suited to generating theories of social process, they also hold that the method can be used to generate static models, for example a typology (Locke, 2003, p.

42).

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2.5.4.4 Grounded theory and management studies

Partington (2000) contends that the grounded theory approach is well suited to

contemporary mode 2 management research, which points to a break with academe

through its focus on the practice domain. According to Partington, mode 2 management

research is trans-disciplinary and as such is less likely to bring with it mature theoretical

frameworks developed within the boundaries of particular academic disciplines. It

underscores the importance of accessing the tacit knowledge of organisational actors.

Partington (2000) uses the approach to develop a grounded normative model that

accounts for the actions of managers seeking to implement planned organisational

change initiatives.

2.5.4.5 Grounded theory and symbolic tools

Locke (2003) refers to many examples in organisational studies where grounded theory

is used to develop substantive models. I am therefore of the opinion that the term

“theory” in grounded theory does not (and should not) refer to a rigid theoretical concept

of “theory” only, but does (and should) also refer at least to typologies and models, and

at best any symbolic tool or building block of science (see Mouton, 2002). That is why I define the product of my research as a substantive model (and not a substantive theory) for organisational downsizing.

Now that theory has been explicated, we can turn to how I applied existing theoretical

concepts in the study.

“While using existing concepts or hypotheses is obviously very helpful to guide you in

collecting and analyzing data, at the same time if not managed properly, it could be

restricting, in that you may, in doing so, not appreciate the indigenous experiences and

perspectives of the participants of the research setting that you are studying” (Schurink,

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2005, p. 44). This view is supported by a statement of Groenewald (2003, p. 9):

"Qualitative researchers generally caution that existing theory and findings from other

research studies may interfere with the researcher's grasp of the perspectives of the

research subjects. In order not to contaminate the meanings of the perspectives of

research subjects, qualitative researchers recommend that the researcher refrains from

exposing her/himself to the literature and existing research findings until after s/he has

collected the data and has at least initially interpreted it.”

But how did I go about using theoretical concepts in the present study? First I

undertook a preliminary review of the literature on downsizing and qualitative research.

This was necessary to establish the state of the art, identify the main debates and major

empirical studies in these fields, contextualise the rationale and significance of the study

and substantiate my choice of headings for the research proposal. Although I perused a

number of qualitative research-related works provided by Prof. Schurink and reviewed

the literature on downsizing I had been collecting over recent years, the review could

not be considered all-inclusive. Yet it was representative enough to enable me to

produce a proper research proposal.9

After the approval of the research proposal I undertook a further review of the literature,

particularly work on qualitative research. I needed this to develop a road map for

moving from the research proposal to conducting the research. As part of this step I

studied theoretical perspectives such as symbolic interactionism in order to guide the

application of the qualitative modernist approach I opted for.

Then I used the socio-cognitive theoretical perspective on downsizing to guide me in

listing topics or drawing up an agenda for data collection (qualitative interviewing and

solicited electronic essays).

9 The committee for research proposals of the Department of Human Resource Management at the University of Johannesburg

approved the research proposal with a few minor reservations.

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Theoretical concepts drawn from the literature on organisational change, leadership and

downsizing assisted me in finding angles from which to view and interpret the data.

Finally I used abstract concepts to assist me in constructing the downsizing model for

my company.

2.6 APPLYING QUALITATIVE RESEARCH AS METHODOLOGY

As indicated, I used qualitative research or a “bricoleur’s method” (Denzin & Lincoln,

2003, p. 5) in the study. But how did I develop and implement it? In this section I turn to

what qualitative research entails.

2.6.1 Qualitative research and its key features

According to Schurink (2004c, p. 14) qualitative research stems from a largely anti-

positivistic, interpretative approach that is ideographic, thus holistic, and mainly aims at

understanding social life and the meanings people attach to it.

According to Ritchie and Lewis (2004, p. 8) scholars some years ago started debating

positivism and the legitimacy of social research based on the “scientific method”. They

(Ritchie & Lewis, 2004, p. 7) correctly indicate that practitioners of qualitative research

came to place emphasis and value on the human, interpretive aspects of knowing about the social world, and the significance of the own interpretation and understanding of the phenomenon under study.

According to Schurink (2004c) establishing a suitable meaning for this approach has

indeed been a challenge. Denzin and Lincoln (2003, pp. 4-5) define qualitative research

as a situated activity that locates the observer in the world. It consists of a set of

interpretive, material practices that make the world visible, and then transform it. In

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addition, these practices turn the world into a series of representations, including field

notes, interviews, conversations, photographs, recordings and memos to the self. At this

level, qualitative research involves an interpretive, naturalistic approach to the world. This means that qualitative researchers study things in their natural settings,

attempting to make sense of or interpret phenomena in terms of the meanings people

bring to them.

Qualitative research involves the use and collection of a variety of empirical tools.

These include case studies, personal experiences, introspections, life stories,

interviews, artefacts, cultural texts and productions, observational, historical, interact

ional and visual texts that describe routine and problematic moments and meanings in

individuals’ lives. Accordingly, qualitative researchers deploy a wide range of

interconnected interpretive practices, always striving to better understand the subject

matter at hand. For them each practice makes the world visible in a different way.

Hence they use more than one interpretive practice in any study (Schurink, 2004c,

p. 5).

The key characteristics of a qualitative approach are the following:

1) The research straddles and cross-cuts all human disciplines, even, in some

cases, those of the physical sciences (Denzin & Lincoln, 2003, p. 11).

2) A qualitative methodology emphasises meanings and experiences related to

the phenomenon (Collis & Hussey, 2003, p. 17), and qualitative researchers

are more concerned with a deep understanding of their research participants

than are exponents of the “standard” method (Mark, 1996, p. 211).

3) Qualitative research aims to understand phenomena within the context in

which they occur (Schurink, 2004c, p. 14).

4) Qualitative researchers discard the notion of an external, objective reality.

They aim to understand reality by discovering the meanings that people in a

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specific setting attach to it. To these researchers behaviour is intentional and

creative, and can be explained but not predicted (Schurink, 2004c, p. 15).

5) The qualitative researcher is subjective because he or she interacts with the

subject (object of investigation) (Schurink, 2004c).

6) Qualitative methodology is dialectical and interpretive (Guba & Lincoln, 1994,

p. 108). During interaction between the researcher and the subject, the

subject’s world is discovered and interpreted by means of qualitative methods

(Schurink, 2004c).

7) The qualitative research paradigm in its broadest sense refers to research

that elicits participant accounts of meaning, experience or perceptions. It

typically produces descriptive data in the participant’s own written or spoken

words, thus involving identifying the participant’s beliefs and values regarding

the phenomenon under study (Schurink, 2004c).

8) The qualitative researcher is concerned with understanding (verstehen) rather

than explanation; with naturalistic observation rather than controlled

measurement; with the subjective exploration of reality from the perspective

of an insider (Taylor & Bogdan, 1984, p. 5).

9) Qualitative research methods recently infiltrated evaluation research, a

traditional stronghold of quantitative research (see Patton, 1997; Schurink,

2004c). When applied to the evaluation of social programmes or

interventions, qualitative research typically focuses on process evaluation.

10) Qualitative researchers operating within the boundaries of various disciplines

engage in discovery rather verification (Schurink, 2004c).

I now outline the modernist qualitative paradigm that I used in the study.

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2.6.2 Modernist qualitative research

Schurink (2004a, p. 4) mentions that the modernist phase builds on the pioneer works

of the traditional phase. This Modernism phase values social realism, naturalism and

slice-of-life ethnographies but also represents what Lofland (1980) calls “a moment of

scholarly and politically creative ferment”.

The modernist phase extends through the post-war years and the 1970s and the mid-

1980s, to the work of many contemporary qualitative scholars, and to various texts

providing “formalised qualitative” methods. Modernist research interprets reality by

means of formalised qualitative methods, and analyses the data rigorously (e.g. by

means of analytic(al) induction and grounded theory). According to Schurink (2004c)

examples of this perspective include the symbolic interactionist perspective as reflected

by Filstead (1970), Bogdan and Biklen (1988, 1992, 1998, 2003), Bogdan and Taylor

(1975), Taylor and Bogdan (1998), Glaser and Strauss (1967), Lincoln and Guba

(1985), and Lofland and Lofland (1995).

The modernist phase drew a new generation of students from various human disciplines

to qualitative research practice in the belief that it would allow them to give a voice to

society’s less privileged and underclass citizens.

The case study is a typical research design of this qualitative research tradition

(Schurink, 2004b, p. 2). As the case study is also the research design I used, I now

discuss it.

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2.6.3 Casing10 as research design

According to Babbie and Mouton (2004, p. 74) a research design is a plan or blueprint

of how one intends conducting one’s research. Babbie and Mouton (2004, p. 640)

defines case study research as an intensive investigation of a single unit. This unit

varies from individual people, families, communities, social groups, organisations and

institutions, to events and countries. The following examples of case studies exist:

individual case study, community studies, social group studies, studies of organisations

and institutions, studies of events, roles and relationships, and studies of countries and

nations. An individual case study entails a detailed account of one person (Babbie &

Mouton, 2004, p. 281). Community studies focus on one or more communities and the

emphasis is on a description and analysis of the patterns of, and relations between the

main aspects of, community life (Babbie & Mouton, 2004, p. 281). Studies of

organisations and institutions entail an in-depth study of a firm, company, corporation,

trade union, etc. However, organisational studies have many foci, including best

practice, policy implementation and evaluation, human resources practices,

management and organisational issues, organisational culture, processes of change

and re-engineering, and so on (Babbie & Mouton, 2004, p. 281). Case studies of

events, roles and relationships focus on specific events, such as police-citizen

encounters, doctor-patient interactions, specific crimes and role conflicts (Babbie &

Mouton, 2004, p. 281). Case studies of countries and nations focus on international and

comparative politics, and case studies of foreign policy focus on a country or bloc of

countries (Babbie & Mouton, 2004, p. 281).

Casing is particularly popular in organisational research (Gummesson, 1991), and is

well suited to capturing the social world of people and understanding a real-life situation

(Robson, 1993). Gummesson (1991) discusses the use of case studies in

organisational research and poses that it is a useful strategy for studying social

10 “Casing” is used in recent American orientated works to refer to a case study (Yin, 2003).

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processes in organisations. Harrison (2002, p. 158) argues that for proponents of the

case study method there is no more satisfying or enjoyable way to carry out

management research.

According to Eisenhardt (2002, p. 12) case study research can be based on single or

multiple-case studies, and regardless of being single or multiple may be exploratory,

descriptive or explanatory. Punch (1998, p. 153) identifies four characteristics of case

studies: (1) facilitating the clear identification and description of boundaries; (2)

representing something that is obviously important so as to determine the unit of

analysis; (3) ensuring a specific study focus, which is underscored by the research

questions; and (4) using multiple sources of data.

As my study is explorative-descriptive, I used casing. My preference was also

informed by the very characteristics of casing posed by Punch above. More specifically I

opted for a single exploratory case study as I intended to explore and describe

employees’ social construction of my company’s recently implemented downsizing

innovation and, based on this, to provide a social science basis for this process, if not

refine it. Moreover, because of the study’s qualitative nature, I primarily applied

grounded theory, as will be outlined further on.

Let us now take a closer look at the organisation where I undertook the research.

2.6.4 Research setting

The study was undertaken in a 25-year-old, South African information and

communication technology (ICT) company, notably its Gauteng-based operations.

Employing more than 4 000 employees, nearly thirty percent of whom are from

previously disadvantaged backgrounds, the company has offices in all major centres in

the country. Regardless of this dispersion, the company provides a single interface to it

clients by means of various ICT competency centres. Furthermore, a corporate services

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team provides human resources, commercial, financial, marketing and communication

support.

In order to become the leading integrator of local business solutions, the company has

been geared in line with its clients’ strategic and operational business needs. The

company draws its expertise from four competencies: technology infrastructure,

business applications, professional services and outsourcing.

The company runs mission-critical ICT systems for many JSE-listed organisations and

manages products, services and solutions for key public sector organisations, parastatal

enterprises and a host of emergent medium-sized companies. Boasting unrivalled

expertise across a range of vertical industry sectors, the company is considered a

leader in local financial services. Its expertise in telecommunication has helped bridge

the digital divide on the continent, notably by implementing a network management

system in Mozambique and rolling out large telecommunication projects in South Africa,

Nigeria and Ethiopia.

The organization merged with another organization and as a result thereof many

duplicate functions were identified which had to be eliminated. This caused a major

downsizing intervention within the merged entity.

Regarding the latest downsizing during 2004, the senior executives decided to use a

process that had been used in 1998, the execution of which they had participated in.

After the advantages of the process had been conveyed to the managers, they were

advised to use it. The regional human resources practitioners had to ensure that the

process was implemented according to its original design. All parties agreed that the

process would continue to benefit the company.

How I selected the data sources is discussed next.

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2.6.5 Sampling

Together with Prof. Schurink I decided to select my sample on the basis of my

knowledge of the people who had the best possible knowledge of the current

organisational downsizing process and would therefore be in the best position to make

a contribution to the study. This type of sampling is called purposive sampling (Ritchie

& Lewis, 2004, p. 80).

Based on my own experience of the company and its employees I selected two top executives, four senior managers who had applied the particular process before and one regional human resources consultant who was the custodian of the process.

After I had obtained data from these employees on the company’s downsizing process

and tapped my own knowledge on the issue, I extracted data from organisational

documents and derived insights from the scientific literature. The use of additional data

sources was based on the need to support the themes, patterns and “emerging”

concepts that I derived from the primary data collection.

The strategy described above is closely related to theoretical sampling, which is

mainly associated with grounded theory. Glaser and Strauss (1967, p. 45) define

theoretical sampling as the process of data collection for generating theory whereby the

analyst sets up codes, analyses data and decides what data to collect next and where

to find them, in order to gradually develop a theory. Ritchie and Lewis (2004, p. 80) refer

to grounded theory as a strategy where the researcher samples incidents, people or

units on the basis of their potential contribution to the development and testing of

theoretical constructs. The process is iterative, as the researcher picks an initial sample,

analyses the data and selects a further sample in order to refine emerging categories

and theories. This process is continued until the researcher reaches “data saturation” or

a point when no new insights can be extracted through expanding the sample further.

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According to Bryman (2004, p. 305) saturation occurs during theoretical sampling

when a category has been saturated with data. This implies that (1) no new or relevant

data seem to be emerging regarding a category; (2) the category is well developed in

terms of its properties and dimensions, that is demonstrating variation; and (3) the

relationships among categories are well established and validated.

2.7 DATA COLLECTION METHODS

Collis and Hussey (2003, p. 17) correctly point out that there is a variety of ways in

which one can collect data for research. This certainly applies to qualitative

methodology. Punch (1998, p. 174) believes that qualitative researchers’ study spoken

and written representations and records of human experience, using multiple methods

and multiple sources of data. Denzin and Lincoln (2003, p. 37) state that the researcher

has several methods for collecting data. They range from the interview (individual and

focus group interview) to direct observation for the analysis of artefacts, documents

(solicited and unsolicited) and cultural records, and the use of visual materials or

personal experience.

In the remainder of this section I provide a “theoretical” discussion of the data collection

methods, as I deal with their practical implications when I present the operationalisation

of the study.

The first method I outline is the use of documents. Ritchie and Lewis (2004, p. 35)

define documentary analysis as the study of existing documents, which may include

public documents such as annual reports, minutes of meetings, articles in the internal

publications of an organisation, media reports, formal letters, and personal documents

such as diaries and photographs. More recently, solicited documents (essays or

memoranda compiled by the participant at the researcher’s request) have been added

to the range of documents. Boneva, Kraut and Frohlich (2001, p. 530), for example,

used e-mails for data collection over a four-year period with great success.

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I also used one-on-one structured interviews. De Vos et al. (2005, p. 292) correctly state

that interviewing is the predominant mode of data collection in social science research.

Seidman (1998, p.1) contends that one interviews people, as one is interested in their

stories,11 which are a source of rich information. De Vos et al. (2005, p. 292) pose that

telling stories is essentially a meaning-making process. Every word that people use in

telling their stories is a microcosm of their consciousness. Interviews are interactional

events and are strongly and unavoidably implicated in the creation of meanings that

ostensibly reside in the research participants. Both parties, the researcher and the

participant, are active in the meaning-making work (Holstein & Gubrium, 1995, p. 4).

Sewell (2001, p. 1) defines qualitative interviews as attempts to understand the world

from the participant’s point of view, to unfold the meaning of people’s experiences (and)

to uncover their lived world prior to scientific explanations. Kvale (1996, p. 2) says that

an interview is literally an “inter view”, an “inter change” of views between two persons

conversing about a theme of mutual interest.

Finally, I applied focus group discussions. Schurink (2004g, p. 2) defines “group” as a

number of individuals with the same background, interests, values and norms who

interact with one another in such a way that each person influences and is influenced by

the other persons. “Focus” means that the discussion taking place in the group is limited

to the specific theme under investigation. A focus group interview can thus be described

as a purposive discussion of a specific topic or related topics, preferably taking place

between eight to ten individuals with a similar background and common interests.

As is true of many research techniques, the appearance of focus group research can be

misleading. Too many people think that a focus group is simply a small collection of

individuals who sit and chat casually about assigned topics (Lee, 1999, p. 68). Focus

groups are typically used where the group process will itself illuminate the research

issue. They do provide a social context for research and thus an opportunity to explore 11 “Story” or, in Greek, “history”, presupposes a storyteller, a person who is regarded as wise and learned.

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how people think and talk about a topic; how their ideas are shaped, generated or

moderated through conversation with the others (Ritchie & Lewis, 2004, p. 37).

I agree with Schurink (2004f, p. 13) that interviewers should be able to correctly utilise

their training and experience to observe and interpret all important matters concerning

interview interaction, including verbal and non-verbal communication between them and

their interviewees. Therefore, I annotated my observations extensively during the

interview, which annotations eventually became part of the field notes I prepared

afterwards.

2.8 DATA STORAGE

Before I discuss the ways in which qualitative data are typically gathered, I would like to

cite Bogdan and Biklen’s (1998) excellent advice on recording data in the qualitative

domain. They suggest the following:

1) Pledge to keep your data physically well organised, develop a plan on how to

achieve this, and ensure that you stick to your plan.

2) Create a back-up system. It is important to have hard copies of all one’s

recorded data put in a manual filing system to ensure that you do not lose

valuable and often irreplaceable data should your computer become infected

with a virus or dysfunctional for some other reason.

3) Safeguard documents. Since qualitative researchers often make use of

documents that contain confidential data, they need to ensure that such

documents are safely stored.

The transcriptions of my interviews were stored in a cupboard in my office that was

permanently locked and to which only I had access. This also safeguarded the

anonymity of all the research participants.

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2.9 RECORDING OF DATA

Field notes and transcriptions of taped interviews are considered traditional means of

recording data (Schurink, 2004j, p. 11). I made use of both of these.

2.9.1 Transcriptions of taped interviews

According to Bogdan and Biklen (2003, p. 124) it is important to transcribe sections on a

tape that specifically address the concerns of the research. They also recommend that

even the very first interview should be transcribed in order to learn what to transcribe in

subsequent interviews.

In the present study all interviews were recorded with the consent of the participants.

After completion of the interviews I sent the tapes to professional transcribers for typing,

and they in turn sent me electronic as well as hard copies of the transcriptions.

2.9.2 Field notes

According to De Vos et al. (2005, p. 285) field notes are made by qualitative

researchers of everything they see or hear. Schurink (2004e, p. 12) believes that the

successful outcome of a participant observation study in particular, but other forms of

qualitative research as well, are dependent on detailed, accurate and extensive field

notes. Bogdan and Biklen (2003, pp. 110-114) describe field notes as the written

account of what the researcher hears, sees, experiences and thinks in the course of

collecting and reflecting on the data in a qualitative study. It can provide any study with

a personal log that helps the researcher to keep track of the development of the project,

to visualise how the research plan has been affected by the data collected, and to

remain aware of how he or she has been influenced by the data.

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Field notes consist of two kinds of materials. The first kind is descriptive – the concern is

to provide a word picture of the setting, people, actions and conversations as observed.

It is by far the most extensive part of the field notes and represents the researcher’s

best effort to objectively record the details of what has occurred in the field.

The second field note variety is reflective – it captures more of the observer’s frame of

mind, ideas and concerns. It is a more personal account of the course of the inquiry.

The emphasis is on speculation, feelings, problems, ideas, hunches, impressions and

prejudices. It is about what you think you are learning, what you are going to do next,

and what the outcome of the study is going to be.

I used both descriptive and reflective field notes in the research.

2.10 ANALYSING THE DATA

Tesch (1990, p. 4) states that when we talk about the analysis of qualitative data, we

are not dealing with a monolithic concept such as “statistics”. No one has as yet

“codified” the procedures for qualitative analysis, and it is not likely that anyone ever

will. Qualitative researchers are quite averse to standardisation. Whenever they

describe their methods, they are usually eager to point out that this is just one way of

doing it, which others should feel free to adopt as much as they see fit, and modify and

embellish according to their own needs and ideas. Thus, the notion of qualitative

analysis is fluid and defies definition. It is applied to a wide variety of principles and

procedures. The only agreement we are likely to find among qualitative researchers is

that analysis is the process of making sense of narrative data.

I agree with Schurink (2004j, p. 20) that although there are many ways to undertake the

analysis of qualitative data, it basically involves data reduction, data display, conclusion

drawing and verification. Analysis involves working with data, organising them, tying

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them into manageable units, synthesising them, searching for patterns, discovering

what is important and what is to be learned, and what to tell others.

As already pointed out I employed grounded theory as formal qualitative data analysis

approach in the study. More specifically, I followed the approach of Strauss and Corbin

(1990) in my application of grounded theory.12 Although I have touched on some

aspects of this approach I now explore the origin of grounded theory and how it has

developed into the methodology known today.

2.10.1 Grounded theory

Schurink (2004i, p. 2) believes that grounded theory is a particular inductive approach

consisting of a systematically developed set of procedures and techniques to devise a

theoretical concept about the life world of some selected group of people that forms part

of a particular social reality, or social phenomenon. As such this approach is primarily

based on the subjective experiences of humans and comes about as one gathers data

during the actual execution of the study.

Strauss and Corbin (1990, p. 23) define grounded theory as one that is inductively

derived from the study of the phenomenon it represents. In other words, it is discovered,

developed and provisionally verified through systematic collection and analysis of data

on a phenomenon. Therefore, data collection, analysis and theory stand in a reciprocal

relationship with each other. One does not begin with some theory, and then prove it.

Rather, one begins with an area of study and allows whatever is relevant to that area to

emerge. Potter (1996, pp. 151-152) refers to grounded theory as an analytical technique

that directs researchers to look for patterns in data so they can develop general

statements about the phenomenon examined. The process follows inductive reasoning,

12 See Chapter 3 where I demonstrate how I operationalised this approach.

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looking for patterns across individual observations and then arguing for those patterns

that have the status of general explanatory statements.

Now that we have attended to what grounded theory means, we take a look at how it

originated.

According to Goulding (2002, pp. 38-43) grounded theory can be traced to symbolic

interactionism, the origins of which lie in the work of Charles Cooley (1864-1929) and

George Herbert Mead (1863-1931). The concern of these scholars was to avoid the

polarities of psychologism and sociologism. Psychologism is a view predicated on

assumptions that social behaviour is explicable in genetic terms and by logical or

neurological processes. Sociologism is the theory that looks at personal conduct as if it

were in some way programmed by societal norms. According to this perspective,

individuals engage in reflective interaction as opposed to environmental response. They

are purposive in their actions and will act and react to environmental cues, objects and

others, according to the meaning these hold for them. These meanings evolve from

social interaction that itself is symbolic because of the interpretations attached to the

various forms of communication, such as gestures, and the significance of objects.

Symbolic interactionism is both a theory of human behaviour and an approach to inquiry

about human conduct and group behaviour. A principal tenet is that humans come to

understand collective social definitions through the socialisation process. Hence the

notion of symbols is intrinsic to this perspective. Social life is expressed through

symbols, which include language, the most powerful of all. Classic symbolic

interactionism is a micro theory, as it does not deal with the larger questions regarding

the shape of society. Traditional symbolic interactionism utilises participant observation

to identify power imbalances. The research itself usually takes the form of field studies

in which the researcher observes, records and analyses data obtained in a natural

setting.

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Using the principles of symbolic interactionism as a basic foundation, two American

scholars, Glaser and Strauss, set out to develop a more defined and systematic

procedure for collecting and analysing qualitative data. The method they developed was

labelled grounded theory to reflect the source of the developed theory, which is

ultimately the behaviour, words and actions of those under study. They both believe in

(1) the need to get out in the field if one wants to understand what is going on; (2) the

importance of theory grounded in reality; (3) the continually evolving nature of

experience in the field for the subjects and researcher; (4) the active role of persons in

shaping the worlds they live in through the process of symbolic interaction; (5)

continuous change and process and the variability and complexity of life; and (6) the

interrelationship between subjects’ meanings and their actions (Glaser, 1992, p. 16).

The two authors devised the methodology now known as grounded theory while

researching the experiences of chronically ill patients. It was constructed as a means of

systematically collecting data that could be interpreted and developed through a

process that offered clear and precise guidelines for the verification and validation of

findings. The richness of grounded theory research is still attributed to the fact that

grounded theory is Glaser and Strauss’s version of the broader sociological schools of

both ethnography and symbolic interactionism (Lowenberg, 1993).

Grounded theory, in contrast to theory obtained by logico-deductive methods, is theory

grounded in data that have been systematically obtained through social research. The

main thrust of this movement is to bridge the gap between theoretically uninformed

empirical research and empirically uninformed theory (Goulding, 2002, p. 41). It may

also be argued that, like many qualitative methodologies, the role of grounded theory is

the careful and systematic study of the relationship between individuals’ experience and

society and history (Goulding, 2002).

Grounded theory was thus intended as a methodology for developing theory that is

grounded in data that are systematically gathered and analysed. The theory evolves

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during the research process itself and is a product of continuous interplay between

analysis and data collection. It requires the recognition that inquiry is always context-

bound and that facts should be viewed as both theory laden and value laden.

Knowledge is seen as actively constructed, with meanings of existence being only

relevant to an experiential world. Essentially, the methodology is most commonly used

to generate theory where little is already known, or to provide a fresh slant on existing

knowledge (Corbin, 1998). With grounded theory the researcher must work in the actual

situation in which the actions take place, in natural situations, in order to analytically

relate informants’ perspectives to the environments in which they emerge (Baszanger,

1998, p. 354). The ultimate goal of the grounded theory researcher is to develop theory

that goes beyond “thick description”13 (Geertz, 1973).

Strauss and Corbin (1998, p. 22) state that, however illuminating or even “revolutionary”

the idea of theorising must be, development of an idea into theory still necessitates that

an idea be explored fully and be considered from many different angles or perspectives.

It is also important to follow through with the implications of a theory. Those

formulations and implications lead to “research activity” that entails making decisions

about and acting in relation to many questions throughout the research process – what,

when, where, how, who and so on. Also, any hypothesis and propositions derived from

the data must be continuously “checked out” against incoming data, and then modified,

extended or deleted as necessary. According to Glaser and Strauss (1968, p. 3) the

developed theory should (1) enable prediction and explanation of behaviour; (2) be

useful in theoretical advances in sociology; (3) be applicable in practice; (4) provide a

perspective on behaviour; (5) guide and provide a style for research on particular areas

of behaviour; and (6) provide clear enough categories and hypotheses so that crucial

ones can be verified in present and future research.

13 The term was devised by Geertz “to refer to detailed accounts of a social setting that can form the basis for the creation of

general statements about a culture and its significance in people’s social lives” (Bryman, 2004, pp. 544-545).

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Grounded theory has split into two camps, each subtly distinguished by its own

ideographic procedures. On the one hand, Glaser (1978) stresses the interpretive,

contextual and emergent nature of theory development, whereas the late Strauss

appears to have emphasised highly complex and systematic coding techniques. Strauss

and Corbin (1990) exemplify this rupture with their presentation of multiple coding

procedures such as open, axial and selective coding, and techniques of comparison

that are now used to advance analysis by intentional manipulation of data in a variety of

ways.14

I conclude this discussion on grounded theory by turning to memo writing.

Glaser and Strauss (1968, pp. 83-84) define a memo as “the theorising write-up of ideas

about codes and their relationships as they strike the analyst while coding … it can be a

sentence, a paragraph or a few pages … it exhausts the analyst’s momentary ideation

based on data with perhaps little conceptual elaboration.”

According to Punch (1998, pp. 206-207) memos may be substantive, theoretical,

methodological or even personal. When they are substantive and theoretical they may

suggest deeper concepts than the coding has produced. These kinds of memos have

conceptual content and are not simply describing data. It is important in qualitative

analysis to balance discipline with creativity and it is in memoing where creativity comes

in.

In conclusion: It is important to note that the process of data collection and analysis is a

continuous one that will only stop once the whole body of data has reached saturation.

I next turn to computer-aided software that can assist the qualitative researcher during

the analysis of data.

14 See Chapter 3 for my explanation and application of these coding steps.

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2.10.2 Computer-assisted qualitative data analysis software (CAQDAS)

One of the most notable developments in qualitative research in recent years has been

the arrival of computer software that facilitates the analysis of qualitative data.

Computer-assisted qualitative data analysis software (CAQDAS) has been a growth

area in terms of both the proliferation of programmes that perform such analysis and the

numbers of people using them. The term and its abbreviation were coined by Lee and

Fielding (1991).

Most of the best-known programmes are variations on the code-and-retrieve theme.

This means that they allow the analyst to code text while working at the computer, and

to retrieve the coded text. Thus, if we code a large number of interviews, we can

retrieve all those sequences of text to which a code (combination of codes) was

attached. This means that the computer takes over manual tasks associated with the

coding process. Typically, the analyst would go through a set of data-marking

sequences of text in terms of codes (coding) and then, for each code, assemble all

sequences of text coded in a particular way (retrieval) (Bryman, 2004, p. 418).

The computer takes over the physical task of writing marginal codes, making

photocopies of transcripts or field notes, cutting out all chunks of text relating to a code,

and pasting them together. CAQDAS does not automatically do these things: the

analyst must still interpret code and then retrieve the data, but the computer takes over

the manual labour involved (Silverman, 2000).

Unlike quantitative data analysts, who accept the wide use and necessity of computer

software, qualitative data analysts do not embrace its use universally. The following

disadvantages have been highlighted:

• Some writers are concerned with the ease with which coded text can be

quantified.

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• CAQDAS might reinforce and even exaggerate the tendency for the code-and-

retrieve process underpinning most approaches to qualitative data analysis to

fragment the textual materials on which researchers work.

• Cutting the text into chunks that are then retrieved and put together into groups

of related fragments might de-contextualise the data.

The following advantages have also been identified:

• CAQDAS can make coding and retrieval faster and more efficient.

• CAQDAS may offer new opportunities in the process of analysing data.

• CAQDAS might enhance the transparency of the process of conducting

qualitative data analysis.

• CAQDAS invites the analyst to think about codes that are developed in terms of

“trees” of inter-related ideas (Bryman, 2004).

A chief example of CAQDAS is ATLAS.ti V 5.0. According to Muhr (2004, pp. 1-3) it is a

powerful workbench for the qualitative analysis of large bodies of textual, graphical,

audio and video data. It offers a variety of tools for accomplishing the tasks associated

with any systematic approach to understand data, e.g. data that cannot be meaningfully

analysed by formal statistical approaches. ATLAS offers tools to manage, extract,

compare, explore and reassemble meaningful pieces from large amounts of data in a

creative and flexible yet systematic way.

The main principles of the ATLAS philosophy are best captured by the following

concepts: visualisation, integration, serendipity and exploration.

• By visualising complex properties and relations between the objects accumulated

during the process of eliciting meaning and structure from analysed data, the

software directly supports the way human beings (including researchers) think,

plan and approach solutions in creative yet systematic ways.

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• By integrating all pieces that comprise a project, the user of the software keeps

track of the whole when going into detail.

• By allowing for serendipity (an intuitive approach to data), typically through

browsing, the software allows for information seeking that takes on the features

of a genuine human activity (Muhr 2004, p. 4).

• By exploring the data, and doing so in a systematic manner, the software

supports constructive activities such as theory building.

ATLAS can be of great help in any field where “soft data” analysis is carried out.

Although ATLAS was originally designed with the social scientist in mind, it has been

put to use in areas such as psychology, literature, medicine, criminology, text linguistics,

history, geography, theology and law.

ATLAS was of great use to me. It aided open coding and expedited the analysis of large

volumes of text. I used it to extract text linked to the various codes, which was an

important exercise in view of drafting Chapter 4 and its discussion of open coding in

more detail. However, I also conducted manual coding, notably axial and selective

coding, to keep in touch with the richness of the information. The manual process will be

discussed in more detail in Chapter 5.

At this point I turn from data analysis to exploring the data display methods I used.

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2.11 DATA DISPLAY

Collis and Hussey (2004, p. 267) identify networks, matrices, charts and graphs as

means through which data are displayed for the purpose of qualitative data analysis.

Indeed, their approach not only spans the analysis, but also the entire research design

from the beginning to the writing of the final report. A display presents information

visually in a systematic manner so the user can draw valid conclusions and take proper

action (Miles & Huberman, 1994, p. 91). Displays fall into two major categories:

networks with a series of nodes with links between them, and matrices with defined

rows and columns.

2.11.1 Photographs

Bogdan and Biklen (2003, p. 132) state that photographs provide strikingly descriptive

data, are often used to understand the subjective world and are frequently analysed

inductively. Photos derived from a research setting can provide a good general sense of

individuals who are no longer there, or what particular events in that setting were like.

They can also offer specific factual information that can be used in conjunction with

other sources.

In this document I include photographs of the focus group discussions, the manual

coding process and critical documents.

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2.11.2 Diagrams

Strauss and Corbin (1998, p. 217) define diagrams as visual devices that depict the

relationships among concepts. I presented the model I devised by means of a diagram

to depict the relationship among the downsizing concepts.

2.11.3 Narrative

Breakwell, Hammond and Fife-Schaw (2000, p. 232) refer to narrative data as accounts

that aim to reproduce behavioural events truthfully in a written form without any attempt

at interpretation. Narrative is used to describe particular episodes, or anecdotes, where

there is a beginning, middle and end. “A primary consideration here is the opportunity to

scrutinize the data on which the researcher’s interpretations are based. This requires

the researcher to present substantial portions of data, whether from interviews,

documents, or from observational notes, alongside the conclusions drawn. The reader

can then assess whether the conclusions are justified and consider whether any

possible, alternative explanations for the data could reasonably be sustained … The

emphasis here is upon exposing the researcher’s claims to refutation” (Murphy &

Dingwall, 2003, p. 201).

I also displayed how codes were linked to the narrative descriptions captured in e-mails

and interview transcriptions.

Now that the analysis and display of data have been attended to we can turn to the

strategies I employed to secure quality research.

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2.12 STRATEGIES TO ENHANCE THE QUALITY OF THIS STUDY

As Schurink (2004n) points out, assessing qualitative research is no easy matter. He

reports that it has led to a number of heated debates and controversies among scholars

in recent years. According to him (Schurink, 2004n) qualitative researchers tended until

the first part of the 1980s “to argue that their research style is as scientific as that of

their quantitative colleagues, who most probably agreed that qualitative methods still

needed to be more refined (i.e. the logical procedures and operating principles involved

in implementing unstructured methods should be worked out in more detail), and that

the criteria for judging qualitative studies needed to be made more explicit”.

Based on trends in the first half of the 1980s in qualitative research abroad, Schurink

(2004n) also believes that more systematic attempts were made to develop explicitly

stated criteria for evaluating qualitative studies (see Athens, 1984). One important

criterion, which was generally accepted by qualitative researchers at the time, was that

of scientific credibility. In order to accomplish this, qualitative researchers and

particularly modernists compile a natural history, i.e. an exposition of the chronology of

decisions taken during the research.

Schurink (2004n) further contends that there are apparently at present at least three

distinct perspectives on assessing the quality of qualitative research (see Cutliffe,

2000): qualitative and quantitative research should be evaluated by the same

measures; qualitative research should be evaluated by standards that have been

particularly developed for it; and “criteriology” (Holloway & Wheeler’s (2002) term)

should be abandoned. More recently Lincoln and Guba (1985) developed the concepts

of trustworthiness and authenticity as parallel and alternative criteria.

Although there are no criteria by which qualitative researchers can assess truth claims,

as such evaluations always involve judgements grounded in evidence, I believe it is

their responsibility “to present the readers of research with sufficient information to allow

67


the latter to decide whether their proposed findings are adequately supported” (Murphy

& Dingwall, 2003, p. 174).

In addition to peer debriefing, to which I already referred, I also employed triangulation,

member validation, credibility, reflectivity, trustworthiness and authenticity to ensure

quality research.

2.12.1 Member checking, or host recognition

Member checking is frequently used by qualitative researchers. It entails inviting

research participants to comment on the adequacy of the researcher’s interpretations,

which comments are fed back into the research findings. Although a number of

problems with this procedure have been identified (see Bloor, 1976, 1997; Emerson,

1988), I continuously discussed my developing account of managers’ social

construction of my company’s downsizing process with them, particularly to search for

contractions to my findings (see Murphy & Dingwall, 2003, p. 191).

2.12.2 Authenticity and trustworthiness

According to exponents of qualitative research who hold a non-conventional position on

the assessment of their research, the “goodness” of research is characterised by

trustworthiness and authenticity, which are reflected by qualitative researchers’ “careful

documentation of the process of research and the decisions made along the way”

(Daymon & Holloway, 2002, p. 93). The following criteria have been proposed for

assessing trustworthiness and authenticity:

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2.12.2.1 Credibility

In order to assist the reader to establish the study’s credibility, at Prof. Schurink’s advice

I decided to demonstrate as far as possible what I planned and executed in such a

manner that the social construction of downsizing in my company could be accurately

described. In order to accomplish this I kept, inter alia, a project journal, or natural

history, which enabled me to provide a chronological exposition of the decisions,

notably the key decisions, I took during the research.

2.12.2.2 Reflectivity

Qualitative researchers cannot ignore the situations of their studies, reflection on the

progression of their decisions in the research process and the need to illuminate these

situations and reflections for their readers. By doing so, they reveal their scholarly

perspective and thus provide their readers with an important context for understanding

the research (Potter, 1996). “Qualitative research calls for a level of self-conscious

reflection upon the ways in which the findings of research are inevitably shaped by the

research process itself and for an analysis that takes this into account. By reflection we

mean sensitivity to the way in which the researcher’s presence has contributed to the

data collected (whether it is interview or observational data) and how his or her

assumptions have shaped the data analysis. Evidence of such reflexivity increases our

confidence in the findings from such research” (Murphy & Dingwall, 2003). “Reflexivity

also requires you to take stock of your relationships with participants and examine your

own relations to their accounts and actions. If you adopt a self-critical stance to (i) your

research, (ii) your research relationships, (iii) your personal assumptions and

preconceptions, and (iv) your own role in research, the study will become more reliable

and valid, in other words, more trustworthy and authentic” (Daymon & Holloway, 2002,

p. 100-101).

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Potter (1996, p.188) refers to three techniques for exhibiting self-reflectivity. At the

minimum level, the author illuminates the key details of the research process to the

reader. This would include the setting, key contextual characteristics, the researcher’s

self-presentation to the research subjects, and major events in the gathering of data.

The second technique is a researcher’s conscious reflection on the nature of the

methods he or she used, displaying a concern about the value of the data and his or her

interpretations. The third technique is demonstrated when a scholar lays out his or her

biases as biases, so as to forewarn the reader about the author’s perspective. At higher

levels of self-reflectivity the reader is given insight into the researcher’s decisions during

the execution of the study.

I increasingly realised during the study that I had to foster my capability for reflectivity.

As indicated, I kept a project diary so as to engage in self-conscious reflections upon

my impact upon the research participants, had regular discussions with debriefers to

create some distance between the research process and me and, finally, especially

during field note compilation, considered possible reasons for the research participants’

particular behaviour during the interviews.

2.12.2.3 Transferability

Transferability replaces the notion of external validity or generalisability, and refers to

the researcher’s task of assisting the reader to transfer research findings of single case

studies or small-scale worlds to similar settings. Although claims can be true, they may

be trivial or insignificant. Payne and Williams (2005, p. 297) regard generalisation as the

claim that what is the case in one place or time will also be so elsewhere or at another

time. According to them, moderatum generalisations are first and foremost moderate.

These generalisations most resemble the everyday generalisations of the life world in

their nature and scope, though it is possible to express them formally. They are

moderate in two senses. First, the scope of what is claimed is moderate. Thus they are

70


not attempts to produce sweeping statements that hold well over long periods of time, or

across cultures. Second, they are moderately held, in the sense of a political or

aesthetic view that is open to change. For the reasons mentioned above they can never

lead to deductive generalisations. Although moderatum generalisations are inherently

modest, they cannot be taken to occur naturally and automatically in the process of

doing research, or be left to the reader’s discretion or, indeed, to the kinds of

generalisation that qualitative researchers often seem to produce unconsciously.

