Psychological Process of Japanese Employees Choosing to Remain in Their Current Jobs during Downsizing of Foreign-affiliated Companies

Abstract

This study examined Japanese employees’ psychological processes when choosing to remain in their current posts during the downsizing of foreign-affiliated companies. Research questions included; Are there any psychological reactions of downsizing survivor? How do those reactions and feelings contribute to later decisions and actions? Semi-structured interviews were conducted with 10 Japanese foreign-affiliated company employees. The verbal protocols were analyzed based on the modified grounded theory approach (M-GTA). A hypothetical model was developed, generating 7 category groups, 32 categories, and 72 concepts. Major findings indicated that Japanese downsizing survivors experienced the following stages: the period of introducing downsizing, the period of confusion, and the period of decision making. Factors buffering from the survivors’ syndrome might include distancing from the company and social support. Moreover, after deciding to stay, survivors who chose constructive methods helped others as an organizational citizenship behavior, whereas survivors who chose non-constructive methods depreciated others as a dysfunctional organizational behavior.