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Introduction
Recession has been the main cause of downsizing activities. Firms downsize in a struggle to cut costs, and remain competitive in an ever-increasing complex global marketplace. Downsizing is defined as the systematic reduction of a workforce through a set of activities by which organizations aim to improve efficiency and performance. Downsizing tends to be more reactive and defensive when a company faces financial difficulties. It has been stated that companies, which are not performing well, are experiencing financial losses and cash flow difficulties, are more likely to engage in downsizing.
Downsizing is a very pervasive organizational process. It affects both the organization's external and internal environments, and especially its workforce ([5] Armstrong-Stassen et al. , 2001; [49] Messmer, 2002; [54] Paterson and Cary, 2002). Many employees who are let go because of downsizing may feel that the organization is violating the psychological contract they have about job security ([63] Rousseau and Fried, 2001; [62] Roehling and Boswell, 2004). On the surface, people who lose their jobs may seem the most affected by downsizing, but it is also likely that the employees who remain in the organization - the survivors, and the organization itself, also suffer as a result of the upheaval ([12] Brockner et al. , 1993; [61] Roan et al. , 2002). The negative effects of the downsizing have a strong impact on survivors' affective lives ([13] Burke and Leiter, 2000; [50] Mishra and Spreitzer, 1998). Not surprisingly, the process of workforce reduction and dismissals is problematic and involves painful issues and has, therefore, troubled policy and decision makers in industrial organizations in many countries. Employers, governments and employees have begun to understand that they all have a stake in the burden of the negative results of economic and technological changes ([75] Yemin, 1982).
In consequence, since the 1980s different approaches at the national level have been developed to facilitate the processes of negotiation between employers and employees. Legislation was enacted in order to protect employees from possible workforce reduction processes ([21] De Meuse, 2004; [59] Raitt, 1982). These approaches primarily dealt with the necessity of warning employees of impending changes and preparing layoff processes in consultation with the unions ([8] Batt, 1983; [24] Fedrau, 1984). Yet, in spite of all the understanding...