Research should be designed and undertaken in such a way that moderatum

generalisations are consciously produced. Nor do such generalisations offer a “soft

option” to solving the problem of generalisation: whereas everyday life world

generalisations need not be wholly accurate or carefully set in an evidential context,

psychological research should aim at constructing externally valid and unambiguous

generalisations, even when these take a moderated form.

In the present study the challenge was to unpack the complexity of downsizing in such a

way that it would lead to the modification and/or improvement of the current practice in

the company. Differently phrased: What could the study add to the company’s current

state of knowledge on downsizing? And what needed to be done to claim that the

present study’s findings would have relevance beyond the company where the study

was executed?

2.13 CONCLUSION

In this chapter I have referred to the key considerations applied during the research

process by discussing qualitative research and its key features, explaining my key

scientific beliefs, defining research methodology, clarifying theoretical concepts utilised

during the study, outlining qualitative research as research approach, presenting case

study as research design, describing the research setting, outlining the research steps

and explicating the ethical considerations operative during the study.

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It is now important to ask the question of how the many “theoretical” guidelines to

qualitative research generally and grounded theory in particular provided by the many

textbooks guided me in the development of a road map for undertaking the study, and

how these played out? These questions are answered in the next chapter.

72

PPAARRTT TTHHRREEEE



I describe how I operationalised my

central approach, namely grounded

theory, in the study, and then present a

chronological exposition of the most

important decisions I took in the course

of the research.

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3 OPERATIONALISATION OF THE RESEARCH METHODOLOGY AND EXECUTION OF THE STUDY

3.1 INTRODUCTION

In this chapter I describe how I operationalised the central approach I applied in

the study, namely grounded theory,15 and then present a chronological exposition

of the most important decisions I took during the actual execution of the

research. I do however first specify the particular application of grounded theory I

opted for.

As already indicated in Chapter 2, Goulding (2002, p. 47) distinguishes between

two processes in grounded theory: stressing the interpretive, contextual and

emergent nature of theory, following Glaser (1992); and emphasising highly

complex and systematic coding techniques, following the late Strauss in (Strauss

& Corbin, 1990). This distinction is highlighted by Strauss and Corbin’s (1990)

presentation of multiple coding procedures such as open, axial and selective

coding, and techniques of comparison that are now used to advance analysis

through the intentional manipulation of data in a variety of ways. I decided to

employ the techniques used by Strauss and Corbin (1990) because I needed the

strict systematic coding their technique suggests so as to develop a substantive

model for organisational downsizing.

15 Although I focus on grounded theory here, it is not possible to do so without referring to the modernist research

tradition of which it is very much part, which I referred to in Chapter 2.

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3.2 OPERATIONALISATION OF GROUNDED THEORY

Figure 1 below outlines the grounded theory process that I employed in the

study. This process became the blueprint for my study.

Figure 1: Implementing the grounded theory process

Saturationof

Data

E-mails to participants

Writing of Memos

Face-to-faceInterviews

PolicyDocuments

FocusGroups

Follow-upInterview

Identificationof

Concepts

DataGeneration

Open Coding(ATLAS)

Identificationof

Categories

Axial Coding(ATLAS)

Identificationof

CoreCategories

SelectiveCoding

(ATLAS)

Verificationof

Categories

Axial Coding

(Manual)

Verificationof

CoreCategories

SelectiveCoding

(Manual)

ConditionalMatrix

Formulationof

Model

Finalizeand discuss

Model

Saturationof

Data

E-mails to participants

Writing of Memos

Face-to-faceInterviews

PolicyDocuments

FocusGroups

Follow-upInterview

Identificationof

Concepts

DataGeneration

Open Coding(ATLAS)

Identificationof

Categories

Axial Coding(ATLAS)

Identificationof

CoreCategories

SelectiveCoding

(ATLAS)

Verificationof

Categories

Axial Coding

(Manual)

Verificationof

CoreCategories

SelectiveCoding

(Manual)

ConditionalMatrix

Formulationof

Model

Finalizeand discuss

Model

75


3.2.1 Theoretical sampling

Selection or sampling in grounded theory is directed by the developing theory.

This entails ongoing data collection and analysis that in turn lead the researcher

to select further data sources. Goulding (p. 46, 2002) correctly states that

theoretical sampling entails purposefully selecting a sample according to

developing categories and emerging theory.

In sampling data sources for my study I took cues from my own experience of the

company and its employees (that is I used “tacit theory” and an insider

perspective). I selected two top executives, four senior managers who had

applied downsizing in the company and one regional human resources

consultant who was its custodian. I selected these staff members because they

had been involved in the planning and execution of the original downsizing

process and because their different positions in the company would be a source

of rich experimental information.

3.2.2 Data gathering

The data collection approach I followed was selected in consultation with Prof.

Schurink and is summarised as follows:

1) We discussed my ideas regarding the collection of relevant data at

length. This was necessary to ensure as far as possible that I would

not be biased when I set out to collect the data.

2) I would emphasise in both the e-mails and the face-to-face interviews

that the CEO regarded the envisaged study as of great importance to

the company and commissioned it.

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3) I would send an e-mail to all the participants explaining to them how

the study came about as well as its aim and objectives.

4) I would explain how I approached downsizing, and how I planned to

conduct the research.

5) I would appeal to the participants to familiarise themselves with the

current downsizing process of the company as well as its related

policies.

6) I would emphasise that regardless of how the research participants

decided to assist me in the study (by allowing me to interview them or

by compiling solicited essays), their participation would be voluntary

and that they were free to terminate their participation at any point.

7) I would give the participants the assurance that all information they

provide would be treated confidentially and that their names would

under no circumstances be revealed.

8) My secretary would schedule the interviews in my office and ensure

that no interruption occur during the sessions.

9) Towards the end of the interviews I would request the participants to

reflect on the interview and convey how they felt about the topic that

we had discussed, whether the interview had been sufficiently clear to

them, whether they had been relaxed, whether my senior role in the

company had inhibited them, whether the venue had been suitable

and, finally, whether the tape recorder had affected them in any way.

These issues would also be put to the research participants who

compiled essays at my request.

3.2.3 Capturing, storing and securing the data

I decided to have all the interviews transcribed by a company that specialised in

this. Once the transcriptions were concluded they would be e-mailed to me. The

hard copies would be couriered to my office where I would lock them away after

77


each of them had been properly indexed by my secretary. This would enable me

to easily refer back to the transcriptions as and when required.

In the light of the important role field notes play in qualitative research, I decided

that they should be as detailed and thorough as possible. To this effect I would

request my secretary to ensure that two hours would be set aside between each

interview for me to construct a written account of what I had heard or observed

during the interviews.

I anticipated that the field notes would be descriptive and reflective, and that they

would accommodate the following: (1) a synopsis of the career history of each

participant in the company, (2) their current roles in the company, (3) their marital

status, and (4) their language. I would also reflect on the methodology followed

during the interviews and particularly my observations of the interviewees that is

whether they had been relaxed, whether they had been inhibited by my seniority

in the company and how my interviewing style had affected them. In addition I

decided to reflect on whether their experiences and perspectives were related to

any abstract theoretical concept of downsizing. Finally I would note their

recommendations regarding the current downsizing process.16

Other documents I decided to compile were a project diary for capturing the

deployment of the study, auto-ethnographical sketches containing my own

experiences and thoughts on downsizing, and memos in which I would note any

ideas and insights I might have on the meaning of the data.

16 This information would be invaluable during the coding process.

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3.2.4 Data analysis

I realised that apart from the preliminary analysis of the data during the data

collection process I would also have to undertake intensive analysis during the

final stage of the study, and that I would then have to focus specifically on the

strategies provided by grounded theory.

In anticipation of the magnitude of the collected data I decided to purchase

appropriate qualitative data analysis software to assist me with systematising the

data.

3.2.5 Ensuring quality qualitative research17

Marshall and Rossman (1995, pp. 143-145) state that all qualitative research has

to meet certain criteria. After having studied the literature and thinking about my

intermittent feedback to the company’s CEO, I phrased the following core quality

requirements to guide me throughout the study:

• The study has to be credible.

• The study’s findings have to be transferable and applicable to other

settings.

• The findings have to be reflective of the subjects and the inquiry itself and

not of the researcher’s biases or prejudices.

17 See Chapter 2 for a detailed exposition of the principles of credibility, transferability, dependability and other quality

assurance measures.

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The study’s roadmap18 contained the most important considerations I wished to

cover in the execution of the research. I continuously checked and amended the

roadmap as the study progressed.

3.3 ACCOUNT OF THE EXECUTION OF THE STUDY

Schurink (2004m, p. 14) mentions that there seems to be no agreed-upon

canons or heuristics for evaluating a qualitative study, and that it is generally

accepted that each reader must judge the credibility of such a study for himself or

herself. It therefore appears that candid reports of field experiences or

“confessional tales” are accepted by many qualitative researchers today, but not

what Taylor and Bogdan (1998) refer to as “fiction” ethnographic reporting.

The fact that the qualitative researcher must provide information on the

procedural operations in his or her research does however not imply a complete

exposition of all the steps and decisions taken during the execution of the actual

research. Today it is generally accepted that the problem of establishing

credibility can be solved by providing what Becker (1970) originally called the

“natural history” of a research project. Seale (1999) refers to the natural history of

a project as confessional tales with an emphasis on fieldwork experiences.

By using an auto-ethnographic style, that is recounting my personal experience

with the study, I now present an account of the implementation of the study.

18 To be discussed later in this chapter.

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3.3.1 First negotiations and registration of the study at the University of Johannesburg

This phase covers the period September 2004 to 17 May 2005 that is from the

moment I decided to undertake a Ph.D., through to my first consultations with

scholars, the development of the research proposal and the registration of the

study.

3.3.1.1 Origin of the study

During September 2004 I had a lengthy discussion with my wife, Arin, about the

possibility of using the downsizing process of my company that I had helped to

design as the topic of a study to attain a Ph.D. We thought it was a great idea

because it would allow me to document my experiences and thoughts regarding

the downsizing at the company over the years. However, I did not realise at the

time the commitment this endeavour would require.

3.3.1.2 First consultations with scholars

I contacted a former lecturer who supervised my master’s degree at the

Potchefstroom University for Christian Higher Education during 1982 and who

subsequently joined the University of South Africa (UNISA) in the capacity of

senior lecturer, to discuss my idea. He agreed to assist me with the compilation

of a research proposal. I automatically assumed that I was going to undertake my

study at UNISA if they would accept my proposal, in which case I would request

that my former lecturer be appointed as my promoter given that we knew each

other. I took leave during December 2004 and started writing the proposal. This

was a most difficult task, particularly because I had completed my master’s

81


degree two decades before and had lost touch with academic institutions’

requirements for proposals.

The fact that the university department where I decided to undertake my doctoral

work did not provide any personal assistance to doctorate candidates to compile

research proposals did not make things easier. Nevertheless, I managed to

complete the proposal, and forwarded it to my former supervisor. After about

three weeks I received his feedback. He recommended that I review the proposal

and send it to him again for input. At this point I realised that I would have to find

additional assistance to compile a proper proposal.

A colleague of mine introduced me to Prof. Schurink, a South African authority on

qualitative research. I met with him at his house on the morning of Friday, 29

April 2005, and explored until the early evening the topic and its chances of

producing a doctoral study. We also discussed the possibility of his assisting me

with compiling the proposal. In addition he agreed to act as my promoter

regardless of the university that would accept the study.

At Prof. Schurink’s suggestion I phoned Prof. Coetzee, the chairperson of the

Programme of Leadership and Change at the Department of Human Resource

Management at the University of Johannesburg to explore the possibility of

undertaking my study there. On Monday, 2 May 2005, I called Prof. Coetzee, and

he indicated that I could submit a research proposal to the Department’s

academic committee for approval. This forum would have to be convinced that

the envisaged study was relevant to the programme and that I had the necessary

competencies and commitment.

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3.3.1.3 Compiling the research proposal and registering the study

Prof. Schurink and I worked hard on the proposal and on 17 May 2005 my

proposal for a doctoral study was accepted by the academic committee of the

Department of Human Resource Management of the University of Johannesburg.

Prof. Schurink was officially appointed as my promoter and I was given

permission to formally commence with my studies.

3.3.2 Unpacking the research proposal and preparing for fieldwork

On Friday, 20 May 2005, Prof. Schurink and I had a meeting to discuss how to

operationalise the study. We spent extensive time on unpacking the research

proposal and clarified the study’s modus operandi.

The CEO of my company officially granted me permission to conduct the study in

the company and agreed to finance the study, as the organisation had a vested

interest in the end result. One condition was that the research had to be

concluded by the end of September 2005. We identified this as a challenge and

worked on the assumption that I had to furnish the company with an official report

concretising, if not amending, the current downsizing model by this date.

The study proceeded as follows:

First I discussed my ideas about research participants with the CEO to finalise a

decision on who should participate in the study. My executive role in and

knowledge of the company enabled me to identify the most appropriate

participants.

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Then I drafted an e-mail in collaboration with Prof. Schurink as the first step in

the data-gathering phase, explaining to the prospective participants what the

study was all about, what was meant by the term “downsizing”, a brief overview

of the research methodology, how the study came about, the importance for each

participant to take part voluntarily, that their anonymity was guaranteed, that the

CEO of the company had commissioned the study and the importance of the

study for the company.

3.3.3 Inception of the fieldwork

The fieldwork started on 27 May 2005. During this phase the most important

activities were: (1) the first negotiations with the research participants, (2) the

initial gathering of data via solicited e-mail essays and face-to-face interviews,

and (3) the compilation of the field notes.

3.3.3.1 First negotiations with the research participants

The CEO and I agreed that two executives, four senior managers and one senior

human resources consultant would participate in the study. They were selected

for their personal involvement in and thus extensive knowledge of the downsizing

process of the company.

On 25 May 2005 the CEO called the participants to his office and handed them

the informed consent forms. He explained the purpose of the study and

encouraged them to give their full cooperation. The Code of Ethics of the

Department of Human Resource Management at the University of Johannesburg

was also handed out and explained to them.

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3.3.3.2 Initial gathering of data

I sent an e-mail to each participant, requesting them to complete the letter and

schedule and return them to me within a week. Two of the participants e-mailed

their inputs on the topic of the study by close of business on 3 June 2005. The

rest of the participants elected to convey their inputs in an interview.

My secretary scheduled face-to-face interviews in my office for 14 and 17 June

2005. Prior to the interviews Prof. Schurink and I finalised the interviewing

process that I was going to use.

Before the first interview began I was a bit nervous, because I realised that the

study was now a reality. I did not know what to expect from the interviews and

whether I would receive meaningful information. Each of the interviews took

about two hours. I received valuable information from the first interviewee and

started to relax. On completion of the remainder of the interviews I was really

excited about the information I received.

The schematic presentation below illustrates the data sources used per

participant, date of receiving the data, duration of the interviews and focus group

discussions, and their venue.

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TABLE 1: DATA SOURCES ACCORDING TO RESEARCH PARTICIPANTS

Research Participants

Email Date

Received Date of

Interview Venue

Duration of

Interview

Focus group

discussion Venue Duration

A √ 20/06/05 29/06/05 My

office 1 hour − − −

B √ 10/06/05 − − − √ Boardroom 5 hours

C − − 14/06/05 My


D − − 14/06/05 My

office 1 hour √ Boardroom 5 hours

E − − 17/06/05 My


F − − 14/06/05 My


G − − 17/06/05 My


3.3.3.3 Compiling field notes

I compiled detailed field notes after the interviews. I must admit I was sceptical

when Prof. Schurink stated that the writing of proper field notes might take up to

six hours. I thought that it would be an easy task because I was used to

interviewing people as a psychologist. I was wrong. Writing field notes generally

took me about five hours.

I tape-recorded each interview and had the tapes transcribed by a company

specialising in transcriptions. I received the transcriptions on 29 June 2005.

Before analysing the data I was advised by Prof. Schurink to reflect on my own

experience of the most recent downsizing intervention in the company. I found

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this quite difficult, mainly because gathering data from my own body of

experiences and viewpoints was strange to me. Nevertheless, I managed to write

my first ever auto-ethnography.

3.3.4 Embarking on qualitative analysis: Open coding

I began analysing the data with the aid of open coding on 20 June 2005. Strauss

and Corbin (1998, p. 101) define this type of coding as the analytic process

through which concepts are identified and their properties and dimensions are

discovered in the data. De Vos et al. (2005, p. 346) suggest that open coding is

that part of analysis that pertains specifically to the naming and categorising of

phenomena through close examination of the data. Without this first, basic

analytical step the remainder of an analysis is difficult, if not impossible.

During open coding the data are broken down into discreet parts, then closely

examined and compared for similarities and differences, after which questions

are asked about the phenomena captured in the data. Two analytic procedures

are basic to the coding process, though their nature changes with each type of

coding. The first pertains to the making of comparisons, the other to the asking of

questions. In fact, grounded theory is often referred to in the literature as the

constant comparative method of analysis (Glaser & Strauss, 1967).

I started to analyse the participants’ e-mails by breaking them into distinct units of

meaning by analysing each line of the text and trying to identify key words or

phrases in their accounts of their experience of the company’s downsizing

process. I tried to link a chunk or unit of data (a passage of text of any length) to

some more general phenomenon. I was amazed at what emerged from the texts

when I started the coding process. I used ATLAS software for this task, as it is

well known for its efficiency in conducting open coding.

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3.3.4.1 Purchasing and applying ATLAS.ti.5.0 software

I used ATLAS.ti.5.0 (ATLAS) software to analyse the e-mail responses as well as

the transcriptions of the interviews. I was very enthusiastic about the coding. On

Saturday, 25 June 2005, a colleague and I spent the whole day on getting the

software to work. We consulted the manual, but it was too detailed for beginners

like us. We gave up at about 20:00. Early on Sunday, 26 June 2005, I again

tackled the software, this time using an example provided in the manual. My

inability to understand was exacerbated by the absence of a text book that

explained the process of coding, which process is apparently a very personal

experience for every researcher.

That qualitative research does not subscribe to recipes or processes was

confirmed yet again. This is due to the very methodology, which requires of the

researcher to continuously explore the richness of the evolving data. It is like

requesting an artist to write up the process of painting. Someone else following

that process will not have the same results, as there are too many variables that

cannot be documented, such as his or her own personality traits that are woven

into the research. As no recipe existed, I had to make do with getting to

understand the ATLAS software and getting to work out a process for myself.

This was more difficult than I ever anticipated. By the end of that Sunday evening

I still had little understanding of how to approach the coding.

On Monday, 27 July 2005, I decided to find out who would be able to give me an

overview of ATLAS, but nobody could. I then returned to the manual and worked

through the examples, which took me late into Tuesday, 28 June 2005. Coding

should now be very easy, I thought, but the logic behind the actual coding

remained very complex. Even the insights I gained from my literature review in

the meantime did not help. In fact, it confused me even more. I was beginning to

fear that I would have to turn to analytical induction to get the study done.

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Therefore I set the theory aside and followed a pure grounded theory approach,

and used coding to find out what the interviews produced. I took care not to rely

solely on ATLAS and be accused of losing touch with the richness of the data. I

started to develop themes derived from the codes. I revised my coding approach

so far and, based on my insights, started all over on Thursday, 30 June 2005. A

picture was starting to emerge as I was developing more descriptive codes. This

gave me a better idea of what code families I was going to define.

On Friday, 1 July 2005, I was going to define super codes but got stuck. The next

day I read through the manual again to try and gain a better understanding of

ATLAS. On Sunday, 3 July 2005, I started to define meaningful super codes.

While my wife and I were busy with the coding, I saw the first glimpses of an

emerging process. Then I drew the evolving process as it emerged from the data.

I was excited. The following week I spent much time on the coding exercise and

refining the emergent process. It was very complex and difficult, and I had to

amend my thinking quite a number of times.

On the Monday, 11 July 2005, I detected a problem in the coding: I no longer

found real new evidence. I phoned Prof. Schurink, and he suggested that I go

through the suggested coding methodology again and see whether new insights

emerged. I then decided to follow a different approach and transferred all the

codes together with the quotes that were linked to them into a word document.

My wife and I then used this document and started with a manual coding

exercise, which brought new insights. I then updated the coding file in ATLAS.

On Tuesday, 12 July 2005, I transferred the outcome of the manual coding to a

new word document. This document I used to update the file in ATLAS. I

proceeded with the definition of super codes and updated all documents again.

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On Wednesday, 13 July 2005, the initial process that I had drawn changed quite

dramatically and a new picture emerged. I was excited about this new

development. I decided to re-do the coding exercise once more in ATLAS, and

started with this on Thursday, 14 July 2005, but nothing new emerged.

I realised that I was now ready to begin with a focus group discussion. I asked

my secretary to arrange this for Wednesday, 20 July 2005, which she duly did.

Late on Thursday I received an e-mail from Prof. Schurink, advising me to read

three articles on analytic induction. I did so and was satisfied that I was not

following an analytic induction approach. I met with Prof. Schurink on Friday, 15

July 2005, at 15:00. I was very confident of what I had found thus far and we

even considered it possible for me to graduate during April 2006. I was to phone

a language practitioner, Ina Stahmer, to check whether she would be willing to do

the language editing of my thesis during October 2005. I also shared with Prof.

Schurink that I was going to code the process manually. My wife and I spent the

whole of Saturday and Sunday on this, and the outcome was very pleasing. We

took a number of pictures of the process.

On Monday, 18 July 2005, I phoned Prof. Schurink to confirm that Ms Stahmer

had agreed to do the editing of my thesis during October 2005. I also indicated

that the coding had been a success. During Monday I decided to review the

codes again and found a mistake, which my wife and I fixed on Tuesday. We

also amended the process. The next focus group meeting would be on

Wednesday, 27 July 2005.

ATLAS was very useful to quickly assign open codes to text. When I had made a

mistake with any of the codes, it was easy to correct: if corrected in one

document, the same code was automatically updated in all the other documents.

I decided to award a number to each of the codes. This enabled me to logically

categorise codes more easily.

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I searched every line of the e-mails for key words or phrases that gave some

insight into organisational downsizing. I identified as many open and unrelated

codes as possible. I repeated the process for each of the e-mails received. I

identified patterns that started to emerge from the whole analysis. I clustered the

identified codes into groups based on their shared link to some aspect of

organisational downsizing. This started the process of abstraction and moved the

interpretation from merely describing what had occurred to linking codes together

with the aim of developing explanatory concepts.

3.3.5 Axial coding

On 27 June 2005 I began with axial coding, which according to Strauss and

Corbin (1998, p. 123) is the process of relating categories to their sub-categories,

termed “axial” because coding occurs around the axis of a category, linking

categories at the level of properties and dimensions. De Vos et al. (2005, p. 348 )

defines axial coding as a set of procedures whereby data are put back together

in new ways after open coding, by making connections between categories. This

is done by linking codes to context, to consequences, to patterns of interaction,

and to causes. In other words, “we are still concerned with the development of a

category, though with development beyond properties and dimensions” (Strauss

& Corbin, 1990, pp. 96-97). However, although open coding and axial coding are

distinct analytic procedures, when the researcher is actually engaged in analysis

he or she alternates between the two modes.

I continued using ATLAS for this process, as the software allowed for easy and

quick abstraction. I was acutely aware of the concern that researchers have with

computer-assisted qualitative data analysis, namely fragmentation of textual

materials, and tried to prevent this in my analysis of the e-mails. I also took care

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not to allow the chunks of data that had been analysed to be put together into

groups of related fragments that risked decontextualising the data.

I made extensive use of memos and found them very helpful in the initial stages

of identifying codes and categories. They also guided me in the formulation of the

model. ATLAS accommodates memo writing and allowed me to continuously

record my thoughts electronically. I used the memos during the definition of the

substantive model to check that my ideas were incorporated into the final model.

I kept on writing memos throughout the coding process. As for the writing of

memos, I continuously added quotes to clarify the codes that I had allocated to

the data.

For the axial coding process I also used ATLAS; the process by which axial

coding is done within ATLAS is called the creation of code families. The

software also allowed me to define each of the categories/code families

electronically. This started the process towards the formulation of the substantive

model for downsizing.

3.3.6 Selective coding

I moved on to selective coding on 1 July 2005. Strauss and Corbin (1998, p. 143)

refer to selective coding as the process of integrating and refining a theory. De

Vos et al. (2005, p. 349) state that selective coding is the process of selecting the

core category, systematically relating it to other categories, validating those

relationships and filling in categories that need further refinement and

development.

After some months of collecting and analysing data the researcher is confronted

with integrating his or her categories to form a grounded theory. This is a task

that even seasoned researchers find difficult. It is a complicated process, but has

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proven to be achievable. It is not very different from axial coding, though it takes

place at a higher, more abstract level of analysis. Strauss (1987) mentions that

several steps are involved:

• Explicating the story line

• Relating subsidiary categories to the core category by means of the

paradigm

• Relating categories at the dimensional level

• Validating those relationships against data

• Filling in categories that may need further refinement and/or development

As has been stated by scholars writing on a process model, these steps are not

necessarily taken in linear sequence, nor are they distinct in actual practice. In

reality, one moves to and fro between them (Strauss & Corbin, 1998).

I used ATLAS to conduct selective coding. This is done by determining the

relationships of categories with one another to formulate a core category/super

code. I then defined the super codes electronically within ATLAS. This step became the most important step towards the definition of a substantive model for organisational downsizing.

Thereafter I manually verified the coding that I did in ATLAS. I created a word

document with all the codes together with all the narratives linked to each code. I

then reviewed all the codes against the narratives to determine whether I had

indeed allocated the correct code to each of the narratives.

The other reason for using manual coding was to increase the validity of my

coding process. I used more than one coding procedure and I verified the

electronic process as well as the manual process. This improved the integrity of

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the initial codes that I allocated to the narratives, as I reallocated certain codes

and rephrased some of the categories.

Once I had completed this process I updated all the codes within ATLAS. I then

reviewed the categories as well as the core categories. I also amended their

definitions where appropriate. The process was invaluable, as I detected critical

codes, categories and core categories that could have impacted negatively on

the ultimate substantive model. I was now ready to conduct my first focus group

discussion.

3.3.7 First focus group discussion: Evaluation of the codes

The framework of concepts, categories and core categories that I developed

provided a catalyst for the ensuing discussions, unlike the earlier interviews,

which were less structured. Consequently a briefing sheet listing the broad areas

for exploration was used. New contributions that took the discussion in new

directions were noted and compared against the existing data.

The discussion occurred at the main office of the company, as it was convenient

for the participants. We met in the main boardroom on 20 July 2005. I used the

focus group discussion to obtain data on how people in a group context

perceived the experiences, perceptions and views of their colleagues regarding

the company’s downsizing process, and/or to assess my representation of their

worldviews. At this meeting the purpose was to clarify the findings that are codes,

categories and core categories/super codes.

I used brainstorming and nominal group techniques to identify new codes,

categories and core categories/super codes. Brainstorming is meant to

overcome the pressures of conformity through the interaction of creative

alternatives. The technique generates ideas by specifically encouraging any and

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all alternatives, while withholding any criticism of these (Bergh & Theron, 2003, p.

249).

The nominal group technique restricts discussion during the decision-making

process, hence the qualifier “nominal”. Although the group members share the

same physical space, as in common meetings, they operate independently. More

specifically, a problem is presented to the group and then the following steps

take place:

• The members meet as a group, but before any discussion takes place,

each member independently writes down his or her ideas on the problem.

• This silent period is followed by each member presenting one idea to the

group. Each member takes a turn, going around the table, presenting a

single idea until all ideas have been presented and recorded (usually on a

flip chart). No discussion takes place until all ideas have been recorded.

• The group then discusses the ideas for clarity and evaluates them.

Each group member silently and independently puts the ideas in rank order. The

final decision is determined by the idea with the highest aggregate ranking

(Bergh & Theron, 2003, p. 249).

These techniques assisted me greatly to critically view the categories and the

core categories, and placing the latter in sequence, which was simultaneously

the first step towards defining the initial substantive model. The focus group

discussion was tape-recorded and later transcribed by a company that

specialises in the transcription of interviews. The transcriptions were e-mailed to

me, and the hard copies were couriered to my office. I analysed the

transcriptions through open, axial and selective coding to determine whether the

current codes needed updating. As new concepts, categories and core

categories emerged, I updated all the codes and added the new ones.

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3.3.8 Dimensional analysis and conditional matrix

According to Goulding (2002, p. 79) dimensional analysis, a newcomer, was

pioneered by Schatzman and Strauss (1973). Analysis in the context of research

is linked to the interpretive actions that one naturally and commonly employs

every day. In order to move the interpretation from a descriptive to an

explanatory level it is necessary to have a framework for identifying the

relationship between and across emerging phenomena. Dimensional analysis

uses as its foundation conditions, processes, contexts and consequences that

can be shown to affect the outcome of the informant’s story.

The purpose of this method is to provide a structure or methodological

perspective for analysis and explanation. The explanation or story informs us of

the relationship between actions and consequences under selected conditions in

a specific context. The act of designation moves a particular observation towards

a more abstract representation of a situation.

I proceeded with dimensional analysis on 23 July 2005 to build a structure or

methodological perspective for analysis and explanation. I collected and

scrutinised all the data until a critical mass of dimensions was assembled that

represented emerging pathways with explanatory power. A grounded model as in

dimensional analysis employs similar strategies for describing and developing

theoretical frameworks. I asked the following four questions:

• What were the conditions of the action?

• What were the interactions between the actors?

• What were their actions and strategies?

• What were the consequences of the actions?

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I then placed the data in a framework of:

• Causal conditions

• The phenomenon

• Intervening conditions

• Interactional strategies

The dimensional analysis was followed by conditional matrixing, which Goulding

(2002, p. 87) describes as a device for tracking the various levels of influences

upon the phenomena under study. It is usually presented in the form of a

diagram comprising concentric circles. The outer circle usually represents the

macro influences, while the inner circles relate more to the actions and

consequences of the behaviour. According to Corbin and Strauss (1990, p. 11), it

is useful when describing economic conditions, cultural values, political trends

and social movements to think in terms of a conditional matrix. The matrix

suggests a set of decreasingly inclusive circles embracing different conditions,

beginning with the broad ones just noted and moving inward to conditions

progressively narrower in scope.

The conditional matrix and particularly the notion that “the analysis of the setting

must not be restricted to the conditions that bear immediately on the

phenomenon of central interest” is a source of conflict between researchers

adopting the Strauss and Corbin approach and those using the principles

advocated by Glaser (Goulding, 2002, p. 88).

I applied a simpler conditional matrix (Partington, 2000) consisting of four

concentric circles labelled as follows:

• External actions

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• Internal actions

• Management cognition

• Action

This has been derived from the S-O-R theory, which will be discussed in more

detail in Chapter 6. This matrix enabled me to understand the interrelationships

between the various core categories that assisted me with the development of

the substantive model.

3.3.9 Definition of the substantive model

Mouton (2002, p. 196) suggests that models present phenomena systematically

by identifying patterns and regularities among variables. They explain the

relationships between core categories heuristically. Based on this definition, I

constructed a substantive model for organisational downsizing on 23 July 2005

that consists of twenty two steps.19

3.3.10 Second focus group discussion

On 27 July 2005 a second focus group discussion was conducted to verify the

amended product that was initially created by the participants. They discussed

each of the steps of the model to establish what each step meant and how it

related to organisational downsizing. All the categories and core categories

related to each of the steps were discussed and verified. Only minor

amendments were made, notably changes to the names of the core categories.

The sequence of the process was verified and left as is. The participants decided

to rename of the model, and the nominal group technique was used to come up

19 See Chapter 6 where this model is discussed in detail.

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with a name: “organisational redesign” as apposed to “organisational downsizing”. At this point I checked with Prof. Schurink whether the data

analysis phase should continue. He and I agreed that no new information was

forthcoming and that the process had now reached saturation.

3.3.11 Matching the constructed model with theory

I integrated the four labels identified with the aid of the conditional matrix with the

newly formulated substantive model. The S-O-R theory fitted perfectly into the

new substantive model for organisational redesign.20 This matching I did on 29

July 2005.

3.3.12 Triangulation

Bryman (2004, p. 275) refers to triangulation as the use of more than one method

or source of data in the study of social phenomena. Potter (1996, p. 153) states

that conclusions derived from many different kinds of people across many

different situations will be more convincing than those based on observations of

one person in one setting. This method of strengthening one’s argument by

building in many different dimensions is called triangulation. When using this

method, researchers add dimensions to their data gathering by increasing their

sources of data (across time, space and analysis method), increasing the

number and types of investigators (multidisciplinary team), increasing exposure

to different theories (applying concepts and perspectives from diverse theories

and disciplines), and increasing the variety of data-gathering methods. I used e-

mails, face-to-face interviews, memos, field notes and focus group discussions to

gather the data for the study.

20 See Chapter 6 where this is detailed.

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This roadmap that I created for the operationalisation of grounded theory served

me so well during the application of grounded theory that I recommend that every

qualitative researcher defines a roadmap before engaging in qualitative research.

3.3.13 Structuring the thesis and preparations for its examination

On 29 July 2005 Prof. Schurink and I met in my office to work on the layout of my

thesis. We also planned to have it ready for Ms Stahmer on 19 September 2005.

I started with Chapter 2, which is the methodology chapter, and must confess

that it was a very difficult task. I took leave from 8 until 15 August 2005 to do as

much work as I could on my thesis. I finally e-mailed Chapter 2 to Prof. Schurink

on Monday, 8 August 2005, and he e-mailed it back to me on the Wednesday. I

amended it on 11 August 2005 and e-mailed it back to him that same day. I also

e-mailed him Chapters 3 and 4. On Saturday, 13 August 2005, I completed a

new Chapter 3, which I e-mailed to Prof. Schurink. On Sunday, 14 August 2005, I

completed my final chapter. Until 16 and 17 September 2005 Prof. Schurink and I

spent time on the finalisation of my thesis, which I e-mailed to Ms Stahmer on 19

September 2005.

I received my thesis back from Ms Stahmer on Friday, 21 October 2005. I made

the suggested changes and on Monday, 24 October 2005, Prof. Schurink gave

written approval for the thesis to be submitted to the University of Johannesburg

for examination.

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3.3.14 Finalisation and obtaining the Ph.D.

Prof. Schurink and I discussed the results of the examination early on 11 January

2006, the 14th of January 2006 we discussed and incorporated certain

recommendations made by the examiners and I provided the university with the

final required copies.

3.4 CONCLUSION

In this chapter a gave an account of how the study was done in an attempt to put

the process beyond criticism and, as advised by Seale (1999), to prove that I had

conducted the study personally, seeing and understanding the worlds of the

participants and how they experienced organisational downsizing. I believe that I

have presented a truthful account of how I captured the thoughts of the

participants about the phenomenon under study. In the next chapter I discuss

open coding in detail.

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PPAARRTT FFOOUURR

This section refers to Chapters 4 and 5 and


I cover the operationalisation of open, axial and

selective coding. Regarding these two chapters

please note that the initial coding produced 107

open codes with their associated quotations.

These were reduced to 78 categories with their

associated quotations after axial coding and

finally to 23 core categories with their associated

excerpts after selective coding. The large number

of tables should be viewed in the light of the fact

that they illustrate the coding process, starting

from a simple but extensive process, followed by

several refinements and culminating in a complex

substantive model.

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4 OPEN CODING

4.1 INTRODUCTION

When applying grounded theory, analysis takes place while the data are being

collected. Data collection entails the following: (1) writing memos that describe

the scene, events and behaviours under study; (2) analysing the data for the

meaning attached to them, and transcribing interviews, if any; and (3) carrying

out a series of analytical steps associated with applying specific coding

techniques in order to abstract meaning.

This chapter deals with the first phase in analysing my data, namely open coding.

I first address what open coding entails and then how I applied it in the study.

4.2 EXPLICATING OPEN CODING AND ITS RELATED CORE CONCEPTS

Open coding is the process of breaking down data into distinct units of meaning.

As a rule, this starts with a full transcription of interviews, after which the texts are

analysed line by line in an attempt to identify key words or phrases that connect

the research participants’ accounts to the experience under investigation. This

process boils down to early concept development, which consists of “identifying a

chunk or unit of data (a passage of text of any length) as belonging to,

representing, or being an example of some more general phenomenon” (Spiggle,

1994, p. 493).

Strauss and Corbin (1998, p. 101) define open coding as the analytic process

through which concepts are identified and their properties and dimensions are

revealed in the data. According to these two scholars there are different ways of

undertaking open coding. The first application is known as line-by-line analysis.

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This involves close examination of the data, phrase by phrase and sometimes

word by word. This is perhaps the most time consuming form of coding but often

the most generative. Doing line-by-line coding is especially important at the

beginning of a study because it enables the analyst to generate categories

quickly and to develop those categories through further sampling along

dimensions of a category’s general properties, a process of sampling we call

“theoretical sampling” (Strauss & Corbin, 1998). The second application of open

coding is the analysis of a whole sentence or paragraph, and a third application

is the perusal of the entire document and then asking “What is going on here?”

Having done this the analyst might return to the document and code more

specifically (Strauss & Corbin, 1998).

As “concepts” and “categories” are two terms central to open coding it is

important to remind ourselves of their meaning.21 Concepts are labels given to

discrete phenomena and represent the “building blocks of theory” (Strauss &

Corbin, 1998, p. 101). Categories in turn are concepts that have been elaborated

and come to represent real-world phenomena. A category may subsume two or

more concepts. As such, categories are at a higher level of abstraction than

concepts. Finally, a category may become a core category around which the

other categories pivot (Bryman, 2004, p. 403).

4.3 APPLYING OPEN CODING

Before I discuss how I applied open coding a few important aspects have to be

pointed out.

1) I used particular software to facilitate the systematisation of the

qualitative data, namely ATLAS. I used this software for open coding

21 See Chapter 2.

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because it assisted me in dealing relatively quickly with large volumes

of data and doing the line-by-line analysis accurately. Manual open

coding would have been very difficult.

2) I performed open coding on the e-mail essays I received from two of

the participants, the transcriptions of the five face-to-face interviews,

policy documents of the company, memos and the transcriptions of the

focus group discussions.

3) How did I go about deducing concepts from these texts? I first perused

the relevant text, and then identified a concept that stood out from the

text, and finally described the meaning of the concept.

4) By using the alphabet to refer to the research participants, that is A-G,

I scrutinised excerpts from their accounts and showed how these were

grounded in the data.

5) In delineating and presenting the concepts, the term “company” has

been used to refer to the company under investigation.

6) The meanings/descriptions I assigned to each of the codes were my

own; I also used them during the axial and selective coding. Strauss

and Corbin (1990) contend that the naming of each concept should be

generated by the researcher himself/herself. The name chosen is

usually one that seems most logically related to the data it represents,

and should be graphic enough to remind one quickly of its referent.

However, it must be a more abstract concept than the one it denotes. It

is of particular importance to note that in the study these descriptions

did not emanate from the scientific literature, as I had decided against

the use of any form of analytical induction.

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7) I used the words and phrases that are the concrete constructions of

the participants and, as far as possible, the relatively substantive

and/or catchy ones that immediately drew attention. These terms are

called “in vivo codes” (De Vos et al., 2005).

I now present the concepts and provide supporting/illustrative examples from the

participants’ accounts. Please note that the headings I use represent an exact

replication of the codes used during the coding procedure.

4.3.1 Client cannot afford services

This concept refers to one of the external triggers that might cause a company to

embark on downsizing.

PARTICIPANT SUPPORTING EXCERPTS

C “But then the client may want to say to me in a year’s time I

cannot afford your services”.

F “Then there is an extrinsic trigger and that is where a client

manages his business or a client’s circumstances change to

such an extent that they can either not afford our services any

longer or they cannot afford the extent of our services any

longer and they will then approach us”.

G “If you look at changes in client business, these are the main

things that came out of the interview to say clients cannot afford

the service; contract with client terminates from our side and

they have not renewed it and that could be for various reasons;

client restructures its business and client cancels contract. It

could be that...”

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4.3.2 Contract with client terminates

The contract with the client terminates, which may result in a company

restructuring its business to get rid of unnecessary costs.

PARTICIPANT EXCERPTS

F “It could also be, before they approach us it could also be that

there is a contract that comes to an end”.

“Over time what happened, physically happened in Sasol and

(inaudible) is that their own people became so au fait at Level 1

SAP work that they did not need our SAP 1 level consultants

anymore and the client came back to us.”

G “...contract with client terminates from our side and they have

not renewed it and that could be for various reasons...”

4.3.3 Client restructures its business

The client restructures its business and as a result of this may not require the

services rendered by a company, which may lead to the latter reducing its staff

and downsizing the company.


F “And under your business operational requirements you get

client changing...”

G “...client restructures its business...”

“What agreements are they engaged in, on whose client’s site,

are they operative, what are the requirements of that client at

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the time and how long are those requirements going to run into

the future.”

4.3.4 Client cancels their contract

When a client cancels a contract with a company because they can no longer

afford its services, this may force the company to downsize.


