In many cases, firms persist with workplace restructuring in the form of downsizing, because of the misconception that the financial benefits will always outweigh the negative impact of employee morale and commitment. The expectation is that the expense reduction will lead to a positive impact on the bottom line and will ultimately be reflected in improved profitability and productivity. However, many organizations neglect to factor in the psychological impact of downsizing on those who remain. In fact, if downsizing is handled improperly, the problems it was designed to correct may be intensified due to the impact on the loyalty and attitudes of the survivors. The poor strategic planning of downsizing organisations has the potential to make the practice obsolete, its sustainability rests solely on the ability of managers to implement the tactic in a strategic and consultative manner. The sustainability of downsizing will be determined by its success, witch will ultimately be resolved by organisation's ability to overcome the negative impact on employees, while still achieving strategic goals.
             For several years there has been a strong tendency to adopt a downsizing strategy to deal with the economic pressures in the environment. First witnessed in the private sector, this approach has now spread to all levels of government and knows no sectorial or geographic bounds. Thus, this phenomenon no longer represents one of the many consequences of economic upheaval, but has instead taken on a life of its own (Dawkins & Littler, 2001p. 12)
             The reasons for corporate downsizing are presented in many forms. Some companies downsize due to technological changes such as automation, which brings about the need for a reduction in the production workforce. Others may feel that competitiveness with other companies warrants the need for a reduction in the workforce. Financial setbacks due to customer demand, market shares, and loss of revenue...