The current economic recession in the United States that, according to some estimates, is approaching two years in duration has provided an impetus for hundreds of corporations to review their organizational structures. One major outcome of such reviews has been a major movement toward downsizing. Downsizing does not necessarily imply a reduction in either the scope or the output of operations. Downsizing in the current business vernacular implies a reduction in personnel strength in all instances, and a tightening of organizational structure in most instances. Downsizing affects all aspects of an organization's activity. The proposed research study will examine the potential effects of downsizing on the information system of an organization.
The general tendency is to perceive downsizing in the context of significant personnel reductions and organizational restructuring throughout an organization. In actual practice, however, downsizing tends to affect different elements of an organization in different ways and to different extents. It is certainly possible for a downsizing program to lead to increases in personnel strength for some organizational functions. The information system function is one organizational function that could be enlarged an one outcome of a downsizing program. Downsizing implies that an organization can become more productive because of an improved flow of information and because of the incorporation of other technological innovations. In order to attain the necessary improvements in the flow of information, it might be necessary to enhance the information systems function of the organization. Such an outcome is not typical in downsizing program. The potential for growth of the information systems function during a downsizing program. however, illustrates the point that all organizational functions will not be affected equally in a downsizing program.
In a downsizing program, the information sys...