F “No, client cancels contract.”

“…they do not require our particular services any longer…”

G “...client cancels contract.”

4.3.5 Change in market demands

A change in the market demands of the client may lead the client to change their

business direction. This in turn may result in cancelling the services the client

obtains from a particular company. This may necessitate downsizing in that

company.


B “Business declined as a result of the process in one of the key

clients or rather the client blamed the decline on the process.

However, other clients saw the process as immensely positive

as they saw new blood in the organisation and the

organisations willingness to adapt to new market demands.”

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“At the same time market demands may change, necessitating

the need to downsize, right size or whatever the political correct

term of the moment is.”

4.3.6 Wealth of shareholders

When shareholders believe that the return on their investment is not sufficient,

they may insist that the company downsize to reduce its costs and increase

shareholder return.


A “Generating wealth for the shareholders.”

D “...wealth to shareholders.”

F “Over the past ten, 20 years shareholders were starting to make

inroads into that but there is still a fine line...”

G “Shareholder intervention.”

4.3.7 Cost savings

When a company’s expenditure is too high, it may engage in downsizing to cut

the expenditure.


A “Cost savings.”

B “En dan het ons gesê jy kan eintlik maar net hierso praat van

‘estimate cost savings’ want jy het nog geen detail nie…”(And

then we have said that you can here refer to estimate cost

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savings because you have no detail at this stage).

C “…you always look at the cost…”

D “…provide cost savings.”

E “…cut costs in that business unit.”

F “But that is your estimate cost saving that is not your estimate

cost.”

G “...cost savings.”

4.3.8 Poor financial performance

This concept refers to the inability of a company to perform according to its

budget, requiring it to cut its costs and therefore embark on downsizing.


A “…is not performing financially as expected.”

B “Yah well that is financial impacts.“

C “...poor financial performance.”

D “So it is financial considerations.”

E “…looked at certain of our financial results and therefore we

think that we should streamline…”

F “...financial performance you could...”

G “Yah well that is financial impacts.”

4.3.9 Expenses too high

A company may have incurred too many expenses and as a result has to

consider cutting its costs through downsizing.

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A “An organization, part of an organization or a department is not

functioning to the optimum or is not performing financially as

expected.”

B “…reducing non-recoverable costs and therefore reducing the

loss made by the organisation in the following year. “

C “…where expenses are just too high…”

D “And high expenses.”

E “…cut costs in that business unit.”

F “…there is an adverse cost situation pertaining to a specific

region or a specific team or a specific department…”

G “...budget constraints or cost savings.”

4.3.10 Lack of profitability

The company has a budget deficit because of a lack of revenue; the non-

profitability will force it to downsize.


A “…been the non-profitability of certain business units.”

B “Kom ons sê jou besigheid is 30% agter ‘budget’ en ek wil

omtrent daardie bedrag opmaak.” (Let us say your business is

30% behind budget and you want to make up that amount)

D “Well the one thing is that the poor financial performance means

cost saving because it is too high, lack of profitability.”

E “...because it is unprofitable and these are the specific reasons

why we are restructuring...”

F “...there was a squeeze on margins in terms of sales and at the

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end of the day it was decided that that squeeze is so tight and

the margins have become so small that we are going to drop

those products.”

G “…lack of profitability.”

4.3.11 Losses

This concept refers to instances where a company makes losses, which compel

it to downsize.


A “…we were making a loss or going down a path of making a

loss.”

B “…reducing the loss made by the organisation “

C “Okay. I think in the first instance the business was just running

at a loss okay.”

4.3.12 Budget

This concept refers to a company that cannot grow its business because the cost

base is too high and the revenue too low, resulting in a drive to cut expenses

through downsizing.

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D “But rather than budgeting, what we could look at is

replacement and reallocating people.”

E “Do they all go through with budget constraints?”

G “…budget constraints.”

4.3.13 Amalgamation of departments

When functions disappear, or where business units merge or departments

amalgamate, the company is forced to downsize.


E “Even though the requirements of that one was more of an

amalgamation with minimal or no loss of staff from XXX, as it

then was.”

“…we just merged back office function so the only people who

were affected were not the client facing people, it was just the

admin people.”

G “That would be is it a redundancy, is it just movement of people

to different departments, is it a transfer, is it a restructure where

there is actual downsizing, there are not enough positions for

the people involved or function falls away.”

4.3.14 Closing of business units

Where the company is forced to close some of its business units, it will have to

reduce its number of employees.

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A “This is normally a reduction in staff or closing the organisation

down which means “reduction” of staff.”

D “A change in business focus might force you to close down

certain departments...”

E “Sometimes you just want to close the business unit down

because it is not performing…”

G “...when we decided to close down the warehouse...”

4.3.15 Downsizing

The company may decide to downsize as part of a business strategy.


B “…necessitating the need to downsize, right size or whatever

the political correct term of the moment is. “

C “To me organisational downsizing, you may have an aspect of

reorganisation in it but essentially you are making the business

smaller and more cost effective hopefully okay.”

D “Organisational downsizing that is less people.”

E “There is downsizing, which is what it says it is. It means

making things smaller.”

F “Downsizing means you make your size smaller and the size we

are talking about is (inaudible). So the moment you are talking

about downsizing you are talking about less people from my

perspective and from that perspective that would go hand in

hand with this process.”

G “…actual downsizing, there are not enough positions for the

people involved or function falls away.”

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4.3.16 Restructuring

The restructuring could be a business strategy, which could be followed by

downsizing.


A “…we actually restructure or reorganize in the bigger X picture.”

B “A process to restructure the organisation to suit market and

business demands, and may include a changed or adapted

organisational structure.”

C “You know when there is a restructure you want to try and

compartmentalise it…”

D “…the rest is that we wanted to restructure, we were going to

change the whole structure from a normal flat structure to an

industry structure, industry sectors. That was the main

reasons.”

E “We have, in term of, the underlying thing for all the restructures

that we have done has been about improving the Organisation

efficiency, not just reducing numbers.”

F “…just movement of people to different departments, is it a

transfer, is it a restructure where there is actual downsizing,

there are not enough positions for the people involved or

function falls away.”

G “…if we restructure more often than not we are retrenching or

restructuring not because we want to but because we have to.

Not in order to manage costs but in order to realign or

accommodate new business realities from a client or an

outsource perspective.”

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4.3.17 Reorganisation

When the company changes its strategy, sells or takes on business through an

outsourcing strategy, it may want to reorganise its operations.


B “Removal of “fat” from the organisation “

C “Okay. Organisational reorganisation for me is when you, the

business has changed and your ability to provide a service or

sell a product or whatever has to happen in a different way and

therefore you reorganise your organisation to meet the new

needs okay.”

F “Reorganisation. You can realign people, you can realign roles,

you can change organograms, and you can refocus

competencies without shedding anybody, without losing any

people. However you could also reorganise because you have

reached a point where you have maybe got five secretaries and

you only need three and by taking five managers, organising

them into a specific seating arrangement and having them

serviced by two secretaries could save you the money of three

secretaries. You can go with such an example for

reorganisation. There you would also share the heads.”

4.3.18 Delayering

This concept refers to a reduction in the number of management layers for

whatever reason, including too high costs.

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A “Delayering: Introduction of a flat organisation structure,

removing management layers to the minimum required.”

B “Jy gaan ‘n ander proses volg in ‘delayering as in redesign’,

as in close down. So daardie goed gaan ‘n ‘input’ wees vir jou

‘financial operational requirements’, dit gaan ‘n ‘input’ wees

vir jou in watter metodologie gaan jy volg om jou ‘restructuring’

te doen. En dan wanneer jy besluit het watter vorm van

‘restructuring’ jy gaan doen gaan jy al hierdie ‘business

audit’, ‘planning meetings’, ‘management’, dan gaan jy al

daardie goed doen maar teen daardie agtergrond.”(You will be

following a different process that in delayering, redesign and

close down. These things will thus become an input into

financial operational requirements, it will be an input of which

methodology to follow for restructuring. And when you have

decided what forms of restructuring you are going to follow then

you will be doing business audit, planning meetings and

management, then you will be doing these things).

D “Okay delayering, that to me, in my words is a process where

you go for more a flatter structure or taking management layers

out, unnecessary management layers. That to me, I mean on

that.”

F “So if you delayer and you want to take out a layer your process

of delayering involves taking out a layer. You are back into

reducing headcount. You are back into downsizing. But you

could delayer through a process of broad banding, which

means that you take out the layers without taking out any

people.”

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4.3.19 Redesign

A company redesigns its business when it is inefficient or when the business

processes are inadequate.


D “Organisational redesign could be a result of business

inefficiencies or business processes.”

E “Yes. Organisation efficiency is exactly redesign. So we have

looked at reporting lines, we have looked at the people in

specific roles. I think probably the most significant one we have

done was our XXX region. I am guessing.”

G “Okay so you would say mostly, so if I hear you correctly what

you are saying is and just help me if I am wrong, are you saying

that we redesign our business as the primary focus and then

the secondary focus could be downsizing? XXX: Yes it could

be, it could result into downsizing.”

4.3.20 Black empowerment forces

Black empowerment forces may compel a company to restructure when it does

not have sufficient representation of previously disadvantaged individuals

throughout its structures. In South Africa, charters have been issued for each

sector. Compliance to these is a prerequisite for businesses to be able to operate

within their respective sectors.

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B “…moet jy ‘BEE Forces’ ook daarby sit “( you must include

BEE forces).

F “Ja jy kan sê jou BE charters kan ’n institusionele force wees.

Dit is hoekom jy daar is.”(Yes you can say that your BEE

charters can become an institutional force).

G “…want hierdie ouens het al ’n groot bydrae gemaak.”

(…because these guys have already made a significant

contribution).

4.3.21 Growth through mergers and acquisitions

Mergers and acquisitions necessitate organisational downsizing by a company.


F “Yah, or close downs, or downsizing or mergers and

acquisitions or restructuring or outsourcing or reorganisation or

delayering or redesign or merging of...”

G “The triggers are economic, financial, mergers…”

4.3.22 Taking on non-core businesses from clients

When a company takes on non-core business activities from clients it is required

to conduct these at a reduced cost. This forces a company to reduce other costs,

and downsizing is a means to do so.

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A “So you take everybody and now you sit with this bus that you

have caught. And normally, a lot of times when companies

outsource they outsource because it is not making money for

them. So you sit with this animal which is just too fat. There is

too much overhead in this whole Organisation and then you are

bound by all sorts of rules and agreements that you cannot

downsize the Organisation for a period of time. So it is a little

dilemma you sit with and then you have to find other ways of

getting rid of the overhead in the Organisation.”

B “Outsourcing: The structured process whereby employees are

and their tasks/positions are contractually “sold” to a third

organisation in exchange for a service or function in line with

pre-agreed terms and conditions. “

C “…outsourcing is when you hand over, you let the whole

division or department go on the basis that you can get the

same service at a lesser cost.”

D “Outsourcing is physically taking over the line management of

those people working for another company. So they must come

and in a way now report in to our company. That is what

outsourcing is if you take all the people over.”

“That is a ‘moer’ of a trigger. So that is a trigger on its own. It is

an outsource business, we are outsourcing another customer

so now this thing must kick in.”

E “Outsourcing, again I am fairly clear on that. It is what we have

done with our security, it is what we have done with our catering

recently, it is what we have done with our cleaning. It is when

you actually may have had, you have probably had that role

internally, it is not key to your business and you get a

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professional external company who specialise in that discipline

to do it for you. They may take your people, they may not.”

F “I have been thinking in terms of outsource, also acquisitions is

a cause because sometimes we cherry-pick.”

4.3.23 Non-productivity

Companies have to consider removing unproductive people who harm their

business.


C “The other, the subtext of that is that we found that there were

people that were inhibiting its progress and it is funny that you

find that out.”

D “And also unproductiveness.”

4.3.24 Poor management practices

Where managers under-perform, a company often considers downsizing,

because under-performance lowers profitability. A manager’s under-performance

also causes employees to under-perform, which is exacerbated if no remedial

action is taken. Poor managers fail to address inefficient business processes,

exorbitant expenses, etc.

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PARTICIPANT SUPPORTING EXCERPTS

A “…sometimes because of the incompetence of certain

managers that actually screwed up the business and because

they screwed up the business the people had to suffer and

those guys are still around.”

D “…because of the bad performances of other individuals they

might lose their job.”

“In my view this sounds to me as we use this tool to place bad

management. This is not what this is all about. So now you

have an obstructive arsehole in CDE. You get rid of him in other

ways, not by restructuring the whole bloody company. This is

exactly what people think, when you are misusing this thing to

replace management.”

4.3.25 Ineffective business processes

Ineffective business processes impact detrimentally on a company’s ability to do

business and its productivity and profitability. This will necessitate downsizing.


A “Ineffective business processes.”

D “...or business processes.”

F “...ineffective business processes”

G “So yes reorganise BPR business process, re-engineering will

take place before you actually go into downsizing.”

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4.3.26 Inefficiencies

If inefficiencies exist anywhere in the company productivity and profitability will

decline, which may lead to downsizing.


D “He talks to the whole region and says we are currently

investigating inefficiencies in the region which we will then act

upon once we have all the relevant information available.”

E “We have, in term of the underlying thing for all the restructures

that we have done has been about improving the Organisation

efficiency…”

4.3.27 Obstructive people

Where some employees are obstructive and break down the overall morale of

other employees, lowering profitability, the company has to remove the culprits.


B “Jou probleem is dit is nie polities korrek nie so jy moet ’n ander

term kry vir hom, soos in...”(Your problem is that it is not

politically correct and you would have to find another term…).

D “There are obstructive people there so let us just try to get rid of

them.”

G “...obstructive people caused the business wanting to

restructure.” “Ek weet nie, dit is akademies so jy kan maar die

hond ’n hond noem.” (I do not know, it is academic, so you can

now call a dog a dog).

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4.3.28 Financial analysis of the business

The company should conduct a proper financial analysis before commencing

with downsizing.


A “Investigate the real route cause that has led to the action.”

B “…die derde een wat ons nou ‘due diligence’ is die mens kant

waar jy kyk of die ‘legalities’ van jou…” (…the third one we can

call due diligence and it is the human side where you will be

looking at the legalities).

F “Yah XXX was a good one. So if you think about it then there is

an exercise that takes place centrally away from the coal?

Phase with the financial guy to analyse where are the problem

areas and that is where this step of a desk top audit comes in.

Then the information comes back and, remember your role

XXX, where you from a national perspective said okay let us

look at the results again together with XXX and say the only

way that we are going to make this region profitable is to take

people out, because that was the main thing, because we are

not going to improve revenue at that point; we had to take the

costs out. And when you then said at that meeting okay that is

the strategy that we are going to follow, okay unofficially then

we decided what was the timeline, we got XXX involved to start;

who would be going down and so forth.”

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4.3.29 Implement top management decision

Once the top management of the company has decided to restructure it is

important that the decision is carried out.


A “…allowing managers to make business decisions as opposed

to emotional decisions. I also believe that if XXX could resolve

the issues at Executive level…”

C “Okay the first time it was myself and the HR Director, in this

case Johann, you. We were involved from the time that we

made the decision and we were both hands-on directly involved

in every single interview that took place.”

D “Then the EXCO agreed with our decision.”

E “Because once you have decided to do this, I know that once

the decision has been made at Board level then there needs to

be a timeframe that you need to meet. Once you have said we

are going to do this at an EXCO meeting and you have minuted

it then you have very specific legal communications that you

need to give to your people.”

F “I would say that making these kinds of decisions relating to all

of the stuff that we have in here, that constitutes an Exec or a

Line Manager or a CEO or a Board’s decision.”

“…the decision made by top management.”

G “...once we made the decision on the planning meeting and we

got the approval, now we are going ahead.”

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4.3.30 Manager requests a meeting with HR in reaction to trigger

Once top management has decided to downsize, the manager tasked with

implementation must contact the Human Resources Division immediately to plan

the execution of the process. This step is very important due to the legal

complexity of a downsizing intervention.


A “You have got XXX as one of the HR Practitioners?”

B “Once I had my preliminary meetings with the likes of XXX I

knew that the process could be facilitated in a win-win manner. “

C “It is the people, in that process it is the people from Human

Resources. And it is not just a subjective thing. They bring

knowledge of the process and they can explain why we do

certain things. The bring knowledge of the law to the process

and they are more objective because they are not emotionally

involved…”

E “Then I would say call HR. It seems to make business sense,

call HR.”

“Well HR certainly come along and get involved and they would

sit down and they will formalise that process or help us with the

formal process.”

G “I will then set up an initial meeting with only the manager

involved, myself and XXX and the manager involved.”

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4.3.31 Manager requests assistance from HR to take remedial action

The managers in the company have to contact the Human Resources Division to

offer assistance with the complex legal process of taking remedial action and

preventing undue risk for the company.


B “Manager requests assistance from Human Resources to take

remedial action.”

D “Manager requests assistance for HR.”

4.3.32 Line managers

The direct line managers play an important role in the communication process.

They are the closest to the employees and should therefore be kept abreast of

the process so that they (the managers) feel part of it and are not taken by

surprise.


B “Ons sê ‘line managers’ ( We say line managers)

E “Obviously I have a very close relationship with my own

manager so we would sit and discuss the necessity and the

method of this intervention and I know that my manager would

take my views back to the EXCO if I had a compelling reason to

change that decision.”

G “So the first meeting would be just to get clarification on what it

is that the manager wants to do and we will then guide the

manager and say this would be the appropriate process to

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follow.”

4.3.33 Employee Communication Forum (ECF)

This forum represents the interests of employees in the company. It is imperative

to communicate with the forum as soon as possible in order for its members to

assist with the successful execution of the process.


F “I can see apart from the fact that everybody is then informed of

where we are going and it kills a lot of rumours you can also

use that to trigger the Employee Communication Forum (ECF)

involvement.”

“…you need to communicate to the Employee Communication

Forum.”

G “And in terms of that we have also initiated the ECF in the

processes because you stand in front. You give the bad news,

you do the consultation with the people so they do not feel open

to come to you and ask you these questions but they could go

to an ECF representative and say: listen what is going to

happen with us. So communication and openness is very

important.”

4.3.34 National awareness

When downsizing is contemplated by the company but only affects a specific

geographic area, all employees should be informed so as not to cause

unnecessary distress to those who are not involved.

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A “…if we shared that view with everybody involved in the

Organisation they would have understood that things were

going to happen and had to happen. Why don’t we share those

types of business plans with our employees? Well the answer is

we are probably afraid if we do share it people will walk out or

not work properly anymore because they know it is going to

affect their lives.”

C “…and we informed everybody…”

D “I think now you remind me, I think we should communicate to

all employees, not only to the affected employees because they

hear it in the grapevine and I do not think we did that…”

E “A minimum of everybody in that region. And if it is a regional

one there should be maybe a lesser communication, you know

a less detailed communication that goes out to the whole

business.”

“I can see apart from the fact that everybody is then informed of

where we are going and it kills a lot of rumours you can also

use that to trigger the ECF involvement.”

“And if it is a regional one there should be maybe a lesser

communication, you know a less detailed communication that

goes out to the whole business.”

F “...communication that goes out should go out to everybody in

the Group.”

G “The whole of XXX should know about that.”

“So wyd soos die Heer se genade.” (As broad as God’s grace).

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4.3.35 CEO to initiate communication (e-mail)

The CEO should communicate with the company when downsizing is imminent.

This will show the whole company that he supports the process. He must also

provide the rationale for the restructuring so as to clear any uncertainty as to the

seriousness of the matter. The core message has to be contextualised by the

“boss”.


D “Look what I think went wrong, I think this must come from the

CEO’s desk.”

“We say XXX must communicate before it leaks.”

F “The CEO to initiate the communication by e-mail.”

G “Surely XXXs communication says guys we are looking at under

performing...”

4.3.36 Broad message: the company investigates under-performing units of a specific region

The company should put out a broad message with its initial communication that

it is investigating poorly performing units and will provide more details after the

investigation. This broad message is to create awareness amongst employees

that the company may wish to embark on downsizing, but does not have details

yet. This broad message sensitises employees to a possible intervention.


A “Content ‘sê ons’ (we say) broad message, business assessors

underperforming units for specific affected region.”

D “Surely XXX’s communication says guys we are looking at

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under performing...”

F “Remember the initial communication needs to go out to say

this broad statement, the broad message.”

4.3.37 Affected key clients

The company must send its top executives to talk to its key clients about the

intended process. They do not want to hear about downsizing via the grapevine,

as they invest substantially in a company.


A “The part of the process that was not well designed was the

Executive briefing of key clients.”

“…discussions held with key clients, where the clients saw the

process as a risk to their respective organisations.”

B “Having said that, key clients and the interaction with these

clients will need to be better managed at an executive level.”

D “Key clients also need to be notified about…”

E “My take on it is one must look at the extent of the intervention

and if necessary communicate appropriately with the clients for

the reasons I have just said.”

F “He sends that then to certain strategic clients and says I want

to tell you that we are looking at our business and it may lead to

potential restructuring but we will closer to the time

communicate officially with you.”

“We have not got, we have not sat down and thrashed out a

proper communication strategy content, context and timing wise

for our clients. Currently it is happening a little bit haphazardly

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on the basis that we would initiate these processes and in the

normal scheme of things if the client does not ask he does not

get told anything. We let sleeping dogs lie, “ostrich-head-in-the-

ground” sort of approach.”

G “…to the clients and told them about the restructure carrying on

and the impact it will have.”

4.3.38 Affected non-key clients

The company communicates with its affected non-key clients via its account

management structure. These clients provide the company with smaller revenue

streams and therefore top management does not have to do the communication.


A “However, other clients saw the process as immensely positive

as they saw new blood in the organisation and the


D “I think we should maybe spend more time, and I am talking

about the communication to our customers hey, clients, I think

we should spend more time in deciding who should be the

person.”

E “And then as a manager maybe you are out of town with clients

on a specific day so you just do not get to meet, to put some of

those basics in place.”

F “I would say clients from a common courtesy perspective and a

consistency perspective. Those two considerations: common

courtesy and then it is also a responsibility perspective. You

need to go, you need to go, an operational perspective, you

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need to go to any of your clients that may be affected and say

this is going to happen...”

G “Yah but maybe, Johann, maybe this is where we are going to

impact on current business practices from what you are doing

now and saying: guys yes we hear that but maybe it is

incumbent on you, even for the small clients, that the Account

Manager, not the CEO or the Exec member but the Account

Manager physically goes and sees him and explains to him.”

4.3.39 CEO and top executives for affected key clients

The CEO and top executives must communicate with key clients to ensure that

all their queries are answered due to the large revenues that the company earns

from them. They should not learn via the grapevine that their supplier

restructures its business and be left in the dark about the rationale for this.


D “And then they say the CEO and top executives for key

clients...”

F “For key clients.”

G “Yah. So CEO will write a letter, it could be one paragraph to

say I will go and see... Who are the top clients?”

4.3.40 Account executive (most appropriate member)

The account executive who is closely involved with the smaller clients should be

communicating with them. It is impossible for the CEO and top executives to

communicate with all the clients of the company.

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D “Okay so the Account executives will go to the clients...”

F “...then the Account executives for the rest of the clients

because it would be impossible for the top executive to go and

see all the clients.”

G “Yah, yah these are all affected clients.”

4.3.41 Contextualising the endeavour

The communication must explain to the employees and clients in broad terms

that the company is investigating its under-performing business units and will

communicate its intended action soon after the investigation.


D “I just want to sit with you and I want you to be aware that we

are doing this in Johannesburg. When we have further detail

there will be an official communication that...”

E “There needs to be a letter that goes out to all the people who

are involved.”

F “I would say clients from a common courtesy perspective and a

consistency perspective. Those two considerations: common

courtesy and then it is also a responsibility perspective. You

need to go, you need to go, an operational perspective, you

need to go to any of your clients that may be affected and say

this is going to happen...”

G “I cannot remember. I just, I remember distinctly that I just said

that the clients should be the guys that need to know about

these things at a certain point in time.”

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4.3.42 Human Resources Practitioner

The HR Practitioner must be involved in the formal planning meeting as he/she

will be monitoring the implementation of the downsizing.


B “As stated earlier, the processes are clear and well defined by

the HR practitioners, and were taken arm’s length away from

the business. As a result of the practitioners’ day-to-day

handling of the issues, the process did not affect me directly in

a serious manner.”

E “Well HR certainly come along and get involved and they would

sit down and they will formalise that process or help us with the

formal process.”

“A very important recommendation is that the HR practitioners

must be involved very early in the process.”

F “It simply has to do with HR as a support structure to make this

thing fly and to look at all the options.”

G “But the Human Resources Practitioner is running the process.”

4.3.43 Group Manager: Human Resources

The Group Manager is responsible for ensuring that the process is deployed

within the legislative framework and that the company is not put at risk.

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B “Once I had my preliminary meetings with the likes of XXX I

knew that the process could be facilitated in a win-win manner.”

F “The assessment and the answers to those representations are

vetted by me. That would entail also contextualising some of the

questions that these people ask both from a business and from

a legal perspective and the standard or the test that has to be

met is should we be challenged on those answers to the

representations met they need to be able to stand on their own

two feet in the Labour Court up to where individuals have

problems in the process.”

G “XXX from a HR perspective owning the process and executing

the process and amending the process on a regular basis.”

4.3.44 Line management

The direct line managers must be part of the planning meeting, because this will

enable them to clarify their concerns, which should ease their buy-in into the

envisaged process and their assistance in its execution.


B “Wanneer die proses plaasvind dan is die ‘manager’ nog

onseker of hy wil nog sekere goed uitklaar of wat ook al die

geval mag wees. Hier moet ’n dokument wees wat die ouens

op teken.“ (When the process takes place, the manager is still

uncertain as to whether he still wants to clarify certain issues.

There must be a document which everybody signs).

F “...there are no other managers involved. It is only that

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manager.”

G “Well that is the guy that would initiate, the manager initiating

the process.”

4.3.45 Executive team

The executive team, that is the management teams of the business units, should

be intimately involved in the planning meeting because their performance is

judged by the profitability of their business units.


E “Once you have said we are going to do this at an Exco

meeting…”

F “…the Managing Exec, who is responsible for his business unit

and the Management team…”

4.3.46 Managing Executive

The Managing Executive, who usually reports to a member of the executive

committee of the company and takes responsibility for managing a business unit,

must be involved in the planning meeting to ensure that the process is

implemented and that his/her executive team can see that he/she drives the

process.

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D “Managing Executive just clarifies...”

E “So basically a decision in principle has been taken and that

Business EXCO member then goes to the Managing Executive,

like you for example, and then notifies you to say: listen we are

now in the process where we have to do this.”

F “So you could say Managing Executive.”

4.3.47 Relevant EXCO member

The business executive committee member is accountable for a number of

business units and should therefore attend the planning session to ensure that

he agrees with the intended action.


E “...relevant EXCO member must be present in that planning

session.”

F “EXCO member or relevant EXCO member.”

G “That would be brilliant.”

4.3.48 Obtain commencement date

It is important to know when the process will commence, because the project

plan can then be designed.

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E “I know that once the decision has been made at Board level

then there needs to be a timeframe that you need to meet.”

F “Obtain commencement date. So you have to address when the

process is going to kick off. What is the time frame or the

duration of the full process?”

“You are going to decide your commencement date.”

G “You may decide commencement date. Okay then you can put

in there...”

“We will just get a date from them when they want to kick off the

process and after that meeting I will start the process.”

4.3.49 Broad timeframe of process

At this point the company still has only broad information. Details will be known

after a detailed planning session, and the company might even decide against

downsizing on account of particulars that arise from this session.


A “…the time that the process starts.”

B “Ons sê dit moet ’n ‘time-frame’ hê…“ We say that it must have

a timeframe…).

“Die ander ding wat ons hierso ook gaan in ag moet neem is, is

ons in 189(a) of 189 want dit gaan ’n invloed hê op die ‘time-

frame’ van die proses.” ( The other thing that we should also be

considering is whether we are within Section 189(a) or 189

because it will have an impact on the timeframe of the process)

E “…then there needs to be a timeframe that you need to meet.”

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F “Dan sê ons die ‘broad time-frame’ is to obtain

commencement date.” (Then we say that the broad time-frame

is to obtain commencement date.).

G “The strict timelines allowed for controlled processes.”

4.3.50 Guide managers through broad timeline

It is important for managers to understand the timeline and know its dates in

order for them to highlight potential obstacles to the execution of the process.


D “...what are the potential timelines, because he will know now

what is happening in his business, whether there are contracts

that would be jeopardised?”

F “Once those timelines have been drafted one of two things

could happen: Either the consultations will be done with the

people involved, will be done by myself or it will be done by

yourself depending on the circumstances or it could be done by

one of my staff members on my team and from there on the

management of the actual administration of the process is run

by my staff members.”

G “Also within that meeting, I do not know if I am jumping the gun

now but also in that meeting we will then take him through the

timeline.” “In that planning meeting we will go through the

timeline, what we call a timeline exactly what the steps are in

the process and when it will take place. So we will take them

through the timeline and tell them exactly what is going to

happen from day one right up until they...”

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4.3.51 Emphasise expediency of execution once the decision has been taken

Once the decision to downsize has been taken its execution must commence

immediately to prevent it from dragging out too long.


C “I had a concern about the, the first thing was concern about the

speed of execution.”

“…you understand that speed is of the essence. The faster you

work against a good system the less damage you do to people.”

D “...you want to do quickly to get the process done...”

E “…between the disruption caused in the Organisation and the

time taken to execute. So the longer it takes the worse the

effect on the Organisation by a long shot, experientially.”

“Speed is of the essence.”

F “And then they say the speed of the execution must also be

confirmed so that the people say once you have decided and

you say it will happen, and then you say there is no hold-up.”

G “The process must be executed quickly with a balance of

fairness to all employees.”

4.3.52 Emphasise speed of execution

Concluding the process as quickly as possible is very important for eliminating

disruption and facilitating a quick return to normal business.

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B “Ons het binne twee weke hulle gesien en jy was... Ek dink dit is

’n voorbeeld van hoe belangrik hierdie tydsduur is.” (We have

seen them within two weeks and you were…I think that is an

example of how important the timing is).

“…time is of the essence”. “Hoe vinniger hierdie goed gebeur,

en ons moet pasop of julle moet pasop dat julle nie te veel

stappe inbou wat tyd gaan vat en prosedureel die ding gaan

uittrek nie. Terwyl mense ongebalanseerd is moet jy hom

deurkry.” The quicker these things happen, and we must be

careful that we do not include too many steps which can delay

the process. Whilst people are uncertain the quicker the

process must be implemented).

C “So my concern really was how quickly it would then be

implemented.”

E “Once you have done some sanity checks and it has been

decided it is a good thing to do then do it and do not doubt your

process. Change is good for the business.”

“Everybody who is affected will give you a million reasons not to

change, but change is good and change ultimately will improve

the business.”

F “Daar moet nie nou rondgespring word, soos wat jy gesê het en

vertragings plaasvind nie.” (People must not unnecessarily

delay the process).

4.3.53 Estimate cost savings

Although cost savings can only be estimated at this point, the figures should be

made available to the decision makers so they have a picture of how much the

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company will be saving through the downsizing and whether even more costs

must be cut.


D “Because cost savings influence your financial performance.”

E “…it could proactively provide cost savings…”

F “…jy kan eintlik maar net hierso praat van ‘estimate cost

savings’ want jy het nog geen detail nie want jy weet nie wie is

geaffekteer nie. So jy sê ek wil op ’n baie hoë vlak sê… Kom

ons sê jou besigheid is 30% agter ‘budget’ en ek wil omtrent

daardie bedrag opmaak. Dit is wat jy op daardie vlak sê. Hoe jy

dit gaan doen gaan in die ‘detailed planning’ uitkom.” (…you

can refer here to estimate cost savings because you do not

have any detail and you do not know who are affected. You can

say that your business is 30% behind budget and you want to

make up that amount).

4.3.54 Estimate cost of intervention

This exercise is important for the decision makers as it will help them to

determine whether the company can indeed afford the intervention and whether

other strategies might not have the same cost-cutting effect.


B “…en jy weet wat jou ‘affordability’ is. Nou moet jy gaan sit en

nou moet jy hierdie ouens ‘guide’ en jy moet sê: hoor hier

mense, in terme van ‘affordability’, daar is eintlik ’n ‘crucial

step’, daardie 8.8.2, dit is waar… Hier kan jy die proses skei.

Dit het al gebeur dat ’n ou sê ‘shucks’, ek het nie geweet wat

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dit my gaan kos nie”. (…and you know what you can afford.

Now you need to guide the managers in terms of affordability…

Here you may want to follow a different step in the process if

the manager acknowledges that the cost is too high).

D “Yah you cannot. I have seen these processes killed when

those potential costs were calculated, when the retrenchment

costs were calculated. When they had the individual names and

they could actually sit down and calculate the cost as opposed

to the saving, I have seen these processes killed there and

then.”

F “It is not a short-term solution, it is a long-term solution. It may

very well be that at the time when you strategise how you are

going to initiate the process a part of that, and we have not

referred to that, is the costing of what this whole process is

going to cost you. It may very well be that the costs are so

daunting that you cannot affect the process and at that time the

process can be canned, as has happened in the past.”

G “And affordability of the intervention.”

4.3.55 Intervention is a long-term solution

It is important that the intervention is not implemented for short-term gains; it

should rather guarantee long-term results.


D “Yah, yah. In fact that would help in the long term that I

mentioned in saying that the people do not believe that it was

absolutely necessary. So now if that process is now formally

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documented and everybody can go and read it and say: guys in

our very, very unlikely event of downsizing this is the process

we are going to follow.”

F “Intervention provides a long-term solution. We need to

determine that it is not a short-term.”

G “It is not a short-term solution, it is a long-term solution.”

4.3.56 How to achieve the end result

It is important to explain to the managers how the process works and what the

implications are in order for them to know how they can achieve the end result.


E “So what are we trying to achieve, how are we achieving it,

what is the outcome, what does the Organisation look like after

the intervention and how long will it take?”

F “There was no, nobody thought that well this might take a week

or two weeks or four weeks, they knew exactly this is what is

going to happen and this is when we are going to announce the

results.”

“...guys we have gone through a process now and it is going to

happen. And then you use all these things and you say very

shortly this is the area in which it is going to happen and there is

a process and there is a project team and all those beautiful

things and you will be consulted in due course. I do not think

you must go into large detail...”

G “So maybe we should spend more time on how to do it and do

not leave it to them.”

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4.3.57 What is the outcome?

It is important that managers know what they can expect from the intervention. If

the outcome is clearly defined the process can be measured afterwards. If the

outcome is seen to be positive, the managers will ensure that the process is

successfully implemented.


A “R32-million on the bottom line.”

B “...on the outcome side what the organisational structure would

look like post intervention. This is now copies of the detailed or

let us says copies of the new structures.”

C “I think one of the outcomes which were an aspect of it is that

we ended up with new regional structures…”

D “New blood especially in Johannesburg”.

“The process identified wrong people in the wrong jobs. It

allowed for new blood to be appointed. It improved financial

performance and those were positive aspects or outcomes of

the process.”

E “So what are we trying to achieve, how are we achieving it,

what is the outcome, what does the organisation looks like after

the intervention and how long will it take?”

F “It can have three outcomes. The first one is that we go ahead

and we do a restructure in one or other format and there is

going to be a body count. The second one is that we do a

restructure and there is going to be no body count. That has

happened twice in the past two years. We are just going to

reshuffle the people but we are not going to lose anybody. And

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the third one is we are going to do nothing because it is too

costly.”

G “…what is the outcome of the whole process; what will happen

after the process et cetera, et cetera.”

4.3.58 New organisational structure after the intervention

If managers know what the company’s structure will look like after the

intervention, they will be motivated to implement the process successfully.


E “…what does the organisation look like after the intervention?”

F “…new organisational structure post intervention ‘gaan hulle

breedweg daaroor gesels’ (they will discuss it broadly).

G “...structure would look like post intervention. This is now copies

of the detailed or let us says copies of the new structures. Just

new structure because...”

4.3.59 Determine the best option

The managers should know which option from a downsizing perspective is the

best for the company. It might be better to transfer staff than to retrench them, or

voluntary redundancy may be offered to save time. The better informed the

managers are the better the decision taken by them.

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F “What is the Hmm? Best option, redundancy, transfer,

movement and the restructure fall away, inadequate, no

doubts.”

G “...and you say redundancy is the best option or retrenchment is

the best option, okay so guide manager into correct option. ‘Dit

is’ probably ‘wat hy daarby bedoel’, into correct option, and

discuss all the requirements pertaining to the option.”

“Absolutely, absolutely. 99,9% of the managers are happy with

what we are advising them because I do not think they know

much about that side of the process and what options is

available.”

4.3.60 Assess legal implications

In South Africa downsizing is governed to a large extent by the Labour Relations

Act. It is therefore important that the managers seek professional advice on the

legal implications of the process as a whole.


B “…legal implications, daar besluit jy 189(a), 189.”(there you

decide)

F “Our communication process currently is in my opinion the

optimum process that we can follow within the confines of the

law. The law states that at the moment you contemplate you

must consult.”

“The timing, once again, of the communication is difficult

because the law requires of us to give notice, formal notice in

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writing to staff of the pending communication. We have

managed that by timing it in such a way that we will not leave

people in the dark as far as what is going to happen for longer

than one night.”

G “Yes. The communication, that first point there Johann, the

communication to the employees is a bit of a, different because

we are guided by legislation.”

“Engagements over Christmas.”

4.3.61 Assess contractual obligations with clients

The managers have to understand which affected employees are involved in

which contracts of the company. This will assist them to devise contingency

plans for the “affected” contracts so as not to jeopardise the contracts and

relations with clients.


F “…for example looking at time requirements in terms of how we

schedule the activities around the downsizing process, how that

would impact on current agreements that are in place with be it

clients or contractual obligations that still have to be met whilst

at the same time adhering to the legislative requirements

relating to restructure.”

“What agreements are they engaged in, on whose client’s site,

are they operative, what are the requirements of that client at

the time and how long are those requirements going to run into

the future. You also need to ascertain whether those

requirements are going to affect all the staff or only some of the

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staff.”

G “In terms of the timing, the timing usually as close to the time

when you need to get the people out of the system without

endangering the agreements, the contracts, potential business

that you may derive in a particular situation.”

4.3.62 Ensure management buy-in

Management buy-in is essential for the process to be successfully implemented.


A “…however buy-in needs to happen with key business players.”

B “En die positief gaan wees dat hy dan dalk vir julle gaan saam

help ‘bat’ met die proses. Maar ek weet nie of al die bestuur

sommer sal teken nie.” (And the positive will be that you will bat

with us during the process, but I am not convinced that all the

managers will be signing).

C “I think in the subsequent one that we went through the Pretoria

one, the buy-in really was that process of deciding what the new

structure going forward was going to be and I think that is a

healthy process in getting Management to understand why it

needs to be done, that there is a refresh of that particular

organisation. So that is where I see the buy-in getting

developed.”

D “We had definitely the buy-in in the top management or

manager in Cape Town. Pretoria, I think we had the buy-in from

maybe two or three top managers but I do not think we ever had

a buy-in in Johannesburg, a real buy-in in my view. They all

150



thought there are other ways of doing it easier.”

“Well I think that is very obvious. There is a strict process. It is

an uncomfortable process and if they do not go along I think

you will fail because there are a lot of subjective decisions that

you have to make. If you are not in the, getting the right guys to

stay behind those guys can, if they do not buy in they can easily

derail it. You have got people. It is not an exact science.”

E “And your managers must clearly buy in otherwise you have no

credibility in the process.”

F “Very few instances where a manager would say “but I do not

think that would be appropriate because of this and this and

this”. And then we will just discuss, you know, the pros and

cons of the different processes that there is available to us.

Alright so we will then take them through the timeline.”

“Something that assists is to get the buy-in from which you get

leverages, explain to them in quite significant detail what the

consequences would be if they do not adhere to the requisite

legal requirements for effecting this process, both from a

procedural perspective and from a substantive perspective,

which means that given that these people are not legally trained

or most of them are not legally trained you need to put the law

to them in a language that they can understand and the

consequences that they can understand.”

“Jy sien hierdie proses bly akademies tot op daardie punt waar

die eerste, ‘current organogram’ en ‘new organogram’ langs

mekaar gesit word en as hy so kyk dan sien hy maar Pietie met

wie ek huisvriende is en wie ek my winterbraai saam doen elke

winter, hier is sy lys. Ek weet hoe dit gaan met sy oudste

seuntjie in die hoërskool, ek ‘like’ sy vrou ook baie ensovoorts

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en ek moet vir hom gaan sê jy het nie meer ’n ‘job’ nie. Dit is

wanneer die manne se wiele dun raak. Dan sê hulle hierdie

ding raak nou bloederig.” (You see, this process remains

academic until such time where the current organogram en new

organogram are put next to one another and he realizes that

Pietie, who he is house friends with and with whom he has his

barbeque in winter, is on this list. I know how it goes with his

eldest son at high school and I like his wife a lot and he must go

and tell his friend that he does not have a job any longer. This is

when it becomes tough and when the manager finds the

process to be very tough).

