High‐Commitment Work Practices and Downsizing Harshness in Australian Workplaces

Abstract

This study examines the relationship between high‐commitment work practices (HCWP) and downsizing. The results based on a large, representative sample of Australian workplaces supported our predictions. Consistent with previous research, HCWP was positively related to workforce reduction. However, workplaces with more HCWP used less harsh strategies (e.g., more employee‐friendly approaches to downsizing) such as voluntary layoffs and early retirement than the harsher strategy of compulsory layoffs. The implications of these findings are discussed.