Impact of downsizing, restructuring and knowledge sharing on retention of knowledge in organisations : implications for organisational effectiveness

This research considers the organisational factors and processes that impact on knowledge retention and subsequent perceptions of organisational effectiveness during downsizing/restructuring events. By exploring these relationships, the research seeks to help organisations facing downsizing/restructuring to identify best practices to support employees during the process and achieve positive organisational outcomes. The thesis presents a detailed review of the literature in the field of downsizing and organisational restructuring, together with knowledge, knowledge sharing and organisational effectiveness. A conceptual framework and hypotheses, informed through the literature and qualitative focus group process, were developed for testing. Data were collected from 81 organisations, drawn from both the private and public sectors. Analyses enabled detailed consideration of the impact of perceived levels of organisational knowledge on perceptions of post-downsizing/restructuring organisational effectiveness. The significance of relationships between downsizing/restructuring events, both decisions and processes, and knowledge sharing in organisations undergoing downsizing/restructuring were also examined. Findings indicate the need for open and honest relationships between managerial (Decision Makers and Implementers) and non-managerial employees (Affected Employees) in order to achieve successful organisational outcomes. The impact of knowledge sharing on organisational knowledge was assessed by studying the extent of both formal knowledge sharing and informal networks present in respondent organisations. The direct impact of knowledge sharing on organisational outcomes was also analysed and discussed.