“Hulle sal hard skree en sê ons moet hierdie stappe doen tot op

die punt dat jy vir Piet sê hy moet sy teddie vat en stap dan

skop, daardie (onhoorbaar) skop vas dat jy hom met ’n 4X4 nie

kan ‘move’ nie.” They will be shouting very loudly that the

following steps must be implemented until such time where he

needs to tell Piet to take his teddy and go. This is then where

you will not be able to move him with a 4X4 to execute this

step).

G “We will first sit with the Executive and saying this is what we

are going to do. But then we will have a second session, a

planning session where we would say to them “…listen this is

the process, this is what we are going to do”. Now in terms of

buy-in I do not know if they all will buy in into that you know. We

will basically tell them this is what has been decided and this is

how we should do it for various reasons.”

“I think that is very important. You need to get the buy-in from

Line Managers without blowing the whistle because in terms of

the Labour Relations Act as it currently stands at the time when

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you contemplate to do a retrenchment there is an obligation on

the employer to consult.”

4.3.63 Moral and ethical considerations

Although the company should conclude the process as soon as possible, moral

and ethical issues have to be taken into account to ensure the company can

justify its actions if challenged by the labour tribunal.


A “Let us say the organisation wants to downsize in Secunda,

take all the people away there, it has an impact in a wider sense

than what we think. We are talking about our employees, that

are the one thing, and then we are talking about the suppliers.

But what about the community there? The downsize action may

have quite an impact on the community because of a very close

community. You sit with a husband that loses his job; his wife

works at the client and what happens now? There is just no

work for them. So I do not know exactly how but in some or

other way communicate to the wider community of a small place

like Secunda.”

F “…bolster them from both an ethical and a moral perspective;

you can have legal compliance within your process; you can

look after the interests of the affected individuals even prior to

starting the consultation process.”

“I will give an example of this. We, and like we have done in the

past, you initiate such a process in the beginning or the end of

November and then you have the festive season coming up and

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then at that time already you can make a decision that you are

going to lengthen your consultation period maybe to 90 days,

like we have also done in the past and that is a positive in that it

gives people a longer time. On the positive side it gives them

more time to make peace with their reality. On the negative side

a 90-day consultation period is a longer time of uncertainty for

them. So it cuts both ways.”

G “Nou weet jy hierdie proses gaan dalk oor Kersfees plaasvind.

Nou kan jy sê gaan ek ’n ‘extension’ gee of wat gaan jy doen.”

(Now you realize that this process is going to run over

Christmas. This is at this point that you need to decide whether

you will be granting an extension or not).

4.3.64 Extent of disruption

The managers must be aware of the possible disruption of their business arising

from the intervention and have plans in place to minimise the disruption and get

employees back to high levels of productivity.


E “The whole, my view on this is that one needs, the reason for

this communication is not only to let people know the extent of

what is happening but to minimise the amount of disruption

caused by the process.”

“My frustration still is the extent of disruption that is caused. It is

disproportionate to the intervention. I think one need to find

ways of managing that. The disruption is disproportionate to the

degree of intervention usually. So even a small restructure can

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depress the efficiency of the business for too long.”

F “…let people know the extent of what is happening but to

minimise the amount of disruption caused by the process. That

could be disruption of the business being down, disruption of

confidence in XXX by the clients or the shareholders.”

“So you need to work on a basis where you try to make this

process on the one hand as humane as possible for the staff

members involved to lose their jobs but then you must make it

as quickly as possible so in order to disrupt the business as little

as possible. And then you need to take active steps to get the

people that remain behind up to an acceptable level of

productivity as quickly as possible.”

G “So the longer it takes the worse the effect on the Organisation

by a long shot, experientially.”

4.3.65 Assessment of impact of intervention

The managers have to assess the impact of the intervention on their business so

as to devise contingency plans to counter negative impacts.


C “I think in the first one we moved so quickly and with little, with

little warning that in fact it was a positive impact. You know the

day; we did it in a couple of days. We announced a new

structure and we informed everybody they were the team going

forward and it had a very positive impact on that business, to

the extent that in that single year they went from huge losses to

being a profitable business.”

155



“…it subsequently had an impact on the results in that period,

although I must say the team picked it up and improved the

business situation once the process had been completed.”

F “It has got a negative impact on morale. You have a negative

impact on production. People close ranks; people are scared

that they may be similarly affected. For that reason they do

what is necessary to stay out of trouble. They do not go the

extra mile. Your entrepreneurial spirit I think takes a

hammering. Creativity is limited. Innovation goes for a loop

because people do not want to try new things for the simple

reason that it would make them stand out and if it is a disaster

or it does not come to pass or if there is a costly mistake made

in the process they very well may be the next people to be

retrenched. So people become risk averse. That with regard to

the group as a whole.”

“…there is a lot of jockeying for positions. In many instances

there is a lot of guilt. People that remain behind, people who

retain their jobs and have to see other people go feel guilty

about the fact that they have retained their jobs whilst their

friends lost theirs and this you find in other ways and are

manifested in other ways in the organisation.”

G “…interventions are taking place and that will minimise the

impact that it will have you know the hall-talk and all of that,

people walking in the halls and taking about this, people getting

information from a friend you know in the passage.”

“I said right in the beginning there is some positive impact on

this as well. Some people saw this as a kick forward. They

always wanted to move, they always wanted to make a career

change and this was an opportunity for them.”

156


4.3.66 Assess policy implications

Throughout the process the managers have to be aware of the policy

implications of their decisions. It is also important to feed back to the policy

makers’ lessons learned so as to update and improve the policy.


E “…the interview itself and it concludes with closing remarks that

the approach will be cooperative and before policies are

updated that each participant will have input into the final

policy.”

F “They would also, if they have gone through the normal

channels and they did not get any satisfaction, I will be as sort

of a last resort in terms of the position of the company from both

a legislative and a policy perspective with regard to providing

solutions for individuals who have specific problems.”

“…individual standing between rationality and logic and what is

allowed in terms of company policy is the individual that has to

face this particular staff member and displays of emotion,

anger, shouting, swearing frequently is at the order of the day

especially when these people realise that their demands are not

of necessity going to be met.”

G “Policy implications, detail policy implications and detail

concerns.”

157


4.3.67 Address concerns

The managers have to know where to refer concerns they cannot deal with as

and when the concerns arise. The managers must also get an opportunity to

raise their personal concerns on issues that hamper the implementation of the

process.


B “This is a case of lack of communication and change

management to address the concerns.”

C “I also have this burden on, excuse the punt, but on my

shoulders where I am always aware of the overall

unemployment situation in the country and it always concerns

me when we are putting more people on the streets.”

F “Where I do get involved in my role is where there are any

concerns or any challenges in terms of the uniqueness of each

situation that falls outside of the parameters of the normal

practice or the normal process in terms of which we effect these

restructures or downsizing processes. Then we will sit down, we

will look at whatever the concern, the challenge or the issue is.

We will analyse it and then looking at it from two perspectives,

both the business perspective and then the legal perspective in

order not to put the company at risk, we would then formulate a

strategy to deal with a particular situation.”

158


4.3.68 Discuss how to minimise risk

A discussion with the managers regarding the risks of the process will sensitise

them to the occurrence of these risks and inform them whom to contact in the

event.


B “It supports the manager in that for many managers this type of

process is alien, reducing the risk to the managers through a

serious of pre-workshops and discussions, procedural clean

processes and procedures and a team of specialists ensuring

that the process is arms-length from the day-to-day running of

the business.”

“My personal concern was the risk to the division.

Restructuring is an emotional process, and the risk to the

business was aggravated through the post-restructuring

discussions held with key clients, where the clients saw the

process as a risk to their respective organisations.”

“It has been my experience that the greatest risk to the

organisations was when the mid-level manager had to deal with

the client at the coal-face.”

C “…say you cannot announce a new structure because it is too

disruptive and those kinds of things and they want to keep on

taking shortcuts that would cause the business huge risks.

Those are experiences that I go through when I go through the

process.”

D “I think the negatives were also that people did not believe that

the process is required by law. They thought that we are too risk

adverse and that was more to, in Pretoria, do you remember?

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And I said well there must be other ways of doing it easier.”

E “So I made a big note here “call HR first”. I think there is a risk.”

F “And then the overall management of the process and the

monitoring of the process to ensure that my team stays on top

of things and that we are well prepared in terms of managing

risk for the company would then take us through into the legal

domain where if an individual or a group of individuals”

4.3.69 Experienced manager as advisor

A business manager who previously went through the process should be

appointed to act as sounding board for the less experienced managers.


B “Ja of wie ook al, al die ‘novice manager’ deur

moraliteitsprobleme gaan dan kan hy daardie ou bel en sê,

dank an hy sê “maar ek het ook daardeur gegaan” en hy is

heeltyd gedurende die proses daar om die klank-‘board’. Dit

was nogal ’n baie goeie byvoeging.” (When the novice manager

goes through a process where he questions the morality of the

process, he can consult with the more experienced manager

who can indicate to him that he also went through the process

himself when he had to implement the process personally).

E “…the suggestion I had was where there is a novice business

manager involved, it would perhaps be appropriate in addition

to the HR involvement to allocate an experienced business

manager to be on call to the first-time manager to give him/her

advice and to review their plan. HR alone can often be seen as

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the grim reaper in this by the people affected and maybe an

experienced business manager will not be fully involved but

could just sit and have a couple of half an hour meetings with

the...(intervenes) MR XXX: In an advisory capacity. MR XXX:

In an advisory capacity to the novice manager. That certainly

would have helped me first time out to have had that benefit,

which I did not.

F “...dit is nie ‘n plek vir sissies nie”. ‘But this is cool’. ‘This is an

excellent suggestion’. (...this is no place for soft hearted

people. But this is cool. This is an excellent suggestion.)

4.3.70 Consultation with legal advisors

The managers have to be aware that legal advice may and should be sought to

minimise risks to the company.


E “So it will not be right to trust a guy to do this on their own

without taking the right legal advice.”

“They can speak to their labour consultants and their lawyers

and the family and the colleagues and the trade union and they

can clarify against a very broad framework what their rights are,

what their concerns are.”

F “Yes we would say to them, okay remember we need to involve

our legal advisor.”

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4.3.71 Clarification of managers’ expectations

The expectations of the managers have to be clarified in order for them to buy

into the process.


F “And they are the ‘okes’ who are going to have to make this fly.

So you are serious now to get their buy-in.”

G “The business will come to us, line manager will come to us and

we will take them through the process exactly on the steps that

should be followed in moving into a retrenchment/redundancy

process.”

“So the first meeting would be just to get clarification on what it

is that the manager wants to do and we will then guide the

manager and say this would be the appropriate process to

follow.”

“…we would get an e-mail from a manager or a telephone call

saying that: listen there are certain functions that will fall away

and we have got people in that positions what do we do; what is

the next step?”

“So the moment we clarify that for them it has already been

bought into there.”

4.3.72 Guide managers into appropriate action

The managers have to be guided by the HR Practitioner to consider all the

options available and then take the most appropriate action for their particular

business.

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E “…guide managers through the entire process.”

F “Nou moet jy gaan sit en nou moet jy hierdie ouens ‘guide’ en

jy moet sê: hoor hier mense, in terme van ‘affordability’, daar

is eintlik ’n ‘crucial step’,…” (Now you have to guide the

managers and highlight to them whether they can afford the

intervention. This is an important step…).

G “Then we will guide them in terms of, well in saying to them we

will follow the redundancy route.”

“…then guide the manager and say this would be the

appropriate process to follow.”

4.3.73 Formulate a broad plan

The formulation of a broad plan will assist the managers to understand the

execution of the process.


C “Okay I think the first time the most memorable aspects to me

was that we had a plan.”

D “That planning process there, let me tell you if that planning

process is implemented it is not going to change our plan.”

E “I will elaborate for you. One needs to put a project plan down

on this thing. One needs to say this is our required outcome.”

“…once you have decided to do it follow a project plan and do

not let there be any delays.”

F “Meeting with Line Managers to plan the process.”

“You will formulate a project plan of which the time frame is

going to be one element.”

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“Because if it is viable everything should be in there, your dates,

your actions, your responsibilities, your accountabilities, your

schedule, everything.”

G “Formulate a project plan.”

4.3.74 Process should be part of normal business strategy

The downsizing should be part of the normal business strategy; when the

business is in trouble and downsizing is required the process is part of the

strategy to fix the trouble.


F “…restructuring is a part of our strategy; let us look at the

numbers in the budgets and say if the budget is not going to be

rectified one of the formal strategic considerations is to

restructure.”

4.3.75 Discuss monitoring of implementation

At this point it is important for the managers to know that the implementation of

downsizing will be monitored.





risk for the company…”

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G “Discuss monitoring of implementation.”

4.3.76 Group Executive: HR provides approval for the process to commence

The Group Executive: HR must provide approval for the process to commence to

ensure that the HR Practitioners are ready to assist line management in the

execution of the process. This will also ensure that the existing legal guidelines

are correctly applied.


B “…jy weet as daardie proses aan die gang is te sê die ‘Group

Exec HR’ het dit geïnisieer…” (…you know when this process

is initiated that the Group Exec HR has approved its

implementation…).

C “The third very important step that needs to be done or

otherwise we do not carry on with the process, is that he will

need your, from a Human Resources Director point he will have

to get a go-ahead or authorisation to carry on with the process.

That the manager does. The manager will send you an e-mail

and he will just say then please proceed or consult again or

whatever the case may be.”

G “Yah right after your authorisation we will have a planning

meeting.”

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4.3.77 Decide content of communication

At the planning meeting it is important to decide the content of the

communication to be able to ensure that the content is compliant with legislation.


D “Content of communication.”

F “We can look at the content and if they can assist us in

softening the semantics without detracting from the legal

correctness thereof then we will have a win-win situation.”

“The content you need to shape in such a way that it satisfies

the requisite elements of Section 189(3) (a) to (j) in the Act.”

G “...appropriate content...”

4.3.78 Decide communication process

During the planning meeting it is important to ensure that an appropriate formal

communication process is designed for the particular intervention planned. A

generic plan will not suit all interventions.


B “Ensure that the communication process is included in the detail

plan.”

E “It needs to be formalised as part of the enhanced process. A

template needs to be created of what to communicate, when to

communicate, at what time to communicate and who to

communicate to.”

F “Ensure that the communication process is included in the detail

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plan.”

“Yah. We knew what documents have to go out, in what

sequence and more or less in terms of what time frames. The

specific dates on which they have got to go out we do not know.

That we will fix at the detail planning meeting.”

“What is significant is that as you move further away in time

from the actual occurrence those rumours get less and less,

which is a positive aspect and which one can maybe manage in

terms of, from a communication process perspective.”

G “...here that the implementation of communication should be

that the formal communication process needs to be

encapsulated in this high level planning document.”

4.3.79 Decide communication date

The communication date has to be determined because this is required by law.


E “…have very specific legal communications that you need to

give to your people. I do not know those dates but I know there

are some dates and there is some absolute communication that

you are obliged to do. So certainly at that point in time when

you said “we are going to do it” you have already involved HR at

that point in time.”

F “The timing, once again, of the communication is difficult

because the law requires of us to give notice, formal notice in

writing to staff of the pending communication.”

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4.3.80 Viable project plan

A viable project plan that complies with all the requirements must be formulated.


F “If you say viable project plan you have just about covered

everything. Because if it is viable everything should be in there,

your dates, your actions, your responsibilities, your

accountabilities, your schedule, everything. That would be your

viable project...”

4.3.81 Accountabilities

The accountabilities of everybody involved must be clearly defined to ensure that

no confusion exists when the process is executed.


E “...line delineation between where the shareholders’

involvement stops and an Exec and a Line Manager and a CEO

and a Board’s accountabilities and responsibilities begin.”

F “…accountabilities of members.”

G “...you have got accountabilities”

4.3.82 Monitoring of implementation

The process has to be monitored to ensure that the company is not exposed to

any risk when the process is executed.

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A “A tweak in the process may be required to address areas of

concern. I am not sure if an active implemented continuous

improvement process is used to feed information back into the

downsizing process.”




risk for the company would then take us through into the legal

domain where if an individual or a group of individuals”.

G “…discuss monitoring of implementation.”

4.3.83 Customised process

The process has to be continuously customised to suit the unique conditions of

the particular intervention.


F “Customised process. I think a customised process. You will

have to customise the process every time that you execute it.”

“No we can draft templates. We can have a rough template and

we make a decision on which route we are going to follow and

then we have a template and then we just tweak the template to

fit the specific circumstances.”

4.3.84 Design the ideal structure

The process allows the managers to design the ideal structure, which should

reflect new job functions, new job grades, new job titles, new salary levels, new

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job profiles and new job specifications. The ideal structure should also make the

business more effective and efficient.


C “…that process of deciding what the new structure going

forward was going to be and I think that is a healthy process in

getting Management to understand why it needs to be done,

that there is a refresh of that particular organisation.”

D “Well if you do not want gaps in a structure, obviously we had

the wrong people in the wrong jobs.”

F “Design the ideal structure.”

“Designing of the new structure: design the ideal structure, new

functions, job grades, job titles, salary levels, job profiles, and

job specs.”

G “Once, after the consultation meeting the new, or not the new

structure, the proposed structure.”

4.3.85 Sharing of detailed project plan

Once the detailed project plan has been formulated it must be shared with other

affected line managers.


A “In 1999, beginning of 2000 I put a plan together of where we

are going to go over the next four to five years. That plan was

never shared with everybody involved and that involved

everybody in the whole of the XXX Component plus what is now

called the YYY Component and the ZZZ Component because

the model was to centralise everything. And if we shared that

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view with everybody involved in the organisation they would

have understood that things were going to happen and had to

happen. Why don’t we share those types of business plans with

our employees? Well the answer is we are probably afraid if we

do share it people will walk out or not work properly anymore

because they know it is going to affect their lives. So I think

another weakness is if there is a business plan, a long-term

plan that does affect people I think it is our obligation to share it

“

F “Sharing of detailed project plan or discuss detailed project

plan.”

4.3.86 Elicit concerns

Try to elicit as many concerns from the affected line managers so as to address

them in order to enhance the overall plan.


F Well yah. I was just thinking about that, whether you say elicit

concerns. Dit is die negatiewe kant en aan die positiewe kant is

dit...(and on the positive side) Elicit concerns/positive

suggestions.”

4.3.87 Elicit recommendations

Try to elicit recommendations from the affected managers to improve the integrity

of the overall plan.

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F “Elicit recommendations.”

4.3.88 Intention letter

In South Africa this letter is required by labour legislation; the specific information

to be included in the letter is also prescribed by the law.


E “There needs to be a letter that goes out to all the people who

are involved. It gives them the option of, it tells, it should

communicate what we are doing, why we are doing. I am not

sure if it requires communicating timeframe. It should.”

F “So the first communication that goes out is a very hard and a

very cold communication.”

“And the experience to date has been that having the letter,

explaining everything that we usually explain in the one and a

half hour session at their disposal for a period of two weeks,

calms them down significantly. They have time to sort of make

peace and see, and because they have got it in writing, that

their jobs are not automatically immediately on the line. The

people that we need to communicate to are the people that are

required in law.”

“Then in terms of putting out your intention letter, I do not deem

that to be particularly positive. I think that is a negative that

used to be a negative. It would seem that on the current

intention letter where we have incorporated the information that

we usually only shared with the people the next morning does

seem to be taking some of the trauma out of the communication

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process. But that still needs to be tested some more.”

G “Alright the next step or the next big highlighted point is the first

letter that will go out to the employees.”

4.3.89 Non-affected employees within business unit

Non-affected employees who reside in the geographical area where the

downsizing takes place should be put at ease.


D “We tell them not to worry now but soon we will communicate

again. But the angel of death is coming again. It is a question of

time, be patient. You have got your letter, only your date is

missing.”

G “Non-affected, originally affected employees.”

4.3.90 Content (checklist)

The message must attend to the following: culture of the company, climate of the

company at the time of the intervention, clarification of the message, consistency

of the message, appropriateness of the content and messages, persuasive

communication, the succinctness of the message, who is affected by the

process, appropriate level of communication and contextualisation of the

process.

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E “Then there is the maturity of the individual business unit and

that made very widely depending on how long it had been

around, what the culture is in the business unit. You know as

well as I do there are different cultures within the organisation

because of the pedigree of the company.”

“So there are several levels of maturity I think involved in this.

There is maturity of the organisation as a whole. The fact that

we are having this discussion says that the organisation is

already mature because it is looking at improving the process.”

“…that depends on the strength and maturity and attitude of

individual business managers involved.”

“So what I have tried to do, to answer your question more

succinctly, is to make sure that our messaging is right and that

we know what we are doing and why.”

“Everybody singing off the same hymn sheet and not over-

communicate. You know I do not think... It must be appropriate.

You know of stuff that do not really affect clients do not panic

the marketplace or the clients by communicating on everything

just because we have said they can communicate. Let us judge

the magnitude of each of these things and have appropriate

communication.”

“Communicate, communicate, and communicate succinctly.”

“…need to have this thing contextualised.”

“If there is a small back office re-org in a small business unit

there does not need to be a big corporate communication but

the individual manager should communicate correctly as to why,

the individual Business unit Manager must communicate that

correctly and accurately.”

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F “The one is Marketing strong forte lies with communication,

persuasive communication and maybe one could tap into some

of the principles that they utilise but I do not believe that

Marketing on their own can come up with a solution but we can

link that to the psychological realities within the process and we

can have a combined approach.”

G “…who is affected?”

4.3.91 Timeframe

The communication must contain the timeframe for the process. This is a legal

stipulation.


E “…the timeframe within which it has to be concluded.”

“…it requires communicating the timeframe.”

G “…the timeframe within which it has to be concluded.”

4.3.92 Timing of message

The message must reach the different geographic locations at the same time to

prevent rumours. This is a legal requirement.


D “Yes no that is fine. So then when you send out the timing just,

that is the thing that we need to still fix.”

F “…the timing of your communication.”

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“In terms of the timing, the timing usually as close to the time



that you may derive in a particular situation. The timing, once

again, of the communication is difficult because the law requires

of us to give notice, formal notice in writing to staff of the

pending communication.”

“In terms of the timing, the timing usually as close to the time



that you may derive in a particular situation. The timing, once

again, of the communication is difficult because the law requires

of us to give notice, formal notice in writing to staff of the

pending communication.”

-

G “...then the timing of the message must be well planned that

both areas get informed at the same time.”

4.3.93 Detail

The second communication letter should contain the following details: the set of

circumstances that gave rise to the process, duration of the process, explanation

of the outcomes, implications of the process, geographic distribution of the

affected areas, reasons, details of the process, extent of the intervention,

affected business units, affected positions, and the company’s view on the

process.

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F “Explaining the outcomes, implications, geographic structure,

reasons, detail of the process, extent of the intervention,

affected business units, affected positions in view of the

company.”

G “National awareness, legal implications that you can take out of

this communication. What you may want to say, the process is

why, set of circumstances, duration of the process. It is now

explaining some...”

4.3.94 Face-to-face consultation meeting

During this meeting all the legal requirements of the process as well as the rights

of the employees are addressed.


B “Okay, the next step is the face to face consultation process.”

E “So sorry, one of the first things that you would have done is

that you would have actually, in the order of this thing you would

have actually, you would obviously have spoken to all the

people involved face to face. It is right upfront.”

F “The second communication where you have face to face verbal

communication with the people after this one night timeframe

most of the time is pretty daunting and very emotional.”

“The consultation processes themselves are particularly

daunting.”

G “That is, the consultation is face to face. And that is being done

by HR, I or XXX or you. So HR will do the consultation process.”

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“Now the consultation is really a clarification session again. You

can ask the employees: you had time to go through this

enormous amount of information; are there any question et

cetera, et cetera. And then we take them word for word through

that, through the process.”

4.3.95 Written representations by employees

During this process the employees are given an opportunity to make written

representations about the downsizing. This is also a statutory requirement.


F “Flowing from there they have an opportunity to put forward

their representations in writing, which I believe to be positive

because at that time they have got a lot of freedom. They can

speak to their labour consultants and their lawyers and the

family and the colleagues and the trade union and they can

clarify against a very broad framework what their rights are,

what their concerns are. And it allows us because we have

structured it in such a way that they have got to do it in writing, it

provides us with an opportunity to properly answer those

concerns in such a way that is addresses both their concerns -

it is actually a tripartite approach - it addresses their concerns

as individuals, it addresses the business concerns within that

scenario and it also satisfies the legal concerns. So you have a

fruit salad of concerns that are raised during this stage that can

reign from purely personal issues…”

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G “One of the biggest improvements to be considered is to allow

employees more than one opportunity for written

representations.”

4.3.96 Response by the company

The company will now respond in writing to the suggestions made by the

employees, which response is a legal requirement. If necessary, the company

will consult with its legal advisors to minimise any litigation risk.


F “The replies are not always what the people expect or want to

hear, which could elicit a second round of communication,

which sometimes happens, which frequently happens. But this

is usually then on a one-to-one basis.”

G “Okay after we have done that the employees now have a

three-day period to hand in any representations they might have

or questions that they feel that they want answers, a formal

answer in a type of a letter or whatever the case may be. The

three days is always just also a guideline.”

4.3.97 New organisational structure

An ideal organisational structure is presented to the affected employees in

electronic and hard copy.

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B “En dan is daar ’n ‘electronic copy’ en ’n ‘hard copy’ wat ons

aan hulle beskikbaar stel.” (And then there are hard copies and

electronic copies which we made available to the employees).

F “Hard copy or electric, it does not matter, but I am going to say

hard copy and/or electronic.”

G “I am going to say hard copy or electronic.”

4.3.98 Invite applications for positions

The affected employees are required to apply in writing for one or more positions

in the new structure, accompanied by a cryptic CV and a synopsis of their

aspirations within the relevant roles.


E “Okay so we have now answered the questions, we have

published the structure, we have got job descriptions for all the

new jobs and you encourage people to apply for one or more

jobs. So there needs to be a bit of counselling from individual

managers to say, to, I guess to encourage individuals to apply

for jobs where we think they are going to be effective to the

Organisation, and happy.”

F “Okay then “applications for positions”, that was regarded as

positive.”

G “So it is just a very, not a, it is not a CV, it is just very, very short

summary of what he has done in the past and where he wants

to go.”

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4.3.99 Interviews must be scheduled for the applicants

Interviews are scheduled and conducted by HR Practitioners, the appropriate

business executives and the line managers.


C “I found that the people that were coming to the interviews,

even, were just very concerned, very disturbed and highly

nervous and it rubs off.”

D “I think in the interviews, the first part, and the technical

interview. I really think that we can spend more time and do a

better job there.”

E “Then there is a formal interview process with one or more

interviews and we always have an HR person.”

F “Going through the interviews I deem to be positive because

there they then have again an opportunity to present

themselves and to sell themselves into the new positions.

Some people experience the interview stage as negative but

that would all depend on the interviewer or the individual

facilitating the interview.”

4.3.100 Formalise discussion of findings

The findings of the interviews are discussed and the successful candidates get

selected.


C “If I recall well you and I then went through, shared our different

understandings and findings in the evening and that also was

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quite an enlightening process for me because I had not really

been through it before and the interchange was good and it also

set my thinking up for the next day as well because now I had a

new, a new input.”

4.3.101 Populate the structure

The structure is now populated with all the successful candidates, starting with

top management.


C “We announced a new structure and we informed everybody

they were the team going forward and it had a very positive

impact on that business…”

“And then the last day really was the toughest day of all when

you have to go and tell those who have not made it. The way

we did it is we split the task and we told the different people and

then you continued the process and I went and announced to

those that were staying what the new structure was going to be

and who was going to be in what position.”

E “And populate the Org chart.”

F “The next phase in the process where the organograms get

populated is a positive and a negative, is positive and negative

at the same time. It is positive in the sense that certain people

will get positions and they will be informed thereof as soon as

the population has been done and it is negative in the sense

that some people do not get positions. But then once again it is

positive in the sense that there now is some certainty. People at

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least know now that they do not have a position or they know

they have a position so they can now take action. So from that

perspective it is positive once again.”

G “We populate the top management structure immediately.”

“And the structure will be populated - the best person, the best

fit for the job would be decided based on both of those area.”

4.3.102 Letters of acceptance

Successful employees are provided with new employment contracts and attend

the Phoenix workshop, an internal workshop that assists employees to deal with

negative experiences during the process. On conclusion of the workshop they

should be ready to take on their new roles.


F “The people that are, that get positions, they get exposed to the

Phoenix Workshop in order to shed the baggage that came with

the process and in 90% or by far the majority of instances the

feedback that we got from the Phoenix Workshops is

overwhelmingly positive and it makes the business go forward.”

G “Everything builds up until the time that you say to the people:

listen you have got a position; you do not. And then I think the

emotion splits. The people that get the position feel more

relaxed and the tension starts fading away but there is still

uncertainty and it had a tremendous impact on that employee,

even the guys that stays behind and that is where the Phoenix

Workshop will lift up the spirit and get them working as a team

together again.”

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4.3.103 Letter of regret

The unsuccessful employees receive a letter of regret in which they are invited to

attend an outplacement workshop to prepare them for placement elsewhere in

the company or for redundancy. They are also encouraged to consult the

recruitment agency of the company and its regularly reviewed information on

vacancies in the company. Should no positions be found, the redundancy

gratuities are calculated and the services of the unsuccessful employees

terminated.


A “The stage in the process where BCX will endeavour to find

alternative employment was perceived by most people to be

window dressing. Comments during and after the process was;

“how many people where employed by this process. Most

people found their own alternative employment.”

D “...terminate employment.”

E “And then, if there needs to be outplacement, there was not on

the last one but if, and there has been in the past, there is a

proper outplacement programme that says that we give you

XXX period of notice; that during that notice HR will help you;

you will be allowed to go for interviews; we will provide you with

the opportunities internally as well as externally. So there is a

whole process that we have certainly done to help people get

new employment.”

F “…done and it is negative in the sense that some people do not

get positions. But then once again it is positive in the sense that

there now is some certainty. People at least know now that they

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do not have a position or they know they have a position so

they can now take action.”

“The Outplacement Workshops for the people that were not

successful, invariably the feedback that we get is positive

because that once again shows people that they are…”

“…consultation period.”

G “The people that get the regret letter you see various reactions.”

“The out-placement process in itself is where we have a session

with each and every unsuccessful person.”

4.3.104 Positive outcomes

The following internal and external aspects must be monitored by the relevant

line manager in order to ascertain whether the process was successful:

management of the cost base, productivity, new blood that came into the

structure, effectiveness and efficiency, profitability, appropriateness of

employees’ placement, elimination of dead wood, optimisation of labour costs

based on revenue earned by the business, alignment of the business with market

requirements, and clients’ views on the intervention.


B “Business: Business declined as a result of the process in one

of the key clients, or rather the client blamed the decline on the

process. However, other clients saw the process as immensely

positive as they saw new blood in the organisation and the


“The impact on the division was positive. The process reduced

the headcount by approximately 20%, reducing non-recoverable

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costs and therefore reducing the loss made by the organisation

in the following year. Also, the resources affected by the

restructuring process did not leave a hole in the division’s

offering to the client, and it allowed therefore cleaner

management of the productive resources and the ability to

appoint the correct resources in the correct areas.”

C “I would say two to three months to really get people positive

again. Specifically what we did is we just, we emphasized to

people that they were the team of the future.”

“So what actually happened is that we, as a result of wanting to

do the downsizing exercise we actually had a fresh look at how

we organised our business in the regions and I think we came

up with a better result, without that being the main objective.”

“I think the overall impact on the business is that the

employees, well if I can combine the employees and the

business here, is that there is a message that goes out that

says we are constantly looking at the efficiency and the

productivity of the business and that in itself means that in

everyone’s daily lives it does not allow lethargy to come into the

system because people see that we do look at that and that we

do take action when it needs to be taken and I think that does

lift the energy of the business for a period. I do not know the

exact measure of how long that lasts.”

“…to the extent that in that single year they went from huge

losses to being a profitable business.”

“…career opportunity…”

E “People then want to get on with their new jobs. They

understand that any intervention is in the best interests or

should be in the best interests of the Group as a whole and

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people just get on with their jobs. Look at the big one,

Johannesburg region, I think that took too long but once it was

done people bounce back. People were very gloomy in

Johannesburg during the recent restructure there and I think it

took too long. I think, you know I was not involved in the

Pretoria one but I think the Pretoria one was relatively quick

compared with the Johannesburg one.”

F “So from that perspective in terms of managing costs the

restructures have been extremely positive.”

“The people that we put on site of a client are cost effective in

the sense that the cost is market-related, directly currently

market-related and that the skills and the expertise and the

competence that they bring to the client are also current. So

from that perspective the client has most definitely benefited as

well.”

“Put in another way we got rid of a lot of dead wood.”

“So our single largest overhead and operational cost relates to

manpower costs. If we do not manage that very effectively it

would be very easy to make this business go under.”

G “I think that certainly made it easier for him to change the

structure the way he wanted, new people.”

4.3.105 Negative outcomes

The following potential negative outcomes regarding the process must be

monitored and remedied if they occur: process too drawn out, doubt about the

legality of the process, risk adverseness and loss of productivity, initiative,

loyalty, discipline and effectiveness.

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A “Loss in; productivity, initiative, loyalty, discipline, effectiveness.”

C “I think in the second one there was a delay in finalising the

structure, which allowed a fair amount of leakage or rumours to

develop and really it stopped people working effectively and it

had a, it subsequently had an impact on the results in that

period, although I must say the team picked it up and improved

the business situation once the process.”

D “…it was too long.”

“I think the negatives were also that people did not believe that

the process is required by law.”

“They thought that we are too risk adverse and that was more

to,…”

4.3.106 Psychological support for process facilitators

The process facilitators should be afforded the opportunity to go for counselling

on completion of the process.


B “Ek meen dat jy dalk ‘psychological and legal counselling’...”

(I mean that you require possibly psychological and legal

counselling…).

F “Psychological support for facilitators, for processed facilitators.

In die res van die wêreld doen hulle nogal sulke goed.” (In the

rest of the world these things are being done).

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4.3.107 Emotional distress

Emotional distress is displayed in anger, shouting, swearing, seeing managers

as hit men, feelings of vulnerability, mistrust, etc.


A “Managers are labelled as hit men.”

“With the perception there is no support structure from XXX or

in the process; the effect is feeling vulnerable and mistrust.”

F “…this particular staff member and displays of emotion, anger,

shouting, swearing frequently is at the order of the day

especially when these people realise that their demands are not

of necessity going to be met.”

4.4 CONCLUSION

Open coding breaks down and conceptualises the data. In this chapter I

integrated the themes that emerged during the interviews to form the foundation

for axial coding, which is the next step in the grounded theory process. A special

effort was made to share with the reader the narratives of the research

participants by presenting excerpts from their accounts.

In the next chapter I describe how I moved from open coding to axial and

selective coding in order to move to higher categories, which I eventually used to

formulate the substantive model.

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5 AXIAL AND SELECTIVE CODING

5.1 INTRODUCTION

In this chapter I describe axial coding and how I applied it in the study. Then I

turn to selective coding and how I utilised it in the study. Finally I describe how I

applied manual and electronic processes during the coding.

5.2 DEFINING AXIAL CODING

Axial coding is defined as a set of procedures used after open coding whereby

data are put back together in new ways by making connections between

categories (Dey, 1999, p. 106). This is done by utilising a coding paradigm

involving conditions, interactional strategies and consequences. With this type of

coding one basically looks at how categories crosscut and link. In other words,

we are still concerned with the development of a category, although with

development beyond properties and dimensions (Strauss & Corbin, 1990, pp. 96-

97).

Although I defined categories in a previous chapter it is necessary to review them

here.

• Category: Ritchie et al. (2004, p. 205) are of the opinion that categories

are ways of grouping, displaying and discussing data thematically so that

comparisons between conceptual content can be made or further lines of

enquiry pursued. Strauss and Corbin (1998, p. 124) mention that a

category stands for a phenomenon, that is a problem, an issue, an event

or a happening that is defined as being significant to the respondents. A

category has the ability to explain what is going on. A sub-category

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answers questions about the phenomenon such as when, where, why,

how and with what consequences, thus giving the concept greater

explanatory power.

• Property: Glaser and Strauss (1999, p. 36) define a property as a

conceptual aspect or element of a category while Terre Blanche &

Durrheim (2004, p. 38) believe that properties may be divided into

conditions, orientations and actions.

• Dimension: Bryman (2004, p. 539) defines a dimension as an aspect of a

concept while De Vos et al. (2005, p. 191) argue that a dimension may be

viewed as any unitary construct that may be presented by one or more

different measurement items.

5.3 APPLICATION IN THE STUDY

Although the text in the transcripts provides clues about how categories relate to

one another, the actual linking takes place at a conceptual rather than descriptive

level (Strauss & Corbin, 1998). This was borne in mind when I used axial coding

in the study. I applied the following steps as suggested by Strauss and Corbin

(1998):

• Laying out the properties of a category and their dimensions, a task that

began with open coding.

• Identifying the variety of conditions, actions/interactions and

consequences associated with the phenomenon.

• Relating a category to its sub-categories through statements on how they

are related to each other.

• Looking for cues in the data that show how many of the categories might

relate to each other.

191


• Analysing at two levels, that is the actual words used by the participants

and the researcher’s conceptualisation of these.

The matrix below reflects the open code concepts, the categories that these

open codes relate to and a description of the established category.

TABLE 2: AXIAL CODING MATRIX

OPEN CODES CATEGORY DESCRIPTION OF CATEGORY

• Clients cannot afford

service

• Contract with client

terminates

• Client restructures

business

• Client cancels

contract

• Change in market

demands

• Changes in client business

When a client is forced to

change its relationship with

its supplier due to reasons

within/beyond its control

then the supplier may have

to embark on downsizing.

• Wealth of

shareholders

• Black empowerment

forces

• Legal forces (health

and safety)

• Institutional External factors beyond the

control of the company may

force it to downsize.

• Cost saving

• Poor financial

• Financial performance

If the financial performance

in a company is

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performance

• Expenses too high

• Lack of profitability

• Losses

• Budget constraints

unsatisfactory, it might be

compelled to embark on

downsizing.

• Amalgamation of

departments

• Closedowns

• Downsizing

• Restructuring

• Reorganisation

• Delayering

• Redesign

• Black empowerment

forces

• Change in business strategy

If the company changes its

business strategy it may

have to change its

structure, which may lead

to downsizing.

• Growing through

mergers and

acquisitions

• Mergers and acquisitions

If the company grows

through mergers and

acquisitions it may have to

downsize to create

business efficiencies.

• Taking on non-core

businesses from

clients

• Outsourcing deals

Where clients outsource

their non-core functions to

the company it might have

to embark on downsizing to

ensure that it can render

the outsourced services at

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a more affordable price

than the client could prior to

outsourcing.

• Unproductiveness

• Poor management

practices

• Ineffective business

processes

• Inefficiencies

• Obstructive people

• Business efficiencies

If poor management

practices, unproductive

people, ineffective business

processes and any other

inefficiencies cause the

company to be inefficient

and thus less profitable, it

may have to institute a

downsizing intervention to

become more profitable.

• Financial analysis of

the business

• Desktop audit

This is an in-depth financial

analysis of under-

performing business units.

• Implement top

management

decision

• Decision taken by EXCO

When the desktop audit

proves that action has to be

taken the instruction is

usually issued by the

executive committee of the

organisation.

• Manager requests a

meeting with Human

Resources in

reaction to trigger

• Manager requests

assistance from

• Manager formally requests assistance from Human Resources

When the executive

committee orders the

implementation of

downsizing, the responsible

manager will usually

request assistance from the

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Human Resources

to take remedial

action

HR division. They will sit

with the manager and

explicate the problem.

Thereafter they will advise

the manager regarding the

implementation of

downsizing.

• Line managers

• Employee

Communication

Forum (ECF)

• National awareness

• INTERNAL PROCESS

• Communicate with internal audiences

The first communication on

downsizing will be with the

whole company, the ECF

and line managers.

• CEO to initiate

communication (e-

mail)

• Who should communicate

The person who will initiate

the communication will be

the CEO and he will be

communicating via e-mail.

• Broad message: the

company

investigates under-

performing units of

an affected region

• Content

The content of the

message will be broad,

informing all identified

audiences that the

company is busy assessing

under-performing business

units within specific

regions.

• Affected key clients

• Affected non-key

• EXTERNAL PROCESS

The first communication of

the company is with

affected key clients and

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clients

• Communicate with

external audiences

affected non-key clients.

• CEO and top

executives for

affected key clients

• Account Executive

(most appropriate

member) for non-key

clients


The CEO and top

executives will be

communicating with

affected key clients. The

most appropriate account

executive who has a

relationship with the non-

key clients will be

communicating with them.

• Contextualising the

downsizing

• Content

The clients will be informed

in broad terms that under-

performing business units

will be investigated and

that, once the company

knows what action will be

taken, clients will be

updated with more detailed

communication.

