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Downsizing also has a negativeeffect on learning and innovation because it breaks the informal networks that have developed overa period of years (Amabile & Conti, 1999; Reynolds-Fisher & White, 2000). Further disadvantagesto downsizing include: 1) morale issues can surface, 2) growth is stymied, 3) productivity can godown, and 4) employee health and behavioral problems can surface. When considering downsizing,management must find the right balance.The literature supported the reality of this instability from the perspective of victims andsurvivors. On one side are the victim issues that arise from the downsizing. On the other hand, thesurvivors also are subject to health issues. Beyond depressed financial considerations and chaos, thedownsizing process also exacts a heavy emotional and mental toll on employees. An addedexamination of factors attached to downsizing and termination revealed that:
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