The Paradox of Managerial Downsizing

C R Littler; Peter Innes

doi:10.1177/0170840604046314

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Journal article

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The Paradox of Managerial Downsizing

C R Littler and Peter Innes

Organization Studies, Vol.25(7), pp.1159-1184

2004

DOI: https://doi.org/10.1177/0170840604046314

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Abstract

Business and Management

organizational downsizing

delayering

careers

administrative intensity

middle managers

Delayering and the flattening of organizational hierarchies was a widespread trend through the 1990s. Peters (1992) in the USA promoted .attening as an organizational strategy and Keuning and Opheij (1994) promoted the prescriptions in Europe. Despite these strategies and apparent structural changes, the number and ratio of managers appears to have grown. This paradox of managerial downsizing has not been adequately probed in the literature. The predominant explanation, that there has been a 'myth of managerial downsizing', is associated with Gordon (1996). However, this debate has been shaped by the US experience and data. There is a need to reassess the dynamics of the 1990s in relation to other economies. This article focuses on a semi-peripheral economy, that of Australia. A study of the population of firms over time is necessary in order to resolve the issues. The article utilizes a comprehensive range of data, including several national surveys and a longitudinal database of all larger private-sector firms in Australia during the 1990s. The results indicate that the 'myth of managerial downsizing' must be rejected. There were dramatic effects on managers through the course of the 1990s in larger Australian firms. The dynamics of the process are analysed, tracking 4,153 firms across the decade and the paradox explained. The theoretical implications are discussed.

Details

Title: The Paradox of Managerial Downsizing
Authors: C R Littler (Author) - St Andrews University, United Kingdom
Peter Innes (Author) - University of the Sunshine Coast - Faculty of Arts and Social Sciences
Publication details: Organization Studies, Vol.25(7), pp.1159-1184
Publisher: Sage Publications Ltd.
Date published: 2004
DOI: 10.1177/0170840604046314
ISSN: 0170-8406
Organisation Unit: School of Social Sciences - Legacy; University of the Sunshine Coast, Queensland; Engage Research Lab; School of Law and Society
Language: English
Record Identifier: 99448717802621
Output Type: Journal article

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Collaboration types: Domestic collaboration; International collaboration
Web Of Science research areas: Management