Abstract

This study investigates the workforce reduction practices in four Hong Kong companies and evaluates the
impact on the organizations and the affected employees. Most companies are found efficient in implementing
workforce reduction. Though these companies meet the legal requirements of the Hong Kong law in mass
layoffs, yet they are not very socially responsible. Managements make efforts in developing selection
mechanism, communication channels, and motivating survivors, which are essential to maintain normal
productivity of the companies. They however neglect other key steps in managing workforce reduction
including exploring options to avoid layoffs and providing adequate outplacement assistance to departing
employees.

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