Organisational Downsizing in Hospitals: Considerations for Management Development

The problems facing hospitals are outlined as they attempt to survive in a turbulent environment. One solution to coping with organisational crisis is downsizing. However, there are often negative effects on human resources when an organisation conducts a reduction in force. In this article, a model of the stages of individual and organisational crisis is described; considerations for planning the downsizing process are identified; and suggestions for management development are presented.