Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Study examines effects of corporate downsizing on managerial diversity

30.01.2014
A new study finds that corporate downsizing reduces managerial diversity, especially when layoff decisions consider workers' position or tenure. But when layoffs are based on performance evaluations, managerial diversity remains intact — at least when it comes to white women and blacks.

"It seems that the more individualized process of evaluating each worker on his or her merits — rather than using blanket criteria such as position or tenure — creates awareness and accountability among executives and motivates them to think deeply and creatively about who they should keep during downsizing," said study author Alexandra Kalev, an Associate Professor of Sociology and Anthropology at Tel Aviv University.

"This outcome of performance-based downsizing is not only good for managerial diversity, but also for the future of the company because the best performers are kept."

Titled, "How You Downsize Is Who You Downsize: Biased Formalization, Accountability, and Managerial Diversity," the study, which appears in the February issue of the American Sociological Review, focuses on white and black employees and considers data on 327 private U.S-based companies that downsized between 1980 and 2002. The companies, from manufacturing, service, and retail industries, had at least 50 workers prior to layoffs.

"In an average downsizing organization where layoff decisions considered workers' position, the shares of white women and blacks in management declined by almost 25 and 20 percent, respectively," said Kalev. "Downsizing by tenure reduced the share of white women in management by more than 20 percent. Notably, two-thirds of companies in my sample used position or tenure as criteria for layoff decisions."

Making matters worse for white female and black managers is that position-based downsizing, the most harmful type of downsizing for those groups, became increasingly prevalent over the course of the study period, Kalev said. In the early 1980s, downsizing companies made position-based layoffs less than 30 percent of the time. By 2002, however, downsizing companies made position-based layoffs more than 50 percent of the time.

In addition, Kalev found that companies increasingly used external lawyers to guide them through the downsizing process, which also didn't bode well for managerial diversity.

"There is a difference between the effect of an attorney who is part of the company and one that the company hires to handle a special task," Kalev said. "While in house attorneys helped minimize damage to managerial diversity during downsizing, outsourced legal experts did not."

This was true even when position or tenure were used in downsizing decisions. "I was surprised by the finding that an internal legal counsel made such a big difference in the results of downsizing," Kalev said. "I discovered that an in house attorney raised awareness of diversity issues among executives and this motivated them to use tools such as repositioning and retraining to maintain managerial diversity."

In terms of the importance of her research, Kalev said, "This study is a wake-up call. Downsizing is increasingly done in ways that hit managerial diversity the hardest, while downsizing practices that help protect diversity have become less and less common. If these trends continue, women and minorities will become increasingly rare in management jobs."

About the American Sociological Association and the American Sociological Review

The American Sociological Association, founded in 1905, is a non-profit membership association dedicated to serving sociologists in their work, advancing sociology as a science and profession, and promoting the contributions to and use of sociology by society. The American Sociological Review is the ASA's flagship journal.

The research article described above is available by request for members of the media. For a copy of the full study, contact Daniel Fowler, ASA's Media Relations and Public Affairs Officer, at (202) 527-7885 or pubinfo@asanet.org.

Daniel Fowler | EurekAlert!
Further information:
http://www.asanet.org

More articles from Studies and Analyses:

nachricht New study: How does Europe become a leading player for software and IT services?
03.04.2017 | Fraunhofer-Institut für System- und Innovationsforschung (ISI)

nachricht Reusable carbon nanotubes could be the water filter of the future, says RIT study
30.03.2017 | Rochester Institute of Technology

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Can the immune system be boosted against Staphylococcus aureus by delivery of messenger RNA?

Staphylococcus aureus is a feared pathogen (MRSA, multi-resistant S. aureus) due to frequent resistances against many antibiotics, especially in hospital infections. Researchers at the Paul-Ehrlich-Institut have identified immunological processes that prevent a successful immune response directed against the pathogenic agent. The delivery of bacterial proteins with RNA adjuvant or messenger RNA (mRNA) into immune cells allows the re-direction of the immune response towards an active defense against S. aureus. This could be of significant importance for the development of an effective vaccine. PLOS Pathogens has published these research results online on 25 May 2017.

Staphylococcus aureus (S. aureus) is a bacterium that colonizes by far more than half of the skin and the mucosa of adults, usually without causing infections....

Im Focus: A quantum walk of photons

Physicists from the University of Würzburg are capable of generating identical looking single light particles at the push of a button. Two new studies now demonstrate the potential this method holds.

The quantum computer has fuelled the imagination of scientists for decades: It is based on fundamentally different phenomena than a conventional computer....

Im Focus: Turmoil in sluggish electrons’ existence

An international team of physicists has monitored the scattering behaviour of electrons in a non-conducting material in real-time. Their insights could be beneficial for radiotherapy.

We can refer to electrons in non-conducting materials as ‘sluggish’. Typically, they remain fixed in a location, deep inside an atomic composite. It is hence...

Im Focus: Wafer-thin Magnetic Materials Developed for Future Quantum Technologies

Two-dimensional magnetic structures are regarded as a promising material for new types of data storage, since the magnetic properties of individual molecular building blocks can be investigated and modified. For the first time, researchers have now produced a wafer-thin ferrimagnet, in which molecules with different magnetic centers arrange themselves on a gold surface to form a checkerboard pattern. Scientists at the Swiss Nanoscience Institute at the University of Basel and the Paul Scherrer Institute published their findings in the journal Nature Communications.

Ferrimagnets are composed of two centers which are magnetized at different strengths and point in opposing directions. Two-dimensional, quasi-flat ferrimagnets...

Im Focus: World's thinnest hologram paves path to new 3-D world

Nano-hologram paves way for integration of 3-D holography into everyday electronics

An Australian-Chinese research team has created the world's thinnest hologram, paving the way towards the integration of 3D holography into everyday...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Marine Conservation: IASS Contributes to UN Ocean Conference in New York on 5-9 June

24.05.2017 | Event News

AWK Aachen Machine Tool Colloquium 2017: Internet of Production for Agile Enterprises

23.05.2017 | Event News

Dortmund MST Conference presents Individualized Healthcare Solutions with micro and nanotechnology

22.05.2017 | Event News

 
Latest News

How herpesviruses win the footrace against the immune system

26.05.2017 | Life Sciences

Water forms 'spine of hydration' around DNA, group finds

26.05.2017 | Life Sciences

First Juno science results supported by University of Leicester's Jupiter 'forecast'

26.05.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>