Building Employee Performance Following Mass Layoffs at PT Sang Hyang Seri (Persero), South Sulawesi Branch
DOI:
https://doi.org/10.24256/kharaj.v8i3.12321Keywords:
mass termination; employee performance; downsizing; job insecurity; organizational support; surviving employees.Abstract
Mass termination has become an increasingly important organizational strategy in response to financial pressure, restructuring, and changing business conditions. However, workforce reduction may generate unintended consequences for employees who remain in the organization, particularly in relation to workload, job insecurity, motivation, organizational commitment, and performance. This study aims to analyze how mass termination affects employee performance and to explore how surviving employees construct and maintain their performance following workforce reduction at PT Sang Hyang Seri (Persero), South Sulawesi Branch. A qualitative case study approach was employed involving ten informants, consisting of two terminated employees, five surviving employees, and three members of management. Data were collected through in-depth interviews, field observations, and document analysis and analyzed using thematic analysis supported by source and methodological triangulation, member checking, and systematic verification. The findings indicate that mass termination generated psychological uncertainty, increased workload, weakened organizational trust, and reduced motivation, job satisfaction, teamwork, and organizational commitment among surviving employees. Nevertheless, employees demonstrated adaptive responses through performance documentation, target setting, intensive coordination, routine evaluation, skill development, and work innovation. The study further reveals that transparent communication, procedural fairness, workload redesign, training, recognition, and organizational support are critical conditions for transforming employee adaptation into sustainable performance. The study contributes to the downsizing literature by conceptualizing workforce rationalization as a conditional performance strategy rather than merely a cost-reduction mechanism.
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