"Employee Downsizing in Globalized Business Environment: A Study of Public Sector Banks with Special Reference to State Bank of India”

  • Himanshu Upadhyay Assistant Professor, Dept. of Management, School of Management Sciences, Varanasi
  • Ashwani Kr. Gupta Assistant Professor, Dept. of Management, School of Management Sciences, Varanasi
  • Anand Joshi Assistant Professor, Dept. of Management, TMIMT, TMU, Moradabad
Keywords: Employee Downsizing, Public Sector Banks, Organizational Performance, VRS, Cost


It is generally recognized that most of the organizations are re-engineering the organization's

functioning, re-structuring job assignment, redesigning the business due to the impact of globalization, joint-ventures / foreign collaborations, mergers and acquisitions, outsourcing, automation of essential services and intense competition. These changes in business environment ultimately affect the manpower requirement of the organization. The quality consciousness and cost effectiveness are the factors those compel the management to look towards retaining the cream and laying off the unproductive elements from the work place to increase the organizational performance and getting competitive advantage. In the context of Human Resource Management, the word 'downsizing' means keeping down the human resources strength to the minimum, and the word 'rightsizing' indicates, on very rare occasions, even 'upsizing' or enhancing the HR strength, if warranted by expansion in the business of the corporate. Both steps, however, should measure up to the optimum level required for the successful function of the corporate. This paper is based on non-empirical and descriptive research, which mainly uses the secondary data from various sources. In this research paper, we have discussed in detail about 'employee downsizing' with referring case of Public Sector Banks with special reference to State Bank Of India which has implemented downsizing strategy due to different reasons. This paper is, devoted to deal with various aspects of 'employee downsizing': Various causes of 'employee downsizing', relationship between 'employee downsizing' and the organizational performance. This paper makes an attempt to highlight the impact of 'employee downsizing' on organizational performance and reducing cost.