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Retrenchment and Organizational Decline |
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Weitzel and Jonsson identify cutting staff as a particular form of organizational goal-seeking behaviour termed "retrenchment". They agree that retrenchment may be necessary from time to time in certain parts of the organization, and that this need not be an expression of overall organizational decline. But they also write that mismanaged retrenchment can have very serious effects on the rest of the organization, many of which can create or accelerate organizational decline. The Lean and Mean approach to retrenchment is a perfect example of this.
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Weitzel, William., Jonsson, Ellen. "Decline in Organizations: A literature integration and extension." in Administrative Science Quarterly. Graduate School of Business and Public Administration, Cornell University. Ithaca: NY. March, 1989.
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