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
CCCHHHAAAPPPTTTEEERRR 111
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
CCCHHHAAAPPPTTTEEERRR 111
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.
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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
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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
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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
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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
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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
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(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
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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
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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
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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.
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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
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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)
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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
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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).
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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
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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
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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.
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This section refers to Chapter 3 and
covers the following aspects:
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
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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
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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
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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
office 1 hour − − −
D − − 14/06/05 My
office 1 hour √ Boardroom 5 hours
E − − 17/06/05 My
office 1 hour − − −
F − − 14/06/05 My
office 1 hour √ Boardroom 5 hours
G − − 17/06/05 My
office 1 hour √ Boardroom 5 hours
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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This section refers to Chapters 4 and 5 and
covers the following aspects:
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
“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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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”.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
A “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.”
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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
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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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.”
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“…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.”
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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.
PARTICIPANT EXCERPTS
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.”
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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.
PARTICIPANT EXCERPTS
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.”
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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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
“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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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…”
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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.”
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”.
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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
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. 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
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. 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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
“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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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
organisations willingness to adapt to new market demands.”
“The impact on the division was positive. The process reduced
the headcount by approximately 20%, reducing non-recoverable
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PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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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PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
PARTICIPANT EXCERPTS
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.
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• 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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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
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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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
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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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
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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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
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
• Who should communicate
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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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
• 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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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
• 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
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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
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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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
• 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
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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
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.
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• 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
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• 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
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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
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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.
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• Appropriate business
executive initiates
communication
• Who should communicate
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
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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
• Who should communicate
The CEO and top
executives should
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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
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
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• 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
elements listed in the open
codes column.
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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
• Affected employees
• Affected line
managers
• Appropriate business
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
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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.
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OPEN CODES CATEGORY DESCRIPTION OF CATEGORY
• Appropriate business
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
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• 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
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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
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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
This is a checklist that
should be used by the
managers to evaluate what
positive external value the
intervention provided to the
business unit.
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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)
This is a checklist that
should be used by the
managers to evaluate what
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.
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• 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
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• 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.
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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.
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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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CATEGORY CENTRAL CATEGORY DESCRIPTION OF CENTRAL CATEGORY
• Business efficiencies the internal trigger for
downsizing is an
economic trigger.
• Desktop audit
• Decision taken by
EXCO
• BUSINESS AUDIT The research
participants agreed that
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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CATEGORY CENTRAL CATEGORY DESCRIPTION OF CENTRAL CATEGORY
• Communicate with
internal audiences
• Who should
communicate
• Content
• External process
• Communicate with
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
participants agreed that
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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CATEGORY CENTRAL CATEGORY DESCRIPTION OF CENTRAL CATEGORY
• 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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CATEGORY CENTRAL CATEGORY DESCRIPTION OF CENTRAL CATEGORY
• 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
• Communicate with
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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CATEGORY CENTRAL CATEGORY DESCRIPTION OF CENTRAL CATEGORY
• External process
• Communicate with
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.
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This section refers to Chapter 6 and
covers the following aspects:
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
External Organisational
Context
Internal Organisational
Context
Internal Organisational
Context
ManagerialCognition
Managerial Cognition
Action
External Organisational
Context
External Organisational
Context
Internal Organisational
Context
Internal Organisational
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
rnal
Trig
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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Approval from Group Executive: Human Resources
Approval by Group Executive: HR
Initial Planning Meeting
Out
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O
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Approval from Group Executive: Human Resources
Approval by Group Executive: HR
Initial Planning Meeting
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Information Meeting
Audience Amend and Finalise PlanInformation
Intention to Consult Letter
Intention Letter
Consultation Meeting
Consultation Meeting
Electronic Copy Hard Copy
Written Representation
Written reply
ORGANISM
A
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MANAGEMENT
&
MONITORING
Information Meeting
Audience Amend and Finalise PlanInformation
Intention to Consult Letter
Intention Letter
Consultation Meeting
Consultation Meeting
Electronic Copy Hard Copy
Written Representation
Written reply
ORGANISM
A
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&
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Figure 3: Substantive model for organisational redesign
Invite Applications in Writing
Process Completion
Positive Outcomes Negative Outcomes
Schedule Interviews
Conduct Interviews
Discuss Findings
Populate Structure
Letters to Employees
Letters of Acceptance Letters of Regret
A
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MANAGEMENT
&
MONITORING
Invite Applications in Writing
Process Completion
Positive Outcomes Negative Outcomes
Schedule Interviews
Conduct Interviews
Discuss Findings
Populate Structure
Letters to Employees
Letters of Acceptance Letters of Regret
A
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MANAGEMENT
&
MONITORING
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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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This section refers to Chapter 7 and
covers the following aspects:
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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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
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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