Abstract:
Enhancing the profitability in the organization has led to implement different
strategies to minimize the cost and improve the productivity. Organizational
downsizing is a prevalent strategy to enhance cost efficiency and operational
effectiveness. However, implementing organizational downsizing has negative
impacts on employee motivation, satisfaction and retention. The Eden Resort & Spa,
Beruwala is of the five-star hotels in Sri Lanka which has implemented organizational
downsizing and heading to challenges in the retention of employees. This study
investigates the impacts of organizational downsizing strategy on the employee
retention at the Eden Resort and Spa and adopted the qualitative case study approach
to elucidate the multiple realities as result of implementing the organizational
downsizing strategy. This investigation incorporated with participative observation
and personal interviews with top level, middle level and operational level employees
to bring forth the naturalistic interpretation of the employees at Eden Resort & Spa.
The collected data were analyzed using descriptive analysis along with data
triangulation. The results reveal that the strategy of organizational downsizing is one
of the better solutions to reduce the cost in the organization; however, the
organizational downsizing has a significant negative effect to the employee
satisfaction, employee motivation and employee retention in the organization.
Findings of this study provide a novel contribution to The Eden Resort and Spa,
Beruwala who want to retain and encourage their employees to work in the
organization and the hoteliers to manage human resources effectively in their
organizations.
