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Assesses the impact of downsizing and lay‐offs on the workers who remain with the company ‐ survivors. Argues that while the primary aim of downsizing is to improve efficiency and productivity, this is not always achieved owing to decreased motivation and job security among survivors. Outlines ways in which organizations can overcome these difficulties and suggests five possible strategies they can adopt to lessen any negative effects of lay‐offs. Concludes by stating that these will help companies achieve their goal of optimum efficiency.

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