Lean Management and Downsizing From research in lean management it could be shown in several studies, how crucial it is to convey

findings from different countries (Bungard 1995, Ulich 1996, 1998) Downsizing in regards of its staff reduction is in close relation to the targets of lean management. Whether downsizing has positive or negative consequences is not quite clear. Literature on it, however, suggests that in most cases there are negative effects regarding downsizing processes. Various studies have shown that economic benefits from staff reduction (e.g. lower costs, higher profits, stronger share values) and organisational targets (e.g. increase in productivity, better communication, less bureaucracy, higher flexibility) are often not achieved (Armstrong-Stasssen 1997, Burke/Cooper 2000, Cascio 1993, ETC). An explanation for this is the negative reactions of the survivors (Baeckmann 1998, Berner 1999) Psychological contract The question regarding the survivor reactions is closely related to the current psychological framework conditions, especially in context with the psychological contract. The psychological contract with its implicit compromises primarily functions, along with the formal work contract, as redundancy of uncertainty. It is supposed to fill the gaps that cannot be captured in a written agreement (Anderson/Schalk 1998, Grote 200, Hiltrop 1995). The contents of psychological contracts do not essentially differ from written contract. They can also deal with salary, work times, further training, etc. For many employees the most important security is sustaining their work place which is often not guaranteed anymore nowadays. Job security in return for hard work and loyality is fundamentally questioned now (Grote/Raeder, 1999). Employers expect advanced flexibility, innovation and self-responsibility in order to promote your own career (Sparrow, 2000). If a company does not meet the expectations and duties of the employee, however, emotional reactions can be triggered. An example for the cognitive reaction is the inner resignation. The central issue in the concept of the inner resignation is the attitude of the employee, that leads to a certain behaviour, which is the avoidance of negative consequences and the (un)conscious abandonment for commitment and selfinitiative. The person with that inner resignation refuses to engage themselves into issues outside the area that seems to them to be in control, as they want to sustain their job, although their work situation is perceived to be frustrating (Lohnert 1990, Faller 1993). Inner resignation, therefore, concerns the psychological contract, since in the employees opinion this has been broken by the company, i.e. the mutual, (unspoken) wishes, expectations and hopes of the employee and the employer. On the side of the employee it includes the expectation of promotion, support and justice, as well as the calculability of the employers actions (Livingston 1997).

Insecurity of employment An example of the emotional reaction by the employees on the non-fulfilment of the psychological contract is the insecurity of employment. A feeling of workplace insecurity has become a reality of everyday life for many employees and becomes a scientific topic more and more (De Witte 1999; Mohr 2000, Kluytmans/Ott 1999), although previous research has more focused on the effects on the metal health of becoming unemployed. Increasing grades of feeling affected and the worsening of the physic and psychological well-being caused by insecurity of employment has shown to be depending on the temporal proximity and perceived certainty of a potential, or realistically approaching loss of workplace. Mohr (1997; 2000) clearly differentiates the anticipation of a certain job loss from an insecurity of employment. She differs four stages that neither imply a clear, chronological sequence nor a grading of intensity: - General communal insecurity of employment: results from a high unemployment rate or an economic crisis in a branch of industry. - General company insecurity of employment: concerns the economic instability of a company and is often linked to rumours - Acute individual insecurity: obligatory reports about the economic situation of a company are made and reorganisation measurements are announced. The employees, however, cannot foresee their personal future within the company - Anticipation of job loss: occurs if decisions are made, notices of termination are pronounced and the loss of job can be expected soon. Such a differentiation could be important since each stage makes different coping methods necessary. The distinction between insecurity of employment and anticipation of a job loss that is certain complies with the studies on stress research by Lazarus and Folkman (1984), that say that the anticipation is a much more stressful event than the event of losing the job itself. It can be assumed, that the feeling of employment insecurity has an impact on the general wellbeing, the attitude towards work and work ethics, as well as the vitality of a company, in general (Klandermans/van Vuren 1999). However, it must also be considered that employees can react in such situations completely differently (subjectivity). Possible moderating or mediating factors are, for instance, gender, age, education, the position within the company, self-efficacy and locus of control. Studies in this direction are rare, though. A theoretical work conducted by Westman (2000), that investigated the possible gender differences in context with employment insecurity, showed: Most studies only consider men. The few conducted studies deliver inconsistent results. Empiric studies found repeated correlations between insecurity of employment and wellbeing, physic health problems and stress (Klandermans/van Vuuren 1999; Mohr 1997; 2000). Some investigations also proved relationships between work attitudes, such as decreased job satisfaction or locus of control and employment insecurity. Mohr (2000), for instance, showed, using a German steel factory as an example that fear and psychosomatic problems increased after the bankruptcy filing of the company. The individual control, the duration of employment, other possible work opportunities and social support had a moderating impact on the relationship between employment insecurity and mental health. The study by Rosenblatt (1999) indicated, that with increasing feeling of employment insecurity changes of behaviour start to occur, such as decreased work performance, voluntary resignation and reduced organisational commitment.