• Human Resources

Practitioner

• Group Manager:

Human Resources

• Line Management

• Executive Team

• INITIAL PLANNING MEETING

• Audiences

The HR Practitioner, Group

Manager: HR, line

management, Executive

Team of business unit,

managing executive of the

business unit and relevant

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• Managing Executive

• Relevant EXCO

member

EXCO member will start

planning the downsizing at

a high level.

• Determine

commencement date

• Broad timeframe of

process

• Guide manager

through broad

timeline

• Emphasise immediate

execution once

decision taken

• Emphasise speed of

execution

• Broad timeframe

The meeting will decide on

the commencement date of

downsizing and broad

timeframe of the process,

and explain to the

managers how the process

will fit into the broad

timeframe. During this

meeting it will be

emphasised that the

process should be

executed as quickly as

possible to minimise

disruption.

• Estimate cost savings

• Estimate cost of

intervention

• Costs

This meeting is still at a

high level and no detail is

available and therefore it is

important to understand the

estimated cost of the

intervention as well as

estimated cost savings. If

the information does not

provide proper answers

other remedial actions

need to be considered.

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• Intervention provides

long-term solution

• How to achieve the

end result

• What is the outcome

• New company

structure after

downsizing

• Determine best

option: redundancy,

transfer, movement

of people,

restructuring,

elimination of

functions, adaptation

in number of

positions, no

downsizing.

• Outcomes

The intervention should

achieve the following

results: provide a long-

term solution, and define

the outcome, the new

company structure and

what action is to be taken.

• Assess legal

implications

• Assess contractual

obligations with

clients

• Ensure management

buy-in

• Moral and ethical

• Implications

At this meeting all possible

implications (listed here as

concepts) must be taken

into account before

deciding to continue with

the intervention. If these

implications are too

daunting there is still time

to consider alternative

198



considerations

• Extent of disruption

caused

• Assessment of impact

of intervention

• Assessment of policy

implications

• Address concerns

• Discuss how to

minimise risk

remedial action.

•

• HR involvement

• Experienced manager

as advisor

• Discuss consultation

with legal advisors

• Discuss top

management

involvement

• Discuss involvement

of consultative

bodies

• Role of audiences

This refers to the people

who are involved in the

intervention as well as the

importance to clarify their

respective roles before the

intervention goes live.

• Clarification of

managers’

expectations

• Expectations

The expectations of

managers are clarified and

they are orientated to

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• Guide managers on

redundancy

• Discuss all

requirements

implement downsizing,

which will lead to

redundancies and

retrenchments. All other

requirements that

managers may have must

also be clarified.

• Formulate a broad

plan

• Process must be part

of normal business

strategy

• Discuss monitoring of

implementation

• Formulate broad

strategy

• Formulate plan

A broad plan must be

formulated to ensure that

the intervention is aligned

with the overall strategy of

the business unit as well as

the monitoring plan.

• Make reference to the

communication

process

• Ensure that

communication

process is included

in detail plan

• Plan implementation of communication

The communication

process must be

incorporated in the detailed

plan, and the principles to

be communicated must be

clarified in this meeting.

• The Group Executive:

Human Resources

• Approval by Group Executive: HR

The Group Executive: HR

provides official approval

for the process to

200



provides approval for

the process to

commence

commence once he is

satisfied that all audiences

who were involved in the

initial planning meeting

agree that the downsizing

is indeed the best solution.

• Human Resources

Practitioner

• Group Manager:

Human Resources

• Experienced manager

• Appropriate executive

• Second level of line

managers

• SECOND PLANNING MEETING

• Audiences

At this meeting the

intervention is planned in

detail. The people listed in

the open codes column

must be involved in this

meeting.

• Decide

commencement date

• Decide specific

timeframe of process

• Guide managers

through specific

timeline

• Emphasise speed of

execution

• Specific timeframe

During this meeting the

specific timeframes are

documented. The

managers have to

understand how the

process will fit into these

specific timeframes and

that the speed of execution

is of the essence. They

also have to know that

these timeframes are

aligned with legislative

requirements.

201



• Decide content of

communication

• Decide

communication

process

• Decide

communication date

• Communication

The plan must contain the

communication date,

communication process

and the content of the

communication.

• Viable project plan

• Accountabilities

• Monitoring of

implementation

• Customised process

• Specific outcomes

The specific outcomes of

the intervention have to be

documented, i.e. a project

plan must be drafted that

reflects accountabilities, a

customised process

suitable for the

circumstances of the

specific business unit and

how the process will be

monitored during its

implementation.

• Design the ideal

structure

• New functions

• New job grades

• New job titles

• New salary levels

• New job profiles

• DESIGNING THE NEW STRUCTURE

A new and ideal structure

must be designed that will

ensure that the business

unit will perform optimally

after the intervention. This

structure must reflect the

new functions, new job

grades, new job titles, new

202



• New job specs

salary levels, new job

profiles and new job specs.

• Detail legal

considerations

• Assess specific

contractual

obligations with

clients

• Specific moral and

ethical

considerations

• Specific impact of

intervention

• Ensure that managers

have bought into the

process

• Gauge extent of

expected disruption

• Assess specific policy

implications

• Address concerns

• Discuss how to

minimise risk

• Implications

The planning document

must contain all the

implications stipulated in

the open codes column to

ensure that the

implementation of the

intervention will not put the

company at risk.

• Calculate cost

savings

• Determine cost

• Costs

The cost savings as well as

the cost implications of

downsizing must be

203



implications

• Determine

affordability

conveyed in detail. The

audiences can then decide

whether the business unit

can indeed afford this

intervention.

• Clarify managers’

expectations

• Guide managers into

appropriate action

• Discuss all

requirements

• Expectations

The expectations of the

managers will be

documented, as will the

appropriate action to be

taken.

• All affected line

managers

• Appropriate EXCO

member

• Group Executive:

Human Resources

• Human Resources

Practitioners

• Appropriate executive

• Employee

Communication

Forum

representative

• INFORMATION SHARING MEETING

• Audiences

At this meeting the detailed

plan is shared with the

audiences listed in the

open codes column.

• Share detailed project • Information The detailed project plan is

204



plan

• Elicit concerns

• Elicit

recommendations

shared at this meeting and

concerns and

recommendations are

elicited for consideration.

• Take the concerns

and

recommendations

into account

• Amend and finalise plan

The final plan is updated

and ready for

implementation.

• Intention letter

satisfies

requirements of LRA

(Section 189 (2) and

(3))

• Intention letter

The intention letter must be

issued to all affected

employees of a company

that intends to downsize.

The letter must contain the

information as reflected in

the Labour Relations Act,

66 of 1995, as amended in

2002. The specifics to be

included in the letter are

contained in Section 189

(2) and (3).

• Line managers

• Business EXCO

• Non-affected

employees within

business unit

• Affected employees

• SECOND COMMUNICA-TION PROCESS

• Internal process

• Communicate with internal audiences

The second communication

refers to a more detailed

message to the audiences

listed in the open codes

column.

205



• Appropriate business

executive initiates

communication


The appropriate business

executive initiates the

communication, because

he/she is directly involved

in the downsizing.

• Culture

• Climate

• Clear message

• Consistent message

• Appropriate content

• Persuasive

communication

• Succinctness

• Who is affected (how

many)

• Appropriate message

• Appropriate degree of

communication

• Contextualise

• Content (Checklist)

The communication should

contain some or all of the

elements listed in the open

codes column, depending

on the circumstances of

each business unit.

• Timeframe

• Timing of message

• Timing

The message must contain

the timeframe of the

intervention. The timing of

the communication is

important, especially when

the intervention takes place

206



in different geographic

locations. All affected

employees must get the

message at the same time

to prevent rumours from

spreading.

• Why (set of

circumstances)

• Duration of process

• Explanation of

outcomes

• Implications

• Geographic structure

• Reasons

• Detail of process

• Extent of intervention

• Affected business unit

• Affected positions

• View of the company

• Detail

The detail that should be

considered when drafting

the message must contain

the elements listed in the

open codes column.

• Affected key clients

• Affected non-key

clients

• External process

• Communicate with external audiences

The external audiences

who have to be informed

are the affected key clients

and affected non-key

clients.

• CEO and top

executives for


The CEO and top

executives should

207



affected key clients

• Account Executive

(most appropriate

member) for affected

non-key clients

communicate with the

affected key clients in

person. The appropriate

account executives should

communicate with the non-

key clients in person.

• Clear message

• Consistent message

• Appropriate content

• Persuasive

communication

• Succinctness

• Who is affected (how

many)

• Appropriate message

• Appropriate level of

communication

• Contextualise

• The meaning

• Content of

communication

• Compliance with

Service level

agreements (SLA’s).

• Content (Checklist)

The communication should

contain some or all of the


codes column, depending

on the circumstances of

each business unit.

• Timeframe

• Timing of message

• Timing

The message must contain

the timeframe of the

208



• Frequency of

communication

intervention. The timing of

the communication is

important, especially when

the intervention takes place

in different geographic

locations. All affected

clients must get the

message before it is

conveyed to affected

employees. This will assist

in preventing clients from

falling prey to possible

influencing by vengeful

employees.

• Why (set of

circumstances)

• Duration of the

process

• Explanation of

outcomes

• Implications

• Geographic structure

• Reasons

• Detail of process

• Extent of intervention

• Affected business unit

• Affected positions

• Detail

The detail of the message

should be drawn from the


codes column.

209



• Affected employees

• Affected line

managers


executive

• Group Executive:

Human Resources/

Group Manager: HR

• Employee

Communication

Forum

representative

• Face-to-face consultation meeting

• Audiences

The audiences listed in the

open codes column must

be present at the face-to-

face meeting.

• Face-to-face

consultation with

affected employees

for any clarification

on intervention

• Actions

The face-to-face

consultation meeting is a

requirement by law. The

purpose of this meeting is

to clarify all the rights and

concerns of the affected

employees relating to the

intervention.

• Employees make

written

representations to

the company

• Written representations by employees

The employees get an

opportunity to make written

recommendations about

the envisaged

implementation

intervention. This step is

210



also a requirement by law.

• Written reply by the

company

• Answers by the company

The company responds in

writing to the employees,

providing them with details

of the position it has taken

on the representations.

This step is also required

by law.

• Publish an electronic

copy

• Issue a hard copy to

employees

• Electronic copy

• Hard copy

The company publishes the

new structure electronically

and also issues hard

copies to all affected

employees.

• Invite applications for

positions

• Request a cryptic CV

and synopsis of

aspirations

• Encourage

employees to apply

for appropriate

positions

• Invite job applications

Employees are invited to

apply for positions in the

new structure by providing

a cryptic CV and synopsis

of their aspirations for

positions that they believe

they are competent to

perform.

• Interviews to be

scheduled based on

applications received

• Schedule panel interviews

The HR Practitioner must

schedule interviews with

employees from whom

applications have been

received.

211




executive

(compulsory)

• Line managers

• Human Resources

Practitioners

• Conduct panel interviews

• Audiences

Panel interviews are

conducted by the

appropriate business

executive and direct line

managers.

• Conduct the

interviews

• Ask position-related

questions

• Actions

Interviews are conducted

with each of the employees

based on their applications.

The line managers will ask

position-related questions

while the HR Practitioners

will ask behaviour-related

questions.

• Formalise discussion

of findings

• Incorporate

performance

appraisal results (to

enhance objectivity)

• Discuss interview results

A formal meeting is

scheduled to discuss the

results of the interviews.

• Populate top

management

structure first

• Devolve process to

next levels

• Place employees in appropriate roles

During a formal meeting

with all the executives

present the top

management structure will

be populated and then the

process will be devolved to

212



• Formalise feedback to

employees

• Formalise feedback to

clients

• Appoint successful

employees into

positions

the next levels.

• Phoenix workshop

• Begin work in new

positions

• Letters of acceptance

Successful employees

receive letters of

acceptance. They will then

attend the Phoenix

workshop, an internally

developed workshop, to

assist them to work through

their negative experiences

of the intervention.

Thereafter they begin

working in their new

positions.

• Outplacement

workshop

• Consultation period

• Confirmation of

retrenchment letters

• Calculation of gratuity

• Signing of settlement

• Letter of regret

The unsuccessful

employees receive letters

of regret. They attend the

outplacement workshop

where they are to work

through the trauma of being

unsuccessful and are given

assistance towards finding

213



agreement

• Terminate

employment

• Offer voluntary

redundancy option in

regret letter

alternative employment

elsewhere.

After the outplacement

workshop, consultation

commences, which is

required by law.

Once the consultation

period has lapsed the

employees receive a

confirmation of

retrenchment letter, which

is required by law.

The retrenchment letter will

reflect the retrenchment

gratuity.

The employees will then

sign a settlement

agreement, which will

prevent both parties from

taking litigation action.

On receipt of the settlement

agreement the employment

of the employees is

terminated. (The

employees can at any point

during the consultation

period apply for voluntary

redundancy, which will

214



expedite the conclusion of

the process.)

• Management of cost

base

• Improve productivity

• New blood

• More effective

• More efficient

• More profitable

• Deployment of

employees

according to skills

• Alignment of

employment

documentation

• Elimination of dead

wood

• Optimise labour costs

• Phoenix workshop

action plans

• Positive outcomes (Checklist)

• Internal outcomes

This is a checklist that

should be used by the

managers to evaluate what

positive internal value the

intervention provided to the

business unit.

• More career

opportunities

• Clients view

intervention

positively

• Align business with

• External outcomes




positive external value the

intervention provided to the

business unit.

215



market requirements

• Too long

• The law is perceived

as a constraint

during downsizing.

• Too risk adverse

• Loss in productivity

• Loss in initiative

• Loss in loyalty

• Loss in discipline

• Loss in effectiveness

• Negative outcomes (Checklist)




negative outcomes the

intervention had for the

business unit.

• Psychological support

for process

facilitators

• Debriefing

A support structure should

be available for process

facilitators for debriefing

purposes.

• Support system

• Implementation

• Compliance with LRA

• Timeframes

• Addressing concerns

• Availability of decision

makers

• Management buy-in

• Monitor emotional

distress

• Ensure the issues are attended to

The HR Practitioners in

charge of the intervention

must ensure during the

entire process that the

intervention takes

cognisance of the listed

issues and that remedial

action is instituted forthright

where necessary.

216



• Anger

• Traumatic

experiences

• Cultural differences

and reactions

• Guilt

• Criticising

management

• Involving clients

• Denial

• Tension

• Fear

• Disbelief

• Insecurity

• Resistance

• Uncomfortable

• Exposed

• Distrust

• Hit men

• Vulnerable

• Uncooperative

• Emotional

• Uncertainty

• Looking for drama

• Attack

• Rumours

• Nervous

217



• Disturbed

• Concerned

• Stressed out

• Stressful

• Negativity

• Unproductive

• Low morale

• Limited creativity

• Aggression

• Shouting

• Swearing

• Putting pressure on

decision makers

The next step in the coding process is to move from axial coding to the higher

level of coding, selective coding, which forms the foundation of the development

of the substantive model.

5.4 DEFINING SELECTIVE CODING

Selective coding is defined by Strauss and Corbin (1990, p. 116) as the process

of selecting the core category, systematically relating it to other categories,

validating those relationships and filling in categories that need further refinement

and development. They (Strauss & Corbin, 1998, p. 143) mention that it is not

until major categories are integrated to form a larger theoretical scheme that the

research findings take the form of a theory.

218


Basically, selective coding entails integrating and refining categories. The first

step in integration is deciding on a central category. The central category

(sometimes called the core category) represents the main theme for research. A

central category has analytic power, because it pulls other categories together to

form an explanatory whole. It should be able to account for considerable variation

within categories and may evolve out of the list of existing categories.

Strauss and Corbin (1998, p. 147) provide the following list of criteria that can be

applied to a category:

• It must be central, that is all other major categories should be related to it.

• It must appear frequently in the data, that is within all or almost all cases

indicators should point to the category.

• The explanation that evolves by relating the categories should be logical

and consistent; data should not be forced.

• The name or phrase used to describe the central category should be

sufficiently abstract for research in other substantive areas, leading to the

development of a more general theory.

• The concept should be refined analytically through integration with other

concepts; the theory should grow in depth and explanatory power.

• The concept should be able to explain variation as well as the main point

made by the data, that is when conditions vary, the explanation should still

hold, although the way in which a phenomenon is expressed might look

somewhat different. One should also be able to explain contradictory or

alternative cases in terms of that central idea.

Below is a matrix that reflects the categories that emerged in this study through

axial coding, the central categories that these categories relate to and a

description of the established central category.

219


TABLE 3: SELECTIVE CODING MATRIX

CATEGORY CENTRAL CATEGORY DESCRIPTION OF CENTRAL CATEGORY

• Changes in client

business

• Institutional

• EXTERNAL TRIGGERS

Changes in the external

environment that

compel the company to

downsize. McKinley et

al. (2000, p. 228) refer

to one of these changes

as institutional, pointing

to “good” management

(cost cutting) in line with

shareholder or external

stakeholder pressure for

a higher return on

investment.

McKinley et al. also

identify an economic

trigger. During the

research it came out

that economic triggers

can be both internal and

external.

• Financial performance

• Change in business

strategy

• Mergers and

acquisitions

• Outsourcing deals

• INTERNAL TRIGGERS

As already mentioned,

economic forces cause

management to

downsize. During the

research all the

participants agreed that

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• Business efficiencies the internal trigger for

downsizing is an

economic trigger.

• Desktop audit

• Decision taken by

EXCO

• BUSINESS AUDIT The research


any company that

considers downsizing

must go through some

or other analysis. It is

not clear from the

literature if a formal

process in this regard

exists. Abbasi and

Hollman (1998, p. 33)

state that management

has to realise that cut-

and-slash tactics do not

necessarily drive high

performance, and that

the productivity-

enhancing role of

downsizing has been

exaggerated. In many

cases downsizing is not

only ill-considered, it is

inappropriate – a knee-

jerk reaction to bad

times. Companies,

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particularly those that

are bloated and non-

competitive, turn to

layoffs when they

cannot solve

fundamental problems.

They try to “pink-slip”

their way to profitability

every time quarterly

profits tumble.

• Manager formally

requests assistance

from HR

• MANAGER INITIATES DOWNSIZING PROCESS

The research

participants felt that the

manager should initiate

the downsizing process

personally, which will

show that he has

bought into it. McKinley

et al. (2000, p. 229)

refer to a third

perspective, the socio-

cognitive perspective,

which entails that

managers will

cooperate towards

downsizing if the

process is attractive to

them.

• Internal process • INITIAL To minimise the trauma

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internal audiences

• Who should

communicate

• Content



external audiences

• Who should

communicate

• Content

COMMUNICATION of downsizing,

companies should

ensure that layoffs are

appropriately

communicated to

employees (Smeltzer &

Zener, 1992, p. 446)

The layoff

announcement strategy

should attend to the

source of the message,

the content of the

message, the channel

used to convey the

message and the timing

of the message.

The research


this communication

should be broad, telling

internal and external

audiences that the

company is

investigating under-

performing business

units and that they will

be updated on the

intended action.

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• Audiences

• Broad timeframes

• Costs

• Outcomes

• Implications

• Role of audiences

• Expectations

• Formulation of plan

• Implementation of

communication

• HIGH-LEVEL PLANNING MEETING

According to the

participants planning

should take place at a

high level to get an

understanding of what

is required when

downsizing is

implemented.

• Approval by Group

Executive: HR

• APPROVAL FROM GROUP EXECUTIVE: HR

The Group Executive:

HR formally approves

the process when he is

certain that all parties

agree on what action

has to be taken. At this

point the most

appropriate HR

specialists are assigned

to the project.

• Audiences

• Specific timeframes

• Communication

• Specific outcomes

• Designing of new

structure

• Implications

• DETAILED PLANNING MEETING

When all the information

is available a detailed

planning meeting has to

be conducted to plan

the implementation and

to formulate a project

plan.

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• Costs

• Expectations

• Audiences

• Information

• Amend and finalise

plan

• INFORMATION MEETING

At this meeting the

project plan is shared

with the relevant

stakeholders of the

company, and their

recommendations on

issues to be

incorporated in the

project plan are

obtained.

• Intention letter • INTENTION TO CONSULT LETTER

This letter is required by

law and must be issued

before the employees

are notified that the

company will be

downsizing.

• Internal process


internal audiences

• Who should

communicate

• Content (checklist)

• Timing

• Detail

• SECOND COMMUNICATION

This detailed

communication on the

process will be

addressed to all

relevant stakeholders.

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external audiences

• Who should

communicate

• Content (checklist)

• Timing

• Detail

• Face-to-face

consultation meeting

• Audiences

• Actions

• CONSULTATION MEETING (CLARIFICATION)

At this meeting the

affected employees are

given an opportunity to

clarify their concerns

regarding the process

and to receive

information about their

rights. This meeting is

required by law.

• Written

representations by

employees

• WRITTEN REPRESENTA-TIONS

The employees are

invited to give written

inputs to the company

about the process. This

is required by law.

• Provision of answers

by the company

• WRITTEN REPLY The company provides

a written response to

the employees,

explaining its stance on

the issues raised by

them. This is required

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by law.

• Electronic copy

• Hard copy

• DISCLOSE NEW COMPANY STRUCTURE

The new company

structure is made

available electronically

as well as in hard copy.

• Invite applications • INVITE APPLICATIONS IN WRITING

Employees apply in

writing for one or more

positions.

• Schedule panel

interviews

• SCHEDULE INTERVIEWS

Interviews are

scheduled for

employees, based on

their written

applications.

• Audiences

• Actions

• CONDUCT INTERVIEWS

Interviews are

conducted with all

employee applicants,

assessing their

suitability for the

positions that they

applied for.

• Discuss interview

results

• DISCUSS FINDINGS The interview results

are discussed to

determine where each

employee fits into the

structure.

• Place employees in

appropriate positions

• POPULATE STRUCTURE (FORMAL

The structure is

populated, starting with

top management and

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GUIDELINES) then devolving the

process to the lower

levels.

• Letters of acceptance

• Letters of regret

• LETTERS TO EMPLOYEES

Successful employees

receive letters of

acceptance and

unsuccessful

employees receive

letters of regret.

• Positive Outcomes

• Internal outcomes

• External outcomes

• Negative Outcomes

• Debriefing

• PROCESS COMPLETION (EVALUATION)

The process must be

evaluated once

completed and lessons

learned must be

incorporated into the

process on an ongoing

basis.

• Ensure that the

following are attended

to:

• Support system

• Implementation

• Compliance with LRA

• Timeframes

• Addressing concerns

• Availability of decision

makers

• Management buy-in

• MONITORING AND MANAGING THE PROCESS

The HR Practitioner

who is the custodian of

the process must

monitor the

implementation

according to specific

actions identified during

the research. This

enables him/her to

institute remedial action

as and when required.

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• Monitor emotional

distress

The selective coding illustrated above forms the foundation of the definition of the

substantive model as already indicated. In the next section I discuss how I

executed the coding procedure.

5.5 MANUAL AND ELECTRONIC CODING

5.5.1 Electronic coding

Ritchie and Lewis (2004, p. 207) mention that in comparison with manual

methods, the main benefits of the electronic method are the speed of handling

large amounts of (textual) data, the improvements in rigour or consistency of

approach, the facilitation of team research, assistance with conceptualisation of

data and theory building, and the relative ease of navigation and linking (or

“consolidating”) the data. Within the existing literature much emphasis is placed

on finding the “right” package for the analytical task, rather than allowing the

structures and processes of a particular piece of software to dictate how the

researcher carries out qualitative analysis. Weitzman (2000) claims that there is

still no one best program.

The ATLAS software I used is a powerful tool for the analysis of large bodies of

textual data. It helped me to explore the complex phenomenon that was hidden

in my data. It offered tools to manage, extract, compare, explore and reassemble

meaningful pieces from large amounts of data in a creative and flexible yet

systematic way. It allowed me to quickly analyse the transcripts and e-mails and

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to award the open codes that formed the basis for the study. It allowed me to

easily award code numbers to each of the open codes and work from these

towards axial and selective coding and the clustering of codes into logical code

families (categories). I also used ATLAS to extract illustrative quotations for the

codes. The software also helped me to create super codes (central or core

categories) from the various causal links between the categories. However,

ATLAS still requires the human being with his/her unique thinking capabilities to

control the research process. Therefore discussions continue in the literature and

through cyberspace newsgroups about the pros and cons of using computers for

qualitative data analysis (Ritchie et al., 2004, p. 207).

5.5.2 Manual coding

At stages I felt that ATLAS could easily create too much distance between me

and the data. I also did not want to lose touch with the richness of the qualitative

experience. I therefore decided to do axial and selective coding also in the

manual way.

I bought “post-its” of different colours. I then put a few sheets of flipchart paper

on a long wall and started to build the model from the codes that I had extracted

with the aid of ATLAS. The different colours of wool indicated the different

relationships between categories. The different colours of the postits resembled

concepts, categories and core categories. I spent the better part of fifty hours

reviewing the codes and their relationships until the substantive model emerged.

Then I updated all the codes within ATLAS. I also entered these codes in a word

document that I was going to use during the focus group discussions. This

document served as a template for the discussion, helping us to refine the model

until no further new information emerged.

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5.6 CONCLUSION

In this chapter I described the coding procedures I applied in the study. However,

as Strauss and Corbin (1998, p. 181) point out, researchers aiming at

constructing scientific building blocks have to understand the phenomena they

are studying as clearly as possible. This entails locating phenomena contextually,

which is facilitated by developing what has been termed a “dimensional matrix”. I address this topic in the next chapter.

231

PPAARRTT FFIIVVEE



I discuss my application of the conditional

matrix in the first part of this chapter. In

the second part I incorporate socio-

cognitive theory into the diagram and

therefore also illustrate its applicability to

the model. In the third part I outline the

model and contextualise it within the

downsizing literature.

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6 CONDITIONAL MATRIX, SUBSTANTIVE MODEL AND LITERATURE OVERVIEW

6.1 INTRODUCTION

In this chapter I apply the conditional matrix. Then I incorporate socio-cognitive

theory into the diagram that is I apply it to the model, and outline the model.

Finally I contextualise the model within the downsizing literature.

6.2 DEFINING “CONDITIONAL MATRIX”

Goulding (2002, p. 87) describes a conditional matrix as a device for tracking the

various levels of influence upon the phenomenon under study. It is typically

presented in the form of a diagram comprising concentric circles. The outer circle

usually represents the macro influences, while the inner circles relate more to the

actions and consequences of the behaviour. According to Corbin and Strauss

(1990, p. 11) think in terms of a conditional matrix is useful when describing

economic conditions, cultural values, political trends and social movements.

The idea of a conditional matrix and particularly the notion that “the analysis of

the setting must not be restricted to the conditions that bear immediately on the

phenomenon of central interest” is a source of conflict between researchers

adopting the Strauss and Corbin (1990) approach and those using the principles

advocated by Glaser (1992), (Goulding, 2002, p. 88).

Strauss and Corbin (1994) justify the use of the matrix, arguing that its key

benefit is that its user can respond to changes over time. Conditions that illicit

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behaviour may change and the changes can be analysed by means of new ideas

or emergent perspectives.

According to Locke (2003, p. 77) the analyst’s composed grounded theory

includes macro structural conditions that impinge on the studied phenomenon.

To this end Strauss and Corbin (1990) offer the macro coding paradigm, a

conditional matrix that directs the analyst to inquire into and specify the broad

social, historical and economic conditions that may have a bearing on and

influence the phenomenon. Clearly, this move to link micro and macro elements

represents a further clarification of what a sociological theory of action should

look like. However, in practice, few grounded theory studies include this conditional matrix.

Strauss and Corbin (1998, p. 190) summarise the uses of a conditional matrix as

follows:

• Assisting the analyst in locating the area or scope (macro/micro) of the

research project and at the same time in taking note of the relation

between that area and areas above and below it.

• Extending the range of conditions and consequence considered by the

analyst, that is considering more than just the micro conditions.

• Assisting the analyst in identifying and making choices about which

combination of conditional or consequential factors in the data might be

relevant to a particular situation.

• Tracing the often intricate web of connections between contextual factors

(conditions/consequences or structure) and actions/interactions (process).

• Developing explanatory hypotheses about the relationships that can be

verified or modified through further data collection and analysis.

• Raising the feasibility of incorporating variation in explanatory hypotheses.

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• Enabling the researcher to organise materials and present a more

complete and persuasive explanatory account of the phenomenon under

investigation.

• Providing direction for theoretical sampling.

In the following section I review the stimulus-organism-response (S-O-R) theory

and then determine its applicability to the conditional matrix so as to ultimately

guide my application of the conditional matrix in this study.

6.3 GROUNDED S-O-R THEORY22

In management research the S-O-R theory emphasises the mediating role of the

manager between environmental stimulus and behavioural response (Ligen &

Klein, 1988, p. 329).

Partington (2000, p. 94) believes that the paradigm model is at the core of

Strauss and Corbin’s (1990) method. It consists of a systematised cause-and-

effect schema that the researcher uses to explicate relationships between

categories and sub-categories. To aid the identification of relationships between

conditions, consequences, actions and interactions Strauss and Corbin (1990)

further recommend the graphical tracing of conditional paths and the use of a

conditional matrix. The conditional matrix represents a set of eight concentric

circles, each “corresponding to different aspects of the world” pertaining to a

phenomenon. Moving from the outermost to the innermost circle, Strauss and

Corbin (1990, p. 163) label the circles as follows:

• International

• National 22 In this section I borrow extensively from Partington (2000).

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• Community

• Organisational and institutional

• Sub-organisational and sub-institutional

• Group, individual, collective

• Interaction

• Action

However, in published management research there is little evidence of the

successful application of any precisely delineated, prescribed approach.

According to Bryman (1988, p. 85) “in spite of the frequency with which Glaser

and Strauss (1967) and the idea of grounded theory are cited in the literature,

there are comparatively few instances of its application”.

It seems possible that for qualitative researchers operating outside the

established norms of positivism – the “scientific method” – there is a seductive

appeal in the availability of a formal, step-by-step procedure for generating an

intellectual tool, such as a theory, from the data. Such a procedure might limit

some of the dangers of trusting a highly uncertain creative process to produce

results. Furthermore, the very formalisation of qualitative approaches might

counter criticisms of lack of rigour of qualitative studies from researchers

operating within the more established rules of positivism. Both these possibilities

add weight to Strauss and Corbin’s (1990) argument that spelling out qualitative

procedures and techniques is useful, particularly for research novices

(Partington, 2000, p. 95).

Another argument that supports the need for greater consistency of approach to

qualitative research derives from the observation that, if we are to build on the

work of others, we need a common, explicit, practical methodological ground. An

examination of published exemplars of grounded theory studies in the field of

organisation and management shows that, although the rules of the game for

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presenting such work are becoming clearer and more established, there is a

need to take into account the theoretical aims, assumptions and data sources in

any application (Partington, 2000).

In my view Partington (2000, p. 95) implies that S-O-R theories are concerned

with how people’s understanding of their environment leads to action. On the

face of it the assumptions behind grounded theory’s symbolic interactionist

origins match this premise and are in line with the broad aim of S-O-R theories.

Beneath the surface of this alignment, however, two issues have to be taken into

account when importing the grounded theory approach. The role of causality in

theory is to be seen in Strauss and Corbin’s (1990) paradigm model, where

causal conditions are linked to action not through cognition but more indirectly

through the phenomenon, context and intervening conditions, each of which may

include elements of cognition. Furthermore, the eight-layered conditional matrix

is clearly designed to cover all the components of the paradigm model, not only

in the reactions of individual responses to stimulus information in organisations,

but also in the full kaleidoscope of sociological contexts. Because mode 2

management researchers23 focus on the concerns of managers, they require

theories in the form of assimilable causal models and classifications in a

narrowed version of the conditional matrix. The purpose of these theories is to

convey truths that, when learned by managers, will change their behaviour in a

particular direction, the most desirable direction deriving from the simple S-O-R

model. However, the use of retrospective data, especially interviews with

managers, as the basis for causal theories might raise concern.

The job of the researcher is to capture actors’ interpretation of their construction

of their actions. A problem for grounded theorists who use interview data in 23 Mode 2 management researchers show concern for the gap between academe and practice, advocating for research

aimed at advancing the interests of the latter. It is trans-disciplinary, and as such less likely to bring with it mature

theoretical frameworks developed within the boundaries of particular academic disciplines. It underscores the importance

of accessing the tacit knowledge of organisational actors (Locke, 2003, p. 96).

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management cognition studies is that such data are not based on observed

events, but on informants’ second-hand accounts of those events. The issue

here is not whether research participants will be deliberately or unwittingly biased

to be more “logical” or “socially desirable”. Here the specific concern with

interview data is that the “reality” that the interviewer seeks to extract is a causal

S-O-R mechanism. This reality is a step further away from the intermediate

reality of the interviewer’s words and far removed from that which is observable

by the interviewer (Partington, 2000).

Taking these issues into account, it is possible to develop an improved grounded

theory framework matching the needs of S-O-R research based on retrospective

data. This is done by simplifying the Strauss and Corbin (1990) model and then

aligning it more centrally with causal aims (Partington, 2000).

The accessibility of the framework may be improved by shedding some of the

complexities required of a single framework embracing the study of interpreted

behaviour of people in all social science disciplines and social contexts. The

structured social context of organisations and the central focus on management

action enable significant simplifications of the paradigm model and the

conditional matrix. Thus the conditional matrix may be reduced from eight

concentric circles to four, labelled as follows:

• External organisational context

• Internal organisational context

• Individual and collective managerial cognition

• Action

The paradigm model (S-O-R model of causal tendency) and the conditional

matrix (a graphical device for mapping and analysing data) are thus simplified

and aligned. Finally, ontology is needed to accommodate the importance of

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developing a causal theory while acknowledging the lack of absolute causal

certainty inherent in social processes. Interview-based causal-theory-building

research has to be anchored in a theory of reality that allows the specification

and refinement of explanations of cause and effect (Partington, 2000).

Management actions are not always observable in an objective way, and

because social processes are rarely reducible to absolute laws. For research into

management action some of the events in management behaviour is only

observable and accessible through the subjective accounts of managers and

other organisational actors.

6.3.1 Management action

Managers who implement planned organisational change initiatives employ a

different repertoire of implementation processes. These may be reduced to a set

of six categories that vary, to a greater or lesser extent, over the life of a change

initiative. The categories are:

• Use of external agents of change;

• Formal planning and control;

• Control of the pace of change;

• Staff participation in decisions;

• Justification of actions;

• Definition of individuals’ roles.

6.3.2 Cognition

The extent of each of the six categories of action may be considered at any time

as an expression of change managers’ possession or pursuit of personal control

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over the environment. Greenberger and Strasser (1986, p. 165) define personal

control as an individual’s beliefs, at a given point in time, in his or her ability to

effect a change, in a desired direction, on the environment. Their study found that

personal control has five dimensions:

• Autonomy;

• Resources;

• Self-efficiency;

• Opportunity;

• Expectations of staff cooperation.

6.3.3 Environmental stimulus

Personal control is partly determined by managers’ attention to selected key

characteristics of their organisation. Stimuli derived from managers’ attention to

some or all of seven such generalised characteristics are listed below in the form

of continua:

Public OWNERSHIP PrivateTraditional SELF-IMAGE ModernMember GROUP MEMBERSHIP Independent;Isomorphic CONFORMITY Differentiating;Stable HISTORY Threatened;Project ORIENTATION Process;High TECHNICAL EXPERTISE Low.

From a practical viewpoint, the theorised relationship between environmental

stimulus and management action as well as the intermediate role of personal

control has potentially important consequences for managers. There is

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considerable support in the literature for the notion that feelings of greater

personal control are associated with more effective decision-making.

In conclusion, the findings and views of Partington (2000) play an important part

in the application of the S-O-R theory within the substantive model that I

developed. The next section shows the first model available in organisational

downsizing where the S-O-R theory is applied.

6.3.4 Socio-cognitive model

McKinley, Zhao and Rust (2000) mention that the socio-cognitive perspective

elaborates the micro-level foundations of the institutionalisation theory of

downsizing. More specifically, consistent with recent cognitive research in

management (Walsh, 1995), the socio-cognitive perspective focuses on

managers’ mental models of downsizing and how those models are collectivised

and reified (see Berger & Luckmann, 1967) through social construction

processes.

The socio-cognitive perspective suggests that downsizing is institutionalised

through the progressive consolidation or “packing” of downsizing schemas,

providing different views on the question of the effectiveness of downsizing and

its ethical acceptability. The result is the emergence among managers of a

dominant “downsizing-is-effective” schema and the collectivisation of that

schema across multiple industries and organisational sectors (McKinley et al.,

2000).

A schema is defined by Garud and Rappa (1994, p. 346) as an organisation of

experience that serves as an initial frame of reference for action and perception.

Whether schemas are linked to categorisation, labelling or the mental models of

competitors, they provide a simplified representation of the information

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environment to which they are applied. This greatly reduces the information

processing demands placed on the individual decision maker and imparts

meaning to external stimuli that do not contain such meaning intrinsically (Porac

& Thomas, 1990; Ashford & Humphrey, 1995, 1997).

According to McKinley et al. (2000) downsizing is being constructed as an

objective reality external to managers’ decisions. Managers thus have begun to

lose sight of their own agency in the downsizing process, which is being

experienced as inevitable. This belief in downsizing’s inescapability is enhanced

by observations of the restructuring activities of competitors, customers and

suppliers: if other managers in other organisations whom a local manager views

as competent are seen to be restructuring, restructuring appears necessary and

inevitable, even if the consequences for one’s own organisation are unclear. This

late phase of the institutionalisation of downsizing is fully consistent with

Giddens’s (1984) structuration thesis, in that continual restructuring creates a

context within which individual corporate leaders enact continual restructuring

(McKinley et al., 2000).

6.3.5 Application

I now illustrate how I applied the shortened version of the conditional matrix of

Partington (2000) in this study. Figure 1 illustrates the conditional matrix for the

substantive model.

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Figure 2: Conditional matrix for organisational redesign

How does the S-O-R theory fit into the substantive model of organisational redesign? In order to answer this question it is necessary to get clarity on the

following key concepts:

External Organisational

Context


Context

Internal Organisational

Context


Context

ManagerialCognition

Managerial Cognition

Action


Context


Context


Context


Context

ManagerialCognition

Managerial Cognition

Action

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• External organisational context, which refers to the following external

triggers: changes in client business and institutional factors that may force

the organisation to embark on organisational redesign.

• Internal organisational context, which, in turn, refers to the following

internal triggers: financial performance, change in business strategy,

mergers and acquisitions, outsourcing deals and business efficiencies.

• Management cognition, which entails the control that management

exerts over the following aspects of the process: business audit,

manager’s initiation of the process, initial communication, high-level

planning meeting, and approval from the Group Executive: HR, detailed

planning meeting, information meeting, intention to consult letter and

second communication.

• Action, which refers to the action taken by management to execute their

decision, including having a consultation meeting, inviting written

representations, providing written replies, providing new organisational

structure, inviting applications in writing, scheduling interviews, conducting

interviews, discussing findings, populating the structure, handing letters to

employees, and monitoring and managing the process.

In the next section I demonstrate how the substantive model is integrated into the

conditional matrix in the context of the S-O-R theory.

6.4 SUBSTANTIVE MODEL

Glaser and Strauss (1967, p. 32) refer to substantive theory as one developed for

a substantive, or empirical, area of sociological inquiry, such as patient care, race

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relations, professional education, delinquency, or research organisations. “By

formal theory, we mean that developed for a formal, or conceptual, area of

sociological inquiry, such as stigma, deviant behaviour, formal organization,

socialization … Substantive theory is prior to the formal theory. In management

and organization studies, many of our ‘theories’ are substantive in nature”

(Locke, 2003, p. 35).

Locke (2003) refers to various examples in organisational studies where

grounded theory was used to develop substantive models. I am of the opinion

that the “theory” in grounded theory does not (and should not) refer to the

building of one theoretical concept “theory” only, but should also (rather) entail at

least the possible development of conceptual frameworks that include theories,

typologies and models, and at best the construction of any intellectual tool or building block of science (see Mouton 2002). That is why I define the product

of my research as a substantive model (and not a substantive theory) for

organisational redesign. Figure 3 presents a substantive model for

organisational redesign.

