Strategic organizational downsizing effect on workers performance: Business application in Burundi

Human capital, which the most valuable assets for nowadays and future, is the most powerfulvariable in the way which brings success to organizations and help them to achieve their goals. It can be imagine so capable organization, which have indispensable and valuable resources, capital and commodity. But if the organization does not have so talented and gifted employees, it does not have any chance for sustainable competitive advantage. Therefore saving its employees and to improve their employee engagement level is the one of the most vital objectives. Researches release that engaged employees contribute more to organizational goals with showing better performance, they also want to stay and work in the organization for a long time. The concept of downsizing strategy began to be seen in the literature since the 1980s. To increase the performance, efficiency, competitiveness and flexibility of the organization; The reduction strategy, including the planned material and human resources reduction, is now frequently used by institutions. This method should be considered in detail in order to obtain the desired results and targets correctly. Reduction should be part of the organization's clearly planned and defined long-term vision so that mitigation meets the overall strategy of the organization. The most important factor in the inability of the organization to reach its goals after downsizing is related to the organizational factor, stress, trust and performance in the reduction process. Organizations have a significant negative impact on the tendency of restructuring, and consequently on the decrease in the organization and employees. Layoffs create psychological, sociological and financial impacts on the employee. In this study, the effects of the reduction of employees are discussed in detail. A sample survey was conducted to determine how employees of public enterprises in Burundi were affected by the downsizing. The data obtained from the questionnaire were analyzed with SPSS porogram. As a result of the data obtained, various suggestions were made. According to the research findings, shrinkage adversely affects the performance and organizational commitment of employees and creates insecurity, anger, stress, conflict and intention to quit. In this thesis, the relationship between organizational downsizing and employee performance was examined and at the same time the effect of organizational downsizing and employee performance was examined. Keywords: organizational downsizing, employee performance, trust, stress, organizational commitment.