Organizational learning processes in downsizing

The purpose of this article is to explore organizational learning processes by examining how companies learn to do something new, namely downsize, on the basis of a small sample of companies in Europe. In a first step, the range of possible responses to downsizing, as discussed in the literature, is presented and compared with the responses described in the interviews. Significant gaps between the options described in the literature and the activities undertaken by the sample companies were found. In a second step, models of organizational learning are presented, specifically focusing on knowledge acquisition, information distribution and interpretation, and compared with the learning processes described by the sample companies. The article suggests that had the companies used a broader range of knowledge acquisition strategies, they might have expanded their range of responses to downsizing. A revision of organizational learning models to include a greater variety of perspectives in a problem definition phase before knowledge acquisition is undertaken is recommended.