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Business Audit

Desktop Audit Decision by EXCO

Manager Initiates Process

Manager formally request assistance from Human Resources

Initial Communication

Internal Process External Process

STIMILUS

FinancialPerformance

Exte

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gers

Internal TriggersChange inBusinessStrategyMergers

AndAcquisitions

OutsourcingDeals

BusinessEfficiency

ChangesIn

ClientBusiness

Institutional

ORGANISM

Business Audit

Desktop Audit Decision by EXCO

Manager Initiates Process

Manager formally request assistance from Human Resources

Initial Communication

Internal Process External Process

STIMILUS

FinancialPerformance

Exte

rnal

Trig

gers

Internal TriggersChange inBusinessStrategyMergers

AndAcquisitions

OutsourcingDeals

BusinessEfficiency

ChangesIn

ClientBusiness

Institutional

ORGANISM

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Figure 3: Substantive model for organisational redesign

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6.4.1 Step 1: External triggers

Two types of external triggers may initiate organisational redesign, namely

changes in the business of clients and institutional triggers. Changes in the business of clients include: (1) the clients cannot afford the services of the

organisation any longer; (2) the organisation terminates its contracts with clients

when they do not renew their contracts; (3) clients restructure their businesses

and no longer require the services procured from the organisation; (4) clients

cancel their contracts with the organisation for a variety of reasons; (5) clients do

not further require the organisation to render services any longer and (6) a

change in market demands as a result of an economic downturn, which may

necessitate clients to cut expenditure on external services. Institutional triggers

include: (1) the wealth concerns of the shareholders, which cause them to

demand higher returns on their investment; (2) black empowerment forces

supported by the charters24 applicable to the organisation, forcing it to redesign

its business to ensure better black representation; and (3) health and safety

legislation incumbent on clients that calls upon an organisation from a different

sector to cancel its business with these clients because this legislation is

industry-specific and compromises the organisation’s effectiveness.

The external triggers correspond with the S-O-R theory in that they act as

external stimuli for organisations to redesign their business.

24 In South Africa charters have become an integral part of the back economic empowerment legislation. They are drawn

up for a particular business sector and stipulate the economic empowerment requirements that the particular sector has to

adhere to in order to conduct business in South Africa.

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6.4.2 Step 2: Internal triggers

A number of internal triggers may force an organisation to restructure its

business. First there is financial performance, which includes: (1) cost savings

by the organisation; (2) poor financial performance of business units within the

organisation; (3) too high expenses by the organisation or some of its business

units; (4) a lack of profitability in the organisation as a whole or one or more of its

business units; (5) losses suffered within the organisation or some of its business

units; and (6) budget constraints that prevent the organisation from expanding or

carrying the prevailing cost structure.

Second is a change in the business strategy of the organisation, which

includes: (1) amalgamation of departments due to the duplication of functions; (2)

closing of particular business units because they perform non-core business; (3)

restructuring of business operations where there are too many employees or a

non-core product line is closed; (4) reorganisation of some of its business to

reduce some management layers because management salaries are too high;

(5) redesign of business processes that are inefficient; and (6) redesign of the

organisation to ensure better black representation at all levels.

Third are mergers and acquisitions, such as when the organisation acquires

another ITC business or merges with another ITC company. The increase in

employees, duplication of functions and other inefficiencies will force the

organisation to restructure.

Fourth is outsourcing, such as when the organisation takes over non-core

business from clients, which leads to duplication of functions, which duplication in

turn has to be eliminated.

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Finally, business inefficiencies may lead to redesign. These inefficiencies

include: (1) unproductive employees; (2) poor management practices; and (3)

ineffective and inefficient business processes. All of them result in losses for the

organisation.

The internal triggers are in line with the S-O-R theory in that all of them act as stimuli for organisations to consider remedial action.

6.4.3 Step 3: Business audit

At this stage the organisation, responding to the above triggers, conducts a

desktop audit, which entails a thorough financial analysis of under-performing

business units. Once it is clear that corrective action is required, the Executive Committee has to issue the instruction to redesign the organisation.

This is the first step in the S-O-R theory where management takes control and is called the “management cognition phase”.

6.4.4 Step 4: Manager initiates the process

The Executive Committee instructs the affected line managers to redesign their

business. They initiate the process by discussing possible redesign options

within their business with the Human Resources Division. It is important that the

affected managers agree with the Executive Committee that action is indeed

necessary. If not, their buy-in will not be achieved.

This step is in line with the S-O-R theory and forms part of the management cognition phase where management is in control of the action they set out to take.

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6.4.5 Step 5: Initial communication

Initial communication consists of an internal and an external process. With regard

to the internal process, the CEO is required to communicate by e-mail with the

following audiences: line managers, the Employee Communication Forum (a

consultative body representing the interests of the employees) and the remainder

of the organisation. The message has to be broad, informing the audiences that

the organisation is investigating under-performing business units and will

disclose the selected action as soon as possible. This prevents employees from

spreading rumours and harming the organisation.

With regard to the external process the CEO and his top executives should

personally visit the organisation’s key clients while the relevant account

executives should meet the smaller clients. The message must be broad and

exactly the same as the message to the internal audiences, that is that the

organisation faces a business problem, is investigating it and will take

appropriate action once it understands the extent of the problem.

This step is in line with the S-O-R theory and part of the management cognition phase where management is in control of the action.

6.4.6 Step 6: High-level planning meeting

The purpose of this meeting is to decide on the action to be taken. The Human

Resources Practitioners and their manager, the line managers of the business

units concerned, the executive team and heads of the business units, and the

relevant Executive Committee member accountable for them must participate in

the meeting. The planning meeting must first determine the commencement

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date of the intervention, outline the timeframe for the process and emphasise

the speed of executing a decision once it has been taken to minimise disruption

within the business.

There must also be a clear understanding of the estimated cost of the intervention, although precise calculations are out of the question at this stage.

It is important that the envisaged outcomes of the process should be a long-

term solution. The meeting must create a clear understanding of how the end

result will be achieved, define what the new organisational structure will look like

and clearly indicate the best option, such as redundancy, transfer of people or

restructuring of the business, and the number of functions that will be falling

away.

Finally, the meeting should also cover all the possible implications of the

process: (1) the legal requirements must be implemented correctly; (2) the

contractual obligations with clients must be observed; (3) moral and ethical

considerations must be looked at (for example, if the Christmas season falls in

the middle of the timeframe of the process, the process might be delayed);

(4) the implications of the intervention for the business must be estimated as

accurately as possible; (5) the impact of the intervention on clients, employees

and the rest of the organisation must be assessed; (6) concerns raised by the

managers about the task of supporting the process in its entirety have to be

clarified; (7) the roles of the various audiences and the expectations of the

managers should be addressed so as to clear unrealistic expectations; (8) a

detailed communication plan should be worked out; and (9) the process must be

monitored and the organisation alerted to the seriousness of the problems. The

outcome of this meeting is a broad plan incorporating the above points, and it

should be signed by all attendees. The plan should provide the decision makers

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with sufficient high-level information to decide if the intervention must proceed or

not.

This step is in line with the S-O-R theory and its management cognition phase – management is in control of the desired action.

6.4.7 Step 7: Approval of the Group Executive: Human Resources for commencement

The Group Executive: Human Resources must provide approval for the

commencement of the process once the initial plan has been signed by all the

audiences. This also assures him/her that the process can be implemented

successfully and allows him/her to allocate the resources for the implementation

of the intervention.

This step is in line with the S-O-R theory and is part of the management cognition phase – management is in control of the desired action.

6.4.8 Step 8: Detailed planning meeting

This is the second planning meeting and is aimed at determining the details of

the process to ensure its successful implementation. The following audiences

have to be present: (1) the Human Resources Practitioner who is the custodian

of the process; (2) the Senior Human Resources Manager (who is responsible for

all the human resource issues related to the intervention); (3) the line managers

of the affected business units; (4) the executive team of these business units;

(5) the heads of the business units; and (6) the relevant Executive Committee

member (who is overall accountable for the performance of the affected units).

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Once the details of the intervention have been determined, a plan is drawn up

accordingly. The plan must cover the specifics of the timeframe that is it must

provide the commencement date and spell out the duration of the process.

Speed of execution of the process must be emphasised.

Communication must be planned in line with the content of the detailed plan,

the communication must be well timed and the communication process must be

determined.

The specific outcomes of the intervention must be defined, that is the plan must

be shown to be viable, and the accountabilities of the respective audiences and

the monitoring of the intervention must be set out.

A new structure must be designed. The design must include the following: (1) the

lay-out of the new structure; (2) new functions in the structure; (3) job grades; (4)

salary levels; (5) job profiles; and (6) job specifications of the new functions.

All the specific implications must be taken into account: (1) the legal

implications if the intervention is incorrectly implemented as well as contingency

plans to cover any problem that may arise; (2) specific contractual obligations to

clients and what impact the intervention may have on the organisation’s ability to

comply with these obligations; (3) specific moral and ethical considerations; (4)

the extent of the intervention in the business; (5) the impact of the intervention on

clients, employees and the rest of the organisation; (6) the specific policy

implications and their cost; and (7) the minimisation of risks to the organisation.

The specific costs of the intervention must be calculated, including the exact

costs that the organisation can save, the specific cost implications of the

intervention and whether the organisation can afford the intervention.

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Finally, the expectations of the audiences must be clarified, particularly those

of the managers.

This step is in line with the S-O-R theory and is part of the management cognition phase where management is in control of the desired action.

6.4.9 Step 9: Information meeting

The purpose of this meeting is to share the details of the plan with the relevant

audiences. The meeting must be attended by all affected line managers, the

relevant Executive Committee member (because he/she and the Group

Executive: Human Resources are jointly accountable for the successful

implementation of the intervention) and the Employee Communication Forum

member representing the affected employees.

The detailed plan is shared with the attendees and they are encouraged to

disclose their concerns and make recommendations. The plan is then updated

and finalised.

This step is in line with the S-O-R theory and is part of the management cognition phase where management is in control of the desired action.

6.4.10 Step 10: Issuing of the consultation letter

The step, which is the first step in line with the S-O-R theory, takes

cognisance of the Labour Relations Act, 66 of 1995, as amended in 2002. The

Act requires that a letter be issued to the affected employees that reflect the

organisation’s intention to consult with them on the organisational redesign. The

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specific information required in the letter is set out in Section 189. This letter

must precede the commencement of the organisational intervention.

6.4.11 Step 11: Second communication

This communication is directed at internal as well as external audiences and is

the second step in terms of the S-O-R theory.

The internal communication has to be addressed to the following audiences:

the line managers, the Executive Committee member concerned, and the

affected and non-affected employees of the business unit where the redesign

takes place. The Executive Committee member initiates the communication. The

message must be clear, succinct and consistent across the organisation, and

must contextualise the intervention by mentioning which employees are likely to

be affected, the duration of the process, reasons why the organisation has

decided to embark on the intervention, the detail of the process, affected

positions, and the view of the organisation on the state of its business and the

areas that are affected. The timing of the message is important. All audiences

should receive the communication at the same time to prevent rumours from

spreading.

Regarding the external communication the following audiences have to be

addressed: the affected key clients (large revenue-generating accounts) and the

affected non-key clients (small revenue-generating accounts). The CEO and the

top executives must communicate in person with the key clients and the

appropriate account executive must communicate in person with the smaller

clients. The message should be clear, consistent and persuasive, and must

contextualise the process, explain compliance with service level agreements

(SLAs), set out the duration of the process, reasons for the intervention, details of

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the process, extent of the intervention, affected business units and affected

positions.

6.4.12 Step 12: Consultation meeting (clarification)

The face-to-face consultation meeting required by the Labour Relations Act is

the third step in terms of the S-O-R theory. The meeting must be attended by

the affected line managers, the affected employees, the relevant business

executives, the Group Executive: Human Resources or Group Manager: Human

Resources (who conducts the meeting) and the Employee Communication

Forum representative (who represents the interests of the affected employees).

The purpose of this meeting is to clarify any information in the first letter that is

unclear to the employees. The employees are permitted to raise any concerns

about the process.

6.4.13 Step 13: Written representations by employees

As stipulated by the Labour Relations Act, the affected employees get an

opportunity to make written representations to the organisation on how they

believe the organisation should approach the redesign. This represents the fourth step in terms of the S-O-R theory.

Employees may also make suggestions on how the organisation may prevent job

losses and are given an opportunity to consult with their respective legal advisors

or trade union representatives to document their concerns and/or suggestions.

This is the fifth step in terms of the S-O-R theory.

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6.4.14 Step 14: Written replies by the organisation

In line with the Labour Relations Act the organisation must reply in writing to the

representations of the employees, and does so in consultation with its legal

advisors. This is to eliminate any legal risks for the organisation. This step boils down to the sixth step in terms of the S-O-R theory.

6.4.15 Step 15: Introducing the new organisational structure

The organisation provides the affected employees with the new organisational

structure in electronic and hard copy. This enables the affected employees to see

which positions are available and which have fallen away. The relevant job

grades, job titles, salary levels, job profiles and job specifications are also given.

6.4.16 Step 16: Inviting written applications

The employees are invited to submit written applications for the positions to the

Human Resources Practitioner who is the custodian of the process. They include

a cryptic CV and a synopsis of their aspirations. Where the managers feel that

the employees can add value to certain roles, they should encourage the

employees to apply for the relevant positions. This step is the seventh step in terms of the S-O-R theory.

6.4.17 Step 17: Schedule interviews

The Human Resources Practitioner who is the custodian of the process

schedules interviews with the relevant line managers, business executives and

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Human Resources Practitioners based on the written applications. This step is the eighth step in terms of the S-O-R theory.

6.4.18 Step18: Conducting interviews

Panel interviews are conducted with all the employees who submitted

applications. The panel consists of the relevant business executive (compulsory),

the line managers and the Human Resources Practitioners. The latter conduct

the first part of the interview to assess whether the candidate complies with the

behavioural requirements of the job; the line managers conduct the second part

of the interview to ensure that the candidate meets the technical requirements of

the job. This step is the ninth step in terms of the S-O-R theory.

6.4.19 Step 19: Discussing the findings

A formal meeting is scheduled with all the members of the interview panel. The

purpose is to discuss the suitability of the candidates based on the results of the

interviews. This process is formal and the meeting is chaired by the Group

Manager: Human Resources to ensure objectivity. This step is the tenth step in terms of the S-O-R theory.

6.4.20 Step 20: Populating the structure

The top management structure is populated first, after which the process is

devolved to the next levels. Each employee receives the formal feedback of the

interview panel. During the feedback session the Human Resources Practitioner

is present to ensure that the organisation is not exposed to legal risks and to

handle any emotional outburst that might be directed towards the manager who

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provides the feedback. This step is the eleventh step in terms of the S-O-R theory.

6.4.21 Step 21: Issuing letters to employees

The successful employees receive formal letters of appointment, after which they

attend an internal workshop to work through their negative experiences of the

intervention. They also get an opportunity to raise concerns about the process

and to suggest improvements. They resume their work in their new positions.

The unsuccessful employees receive letters of regret and attend an internal

outplacement workshop. During this workshop they get an opportunity to deal

with their being unsuccessful, and are guided towards managing their emotions

and preparing CVs for possible positions elsewhere in the organisation. This

consultation is informed by the stipulations of the Labour Relations Act. The

employees are invited to apply for voluntary redundancy and may leave the

organisation as soon as their application has been approved.

Information on employees applying for alternative positions elsewhere in the

organisation is regularly presented to line managers and the Human Resources

Division for consideration. If the employees are not placed in a suitable position

by the end of the consultation period, they receive a confirmation of retrenchment

letter that specifies their gratuity payment. This also occurs in terms of the Labur

Relations Act. On acceptance of the letter their services are formally terminated.

This is the twelfth step in terms of the S-O-R theory.

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6.4.22 Step 22: Process evaluation

The intervention must be evaluated in terms of internal outcomes: whether it has

improved productivity; the extent of “new blood” in the structure; whether the

business is more effective and efficient and more profitable; if employees are

correctly placed in terms of their skills; and the extent to which “dead wood” has

been cut. External outcomes are also evaluated: do clients view the intervention

as positive; is the business now aligned with market demands; was the time span

adequate; was the process too constrained by the law and too risk adverse; and

did the implementation period affect productivity and effectiveness. Should

negative outcomes be detected during the intervention they must be eliminated

by the improvement of the overall process? The process is reviewed with the

affected units at the conclusion of the intervention. This is the thirteenth step in terms of the S-O-R theory.

6.4.23 Step 23: Monitoring and managing the process

The Human Resources Practitioner who is the custodian of the intervention must

ensure that a counselling system is in place for employees and managers during

the process. He/she must also ensure that the process does not deviate from the

project plan; that everybody involved in the process adheres to the Labour

Relations Act; that decision makers are available to take important decisions; that

emotional distress among employees is monitored (anger, guilt, criticism of

management, tension, resistance, uncooperativeness, rumours, negativity,

aggression, low morale and unproductivity); and that decision makers are

contacted to institute remedial action as soon as problems occur. Research

assessing the consequences of organisational downsizing has primarily centred

on the effects of being a layoff survivor and the experience of job insecurity. It

suggests that employees suffer from decreased job satisfaction (Ashford, Lee &

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Bobko, 1989), a greater incidence of reported illness (Cottington, Matthews,

Talbot & Kuller, 1986; Dooley, Rook & Catalano, 1987; Kuhnert, Sims & Lahey,

1989; Probst, 1998), and increased psychological stress (Dekker & Schaufeli,

1991). The research also found that the more dissatisfied employees are with

their perceived job security the more frequently they will engage in absenteeism,

tardiness and task avoidance (Probst, 1998). This is the final step in terms of the S-O-R theory.

Having explained the substantive model above, I now compare it with what the

literature has to say about organisational downsizing. I will also indicate to what

extent the substantive model has incorporated the concepts regarding

downsizing.

6.5 REVIEWING SCIENTIFIC LITERATURE ON DOWNZISING

In addressing the literature on organisational downsizing I classify scholarly

findings and views in line with the scientific building blocks described by Mouton

(2002).

6.5.1 Definition of the different concepts related to downsizing

The following concepts are defined, as they are related and sometimes used as

synonyms for each other.

6.5.1.1 Downsizing

Nearly all scholars (Cascio, 1993; De Meuse, Vanderheiden & Bergmann, 1994;

DeWitt, 1993; Hall, 1996; McKinley et al., 1995; Mishra & Mishra, 1994;

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Mroczkowski & Hanaoka, 1997) associate downsizing with the process of

reducing the overall size of an organisation and, implicitly or explicitly (Cameron,

Freeman & Mishra 1993; Cascio, 1993; DeWitt, 1993), agree that the reductions

are achieved consciously and are expected to be permanent.

6.5.1.2 Restructuring

Scholars like Bowman and Singh (1993) and Bowman, Singh, Useem and

Bhadury (1999) define organisational restructuring as any major reconfiguration

of an internal administrative structure that is associated with an intentional

management change programme.

6.5.1.3 Reorganisation

Reorganisation is described as any major change in an organisation’s structure

for the purpose of better adaptation to the environment. This involves the

flattening of the organisation and results in larger spans of control, fewer levels in

organisational hierarchy, and the elimination of jobs (Probst, 2003).

6.5.1.4 Redundancy

Redundancy occurs when jobs are lost through reorganisation or the introduction

of technology (Bendix, 2003).

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6.5.1.5 Retrenchment

Retrenchment is attributed to cyclical downturns, market losses or other

economic factors that oblige the employer to reduce the labour force (Bendix,

2003, Kim, 2003).

6.5.1.6 Redesign

Redesign is broadly defined as changes in how the organisation operates. It may

include change in work processes; in relationships and coordination among

individuals, teams, departments or tasks; or in the specification or distribution of

tasks (Freeman, 1999).

6.5.1.7 Re-engineering

Re-engineering is a reconfiguration of work to better serve customers (and as a

consequence, to benefit shareholders) (Keidel, 1994). In the words of Hammer

and Champy (1993), re-engineering entails the “radical redesign of business

processes to achieve dramatic improvements in critical, contemporary measures

of performance, such as cost, quality, service and speed.”

6.5.1.8 Outsourcing

Outsourcing is a process where companies are inclined to farm out tasks that do

not fit their definition of strategy, priority or core competency (Groenfeldt, 2001).

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6.5.1.9 Delayering

Delayering is a conscious effort by an organisation to remove some of its

management levels to create a flatter structure that will make the organisation

more profitable and the remaining management jobs more challenging (Littlefield,

1997).

6.5.1.10 Integrated definition of organisational downsizing (redesign)

As already mentioned the current definition of organisational downsizing is too

limited. That is why I suggest the use of the following integrated definition for the

phenomenon: an organisation’s reaction to economic, social and socio-cognitive

triggers by reducing its permanent workforce within a complex regulatory

business environment in an attempt to improve profitability and productivity and

enhance local, national or international competitiveness.

I now proceed to discuss the literature on organisational downsizing.

6.5.2 Typologies of downsizing

McKinley, Mone and Barker III (1998, p. 201) outline managerial ideologies

drawn from and influenced by distinct cultural milieus, discrete historical contexts

and relatively powerful constituencies, and state that these are characterised by

strongly held beliefs regarding causal assumptions and outcomes that are

difficult to separate from values.

Previous research indicates that managerial ideologies in the first place serve to

regulate and direct managers’ behaviour. For example, Meyer (1982b, p. 46)

reports significant correlations between measures of managerial ideologies and

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the size of employee layoffs during a strike. Managerial ideologies also serve to

reduce uncertainty: they provide standardised interpretations of the environment,

lowering uncertainty about what is “out there” and reducing information

processing requirements. It is particularly attractive to managers who wish to

survive in a chaotic environment (McKinley et al., 1998, p. 202). In addition,

ideologies help managers to resolve the inconsistency between the norm of

rationality and the norm of speedy action. Planned action and not random

behaviour supports our lives. However, action should be swift. Therefore

ideologies offer pre-legitimised guidelines for ensuring economy of action and

preserving at least the appearance of rationality (McKinley et al., 1998, p. 202).

McKinley et al. (1998, p. 202) refer to the ideology of employee self-reliance,

which entails that top managers increasingly de-emphasise their loyalty and

expect employees to be responsible for their own employability, including

obtaining the training to win new assignments in the organisation. They are also

backing away from the responsibility of job preservation, arguing that traditional

guarantees of job security can no longer be maintained in a harshly competitive

environment. Employees are encouraged to concentrate on doing “good work”

rather than on becoming committed to an organisation or a boss. If an ideology of

employee self-reliance becomes institutionalised among top managers, they will

experience fewer ethical qualms about enacting downsizing. The self-reliant

employee also has less of a normative claim on financial assistance from his/her

employer in the event of job loss, which in turn lowers employee expectations

about the appropriate level of expenditure on severance, outplacement

assistance and other transition benefits (McKinley et al., 1998, p. 202).

McKinley et al. (1998) also examined the ideology of de-bureaucratisation.

According to them (McKinley et al., 1998, p. 204) authors promoting de-

bureaucratisation, e.g. Peters (1987) and Pinchot and Pinchot (1994), are

radical, because they advocate the destruction of bureaucracy or its

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transformation into alternative modes of organising. According to Peters (1987,

p. 453) the campaigns against bureaucracy must become strategic priorities of

the first order and, according to McKinley et al. (1998, p. 204), Pinchot and

Pinchot (1994) argue that bureaucracy represses individual liberty. In its various

manifestations de-bureaucratisation is consistent with the strategy of

organisational downsizing. The ideology evaluates administrative hierarchies

negatively and recommends the reduction or elimination of hierarchies as one of

its major subtexts. In destroying hierarchies, managers are almost inevitably

displaced from their jobs and the workforce of the organisation is consequently

reduced. The ideology of de-bureaucratisation also places value on smallness.

Most managers act in good faith when they predict the consequences of their

choices for concrete performance targets (McKinley et al., 1998, p. 205).

However, the problem is not managerial intent, but uncertainty. Managers’ ability

to anticipate the outcomes of a particular action with any degree of certainty is

limited. This is particularly true for downsizing, given its unpredictable record in

reducing costs, increasing profits and producing other tangible financial benefits.

Under such conditions, ideologies like de-bureaucratisation or employee self-

reliance reduce uncertainty, investing decisions to downsize with an aura of

rationality and cognitive comfort.

Budros (1999, p. 71) defines organisational efficiency as a technico-economic

standard for how well an organisation achieves its objectives, given its resources.

Effectiveness refers to an organisation’s ability to create socially acceptable

outcomes and actions. Although the point is seldom made, organisations may

downsize in an attempt to enhance their effectiveness. An organisational

structure involves distributions, along various lines, of people in social positions

influencing their roles and relations. Rational organisation scholars, such as

“Weberian” and “contingency” theorists, view organisations as efficiency-minded

actors that adapt structures and strategies in response to shifting environmental

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and/or organisational conditions so as to maintain internal control and

coordination. The logic underlying organisational innovation is rational when

organisations adopt innovations in reaction to competitive, economic, efficiency,

performance, and productivity, technical and related conditions that bear on basic

task demands. These organisations act in rational self-interest by acquiring

innovations that allow them to do things better.

A-rational organisation scholars, such as institutional and “human relations”

theorists, portray organisations as effectiveness-orientated actors that adapt their

operations in the face of internal and/or external pressures in order to obtain

survival resources such as legitimacy and loyalty. Organisational innovation is

based on a-rational logic when organisations innovate in response to cultural

institutionalisation (taken-for-grantedness), imitative, inter-organisational network,

politico-legal, socialisation and other processes with no direct bearing on internal

functional requirements. These innovators are motivated by a need to do the

right things in order to survive.

Another dimension of downsizing is social context. It specifies whether a causal

factor is organisational or extra-organisational. The organisational context

includes such organisational and sub-organisational (especially individual-level)

factors as level of bureaucratisation and leadership styles. The extra-

organisational context includes inter-organisational network, macro-structural and

institutional factors, such as director interlocks, business cycles and the taken-

for-grantedness of an innovation. In summary, the framework for studying

organizational innovation views organisational innovation as a function of factors

associated with two dimensions, namely the basis of organisational action and

social context.

Below are four rational organisational features of downsizing, each giving rise to

a proposition:

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• Surveys of downsizing in the United States indicate that mergers and

acquisitions have played a role in about ten percent of all downsizings.

This has led to proposition 1: “Downsizing rates will be higher among

organisations that execute many consolidations than among those that

execute fewer consolidations.”

• As advanced technologies allow organisations to operate with fewer

personnel, their introduction has produced downsizings. This has led to

proposition 2: “Organisations that make large investments in labour-

saving technologies will have higher downsizing rates than ones that

make smaller investments in these technologies.”

• Since 1980, many United States organisations have recognised that they

have high employee compensation levels and some of these

organisations have linked this condition to downsizings. This has led to

proposition 3: “Downsizing rates will be higher among organisations with

higher employee compensation levels than among those with lower

levels.”

• More generally, surveys reveal that bigger organisations are more likely

than smaller organisations to downsize. This has led to proposition 4:

“Larger organisations should have higher downsizing rates than smaller

ones.”

The following rational extra-organisational factors causing downsizing have led to

the definition of the next four propositions:

• Declining shareholder values upset shareholders, who often view the

substitution of existing and allegedly inefficient management with more

efficient management as a means of enhancing their values. As a result of

this opinion, managerial teams are thought to use downsizings to cut costs

and thus to boost shareholder values. This has led to proposition 5:

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“Organisations with smaller shareholder values should have higher

downsizing rates than those with larger shareholder values.”

• One way managers have achieved their goal of avoiding hostile take-

overs is by trimming costs through headcount reductions. This has led to

proposition 6: “Organisations under attack from raiders will have higher

downsizing rates than those not under attack.”

• Organisations competing in deregulated industries have been forced to

grapple with open competition, compelling them to increase efficiencies

through workforce reductions. This has led to proposition 7:

“Organisations in deregulated industries should have higher downsizing

rates than those operating in regulated ones.”

• Since the early 1980s, organisations have continued to cite business

downturns as a rationale for downsizing. This has led to proposition 8:

“Downsizing rates will increase during economic troughs and decrease

during peaks.”

The following a-rational extra-organisational factors causing downsizing lead to

the definition of some more propositions:

• An organisation with a tradition of employee-centeredness, that is placing

greater value on employees’ needs and interests than on short-term

profits, should eschew these programmes, since they seem to be

incompatible with a philosophy endorsing the humane treatment of

employees. An organisation lacking the latter philosophy should be

inclined to downsize, since downsizing seems to be compatible with the

organisation’s emphasis on the profit motive. This has led to proposition 9: Downsizing rates will be lower among employee-centred organisations

than among those that are not employee-centred.

• As finance CEO’s emphasise cost containment in handling corporate

dilemmas, they should be more likely than manufacturing and sales and

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marketing CEO’s to downsize. This has led to proposition 10:

“Downsizing rates will be higher among organisations with CEO’s based in

financial backgrounds than among ones with CEO’s based in other

backgrounds.”

• Focusing on directors who sit on corporate boards, it is predicted that the

greater the number of director interlocks with other organisations engaging

in an innovation, the greater the likelihood that the organisation will adopt

that innovation. This has led to proposition 11: “Downsizing rates will be

higher among organisations with many interlocks with past downsizers

than among ones with fewer interlocks with downsized organisations.”

• It is predicted that, as an innovation’s taken-for-grantedness (or

legitimisation) increases, that is as the percentage of organisations in a

network with an innovation increases, the innovation’s adoption rate will

increase. This has led to proposition 12: “As the taken-for-grantedness of

downsizing in an organisational network increases, downsizing rates in the

network will increase.”

• Organisations copy the structural and strategic innovations of highly

successful organisations. This has led to propositions 13 and 14: “As the

percentage of downsizers with elite economic standing rises, the

downsizing rate should rise” and “As the percentage of downsizers with

elite social structures rises, the downsizing rate should rise” (Powell,

1991).

• Cultural differences will lead to higher downsizing rates in industrial and

retail industries than in other (banking, diversified financial, life insurance

and utility) industries. Linking industrial cultures to downsizing has led to

proposition 15: “Downsizing rates will be higher in industries that are

highly competition-orientated than in industries that are less competition-

orientated.”

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Marshall and Yorks (1994, p. 81) are of the opinion that restructuring must be

directed towards positioning an organisation for the future, and not towards

implementing downsizing. In planning any restructuring, managers need a link

between the reorganisation and the company’s ongoing revitalisation, a link that

traditional methods fail to provide. That link requires a strategic approach that

enables executives to focus on ensuring that the organisation has the right

people in place after the reorganisation.

The Arizona Public Services Company (APS) wished to design the most effective

organisation for accomplishing strategic goals. The entire company was

redesigned. As the process filtered through the organisation, departments were

restructured. A cardinal rule of the process was that no one was guaranteed a

job. Staffing the new organisation, or redeployment, was the next step. At the

completion of the redesign, the organisation chart had 1 000 fewer positions, a

decrease of about 15%. APS shares five traits with other organisations that have

successfully followed the same model of strategic restructuring:

1) A strategic focus got senior management to raise and address the most

relevant issues and focus the organisation’s attention on organisational

and staffing issues. The more the team worked with the concepts of

strategic restructuring and redeployment, the more convinced they were

that many of the problems of downsizing and restructuring in the past

were the result of managers who asked the wrong questions. Three

factors convinced employees to participate. First was the continuing

emphasis on the strategic necessity for change. People realised “how far

out of kilter with the real world things were within the company”. Second,

senior management was to be affected by the restructuring as well. Third,

the senior management team made repeated presentations on

redeployment to re-staff the new organisation, so people realised that they

would be treated fairly.

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2) A thorough ongoing communication plan was designed and implemented.

The CEO communicated frequently and issued special newsletters and

hotlines where employees could ask questions and got answers.

3) A participative process was adopted to develop the organisational

framework. The actual structure is usually best developed from the bottom

up. The company informed the employees about its overall strategy and

actively engaged them in the redesign.

4) Positions were placed before people. Everybody involved in the redesign

process participated without any guarantee of his/her own employment.

5) Emphasis was placed on competency. The intention was to place people

according to their competence.

The following key steps were highlighted for the implementation of successful

redeployment:

• Maintain a thorough, ongoing communication plan.

• Spend enough attention and time on the new organisational design.

• Design a proper project plan detailing the timeframes of each step in the

process.

• Use an employee-assessment system based on the newly defined needs

of the business.

• Develop a system of reviews and appeals. An independent review board

should approve all reassignments before they are announced.

• Implement an internal placement programme. The goal of the programme

is to ensure that employees are placed in the jobs for which they are best

qualified.

• Develop an enhanced severance plan for employees who elect to leave

the company.

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• Provide special training to managers and employees at all levels. The

training must help them to communicate, select people and keep the

redeployment process moving.

• Plan for organisational recovery following redeployment.

Band and Tustin (1995, pp. 36-37) emphasise the difference between downsizing

and layoffs as a reflection of the operating environment in which each might

occur and the way in which each is handled. The common overt effect of each is

a net reduction in headcount and usually a net labour cost reduction. The covert

aspects are more critical to the strategic well-being of the company and will

ultimately determine its long-run profitability, quality of service and employee

satisfaction levels. Downsizing offers a host of strategic opportunities to an

organisation, whereas layoffs often result in negative long-term effects. Strategic

downsizing can happen during growth as well as decline, whereas layoffs are a

function of decline. Reducing headcount is one of the objectives of both

functions, but the way each is achieved is distinctly different. Downsizing has the

additional dimension that it plans for the future, whereas a layoff is usually an

immediate remedy for an immediate problem.

According to Band and Tustin (1995, p. 38) downsizing must be part of an overall

strategy to position the company for the long term and immediately raise and

maintain the overall productivity per employee. The planning phase is the first

step and the following checklist forms the basis of this phase:

• What is the focus of the downsizing strategy?

• What tools should be used?

• Who should implement/manage the downsizing process?

• What compensation will leavers receive and when will they receive it?

• What supportive programmes will be put in place for leavers?

• What supportive programmes will be put in place for stayers at all levels?

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• To what extent will employee representatives be involved in the planning

process?

• What information should be divulged to stakeholders?

• When should information be divulged to stakeholders?

• How are the leavers to be identified?

• When should the leavers go?

• How and when should the leavers be advised?

• How and when should the leavers’ jobs be reorganised to reflect the new

structure?

• What training will be necessary and who will conduct it?

The following considerations should also be taken into account when

implementing downsizing:

• Procedural justice. The process of redeployment or redundancy must be

fair and must be seen to be fair. The process of informing employees of

who will stay and who will be leaving must be properly planned and

documented.

• Communication. Effective communication with all employees before and

after the intervention will help to reduce its negative effects, particularly if

the communication fosters a sense of opportunity.

• Changing work conditions. A proper analysis of the skills needed in the

restructured organisation can be used to generate job specifications,

against which remaining employees can be matched.

• Employee involvement. Employee involvement is one of the best recipes

for gaining employee commitment (Murphy and Myors, 1998).

• Implementation and evaluation. By considering all the factors impacting

on the decision and plan to downsize, management should already have a

framework for implementation that complements the corporate strategy. It

is also important that the process is evaluated.

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Neilson (1990, pp. 45-47) indicates that dealing with the issue of overhead costs

requires attention to several dimensions, only one of which is the number of

people on the payroll. Enhancing organisational effectiveness and eliminating

unnecessary work to ensure that the remaining employees do not become

overloaded are also important. Restructuring of overheads is never easy, but is

often necessary and, if properly managed, can be a positive move for the

organisation. The following characteristics improve the effectiveness of overhead

programmes:

• Maintaining consistency with the strategy of the organisation. A

business strategy frames how the company will grow the business, leave

market areas and make investments. Frequently, shifts in the

organisational strategy do not correspond with shifts in corporate

overhead as if the overhead structure has some purpose independent of

strategic objectives.

• Focusing on the underlying drivers of cost and staffing. Restructuring

programmes should focus on the drivers, that is the underlying causes of

the work (“what”), rather than the people doing the work (“who”).

Companies with programmes that focus on who should leave often find

that much of the work does not disappear when people do, and some

work that has been eliminated ought to be done. The end result can be

lower costs but also a less effective organisation. The challenge is to be

creative in identifying, framing and modifying these workload drivers.

• Eliminate low-value work. A critical step is to ensure that the low-value

work actually does cease and is not hidden somewhere else.

Freeman (1999, p. 1505) contends that a comprehensive downsizing framework

should consider (1) tactics to reduce the size of the workforce, (2)

implementation processes during downsizing and redesign and (3) changes to or

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effects on organisational structures and processes. In the past, these dimensions

of downsizing have not been considered together, although a great deal of work

has addressed them piecemeal. In particular, the redesign that accompanies

downsizing has to be addressed more thoroughly. The literature reveals a lack of

integration of downsizing and redesign aspects. There has been relatively little

investigation of what kind of redesign allows organisations to accomplish their

tasks with fewer people.

The framework developed in Table 4 explicitly recognises interconnections

between organisational downsizing and redesign. In a downsizing context as

considered here, redesign will most often be geared towards anticipating or

accommodating the need to accomplish the organisation’s tasks with fewer

people.

TABLE 4: SUMMARY OF THE DOWNSIZING REDESIGN FRAMEWORK

Downsizing-redesign strategy

Downsizing drives redesign

Redesign drives downsizing

Downsizing tactics Less aggressive More aggressive

Implementation process Less selective More selective

Participation Less and narrower More and broader

Systematic analysis Less More

Communication Less More

Symbolic management Less More

Inter-organisational

relationships Less More

Downsizing changes

Restructuring changes

Avoid restructuring,

concentrate at lower

levels

More restructuring,

concentrate at higher

levels

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Downsizing-redesign strategy

Downsizing drives redesign

Redesign drives downsizing

White-collar workload Change work, individual

level

Change restructure,

organisational level

Other changes

Top management team Less More

Human resource

management Less More

Operating systems Less More

The premise of this study is that organisations use two basic strategies for

downsizing and its accompanying redesign: one where downsizing drives

redesign, and another where redesign drives downsizing. Freeman (1999, p.

1510) defines strategy as a pattern of policies and activities with strategic

consequences for the organisation. It can either be deliberate or emergent, and

thus includes both behavioural and idea-related aspects. It constitutes a link

between ideas and action. When downsizing drives redesign, downsizing is the

primary goal. The idea behind change is for the organisation to become more

efficient with fewer people. The focus is on making the organisation smaller. A

strategy where downsizing drives redesign is likely to produce low-level,

incremental change.

When redesign drives downsizing, on the other hand, redesign is the primary

goal. The idea here is to become different, to change the way work is

accomplished and, perhaps, and to define what work is important. This strategy

emphasises finding a new structure and processes to accomplish new tasks and

goals. Under such circumstances downsizing may become just part of a broader

change in the organisation and an outcome of redesign. Redesign may be used

to identify possibilities for downsizing, such as the merging of two departments

and the elimination of redundancies. Where redesign drives downsizing the result

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is likely to be organisation-level, discontinuous change, particularly if a new view

of the organisation is encouraged from the ground up.

According to Freeman (1999) the following processes during organisational

change have to be considered:

• Participation. Organisations may employ broad or narrow participation in

identifying the need for change. Broad participation encompasses both

horizontal and vertical decentralisation of decisions about downsizing and

redesign, as well as widely scattered sources of ideas for change. It has

been suggested that more extensive change leads to broader

participation.

• Systematic analysis. Systematic analysis facilitates broad-scale change

and is therefore necessary for a strategy where redesign drives

downsizing.

• Communication. Much of the organisation change literature cites the

need for communication when implementing change. Greater use of

communication (i.e. higher volume, more varied and richer media) is likely

where redesign drives downsizing.

• Symbolic management. Symbolic management includes reward

ceremonies, new vocabularies and inspirational rather than informational

speech. Greater use of symbolic management is required when redesign

drives downsizing.

• Inter-organisational relationships. Any organisation is embedded in a

network of organisations. Where redesign drives downsizing, this network

must be acknowledged more explicitly than when downsizing drives

redesign.

According to Freeman (1999, p. 1536) where redesign drives downsizing the

organisation is both more aggressive and more careful in its change

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management efforts than where downsizing drives redesign. Although the former

may effect many and extensive changes, and sometimes requires a great deal of

restructuring, it also uses more advance planning. There is also more effort,

through broad participation and communication, to include organisation members

beyond the top team in change efforts.

Trahant, Burke and Koonce (1997, pp. 17-18) mention that many organisations

do a less-than-spectacular job of managing in-house change initiatives, or

responding to changes in the external business environment. Studies indicate

that as many as two-thirds of all restructuring and re-engineering efforts fail in

some way, including living up to expectations.

For years, companies have used downsizing to cut costs, streamline their

structures and ostensibly improve operating effectiveness. However, there has

been mounting evidence that downsizing alone does little to improve

organisational performance or profitability, but can, and often does, dampen

employee morale and productivity. While assessments are a critical part of

planning successful transformation, assessments are only a starting point for

actually doing the work. Management also requires a set of operating guidelines

with which to manage their change plans. Such guidelines form a philosophical

and methodological framework for the change work they are doing.

According to Trahant et al. (1997, pp. 19-22) the following twelve guiding

principles should be borne in mind by organisations when they plan, design and

implement transformation:

• Understand the external environment within which your company operates and you will never be blindsided by your customers or your competitors again. In today’s rapidly changing business environment,

you must keep abreast of what is happening in the external environment if

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you wish to retain customers, build market share, outpace your

competitors or capitalise on new business opportunities. This means

anticipating trends or changes in the political environment that can impact

on the business climate. Even new technologies and scientific discoveries

can change the nature of business overnight.

• Enlist people’s passion and energy to support your company’s mission and strategy.

• Remember that although charismatic leadership may get the headlines, it is steady and consistent leadership that actually results in changes to the bottom line.

• To change an organisation’s culture, you must first change the behaviour of the people.

