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Running head: ORGANIZATIONAL DOWNSIZING: UNINTENDED CONSEQUENCESOrganizational Downsizing: Unintended ConsequencesGrand Canyon University: PSY655October 8, 2019 1
ORGANIZATIONAL DOWNSIZING: UNINTENDED CONSEQUENCESSociologist Robert Merton commercialized the term unintended consequences after a 1936 review where he systematically analyzed unintended consequences of social action, in a popular journal of the time. He defined the term as “outcomes that are not the ones foreseen and intended by a purposeful action” (Merton, 1936, p. 895). This term is almost always prevalent in decision making, even when regimented analysis has been conducted and risk have been measured. Rather it is related to personal or business decisions, sanctions and laws or social behaviors, there is the potential for unintended consequences to result from choices made by individuals and organizations. The outcomes can have a negative or positive impact on the situation, more commonly identified is the unintended negative outcome that occurs. Unintended consequences from employer initiated layoffs will be explored in this paper. The process of the decision making including ethical and/or unethical factors which lead to the outcome will also be explored.According to 2016 statistics, layoffs account for over 13% of employment discharges in the United States (Bureau of Labor and statistics, 2016). Layoffs are actions taken by the employer which (usually) terminate employees based on a lack of work. Additionally, layoffs canbe a result of stores/branches closing, or company acquisitions. Many organizations choose layoffs as a way to cut cost and continue operating, however sometimes processes become automated or outsourced (employing workers from other countries for tax breaks and lower laborcost) or they simply over estimated their growth (over hired) and now have more employees thanthey need.

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Term
Spring
Professor
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Tags
Decision Making, consultant, Termination of employment, Robert Merton, Severance package

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