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Adds to the existing level of knowledge regarding the general phenomenon of downsizing and its relationship to the level and pervasiveness of quality and performance in the organization. This purpose is accomplished by addressing two important issues. First, the development of an objective measure of the relationship between the level of downsizing and a company’s performance relative to its competitors; and, second, the empirical application of this objective measure on a number of large US corporations which have downsized their employees during the 1989‐93 period.

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