• Let service to customers drive your company’s structure.

• Implementing the right systems to support people in their work will help create the “climate of alignment” you need for success. To

motivate people to work in new ways, one should overhaul old-style

reward-and-performance appraisal systems and find other ways to create

an environment that reflects new business goals and a new corporate

mission and strategy.

• Managers must give employees what they need to succeed or, in some cases, get out of the way. Managers must be tuned into the best

ways to manage and motivate people in times of change.

• Teamwork is essential for success with any change effort.

• A productive employee is a happy employee. Stress the important link

between what employees do each day and the health of the organisation

and they will be motivated to perform at their best.

• Strive for a good fit between the skills people have and the everyday jobs they do. There is strong evidence that recruiting, selecting and

matching people carefully to the jobs they are best at have a major impact

on performance. Paying attention to this detail as part of managing

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change can make all the difference between achieving breakthrough

business success and realising only lacklustre organisational

performance.

• Remember that employees are people too. In the age of mergers and acquisitions, downsizings and restructurings, creating a new kind of partnership with employees is clearly important to business success. As organisations move away from providing people with lifelong

job security, they create anxiety and insecurity in the very people they

wish to make more productive. That is why career development, employee

coaching and mentoring and other kinds of assistance provided by top

people can send the message that the company cares about them, even

as it is communicating new work expectations and realities to them.

• Beware of false indicators of success. Recognise that the broad and balanced approach is the only way to successfully sustain organisational performance.

De Meuse, Bergmann, Vanderheiden & Roraff (2004, p. 155) report that during

the current economic turbulence, executives are searching for strategies that will

enable their organisations to survive and grow. One approach is downsizing, the

benefits of which are: (1) reduction of operating costs, (2) elimination of

unnecessary levels of management, (3) streamlining of operations, (4) pruning of

dead wood, (5) enhancement of overall effectiveness, and, ultimately, (6) making

a company more competitive in today’s marketplace (Byrne, 1994). Despite the

frequency of downsizing interventions, very few, if any, scientific data support the

efficacy of this strategy (De Meuse & Marks, 2003). It may be that executives

simply assume that the overall benefits outweigh the costs.

Although the efficacy of downsizing in respect of organisational performance has

been discussed in the media and professional literature, academic journals have

published few empirical studies or theoretical papers on this topic. Nevertheless,

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there appears to be two different theoretical perspectives on the impact of

downsizing on financial performance: the psychological contract perspective and

the economic perspective.

According to De Meuse et al. (2004, p. 157) the psychological contract theory

proposes that a mutual relationship emerges between employees and their

organisations. Whereas the employees are expected to work hard and be

committed to updating their job skills and promote the organisation’s goals, the

organisation is expected to provide stable employment, offer competitive wages

and benefits, and provide opportunities for individual development and

promotion. If either party perceives that the other one has violated this

agreement, negative consequences can occur. For instance, employees may

perceive a downsizing as the employer’s disregard for the responsibility to

provide employment and a positive work environment. This may adversely affect

employee performance, which in turn will negatively impact on the organisation’s

financial performance.

The literature suggests that individuals may lose their motivation to perform or

their long-term commitment to the organisation, and/or neglect activities that

directly benefit organisational goals. In extreme instances, employees may even

engage in sabotage or retaliatory behaviours (Bouno, 2003). Overall,

organisations are likely to experience a number of adverse consequences when

they engage in a major change, such as lower employee morale and job

satisfaction, additional employee stress, increased cynicism and distrust of top

management.

The economic perspective focuses primarily on the economic effect of

organisational downsizing (De Meuse et al., 2004, p. 158). It assumes that

executives engage in downsizing to reduce costs and enhance financial

performance. Built on an “economic/rational paradigm” (McKinley et al., 2000),

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the economic perspective proposes that downsizing affects a company’s financial

performance positively, because it enables management to eliminate

redundancies, streamline operations and reduce labour costs. Although

perceptions of downsizing have been researched, actual measures of financial

performance have hardly been investigated. Cascio (1998, p. 69) concludes that

downsizing per se does not appear to either improve or harm financial

performance.

The economic perspective theorises that managers implement downsizing

because it will have a positive financial effect on the organisation (McKinley et

al., 2000). Many corporate executives believe that when an organisation gets into

financial trouble due to lagging sales or rising costs, cutting the size of the

organisation is a normal, effective response. The findings of this study (McKinley

et al.’s, 2000) support the assertion that downsizing works. Three years after the

intervention was announced, the organisations were no longer under-performing.

It seems that downsizing helped them to improve their financial success when

compared to non-downsizing organisations.

I have classified the typologies that I discussed above into conceptual

frameworks, ideologies, approaches and guiding principles. The next step is to

attend to models of downsizing.

6.5.3 Models of downsizing

Smeltzer and Zener (1992, p. 446) are of the opinion that when organisations

wish to minimise the trauma of downsizing, they should ensure that news on

layoffs is appropriately communicated to employees. The message and the

manner in which managers communicate these changes may have a profound

impact on the remaining employees and other stakeholders. According to

Smeltzer and Zener (1992, p. 447) little empirically based research is directed

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specifically at the communication of layoffs. The literature usually presents

practical advice that is not research based. However, researchers have neither

carefully studied this phenomenon nor addressed how layoffs should be

appropriately announced (Pfeffer, 1982).

According to Smeltzer and Zener (1992, p. 447), Schweiger and DeNisi (1991)

found that realistic communication can help employees cope with the effects of

mergers and acquisitions. The researchers concluded that by sharing frequent,

honest and relevant information about mergers with employees, an organisation

could help to reduce their negative impact on organisational effectiveness. A

literature-based model, using a contingency approach, was developed by

(Smeltzer and Zener, 1992). The strategy for announcing a layoff is contingent

on the nature of the change and the organisational dynamics.

The following three assumptions existed when the study was initiated:

• The announcement of the layoff would dominate the termination process. According to Smeltzer and Zener (1992, p. 447) this initial

conception was somewhat naïve: if extensive rumours were running that a

major layoff was about to take place, the official announcement became

relatively meaningless, an anti-climax.

• The organisation would have a formalised approach for introducing the layoff. The conclusion was that most organisations did not

systematically develop an approach for announcing a layoff.

• The researchers would be able to separately analyse the messages intended for internal and external audiences. This was not the case.

The same official letter introducing the layoff was used for both the internal

publics and the external financial publics.

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The above assumptions were dismissed and the importance of the following four

variables was established:

• Rumours. Even though the layoff was expected, its direction and

magnitude were drawn from rumours, as were the types of potential

change. The information was inaccurate and the rumours were so prolific

that the employees did not give much attention to the official

announcement.

• Culture. The most important aspect of culture was the history of layoffs in

both the organisation and the industry. In the case study, layoffs were a

common (cyclical) event in the organisation and the industry and thus part

of a common cultural theme. The second most dominant cultural

component was the credibility of or trust in top management. The more

employees trusted management the more they seemed to believe the

announcement and did not “read” between the lines.

• Climate. Organisational climate refers to employees’ perception of a

situation or event and is strongly related to culture. Climate is more

temporary than culture. Employees perceived the climate as conveyed by

management to be one of optimism about growth.

• Timing. The official announcement was frequently made at an

inappropriate time.

The following six variables emerged as major considerations:

• Legal implications. Organisations are not paying attention to potential

legal ramifications.

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• Diversity of employees addressed. News of layoffs affects everyone

differently. Perceptions may differ dramatically. The announcement should

take these factors into consideration.

• Management perceptions compared to employee perceptions. Management thought layoffs were a relatively minor event, whereas the

remaining employees perceived them as a major change. If the

communication does not take these differences in perception into

consideration, the wrong employees may leave the organisation.

• Top management’s support of the change. In this study the board of

directors determined that a major layoff was necessary. Top management

was to inform the employees that a major reduction would take place and

that it would be executed by the various management levels. Employees

detected that the managers were not convinced of the necessity of the

restructuring.

• Geographic dispersion of employees. This is strongly related to timing.

The organisation has to ensure that the communication is dispersed to all

areas at the same time.

• Cost. Employees concluded that the more the money that was spent on

communication the more sensitive management was to employee

concerns.

• Refined model. The communication model should be changed based on

the dictates of the circumstances.

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Based on the case analysis and literature review, Smeltzer and Zener (1992, pp.

462-463) recommend the following when layoffs are announced:

• As layoffs are a sensitive issue and their impact on the released and the

remaining employees is broad, a strategy is critical.

• The long-term organisational history as well as existing rumours, culture

and climate should determine the timing, content and tone of the

announcement.

• Rumours have such a large impact on culture, climate and timing that

organisations must have an informal rumour control system.

• It is important that employees hear about the layoff from management

before learning it from the media. Loss of management’s credibility and

employees’ trust tends to be common when employees hear about layoffs

through other sources first.

• Management has to acknowledge that employees find layoffs a

controversial issue, even though management and outside audiences may

regard them as mundane and rational actions.

• Multiple audiences require multiple announcements. Internal and external

audiences should not be considered comparable; even internal audiences

may require differentiated announcements.

• Legal concerns must be taken into account when layoffs are announced.

• Management has to determine whether managers and supervisors

support the layoff and whether they will be the best people to announce

the layoff to employees.

• The kind and amount of information management communicates to

employees about a layoff have to be carefully considered for legal and

competitive reasons and to avoid controversy. If management is

compelled to announce a layoff before all the details have been obtained,

it is best to limit the information to what is known for certain.

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• The richness of the channel has to be considered: a richer channel should

be considered when the layoff is complex and expected to be viewed as

controversial by employees.

McKinley et al. (2000, p. 227) compare three theoretical perspectives on

downsizing, namely the economic, the institutionalisation and the socio-cognitive

perspectives, which better explain the phenomenon of downsizing.

With the economic perspective, scholars assume that downsizing is caused by

a search for productivity and efficiency, whether in response to organisational

decline or as a means to enhance profitability under non-decline conditions.

However, the economic perspective was questioned recently because of

researchers’ inability to find consistent positive relationships between layoffs or

downsizing and subsequent financial performance. These null findings suggest

that the causal forces driving downsizing and restructuring may be more complex

than a pure economic perspective can account for, although the search for

concrete financial benefits is likely to explain many downsizing initiatives.

According to McKinley et al. (2000, p. 227), to complement the economic account

of downsizing, scholars recently called on the institutionalisation perspective

to help explain widespread downsizing. These scholars argue that downsizing is

impelled by social conventions that define it as “good” or “effective” management.

In a process that DiMaggio and Powell (1983) refer to as “coercive isomorphism”,

managers conform to such conventions in exchange for legitimacy. As described

by McKinley, Sanchez and Schick (1995) the institutionalisation of downsizing

also stems from “cloning” responses to uncertainty, as well as from “learning”

dynamics, in which downsizing is reinforced through career rewards and

professional interaction.

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McKinley et al. (2000, p. 227) feel that, although the institutionalisation

perspective represents a promising addition to the economic model of

downsizing, it is necessary to push the conceptualisation of downsizing one step

further. To fully understand downsizing, management scholars have to explore a

third model, the socio-cognitive perspective, which elaborates on the micro-

level foundations of the institutionalisation theory of downsizing.

Concern with the micro-level foundations of institutionalised practices has been

increasingly prominent in recent neo-institutional literature, and calls for paying

attention to the cognitive basis of institutionalisation. McKinley et al. (2000, p.

234) argue that a socio-cognitive perspective based on this literature has the

potential to relocate the explanation of downsizing from the macro level of an

organisational profits or institutional rule to the micro level of managerial

cognition. As shown in Figure 4, a fundamental assumption that spans the

diverse literature on managerial cognition is that managers, like other actors,

impose schemas on external information domains that require interpretation.

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Figure 4: Downsizing schema evolution and institutionalisation among managers

Downsizingis ineffectiveand unethical

StakeholderIdeologies

Downsizingis ineffectivebut ethical

Downsizingis effective

but unethical

Downsizingis effectiveand ethical

Social interaction amongst managers

Power andAuthority

ConfirmationBias

Collective schema:Downsizing

Effective

Disappearanceof perceivedchoice and

responsibility

Reified schema:Downsizing is

inevitable

Continualrestructuring

CognitiveOrder

Downsizingis ineffectiveand unethical

StakeholderIdeologies

Downsizingis ineffectivebut ethical

Downsizingis effective

but unethical

Downsizingis effectiveand ethical

Social interaction amongst managers

Power andAuthority

ConfirmationBias

Collective schema:Downsizing

Effective

Disappearanceof perceivedchoice and

responsibility

Reified schema:Downsizing is

inevitable

Continualrestructuring

CognitiveOrder

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McKinley et al. (2000, p. 234) define a schema as an organisation of experience

that serves as an initial frame of reference for action and perception. Schemas

provide a simplified representation of the information environment to which they

are applied. This reduces the information processing demands placed on the

individual decision maker and imparts meaning to external stimuli that do not

contain such meaning intrinsically. Schemas also frequently develop as products

of social interaction and are negotiated in a consensus-building process that

gradually produces standard typifications. The origins of the schema recede from

consciousness and the schema becomes transformed into an institution, which is

“there, external to (the decision maker), persistent in (its) reality, whether he likes

it or not. This reification process transforms agreements negotiated through

social interaction into external social realities.

According to McKinley et al. (2000, p. 235) multiple schemas about downsizing

compete for credibility and legitimacy early in the process of institutionalisation.

They are also likely to be differentiated in terms of underlying cognitive

dimensions that reflect fundamental disagreements about downsizing in the pre-

institutionalisation stage.

The four schemas portrayed on the left side of Figure 1 suggest that beliefs

about downsizing at the pre-institutionalisation stage are diverse.

McKinley et al. (2000, p. 236) point out that from a cognitive point of view, an

important step in the institutionalisation of downsizing as a taken-for-granted

strategy is the collectivisation of a standard downsizing-is-effective schema.

Schema packing can be conceptualised as a reduction of alternative available

schemas about an event or phenomenon, through the consolidation of those

schemas into a single template.

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Since schema packing is a cognitive process, it operates at the individual level of

analysis, but within a collectivity, such as an industry or organisational field.

Schema packing in the case of downsizing first involves the subordination of

ethical criteria to effectiveness criteria in managerial thinking about downsizing. It

has become increasingly difficult to maintain an ethical evaluation of downsizing

or restructuring that is independent of the organisational effectiveness dimension.

In the final packing stage, where available managerial schemas coalesce toward

a single downsizing-is-effective template, stakeholder ideologies and

power/authority play key roles. Beyer (1981, p. 168) defines an ideology as a

relatively coherent set of beliefs “that bind some people together and that explain

their worlds in terms of cause-and-effect relations”. Over time, ideologies frame

and filter the way information is used in organisational decision making, analysis,

and evaluation, acting as a control on the cognitions and behaviours of

adherents. Radical restructurings are viewed as good for performance and

“efforts to protect employees simply hurt the bottom line”.

McKinley, Mone and Baker III (1998) identify two other ideologies, that is self-

reliance and de-bureaucratisation (McKinley et al., 2000, p. 237). To the extent

that constituencies espouse the ideologies of shareholder value, to that extent

employee self-reliance and de-bureaucratisation have power, and the

convergence of available schemas towards a single downsizing-is-effective

template will be enhanced. Schema diffusion takes place largely through social

interaction among managers, both within and across organisational boundaries.

Age differences among interacting managers seem to have a particularly strong

influence on the diffusion of a particular downsizing schema, as younger

managers tend to have a conception of the social contract between employee

and corporation that differs from that of older managers. Furthermore, if

managers trust the ultimate decision makers, they are less likely to require

concrete evidence of the effectiveness of downsizing and are more likely to

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accept the downsizing-is-effective schema as a communally validated social

product.

Once a single schema portraying downsizing as effective begins to be shared

collectively, it functions as an important source of meaning and cognitive order

for managers. If managers begin to see downsizing as inevitable, they are likely

to implement a downsizing programme quickly, in order to gain whatever

competitive advantage downsizing is believed to offer vis-à-vis rivals. From the

perspective of top management, restructuring generates order given that it

appears to bring the organisation into conformity with a continually changing

environment.

In conclusion, the typical downsizing decision is likely to be informed by a mixture

of future performance expectations, conformity to institutional rules that define

downsizing as legitimate and effective, and the socio-cognitive dynamics that

underlie the origins of those rules. I now turn from international scholars’

theoretical constructs of organisational downsizing to the only local model of the

phenomenon, namely that of Donald (1995).

6.5.4 A downsizing model for South Africa

Donald (1995) mentions that declines during economic recession in the past

were caused by normal and expected economic processes, which periodically

created excess supply in the market for goods and services. Declines could be

interpreted as temporary and variable costs and could be reduced through

retrenchment. In contrast, the current turbulence in South Africa indicates a long-

term and pervasive market reorganisation and the breaking down of historic

boundaries. In reaction to the economic turbulence and new managerial

philosophies, companies are restructuring. Managing restructuring is becoming

more important as the “mission redefinition” and turbulence problems replace

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“business cycle” problems as the major determinants of market dynamics and

structure. The following factors (Donald, 1995) will force organisations to

consider restructuring:

• Technological innovations are resulting in a whole new way of doing

business.

• Technological development has rendered the skills of millions obsolete

and has forced others to scramble to keep up with their rapidly changing

fields.

• Cost and other competitive considerations on both a national and an

international level have induced companies to become “lean and mean” in

order to achieve a better balance between effectiveness and efficiency.

• Mergers and acquisitions also cause retrenchments. This typically occurs

when a new corporation eliminates staff duplication and unprofitable

divisions.

• Business re-engineering, which is the “fundamental rethinking and radical

redesign of business processes”, is being adopted increasingly to raise

the performance of organisations in an ever more competitive and

changing environment.

• National economic shifts also affect businesses. The shift in the United

States from manufacturing to service-based industries has left workers

who were trained in labour-intensive industries without marketable skills

for a service-orientated economy.

• The changing business environment has seen a reduction in the degree of

protection executive management is prepared to provide to the workforce.

All too often, when the organisation experiences a downturn, whether it is

due to the business cycle, changing markets and technology, or just poor

management, the quickest and most often used remedy is to reduce staff

(Harrison, 1986).

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• The decision to retrench is generally taken when alternatives fail to

achieve the desired effect in turnaround or numbers, or when

retrenchment is seen as preferable to other alternatives. However,

Harrison (1986) notes that there is evidence that in some cases decisions

to reduce staff is made early and without serious attempts to find creative

alternatives that might realise substantial savings without the negative

costs and consequences of mass discharge.

Curtis (1989, p. 673) in Donald (1995) is of the opinion that organisational

models that focus on cutbacks or retrenchments have been treated as unique

and that researchers view them as conditions of emergency. Furthermore,

Cameron, Sutton and Whetten (1988) contend that there is a stigma associated

with the topic of organisational decline that causes researchers to avoid studying

the topic, management educators to avoid teaching the subject, and managers to

resist participating in such research. This means that the subject is more difficult

to study than organisational growth or effectiveness. Consequently, little is known

about the dynamics of the change process during retrenchment and its

implications for organisations. In particular, there has been little research on the

psychological and social dynamics of the process (Krantz, 1988), although

retrenchment is one of the most extreme decisions that management can make

(Bunning, 1990). The phenomenon of retrenchment is in urgent need of a model

that illustrates its process, dynamics, social forces and organisational impact.

According to Donald (1995) such a model would provide the basis for greater

understanding of and research into the phenomenon. He feels that the role of

managers in the interactive social dynamics of retrenchment, their contributions

during the exercise, the multiple pressures they are faced with, and their coping

with these dynamics have not been addressed and need to be appreciated.

The use of a general strategic human resources model for retrenchment that

includes its implementation is proposed by Appelbaum, Simpson and Shapiro

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(1987). The model provides one of the most comprehensive and detailed

approaches to strategic concerns in the retrenchment process and is

summarised below:

• Step 1: Problem recognition and initial decision: This involves recognising

the need for retrenchment and a thorough evaluation of the business and

an analysis of performance trends.

• Step 2: Strategic planning: A strategic plan is developed for the company

in which the role of retrenchment is evident.

• Step 3: Alternative considerations: A company considers all options

before committing itself to retrenchment.

• Step 4: Preparatory actions: Management ensures that its plan conforms

to all statutes, union agreements and regulations. Communication plans

are developed to notify the stakeholders. The cohort of affected

employees is analysed and appropriate compensation plans are

developed.

• Step 5: Specific action plans: Strategic planning decisions are translated

into workable plans to ensure that no issues remain unaddressed.

• Step 6: Downsizing programme components: The proposed programme

of compensation, support and outplacement is formally communicated.

• Step 7: Communication and implementation: All affected employees are

informed about their severance package at the appropriate time.

• Step 8: Assistance to displaced employees: This includes counselling

seminars, job search workshops and placement services.

• Step 9: Follow-up and rebuilding: The company rebuilds employees’

confidence and its image among shareholders, suppliers, customers,

competitors, financial institutions and the community.

• Step 10: The future: The project is effectively monitored and evaluated

after its completion.

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Existing approaches to retrenchment reflect a prescriptive stance and do not

contribute to a greater understanding of the underlying process and its dynamics.

In other words, there is a clear focus on formal procedures and processes, and

the underlying social or behavioural dynamics are neglected. Consequently,

there is little in the way of comprehensive theory or model building on the

retrenchment process as a whole and limited contribution to theory in the area.

There is a clear need for conceptual work on how the process of retrenchment

unfolds (Donald, 1995).

The model designed by Donald (1995) has five phases.

1) Phase one relates to decision-making that initiates the retrenchment. It

consists of the following stages:

• Occurrence of an event or situation, such as mergers and

acquisitions, restructuring, new technology, market forces and

recessionary conditions.

• Subjective decision made on the basis of a personalised

interpretation of the event/situation.

• Strategy review of retrenchment, including short and long-term

goals, a thorough evaluation of the business, an analysis of

performance trends, a review of cost savings and the consideration

of alternatives to retrenchment.

• Executive management’s decision to retrench, which calls for

determining the nature and direction of the process, and specifying

the desired outcomes.

2) Phase two consists of design and planning and has the following stages:

• Setting up decision-making structures, which means that

responsibility for the decision to retrench, is delegated to senior

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management although the executive decision maker retains some

form of control.

• Planning of implementation, which represents an effort by

management to address multiple concerns in a systematic and

specified manner.

• Initiation of retrenchment, which prepares members of the

organisation for the retrenchment and its effects.

3) Phase three entails the announcement and reflects a shift from general

strategic and operational concerns to the personalisation of the

retrenchment exercise by interacting with individual employees. This

phase includes the following stages:

• Development of logistical arrangements, which means the

finalisation of the list of employees to be retrenched.

• Preparation for announcement, which entails setting up guidelines

for the structuring of the retrenchment.

• Announcement of the retrenchment, which includes a formal letter,

group briefing, formal personal interviews that cover notification of

retrenchment and details of the package, in-depth interviews that

include counselling, and informal interviews that cover notification

of retrenchment and counselling.

4) Phase four is the time when the organisation comes to terms with what

has happened and managers facilitate working through the trauma of the

retrenchment.

5) Phase five is the aftermath. The organisation initiates formal recovery

steps.

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6.5.5 Other important contributions to the study of downsizing

In this section I refer to scholars from abroad who made important contributions

to the study of downsizing.

1) Abbasi and Hollman (1998, pp. 31-32) state that workers are short-term

expendable costs to be jettisoned at a moment’s notice when profits are

tumbling. The steady drumbeat of layoffs in recent years has made many

workers feel that the days of career security are gone for good, no matter

how dedicated they may be. This has altered the psychological covenant

between workers and organisations (Burke & Nelson, 1998, Kozlowski,

Chao, Smith & Hedlund, 1993).

2) Downsizing may take several forms. Organisations re-organise and

restructure to increase efficiencies or economics of scale, delayer to

eliminate layers of bureaucracy and reduce payroll expenses, outsource

certain functions in order to focus more resources on key competencies

and use contingent workers to meet demand increases and help keep

payroll costs down. Some organisations slash jobs in response to

declining economic conditions, mergers and acquisitions, plant

obsolescence or the transfer of operations overseas. Others react to a

shift in demand for a product or service or to increasing automation.

Whatever the ostensible cause, many companies apparently gauge their

success by how many divisions they eliminate and how many levels of

middle managers they cut out. They seem to feel that a workplace

compact is necessary only for the most valued workers.

3) Keidel (1994, pp. 13-14) contends that restructuring typically means

reconfiguring organisational units, often large ones. Whole divisions or

business units may be combined, disaggregated or closed. Business

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functions such as information systems and distribution may be united,

integrated into other business units or cast out. Restructuring, which

almost always implies job loss, is often called rightsizing or downsizing.

The former term is usually no more than a euphemism for the latter, which

itself is a euphemism for layoffs. Restructuring approaches, especially

when they are layoff-driven, are numerical exercises grounded in

economics. The rationale may be survival or increased growth and/or

profitability.

4) Cascio (1993, p. 95) is of the opinion that approaches to organisation

management and design have to be changed so as to gain benefits from

downsizing or planned job layoffs. The expected economic advantages of

downsizing often do materialise, particularly in respect of higher

investment return and increased profit, but also in respect to higher

productivity, better communication and reduced overheads. Personnel

cuts must be an integral part of a continuous effort to eradicate inefficiency

and waste Casio, 1998).

5) Lewin and Johnston (2000, p. 45) report that as a result of the changes in

the business environment and their concurrent impact on corporate

structure, the past several years have seen seemingly endless cases of

organisational downsizing. They often take place in large organisations

that used to enjoy a degree of immunity from retrenchments. However,

even when the economy as a whole expands, many organisations

continue to downsize. Thus experts believe that downsizing is merely an

early stage of continuing, long-term, socio-economic evolution towards a

permanent shift in social, economic and organisational structures.

6) According to Lewin and Johnston (2000, p. 46) companies that obtain a

competitive leadership position through asset parsimony have

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successfully challenged the “bigger-is-better” corporate paradigm.

Organisations now feel compelled to downsize because being “lean-and-

mean” is believed to be a valued attribute. Some institutionalisation

theorists argue that three institutionalisation forces (coercive isomorphism,

mimetic isomorphism and normative isomorphism) have played a

significant role in the spread of corporate downsizing. Coercive

isomorphism pressurises organisations to conform to institutional rules

that define legitimate structures and management activities; mimetic

isomorphism pressurises organisations to mimic the actions of

organisations recognised as industry leaders; and normative isomorphism,

which emerges through management practices learned at professional

conferences and seminars, and through traditional university curricula and

contemporary executive education programmes, and formal and informal

networks, pressurises managers to conform to currently accepted

management practices and philosophies.

Many believe that the increased use of technology will reduce the need for

several layers of middle management, thus enhancing organisational

competitiveness by reducing overall operating costs. Moreover, “flatter”

organisations are expected to become more flexible and responsive to

market and competitive dynamics by reducing the time lag between

decision and action.

7) Shaw and Schneier (1993, p. 1) point out that there have been numerous

cases of organisations delayering their structures over the past few years.

Many of these organisations are industry leaders who are rarely satisfied

with their past success and continually seek to improve all facets of their

business, including their management structure.

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8) According to Shaw and Schneier (1993, p. 6) most organisations achieve

their delayering objectives either “completely” or “largely”. The most

commonly achieved delayering objectives are to reduce costs, improve

productivity, push decision making down to lower levels and increase the

organisation’s responsiveness. Speeding up decision-making was noted

as a delayering objective by almost all of companies participating in the

Shaw and Scheiner study, yet only half believed they “completely” or

“largely” met the objective.

There are several changes that organisations view as critical to the

success of delayering: changing job responsibilities and accountabilities,

restructuring work processes, increasing communication and changing the

performance measurement and appraisal systems.

9) Allen, Freeman, Russell, Reizenstein and Rentz (2001, pp. 157-161)

observe that their study contributes to the growing literature examining the

effect of organisational downsizing on survivors in several ways. First,

past research has been extended by their field research on attitude

change over time. (In general, most of the employee attitudes studied

were significantly less favourable during the quarter following the

downsizing than before or right at the beginning of the downsizing. The

most negative attitudes occurred immediately after the downsizing.

Thereafter attitudes generally reached more favourable levels.) Second, a

new conceptual perspective has been added to this area of inquiry by

Allen et al.’s (2001) demonstration of the potential applicability of work role

transitions theory to the examination of survivor reactions.

In conclusion, the following interesting themes emerged from the literature:

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1) Although employees’ satisfaction with top management continues to

increase after the downsizing, their job involvement continues to

decrease. This may indicate that despite employees’ satisfaction with how

top management is leading the downsized organisation, they are still

reluctant to immerse themselves fully in their work for a considerable time

after the downsizing.

2) After a period of time employees begin to feel reasonably secure in their

job and become more willing to remain with the organisation.

3) Organisations may keep downsizing survivors committed to their work and

loyal to the organisation by providing role clarity, reducing role overload

and increasing satisfaction with security and top management.

4) All elements contained in the preceding model developed by (Donald,

1995) and specifically its main steps may be categorised into the following

main headings:

• Internal and external triggers

• Communication strategy, including which audiences should be

addressed

• Outplacement programme

• Posing de-bureaucratisation of the organisation as the trigger

• Running a monitoring programme while downsizing is in progress

• Communication with all stakeholders

• Donald’s (1995) process

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6.6 CONCLUSION

In this chapter I presented a substantive model by applying the conditional matrix

and by incorporating the socio-cognitive theory into it. The socio-cognitive theory

derived from the behaviouristic paradigm better contextualised the substantive

model than other paradigms because it referred to internal and external triggers

of downsizing. The planning phase was well aligned with the orientation phase

where management owned the process and ensured that downsizing was indeed

the correct action to take, was affordable and that all relevant stakeholders were

informed. The final (response) phase of the theory complied with the action that

management had taken by implementing the appropriate steps. Thus, by

showing how the S-O-R theory supports the substantive model, the internal

validity of this model was increased because this model was perfectly aligned

with a proven theory.

Various theoretical concepts have been developed by scholars. Based on

Mouton’s (2002) scientific building blocks, I classified these concepts into

typologies and models. I concur with Mouton (2002) that typologies only have

characteristics in common which is one of the most basic functions of a

conceptual framework and was evident in the literature classification. These

ideologies, conceptual frameworks, approaches and guiding principles do have

characteristics in common that would classify them as typologies. The

substantive model that was developed has a heuristic function. In other words,

the identified categories have an explanatory relationship with one another.

In Chapter 2 I referred extensively to the scientific building blocks cited by

Mouton (2002). This gave me a clear understanding of the concepts used by

scholars. It also helped me to use these concepts consistently when I referred to

any one or more of the concepts. Furthermore, it enabled me to question the

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term “theory” in “grounded theory”, which motivated me to illustrate that the term

“theory” indeed refers to typologies, substantive models and theories. In addition,

it assured me that I had indeed developed a substantive model.

It was clear throughout the study that the literature identified shortfalls in the

development of proper scientific models for organisational downsizing. The views

of Krantz (1988), Curtis (1989), Cameron et al. (1988) and Donald (1995) are

relevant in this regard. As mentioned above, Donald (1995) developed a model

for organisational downsizing for South Africa at a time when the country was

entering a new era in labour relations. The current Labour Relations Act was

promulgated in 1995, enacted in 1996 and updated in 2002 with specific

reference to the sections referring to downsizing. As downsizing is one of the

largest interventions in any organisation, the use of this model will put

organisations in a position to downsize in a more coherent and systematic

manner than was the case before, and in a manner that takes cognisance of a

very complex legal framework.

In Chapter 7 I will discuss the specific contributions of the study and make

recommendations for further study.

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PPAARRTT SSIIXX



I provide a synopsis of the study, discuss

its most significant contributions and

their implications, assess the study,

reflect upon my experiences of it and,

finally, outline areas that in my view

deserve further attention.

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7 PRÉCIS, IMPLICATIONS AND RECOMMENDATIONS

7.1 INTRODUCTION

In this chapter I provide a synopsis of the study, discuss its most significant

contributions and their implications, assess the study, reflect upon my

experiences during the study and, finally, outline areas that deserve further

attention.

7.2 SUMMARY

Chapter 1 contextualised the study by presenting the rationale for undertaking it,

formulating the research problem, specifying the study’s aims, indicating the

study’s anticipated value and outlining its methodology and quality assessment.

From the literature it became clear that researchers shy away from studying

organisational downsizing, management trainers are reluctant to teach the

subject and managers are apprehensive of participating in research on it. This

uneasiness with organisational decline and retrenchment implies that there is

much more to downsizing than first impressions would suggest.

I found very little knowledge about the dynamics of the change process, in

particular the psychological and social dynamics, despite the fact that downsizing

is one of the most extreme actions that organisations engage in. This made me

realise that the study of retrenchment is in urgent need of scientific advancement.

More specifically, I was convinced that some carefully constructed model would

provide a basis for building scientific knowledge of downsizing while also

directing additional research into it. Such a model could also provide South

African organisations with a formal structure that takes account of our very

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complex legal framework. I was convinced that research into the everyday work

life of managers who deal with downsizing and human resources together with

the leadership literature would provide a golden opportunity to scientifically

expose the downsizing process in a way that is at least new in South Africa.

I believed that as the Group Executive: Human Resources of a listed South

African ITC company I was ideally positioned to launch research into our

company’s experiences of downsizing. I was sure of the cooperation of senior

executive colleagues who were involved in the downsizing process we had

developed shortly before. Moreover, after acquainting myself with qualitative

research practice I realised that my insider involvement in our intervention would

be invaluable for an explorative local study of downsizing. Not only had I been

directly involved in devising our company’s downsizing intervention but I had also

had the privilege to closely observe many employees’ experiences of the

innovation over a number of months. My insider understanding would also assist

me in selecting the most suitable research participants. However, this did not

blind me as to the possible negative effects of my position, such as the research

participants’ possible hesitation to be completely open about their experiences

and ideas. Nevertheless, I was convinced that conducting the study overtly and

as full participant would help me to properly appreciate the social construction of

downsizing.

As to the contribution of the research I anticipated the following:

1) Generating scientific knowledge: By employing a qualitative methodology

to describe the experiences and views of staff of a downsizing intervention

recently implemented by a local company I would be able to generate

scientific knowledge leading to the illumination of downsizing as

phenomenon. In turn this might lead to applying the insights to relevant

abstract concepts constructed by scholars working in the fields of

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industrial psychology, organisational studies, human resource

management and leadership.

2) Redefinition of policy and practice: By studying the workability of a

downsizing innovation in a listed South African ITC company, one could

redefine the company’s downsizing policy and practice and even compile

guidelines for use by similar local businesses.

3) Advancement of qualitative research: The refinement of the application of

modernist qualitative research and particularly case study research could

advance the position of qualitative research in the local study of human

resource management and leadership in organisations.

4) Fulfilling my ideal: As senior executive of a listed company my study could

lead to sharing new knowledge with the broader South African business

community.

I also pointed out that whilst most definitely valuable, it was not the intention to

reflect on the social implications of the implementation of the downsizing model.

The objective of the study was also not to evaluate this model.

Chapter 2 offered a description of my research premise, namely that only

through experience and understanding of their social environment are individuals

able to attach meaning to it. Thus I set out to study the managers’ and some

executives’ construction of the company’s downsizing interventions as reflected

in their portrayal of their experiences during individual and group interviews and

in their written communication. More particularly, I explored, described and

appreciated their concrete experiences of and perspectives on the innovation. I

first explicated their construction of everyday experiences and viewpoints and

then extracted relevant abstract concepts from the literature to illuminate these.

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This enabled me to develop a scientific process for use by my company in

refining its downsizing innovation further.

I was acutely aware of my potential insider bias and therefore decided to discuss

my thoughts and research plans regularly with Prof. Schurink, and from time to

time with the CEO of my company and fellow students and colleagues. These

debriefers reinforced my objectivity and my consciousness of the need to stay

objective throughout the scientific endeavour.

In Chapter 2 I also defined the core terminology I would use with reference to

how the scholarly use of the terminology supported my views. In addition, I

described how I envisaged applying the existing theoretical concepts. In order to

accomplish this I used Mouton’s (2002) building blocks of science so as to clarify

the relationship between the core theoretical concepts.

I used grounded theory to analyse the data. From the literature I learned that the

term “theory” in grounded theory is not and should not be used to develop only

one theoretical concept, namely “theory”, but should be used to develop

conceptual frameworks such as theories, typologies and models. This led me to

appreciate that I might construct any symbolic tool or building block of science for the development of a substantive model for organisational

downsizing.

I opted for a single exploratory case study to (1) explore and describe

employees’ social construction of my company’s recently implemented

downsizing interventions and, based on this, (2) provide a social science basis

for this process, if not refine it. Moreover, because of the study’s qualitative

nature, I decided to apply grounded theory primarily.

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I selected people who had the best possible knowledge of my company’s

downsizing process as my data sources. Therefore I chose two top executives and four senior managers who had applied this particular process in their business units, and one regional human resources consultant who was the custodian of the process. I requested them to compile essays and send them

to me by electronic mail or to grant me one-on-one structured interviews. I also

conducted focus group interviews.

I audio-taped all interviews with the consent of the participants and sent the audio

tapes to professional transcribers for typing, and they sent the transcriptions back

to me in electronic as well as hard copy format. I decided to use both descriptive

and reflective field notes in the research.

Chapter 3 describes how I operationalised grounded theory by first defining a

grounded theory process, which became the blueprint for the application of

grounded theory in the study. I also presented the natural history of the study,

and did so in an auto-ethnographic style, that is telling the story of the study in

terms of my personal experience of it.

In Chapter 4 I discussed open coding or the process of breaking down the data

into distinct units of meaning. As a rule, this starts with a full transcription of an

interview, after which the text is analysed line by line in an attempt to identify key

words or phrases that connect the research participant’s account to the

phenomenon under investigation. I identified 107 open codes and linked them to

illustrative quotations from the interviews.

In Chapter 5 I discussed axial and selective coding. During axial coding

disaggregated data are put back together in new ways, by making connections

between categories. I developed 78 categories. These formed the basis for the

selective coding. Selective coding entails the integration and refinement of

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categories. The first step in integration is deciding on central categories. Central

categories (sometimes called core categories) represent the main themes of the

research. They have analytic power, because they pull other categories together

to form an explanatory whole. I developed 23 central categories, which became

the main steps of the substantive model.

I used the ATLAS.ti 5.0 software, a powerful tool for the qualitative analysis of

large bodies of textual data. It helped me to explore the complex phenomenon

that was hidden in the data (organisational redesign), kept me focused on the

analysis of the data and helped me to manage, extract, explore, compare and

reassemble meaningful pieces from large amounts of data in creative and flexible

yet systematic ways. It also allowed me to quickly analyse the transcripts and e-

mails and award open codes as basis for the study. I then numbered these

codes, which was useful during the axial and selective coding and when

clustering the codes into logical code families (categories), ATLAS helped me to

link quotations to codes much more quickly than would have been the case with

manual coding.

However, ATLAS could easily create too much distance between the data and

me. Therefore I complemented the electronic coding with manual coding in

respect of the axial and selective coding. For the manual coding I used wool and

“post-its” of different colours. I put a few sheets of flipchart paper on a long wall

and started to build the model from the codes that I had extracted with the aid of

ATLAS. The differently coloured post-its resembled concepts, categories and

core categories. These I linked with the differently coloured strings of wool to

indicate the different relationships between the categories. I reviewed the codes

and their relationships until the substantive model emerged. I then updated all the

codes within ATLAS. The updated codes became part of a schedule for the focus

group discussions. During the discussions we further refined the model until we

reached a point where no further new information emerged.

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In Chapter 6 I applied the conditional matrix, incorporated socio-cognitive

theory into the diagram and indicated its applicability to the model. I outlined the

socio-cognitive theory and finally contextualised it within the downsizing

literature. I used the conditional matrix25 to specify the social, historical and

economic conditions that might have had a bearing on my company’s downsizing

interventions. This linking of micro and macro elements showed what a

sociological theory of action should look like.

In management research the stimulus-organism-response (S-O-R) perspective

emphasises the mediating role of the manager between environmental stimulus

and behavioural response. The S-O-R theory appeared to be highly relevant to

my substantive model since the model’s four phases could be perfectly aligned

with all the phases in the S-O-R perspective. The fact that the substantive model

was amenable to the S-O-R theory increased the overall internal validity of the

model. The substantive model consisted of the following core steps:

• Step 1: External triggers

• Step 2: Internal triggers

• Step 3: Business audit

• Step 4: Manager initiates the process

• Step 5: Initial communication

• Step 6: High-level planning meeting

• Step 7: Approval from the Group Executive: Human Resources

• Step 8: Detail planning meeting

• Step 9: Information meeting

• Step 10: Issuing of consultation letter

• Step 11: Second communication

25 To my surprise I found that in practice a conditional matrix was included in very few grounded theory studies.

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• Step 12: Consultation meeting (clarification)

• Step 13: Written representations by employees

• Step 14: Written replies by the organisation

• Step 15: Introduction of new organisation structure

• Step 16: Inviting of written applications

• Step 17: Scheduling interviews

• Step18: Conducting interviews

• Step 19: Discussing findings

• Step 20: Populating the structure

• Step 21: Issuing letters to employees

• Step 22: Process evaluation

• Step 23: Monitoring and managing the process

Step 1 in the S-O-R theory refers to the external organisational context, step 2

refers to the internal organisational context, steps 3 to 11 refer to individual and

collective managerial cognition, and steps 12 to 23 refer to action.

