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ABSTRACT

Downsizing has become a common activity for some companies trying to reduce their
human resource for a specific purpose. From a layoff of employees it becomes a
permanent downscaling. It has also been observed in other countries for the reason of
lowering labor costs and to increase productivity. The general objective of this study was
to investigate the impact of downsizing to surviving employees using the case of Hotel
Rodolfo and GV Hotel. The case study type of qualitative research was used in this study.
The population of the study comprised of 5 surviving employees in two different hotels
namely GV and Hotel Rodolfo for a total of 10 surviving employees. The sampling
technique used in this study is a purposive sampling. The primary data collection
methods used was interviews. The data relevant to the study was finally presented in
figures. With regard to the impact of downsizing employees, the findings indicated that
downsizing has positive and negative effects to the surviving employees in terms of work
environment and personal factors. The findings showed that (a) surviving employees are
motivated to do their best in work in which they become more responsible and work with
passion that has resulted in becoming a better employee. However, due to the changes
brought by this process, (b) employees have an additional loads in which additional
tasked are assigned to them that makes them busier than ever and makes them tired in
work. The individual effect of downsizing employees has led to skills improvement and
improvement of employees’ knowledge. The study concludes that implementing
downsizing process has both positive and negative impact to surviving employees.
Downsizing has its advantages though most frequently observes it disadvantages. It helps
employees specifically surviving employees to be motivated in work and helps them
become a better employee.

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