Downsizing and Structural Holes: Their Impact on Layoff Survivors’ Perceptions of Organizational Chaos and Openness to Change
Organizational downsizing places many strains on surviving employees. Despite the implicit relationship between changes to communication networks and employee responses, few studies examine downsizing-induced network changes or the impact of these changes on employees. This longitudinal investigation examined fluctuations in structural holes within a hospitality company's corporate headquarters resulting from the loss and gain of communication contacts. Building on Burt's treatise on structural holes, we tested a measurement of structural holes and its relationship to layoff survivors' perceptions of organizational chaos and their willingness to participate in planned, post downsizing changes. Although the downsizing had a modest impact on surviving employees' structural hole experiences overall, the structural hole index was a significant predictor in longitudinal and within time period comparisons of employees’ perceptions of chaos and openness to change.