I then turned to the literature to determine whether the substantive model

covered all the areas of organisational downsizing. I found that the substantive

model did indeed cover most of the areas that were referred to in the literature.

The areas that were covered more extensively related to the audiences who

should be involved in the process, the two types of communication processes,

the two levels of planning meetings, the information meeting and the evaluation

process. The model was also in line with the Labour Relations Act (Act 66 of

1995), as amended in 2002.

I believe that this model will equip local organisations to implement downsizing in

a more coherent and systematic manner than was the case before, and at the

same time assure them that South Africa’s complex legal framework has been

taken into account.

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7.3 BRIEF NOTES ON LOCAL STUDIES THAT INFLUENCED THE STUDY

In this section I refer briefly to Donald’s (1995) downsizing study and a few

grounded theory studies that had a bearing on my study.

7.3.1 Donald’s downsizing study

Donald’s study covered more than organisational downsizing; it also dealt with a

retrenchment process, including the emotional condition of managers involved in

it, the emotional well-being of affected employees, the post-announcement phase

where managers work through the trauma of the intervention and the aftermath

during which the organisation implements formal recovery steps. As the study

was conducted before the enactment of the current Labour Relations Act, the

legal issues arising from the Act do not feature in the study. Certain generic

aspects were not sufficiently covered by Donald, namely the planning phases,

the communication process and the monitoring and evaluation phases. These

phases do not receive the attention it deserves.

7.3.2 Key local grounded theory studies

Quite a few South African scholars have launched grounded theory studies in the

organisational, leadership and change fields. They are Donald (1995),

Groenewald, Strümpfer and Lessing (2001), Du Toit (2002), Williams, Crafford

and Fourie (2003), Claassen (2004), Whitehead (2002), Smith (2004) and Nell

(2005). Nell’s study in particular was very important – it gave me the idea to

develop a process for operationalising grounded theory. Nell used Goulding

(2002) to outline this process, whereas I used a variety of scholarly work.

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Furthermore, Nell encouraged me to use the ATLAS software for coding.

However, none of the studies above applied a conditional matrix, which is a

serious oversight. They could also have gone further in applying grounded theory

than merely basing their applications on the literature. This urged me to refine the

grounded theory approach in a local application.

7.4 KEY DISCOVERIES

I gained a number of insights into organisational redesign and realised that this

phenomenon was here to stay for a long time. I discovered the following

regarding organisational redesign:

• Some organisations downsized because they wished to follow the

example set by their competitors and did not want to be seen doing

nothing in this regard.

• This highly contentious business phenomenon was not well researched

and intellectual tools for addressing this important organisational change

were lacking in South Africa.

• In South Africa I found only one model of downsizing, namely that of

Donald (1995). However, as the current Labour Relations Act was

promulgated in 1996 and amended in 2002, a new redesign model was

required that would take cognisance of the Act’s section on retrenchments.

• Local organisations did not have a scientific tool to guide them during

restructuring.

• South Africa’s complex legal framework was not captured in scholarly

tools for restructuring.

• South African organisations, like organisations abroad, restructured

intuitively or did “knee-jerking”.

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• Although organisations might have developed in-house processes and

might have been using legal practitioners extensively in their downsizing,

their litigation costs would probably be quite high because the legal

tribunals would not recognise their internal processes.

These “discoveries” supported the aim of my study, namely to develop a scientific

tool to guide South African organisations in a structured manner to redesign

within a complex legal framework.

7.5 ASSESSMENT OF THE RESEARCH

Based on my study of scholarly views on the quality of qualitative research I took

care to ensure that my research would comply with particular qualitative criteria.

These I divide into general qualitative research criteria and grounded theory

criteria.

7.5.1 General quality criteria of qualitative research

Below I outline how my study measured up to standards of qualitative research

developed by researchers.

7.5.1.1 Peer debriefing

I used peer debriefing by continually discussing my research decisions with my

promoter, my company’s CEO, fellow students and colleagues. This enabled me

to make objective decisions and to consciously avoid influencing the outcome of

the study. For instance, I heeded my colleagues’ advice to define internal and

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external triggers for the substantive model and their inputs on concepts that

should be incorporated under each super category.

7.5.1.2 Member checking, or host recognition

In contrast to the normal practice of inviting research participants once to

comment on the researcher’s reconstruction of their social world, I frequently fed

my research findings back to the research participants, inviting them to comment

on the adequacy and accuracy of my interpretations. In fact, in the final analysis

they recommended that I rename my substantive model, which led to the

amendment of my thesis title.

7.5.1.3 Authenticity and trustworthiness

I applied this criterion extensively in that I kept a comprehensive diary which I

updated daily over the five months of the study. This is elaborated on in my

natural history presented in Chapter 2.

7.5.1.4 Credibility

This criterion, which is closely related to the previous one, was demonstrated in

the natural history, which indicated how I planned and executed the study.

7.5.1.5 Reflectivity

I clearly defined the key details of the research process in Chapter 2. I described

the major features of the information technology company I was working for,

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including its establishment and development, its geographical spread in South

Africa (and some other African states), its exchange listing, the number of

employees and its adoption of black empowerment.

I also continuously reflected on the methods used and key steps taken during the

execution of the study. As far as grounded theory is concerned, Nell (2005) gave

me the idea to set up a roadmap to operationalise grounded theory. My wife,

Arin, alerted me to the applicability of the S-O-R theory when she challenged me

to consider theories that should be incorporated into my study. My CEO

encouraged me to explore how communication should be approached during

downsizing, which I extensively covered in the final substantive model. My

promoter challenged me to find a logical solution to the problem of presenting

central constructs in social science research. He also assisted me in the

construction of the interview schedule, guidelines for writing the solicited

documents and the structure of the focus group discussions. During the

compilation of the thesis I continuously reconsidered and reworked my initial

ideas.

I was acutely aware of my potential insider bias and therefore regularly discussed

my thoughts and research plans with Prof. Schurink. In fact, I arranged a meeting

with him every fortnight. These meetings lasted on average five hours, covering

various methodological issues as well as my potential subjectivity and its

minimisation and the extent of my participation in the various discussions. We

also decided that I should disclose the aim and nature of the research, its

duration and the amount of time I would spend on it.

I realised that my position as senior executive in my company was to my

advantage in that it acquainted me with the social worlds of the research

participants, gave me intimate knowledge of the organisation and its downsizing

process and sources of information on it. However, the research participants’

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awareness of my knowledge could have led them to modify their behaviour. The

effect of this variable was minimised by my personal rapport with my colleagues

(the participants) over a number of years.

I interacted with the participants in different ways during the study. I also made it

clear to them that I would incorporate my own experiences and viewpoints in the

study. The research participants ensured that I remained objective, as their

inputs were informed by their interest in helping to build a scientifically legitimate

downsizing model for the company.

7.5.1.6 Transferability

I regularly asked myself the following questions: What could the study add to the

company’s current knowledge on downsizing? What had to be done to claim that

the study’s findings had relevance beyond my information technology company?

I argued that since my substantive model was largely governed by the current

Labour Relations Act it might be transferred not only to organisations in the

information technology sector, but also to South African businesses in general.

However, since the cultures of organisations differ the model would have to be

customised for a specific organisation.

In conclusion, I believe that I employed the generally acknowledged criteria for

quality research and that my study therefore reflects quality research. I now turn

to grounded theory and illustrate its successful use in this study.

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7.5.2 Criteria of grounded theory

Avolio (1995); Bass; 1990, Bryman, Bresnen, Beardsworth and Keil, 1988;

Chenitz & Swanson, 1986; Alvesson, 1996; Strong, 1984 and Yukl,1994 call for

the use of more qualitative methodologies in leadership research, in particular

that of grounded theory. Parry (1998) emphasises the importance of sensitivity to

emergent theory when implementing grounded theory. This implies that the

researcher must understand the relevant existing theory before engaging in a

grounded theory study. This prior understanding must however not force the

development of a theory that is not fully supported by the data.

The notion of leadership as social influence relates mainly to the social and

psychological dimensions of organisational change. Grounded theory research

into the leadership process is therefore different from, although related to,

organisational change research. The grounded theory method has some

potential weaknesses, though. These relate mainly to the concepts of validity and

reliability.

According to Parry (1998) grounded theories are difficult to generalise (validate)

because they are derived from a particular setting. Furthermore, it is very difficult,

but not impossible, to replicate grounded theory studies because no two

situations are alike (Glaser & Strauss, 1967). Moreover, it is particularly difficult to

conduct grounded theory studies in organisations because of the ethical

dilemmas that arise when external scholars wish to observe the behaviours of an

organisation’s managers (Locke, 2003). These constraints limit the overall

popularity of grounded theory research studies in organisations.

Scholars are criticised for not tracing back the data that were analysed, which

weakness I sidestepped by introducing a roadmap before I engaged in grounded

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theory. In addition, they are criticised for not developing theory when they apply

grounded theory, which criticism was countered by my finding that grounded

theory can be used to develop typologies, substantive models and theories, and

my alignment of the substantive model with Mouton’s (2002) scientific building

blocks.

The danger of using categories and terms taken from personal experience to

identify research categories and define a substantive model was avoided by my

self-conscious approach to the use of grounded theory.

Another concern often raised is that the application of coding procedures

becomes so mechanistic that researchers compromise their objectivity. To

prevent this I applied electronic as well as manual coding.

Every student will have a different perspective on any piece of scholarly work. My

view will most certainly differ from those of many readers, which I do respect. As

human beings we are not perfect and I have no doubt that I also made mistakes.

However, I feel that I have to the best of my ability eliminated the mistakes and

that those that did slip through do not detract from the primary purpose of the

study, namely the development of an organisational redesign model.

7.6 IMPLICATIONS AND CONTRIBUTIONS

My “discoveries” have various implications, and I now turn to the most apparent

ones.

Methodologically, I made the following contributions:

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• Using Mouton’s (2002) scientific building blocks, I extracted clear concepts

that facilitated the construction of the organisational redesign model and

provided a basis for the further development of scientific knowledge on

organisational redesign. I found the term “theory” in grounded theory to be

restrictive; it had to be expanded to include typologies, models and

theories.

• I applied grounded theory in quite a pure manner, consulting existing

theoretical concepts only at the end to consolidate my insights. Although

we all bring our personal experiences and biases into our studies, I refuted

arguments that grounded theory had to be used with analytical induction. I

found grounded theory to be sufficiently systematic to produce quality

findings.

• Constructing a roadmap for implementing grounded theory was invaluable

and paved the way to improve the application of the approach at least in

local research.

• Applying a conditional matrix in particular represented an important step

forward in the application of grounded theory, as conditional matrixes are

generally absent from local grounded theory studies.

• My use of both electronic and manual coding was an advantage. Manual

coding enabled me not only to cross-check the electronic process but also

to remain immersed in the data. It also enabled me to add codes to those

originally identified by the Atlas software.

Theoretically, the substantive model pointed to important current theoretical

considerations:

• Internal triggers for downsizing were drawn from different literature

sources and thus increased the comprehensiveness of the study.

• Two kinds of communication processes were derived from the literature:

initial and subsequent communication.

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• The planning meeting mentioned in the literature gave rise to three

planning processes: high-level planning, detailed planning and an

information meeting.

• The literature assisted in identifying audiences to be involved in the

downsizing.

• Monitoring and evaluation during and after a downsizing intervention were

incorporated in the model.

• The substantive model of organisational redesign incorporates current

South African labour relations legislation.

In conclusion, the study revealed the social reality of executives, senior

managers and a human resources practitioner involved in downsizing in a listed

information technology company. The organisational redesign model that

emerged is not only important for this company’s downsizing interventions but

could also assist other South Africa organisations faced with downsizing,

particularly because the model takes cognisance of the complex legal framework.

The study highlights that planning and communication are central in downsizing,

and that impulsiveness is very harmful. However, the substantive model has to

be submitted to the High Courts to obtain an order that will allow courts to accept

the model as legally and scientifically legitimate. Local organisations using this

model should save much in litigation costs when challenged on the procedures

they followed during downsizing.

From a policy perspective the study led to my company’s updating and

amending its policies so as to incorporate all the steps outlined in the model. At

present templates to be used for each of the steps in the process in order to

assist managers in the consistent application of the model, are being developed

and the model will be put to the test within the next two months.

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7.7 PERSONAL REFLECTIONS

My uncertainty at the beginning of the study turned into confidence and

enjoyment towards the end. Prof. Schurink’s unique style of providing guidance

and encouragement had much to do with this. He pointed me to all the relevant

issues and literature. Our fortnightly meetings kept me focused.

I realised that qualitative research should not be entered into lightly – it should

not be viewed as a way to avoid quantitative methods and it required a firm

commitment. I found the immersion into my search for meaning and what

organisational redesign was all about enlightening, and that this was only

possible through tapping into the worlds of the research participants. Although I

was uncertain at the outset about the outcome of my interaction with the research

participants, their understanding of the phenomenon under study impressed me

in the end; so did their uninhibited feedback on where the model should be

improved and how the core categories should be named. Their suggestion for the

name of the model even led to the change in the title of the thesis.

The observation and interview period was short and easy compared to the

theorising period (capturing the substantive model). I had to allow grounded

theory to lead me. However, I was not as all sure whether my blueprint for the

operationalisation of grounded theory would result in an acceptable substantive

model. But it did, owing to my determination and perseverance.

Another complicating factor was that I had to complete the research by the end of

September 2005 (my company was only prepared to provide me with assistance

and resources up to this time) and had to do so amid my daily work

responsibilities and amid the expectations I believed others had of me and the

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study. This resulted in my sleeping at most four to five hours a day for the

duration of the study!

At times I had serious doubts as to whether I was doing the right thing. However,

my family and Prof. Schurink were there to support me. I still wonder whether I

would have been able to complete the study if they had not been around. My tight

timeframe was an advantage, though. It kept me focused and prevented the

intensity of my involvement from becoming too overbearing.

At the outset, probably because of my loss of contact with formal academic study

for twenty-three years, I was at a loss. I did not understand the concepts and

terminology of qualitative research. However, as I started to read more about

grounded theory I became more confident. It was nevertheless only after I had

the grounded theory roadmap documented that I knew for certain where I was

going.

There is not much literature on the application of grounded theory except for

Goulding’s (2002) work, which was quite useful as point of departure. My

progress did however gain significant momentum when I mastered the ATLAS

software and started to deduct meaningful codes from the transcripts. The

ultimate highlight was when I managed to do the manual coding and constructed

the substantive model over a weekend.

When Prof. Schurink agreed that I could write up my research I realised that I

was nearing the end of my mission. Thus I took leave from 6 to 13 August 2005

to write most of the thesis. I worked long hours and by 13 August 2005 I was

exhausted but gratified. Prof Schurink remained a pillar of strength in this time

and his quick feedback kept the momentum going.

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Overall the study was extremely rewarding, insightful and stimulating. What really

kept up my spirits was that I was able to complete it in a relatively short space of

time without compromising quality. I was never separated from the study for more

than a day at a time, which in turn resulted in sustained concentration.

The jump from completing a master’s degree to achieving a Ph.D. was

enormous. I most definitely had no idea as to what effort it would take to

complete a doctoral study. I cannot imagine succeeding in this endeavour without

the sustained support of my employer, family and promoter. Would I have

attempted this study if I had had hindsight of the difficulties? The answer is an

unconditional “yes” because of the interesting, insightful and stimulating nature of

the study.

In conclusion I learned the following from this study:

1) I would never have been able to apply grounded theory if I had not created

a roadmap for myself at the outset of the study. There is just too much

evidence of research novices who find the application of grounded theory

so complex that they are tempted to give up.

2) I would have struggled to study organisational redesign if I had been an

outsider to my company; I would not have had the support that I had had

during this study. Outsiders find it difficult to gain access to the research

site and the most relevant groups and individuals for participant

observation, and if multiple organisations are to be studied, the problem is

even worse (Locke, 2003, p. 111).

3) The good understanding of the meaning of the various scientific concepts I

gained enabled me to know at all times what I was looking for and that

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grounded theory could be used for the development of a substantive

model as well.

4) I combined electronic and manual coding and in this way ensured that I

would identify all the relevant concepts, categories and core categories.

Overall, my experience with qualitative research was an exciting journey from

beginning to end: I often did not know what was going to happen next, but was

sufficiently stimulated and curious to continue to uncover the phenomenon to the

bone.

7.8 RECOMMENDATIONS

The recommendations below relate to four broad areas.

7.8.1 Leadership and change studies

With regard to leadership and change studies I suggest the following:

• A model has to be developed on how to deal with employees who remain

behind after an organisational redesign, particularly within the context of

different reactions to the intervention among different race groups.

• A change process has to be developed that will sensitise all stakeholders

in the redesign process.

• A formal model for dealing with mergers and acquisitions has to be

created, and this must be done in line with the current Labour Relations

Act.

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7.8.2 Future research on organisational redesign

With regard to the substantive model I suggest the following:

• Although I am certain that the substantive model could be used in other

organisations in the information technology sector, the applicability of the

model across industries should be studied.

• A proper interview model should be developed that covers position-related

and competency-based questions to assist line managers to select the

most competent employees for the job.

• A formal communication process for organisational redesign in South

Africa has to be designed, attending to how, what and when to

communicate to the different audiences, including different race groups.

• A process to support affected employees and line managers to deal with

the stress arising from the intervention should be created.

• A proper outplacement process should be devised for South African

organisations to counter the emotional turmoil of affected employees.

• The conceptual integration of the substantive model of organisational

redesign with the S-O-R theory (a behaviouristic paradigm) and the mode

2 management process (action-related management) should be

empirically studied.

7.8.3 The company where the study was conducted

With regard to my company the following are recommended:

• The company should design an outplacement process to accommodate

the diverse demands of the different race groups.

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• The financial division should formalise the business audit to enable proper

assessment of the financial implications of downsizing and make informed

decisions on the available options.

• The marketing and communication divisions should develop a template on

downsizing to ensure that the messages conveyed to stakeholders are

accurate and appropriate.

7.8.4 The Ph.D. course in leadership and change

I would like to advise future Ph.D. students of leadership and change who wish to

use grounded theory to do the following:

• Create a roadmap based on a reading of the literature before beginning

with the study. This will help them to understand what grounded theory is,

how to operationalise it and what methods can be used for gathering

information. Although grounded theory is extensively discussed, how to

operationalise it is not spelt out.

• Use the ATLAS.ti 5.0 software. It is well suited to grounded theory studies.

• Combine manual coding with electronic coding, especially during axial and

selective coding. This will facilitate verification of the codes and exposure

of additional codes.

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7.9 CONCLUDING NOTE

I would like to conclude with the following two quotes, which I feel summarise my

decision to undertake this doctoral study as well as my experience of it pretty

well:

• “Never regard study as a duty, but as the inevitable opportunity to learn to know the liberating influence of beauty in the realm of the spirit for your own personal joy and to the profit of the community to which your later work belongs.” (Konrad Lorenz)

• “I do not know what may appear to the world; but to myself I seem to have been only like a boy playing on the sea-shore, and diverting myself in now and then finding a smoother pebble or a prettier shell than ordinary, whilst the great ocean of truth lay all undiscovered before me.” (Isaac Newton)

oooOOOooo

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AAANNNNNNEEEXXXUUURRREEESSS

9 STUDY PROGRESS: A VISUAL DISPLAY

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10 LIST OF ANNEXURES

10.1 ETHICS OF THE DEPARTMENT

FACULTY OF MANAGEMENT SCIENCES26

ETHICS IN RESEARCH: GUIDELINES AND PROCESS

1. Aim

The ethics of science concerns what is wrong and what is right in the

conduct of research. Because scientific research is a form of human

conduct, it follows that such conduct has to conform to generally

accepted norms and values as determined by the scientific community

(Mouton, 2001). The scientist has the right to search for the truth, but

not at the expense of the rights of other individuals in society. Herein

lies the importance of ethics in research.

The aim of this policy is to

create an awareness of the importance of applying ethical principles when

conducting research, and

to provide guidelines on how to incorporate ethics in research.

26 This document is currently in draft due to the merger between the Rand Afrikaans University and Technikon of the

Witwatersrand to form the University of Johannesburg and is in the process of being finalised. This study however

adhered to the ethics as stated in this document prior to the official merger.

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2. Domain of application

The document applies to all forms of research conducted in the faculty. This

includes, but is not limited to, research by staff members, students’ research and

contract research projects.

3. The context of these guidelines

The guidelines should be interpreted within the broader framework of policies and

codes of ethics that exist in the university, e.g. University Of Johannesburg’s core

values, the code for academic ethics, the code for ethics in tuition and any other

applicable guidelines for ethical conduct. Researchers that are registered with or

affiliated to professional bodies need to also interpret the guidelines of relevant

professional associations to ensure alignment. Funding agencies may require

adherence to their own specific guidelines on ethics.

4. The role of the Faculty Ethics Committee

The main aim of the committee is to promote ethics in research in the faculty. In

this regard it has an advisory and educational role, e.g. the co-ordination of

efforts to educate researchers on ethics, the compilation of the guidelines as

proposed in this document, as well as the design of a procedure to ensure

adherence to the guidelines.

5. Guidelines 5.1 Ethical obligations of researchers

The broader ethical obligations of researchers and research supervisors are to

do value-adding research

set high standards in research, teaching and practice

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familiarise themselves with research and reporting methodologies

familiarise themselves with research ethics and applicable guidelines

ensure that those under their supervision

o are adequately equipped with research skills

o are adequately familiarised with principles of research ethics

o adhere to these principles

o maintain an awareness of the principles throughout the research

process.

5.2 Specific guidelines

In being ethically accountable, researchers aspire to

1. Achieve objectivity and maintain integrity, by

Setting high ethical standards in research, teaching and practice

Always indicating the limits of their findings and the methodological

constraints that determine the validity of such findings

Representing areas and degrees of expertise accurately and justly

when required to submit their credentials

Fully reporting on findings

Refraining from misrepresenting results

Refraining from fabricating, falsifying or changing data or observations

at all costs

Ensuring the ethical use of psychometric instruments and the results

thereof.

2. Record and disclose their own data, by

Being prepared to disclose their methodology and techniques of

analysis

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Co-operating to make raw data and final results available to other

researchers except in cases where confidentially, the client’s rights to

proprietary information and privacy or the claims of a fieldworker would

be violated

Keeping research data for at least three years.

3. Follow ethical publishing practices, by

Including appropriate reference to the contributions made by all

participants in the research

Acknowledging the work of co-researchers, research students,

research assistants and technical officers in any publication derived

from research to which they have made a contribution, in a manner

that is appropriate and that accurately acknowledges the extent of the

contribution

Respecting the copyright of materials used

Determining authorship of publications by prior mutual agreement in

writing

Acknowledging any source that has been consulted, either directly

(through a quote) or indirectly that has made a contribution to one’ s

work

Refraining from submitting identical manuscripts to more than one

publisher or journal at a time

Not committing plagiarism.

4. Be accountable to society, by

Avoiding involvement in secret or clandestine research

Being committed to the free and open, but sensitive and responsible,

dissemination of research results in a full, open and timely fashion

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Being honest with and responsible to funders and sponsors of research

without in any way compromising the integrity of the funder/researcher

and/or the institution with which the study is registered

Formally acknowledging their contributions and sponsorship.

5. Be sensitive to and respect the right to privacy of their subjects, by

Respecting the right of subjects to refuse to participate in the research

project

Not manipulating people to inadvertently provide information that will

be used in the research project

Only engaging subjects at times which they deem to be convenient

Accepting the refusal of subjects to provide information which they

choose not to divulge

Adhering to the time and duration of the information gathering session

as agreed upon prior to the session

Withholding information when explicitly requested to do so by the

subjects.

6. Be sensitive to and respect the right to anonymity and confidentiality of

their subjects, by

Respecting the right of participants to remain anonymous whether

explicitly promised or not

Informing participants of the workings of data gathering devices, e.g.

cameras, tape recorders.

Respecting the right of participants to reject the use of data gathering

devices

Considering potential threats to confidentiality

Keeping information gathered confidential whether there is a legal

obligation to do so or not

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Informing all people with access to research information of

confidentiality obligations.

7. Be sensitive to and respect the right to full disclosure about the research

(informed consent), by

Communicating the aims of the research to participants

Communicating anticipated consequences of the research to

participants

Informing subjects of what will happen (according to a script) and

obtaining

consent – a script to ensure that informed consent is obtained should

contain the following information:

o Details of approval for the research

o A clear statement of what institution is represented

o What the research is about, benefits of the research and who will

benefit from the research

o Reassurance of subjects that they will be protected from physical

and psychological harm

o Informed consent

o Explanations of possible risks

o Explanation that they may opt out at any stage and still receive

benefits for their help

o Debriefing them when where applicable

o Asking them for suggestions to improve the research procedures

o Assuring them of having respect for their confidentiality

o Providing access to results where applicable.

8. Protect subjects from harm (physical, psychological, emotional) by

Not exposing subjects to substantial risk or personal harm

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Obtaining informed consent (in writing) when the risks of the research

are greater than the risks of everyday life

Obtaining informed consent from an individual who is legally

responsible for the subjects in the case of research with minors

Being sensitive to the unique problems of using vulnerable groups (e.g.

children, the aged, the illiterate, etc.) as subjects

Taking cognisance of special legislation governing AIDS-related

research when conducting this type of research.

9. Protect the integrity of the environment, by

Ensuring that the consequences of the research do not harm or

damage the environment in any way

Respecting the right of future generations to also enjoy the

environment.

6. A process to ensure ethics in research

The ethics protocol for conducting research projects in the faculty consists of a

three-step process:

Orientation Researchers, research assistants and students conducting research must are

orientated in the ethics of research (e.g. by means of a sub-module in research

ethics as part of a module in research.

The broad outlines of this process should also be incorporated in the applicable

sections of student registration forms, the General Regulations yearbook of the

university, as well as related faculty brochures and documents.

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Declaration of intent Researchers, research assistants and students conducting research complete a

declaration of intent (in the form of a signed document – see pro-forma attached)

to indicate their intention to incorporate research ethics in all research activities.

The document is attached to the research proposal or tender.

In the case of staff members submitting applications for private work that

involves research, or contract research that is classified as private work, the

declaration is to be included in the private work application form. Declaration

forms are stored centrally within departments/centres/institutes.

Declaration of adherence On completion of the research project researchers, research assistants and

students conducting research complete a declaration of adherence (in the form of

a signed statement) to indicate compliance to principles of research ethics during

the research process (see pro-forma attached).

Where applicable, this declaration is 1. always included in the final

documentation of the faculty documents used to indicate completion of theses,

dissertations, short dissertations or research essays, 2. included in the final

version of each research report, thesis, dissertation, short dissertation or

research essay, and 3. in the case of articles and contract research, it is included

in staff members’ annual reports.

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DECLARATION OF INTENT: ETHICS IN RESEARCH

Researcher: ______________________________________________________

Department/centre/institute: __________________________________________

Title of research project/field/degree: __________________________________

________________________________________________________________

Type of project:

Doctoral degree:

Masters degree:

Contract research: Client:

___________________________

Other (please specify):

_________________________________________

I intend to familiarise myself and comply with the specifics of the following ethical

obligations as contained in the faculty’s or department’s guidelines for ethics in

research:

1. Conducting value-adding research

2. Applying relevant research and reporting methodologies

3. Where applicable, ensuring that those under my supervision also

adhere to these obligations.

I intend to familiarise myself and comply with the specifics of the following ethical

research principles as contained in the faculty’s guidelines for ethics in research:

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1. Achieve objectivity and maintain integrity in my research

2. Record and disclose my own data

3. Follow ethical publishing practices

4. Be accountable to society

5. Be sensitive to and respect my *subjects’ right to privacy

6. Be sensitive to and respect my subjects’ right to anonymity and

confidentiality

7. Be sensitive to and respect my subjects’ right to full disclosure about

the research (informed consent)

8. Protect my subjects from harm (physical, psychological, emotional)

9. Protect the integrity of the environment.

* Subjects = individuals, groups of individuals or organisations.

_______________________________ Signature

_______________________________ Date

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DECLARATION OF ADHERENCE

I, the undersigned, hereby declare that

1. The contents of this document is my/our* own work.

2. I/we* adhered to the ethical obligations and principles of research

ethics, as prescribed by the faculty’s guidelines for ethics in

research, during all phases of the research process.

____________________________ Name of principal researcher

____________________________ Signature

____________________________ Place

____________________________ Date

* Please delete that which is not applicable

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10.2 INFORMED CONSENT

INFORMED CONSENT AGREEMENT

This agreement serves to confirm that the research subject (participant)

mentioned below gave his consent to participate in a qualitative process study

regarding organizational downsizing. The research participant agrees to provide

the researcher with his experiences and views of the area of research to the best

of his ability.

The undersigned participant understands the purpose and nature of this study

and understands that his participation is voluntary and that he may stop the

interview/compiling solicited essays/memoranda at any time. The participant

further grants permission for the data collected to be used in fulfilment of part of

the requirements for the degree D Phil including a report, an article to be

submitted for marks at the Department of Human Resource Management at

Johannesburg University, and any future publication(s).

The data collected will be used for research purposes only, the researcher

undertakes neither to disclose the identity of any of the participants, nor the origin

of any of the statements made by any of them. However, the undersigned

participant understands that in terms of the ideals of the study’s methodology that

the researcher are obliged to make use of verbatim statements from the

transcribe taped interviews and/or excerpts from solicited essays and/or any

other visual (e.g. photographs) in order to illustrate the world of the research

participants and their perspectives in the research report.

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The participant grants permission for the audio recording and that the researcher

may make notes of his views and experiences.

The participant undertakes to give a true representation of her/his perspective

and/or her/his experiences.

I, (Research Participant), the undersigned participant, agrees to meet at mutually

agreeable times and duration(s) or other means of communication, e.g. by e-

mail, as reasonably necessary to enable the researcher, Johann Burden to gain a

through understanding of the system researched. I further acknowledge that I

received a copy of this agreement and that I may contact any one of the under

mentioned if I have any subsequent queries.

Signature of research subject:___________

Researcher: _____________

Title, initials & surname: Title: _____________________ Employer: ___________

Participant: ________________ Tel: ________________

Cell: ________________

Date: ____________________ 2005 E-mail: ___________

Place: _____________________ Fax: ________________

Research supervisor/study leader: Prof. Willem Schurink

Tel: 012 809-0647

Cell: 082 779 2294

E-mail: [email protected]

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10.3 WRITTEN ESSAY

RESEARCH TO DEVELOP A DOWNSIZING PROCESS/MODEL

I would like to thank you most sincerely for your willingness to assist us with this

important study.

Developing a proper organisational downsizing process based on social science

research has become a priority not only for XXX but for South African business.

The past processes we applied in XXX were very painful for managers as well as

for employees who were directly affected by them. The protracted litigations

when we were taken to the CCMA, particularly the occasions when we were

challenged by the court on our processes, and the time employees had to spend

on explaining XXX’s processes were quite costly.

What does a scientifically legitimate downsizing process imply? Basically it

entails that suitable scientific philosophies, abstract theoretical tools and scientific

methods are applied to generate data from which a scholarly symbolic tool,

process or model may be constructed for periodic use by an institution.

How have we designed the XXX downsizing study and which research

methodology have we opted for? First, a modernist qualitative research

methodology (generally a non-statistical approach) has been developed with the

assistance of Prof. Willem Schurink of the Department of Human Resource

Management of the University of Johannesburg. In addition, an overseas expert’s

views on downsizing were obtained. Finally, the study’s research design was

scrutinised by the Academic Forum of the Department of Human Resource

Management of the University of Johannesburg.

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Following a case study research design, research participants are carefully

selected according to their level of experience of a phenomenon or event. But

what do we require of colleagues involved in the research? The answer is:

basically to share as best as they can their personal experiences of XXX are

downsizing initiatives and their views on these initiatives. Differently put, research

participants are required to share their personal constructions of downsizing with

me or my assistants either by writing an essay/memorandum, participating in

personal interviews or taking part in focus group discussions led by my assistants

and/or myself. Every research participant’s contributions will be valued and

therefore precautions have been taken to ensure that their participation will in no

way whatsoever negatively affect either their work or their personal life. As far as

possible, and within the time constraints of the research, a cooperative approach

will be followed, that is research participants will be allowed to study the research

findings and make inputs before the process is finalised and a new company

policy drawn up.

As indicated, very little time is available to undertake the research and to design

a downsizing process that will stand the test of the courts. The CEO has given us

until the end of September 2005 to complete the study.

The research will be done in different phases using different (mainly) qualitative

methods. To start with, we request you to compile a memorandum on your

experiences of our previous downsizing initiatives, describing your views in line

the instructions below, and doing so in the language you feel most comfortable

with. Upon completion, the memorandum should be e-mailed to me. If, however,

you prefer to answer these questions orally, please contact me.

Think back to the most recent downsizing process that you were involved in and

write on each of the following:

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• Anything you wish to share regarding downsizing generally or XXX’s

processes.

• How you felt when you had to implement the process.

• How the current process affected you as a manager/executive/HR

practitioner.

• Whether there were any aspects in or steps of the process you particularly

disliked.

• What the effects/implications of the process were on your

business/clients/employees.

• How long it took you to rectify the negative impact of the process on your

business/XXX.

• What the main triggers were for running the process in your business unit.

• Whether you would like to change the current process and, if so, how we

should go about with such a change.

• Whether you feel a new process is required and, if so, why.

• What you would like the new process to contain.

• How you would like XXX to initiate downsizing when required.

• What you understand under the following concepts that are generally

synonymous with downsizing, namely organisational restructuring, delayering,

organisational reorganisation and outsourcing.

• Considering the various concepts provided above, what concept you would

use to classify XXX’s process.

• Anything else you would like to share with us regarding downsizing or related

matters.

• Why you are willing to participate in the study.

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• Any suggestions as to how a study on downsizing should be conducted and

how you experienced writing this memorandum.

Thanks very much.

Mr. Johann Burden

Project Manager

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10.4 INTERVIEW QUESTIONNAIRE

FACE-T0-FACE FOCUSED INTERVIEWS: FIRST ROUND

INTRODUCTION

I would like to thank you most sincerely for your willingness to assist Business

Connexion (XXX) with this important study.

Developing a proper organisational downsizing process based on social science

research has become a priority not only for XXX but for South African business.

The past processes we applied in XXX were very painful for managers as well as

for employees who were directly affected by them. The protracted litigations

when we were taken to the CCMA, particularly the occasions when we were

challenged by the court on our processes, and the time employees had to spend

in explaining XXX’s processes were quite costly.

CONTEXTUALISATION OF THE DOWNSIZING CONCEPT

What does a scientifically legitimate downsizing process imply? Basically it

entails that suitable scientific philosophies, abstract theoretical tools and scientific

methods are applied to generate data from which a scholarly symbolic tool,

process or model may be constructed for periodic use by an institution.

How have we designed the XXX downsizing study and which research

methodology have we opted for? First, a modernist qualitative research

methodology (generally a non-statistical approach) has been developed with the

assistance of Prof. Willem Schurink of the Department of Human Resource

Management of the University of Johannesburg. In addition, an overseas expert’s

379


views on downsizing were obtained. Finally, the study’s research design was

scrutinised by the Academic Forum of the Department of Human Resource

Management of the University of Johannesburg.

As I will be following a case study research design, you were carefully selected

as research participants based on your level of experience of the phenomenon or

event under investigation.

WHAT DO WE EXPECT FROM YOU?

The answer is: basically to share as best as you can your personal experiences

of XXX are downsizing initiatives and your views on these initiatives. Differently

put, you are required to share you personal constructions of downsizing with me

or my assistants either by writing an essay/memorandum, participating in

personal interviews or taking part in focus group discussions led by my assistants

and/or myself. Every research participant’s contributions will be highly valued and

therefore precautions have been taken to ensure that your participation will in no

way whatsoever negatively affect either your work or your personal life. As far as

possible, and within the time constraints of the research, a cooperative approach

will be followed, that is you will be allowed to study the research findings and

make inputs before the process is finalised and a new company policy drawn up.

As indicated, very little time is available to undertake the research and design a

downsizing process that will stand the test of the courts. The CEO has given us

until the end of September 2005 to complete the study.

The personal interview will take about one and a half hour. Your secretary has

booked two hours in your diary to ensure that we cover the topic sufficiently.

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I will tape-record the interview in order to be able to have it transcribed. This will

enable me to properly analyse your responses so as to use them as input into the

design of the downsizing process.

QUESTIONS

Initial questions

• Please tell me how long have you been with XXX altogether?

• How long have you been in an executive position?

• What is your current role within XXX?

• Before I introduce a few general themes I would like you to tell me how you view downsizing and our implementation thereof.

• Please think back to the most recent downsizing process that you were

involved in. Now answer the following questions on that experience:

o When was this downsizing process run?

o Was this your first experience of downsizing and, if not, how

many did you experience?

o What was your role within XXX at the time of the exercise?

o Who did you report to at the time of the process?

o What, if anything, did you know about downsizing?

o How did you feel when you had to implement the process?

o How did you go about getting the buy-in of your managers?

o Did you think that buy-in of your immediate reporters were

important and, if yes, why?

o What do you think of our communication process relating to the

intervention?

o Who do you think XXX should communicate with during the

process?

o Do you think that you were emotionally prepared for the

implications of the process?

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o Which area/areas in the process is/are a weakness?

o What went through your mind when the EXCO instructed you to

embark on this process?

o How did you feel about this instruction?

o Who was involved? At what time during the process was that?

How were they involved?

o Tell me how you learned to handle the process?

o What aspects or steps in the process did you particularly

dislike?

o What were the effects/implications of the process on your

business, clients and employees?

o How did you go about trying to cover these concerns?

o Were you successful in your attempts and, if so, why do you say

so?

o If not, what would you do differently to counter these negative

effects in future?

o How long did it take you to rectify the negative impact of the

process on your business? What specifically did you do?

o What positive impact did the process have on your business,

clients and employees?

o Which of these impacts do you believe should be incorporated

into the XXX process?

o What were the main triggers of the process?

o If you think back to the process and its duration, please tell me

about its specific positive effects by thinking of the process from

the day it commenced until the day it was concluded. If possible

please give me a day-by-day account of the process.

o What specific aspects in the process would you wish to keep

and why?

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o What specific aspects in the process would you wish to discard

and why?

o The following concepts are generally regarded as synonymous

with downsizing: organisational re-organisation, organisational

downsizing, delayering and outsourcing. How would you

describe these concepts in your own words?

o Given the above concepts, how would you classify the XXX

process?

o Do you think that downsizing should become a formal part of

XXX’s business strategy?

o At what time should it be included in the budget process?

o When you look back on the downsizing process, are there any

other events that stand out in your mind? Could you describe

them to me? How did you respond to these events?

o Could you describe the most important lessons you learned

about the downsizing exercise within XXX?

o Who was the most helpful to you during the process?

o If you were the CEO of XXX, how would you have approached

this exercise?

o Do you think that XXX should share its experiences with other

South African companies? If so, why?

o If not, why not?

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Concluding questions

• Is there anything else you would like to share with me regarding

downsizing or related matters that you believe are important to the

study?

• Tell me how your views on downsizing have changed since the last

exercise that you were involved in.

• Given these experiences, what advice would you give someone who

has to implement downsizing in his/her business within the next week?

• Is there anything new that occurred to you as a result of the interview?

• Apart from (A, B, C, D, E, F and G) is there anybody that you can think

of who should be interviewed to add value to this study? Why do you

think so?

• Why are you willing to participate in the study?

• Have you got any suggestions as to how a study on downsizing should

be conducted?

• How did you experience the interview?

• Is there anything you would like to ask me?

Evaluation of the interview session

• In qualitative research interviews like this one are important to obtain

feedback from the interviewees. Therefore I would appreciate it if you

would candidly share your views regarding the following with me:

• How did you experience our discussion?

• How do you feel about the things we discussed? Were they relevant to

you?

• Was the interview sufficiently clear to you?

• Were you relaxed enough to share your experiences and views with

me?

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• Is there anything we discussed that you would like to think over?

• How did you experience my approach to the interview? Is there

something you wish to recommend that might improve my interviewer

role?

• Do you feel that my relatively senior position in the company influenced

you when you offered your views? Negatively? Positively?

• How was the setting where we had our discussion? Would you have

preferred a different setting if it was feasible?

• Finally, how did the tape-recorder affect you? Do you think it made you

more reserved?

CLOSING REMARKS

I would like to thank you sincerely for your honest and valuable responses and

inputs. Once I have analysed these I may want to come back and ask you more

specific questions based on your answers. I wish to emphasise that you will be

given feedback on the results of the study before any policy will be updated. I

would also like to reiterate that we can make a major contribution to South

African business and, most of all, save XXX a lot of money by designing a proper

process.

oooOOOooo

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