The Application of the Downsizing Method Based on Employee Attendance Data in Oversized Public Utility Companies Founded by the Republic of Serbia Local Self-Government Units

  • Stefan Komazec University of Belgrade, Faculty of Organizational Sciences
  • Jovan Krivokapić University of Belgrade, Faculty of Organizational Sciences
  • Ivan Todorović University of Belgrade, Faculty of Organizational Sciences
Keywords: public sector, local self-government, downsizing, public utilities, restructuring, Serbia

Abstract

The aim of this paper has two directions. The first one is our attempt to define new method and procedure for estimating surplus of employees in the public sector, as one of the tools for public sector control. The second direction is the analysis of the public sector at the local level in Serbia, where overstaffing in public utility companies, founded and owned by Local Self-Government Units in Serbia, was analyzed using specific methods. The conclusions have been made on the basis of the restructuring projects carried out in over 20 public utility companies, which included over 20,000 employees.

References

Amundson, N., Borgen, W., Jordan, S. & Erlebach, A. (2004) Survivors of downsizing: Helpful and hindering experiences, The Career Development Quarterly, 52(3), pp. 256-271.

Appelbaum, S., Everard, A. & Hung, L. (1999) Strategic downsizing: Critical success factors, Management Decision, 37(7), pp. 535-552.

Appelbaum, S., Lavigne-Schmidt, S., Peytchev, M. & Shapiro, B. (1999). Downsizing: Measuring the costs of failure, Journal of Management Development, 18(5), pp. 436-463.

Awortwi, N. (2010) Building new competencies for government administrators and managers in an era of public sector reforms: the case of Mozambique, International Review of Administrative Sciences, 76(4), pp. 723-748.

Ayittey, F., Ayittey, M., Chiwero, N., Kamasah, J. & Dzuvo, C. (2020) Economic impacts of Wuhan 2019‐nCoV on China and the world, Journal of Medical Virology, 92(5), pp. 473-475, https://doi.org/10.1002/jmv.25706.

Bajec, J. (2018) A Coherent Growth Policy for Serbia, In: Brändle, M. & Weichert, M. (eds) A New Economic Agenda for Southeast Europe (Sarajevo: Friedrich-Ebert-Stiftung, Dialogue Southeast Europe), str. 81-90.

Bartlett, W. (2019) Economic reforms in Serbia and prospects for economic recovery and growth, In: Osbild, R. & Bartlett, W. (eds) Western Balkan Economies in Transition (Cham: Springer), pp. 147-163.

Benito, B., Guillamón, M.-D., & Ríos, A.-M. (2018) Public Management Versus Private Management in the Provision of Drinking Water: What is the Cheapest?, Lex Localis – Journal of Local Self-Government, 16(2), pp. 271-292.

Benkovic, S., Krivokapic, J. & Milosavljevic, M. (2015) Application of the public-private partnership organizational structure in the improvement of business operations of public sector enterprises in Serbia, Lex Localis – Journal of Local Self-Government, 13(3), pp. 397-417.

Benkovic, S., Milanovic, N. & Milosavljevic, M. (2017) A Framework for the Evaluation of the Feasibility of Public–Private Partnership in Local Government in Serbia, Journal of Entrepreneurship, Management and Innovation, 13(4), pp. 7-23.

Bogićević-Milikić, B., & Janićijević, N. (2009) HRM trends in transition economies: Two reflections of the shared background, Sociologija, 51(2), pp. 157-176.

Bogićević-Milikić, B., Janićijević, N. & Cerović, B. (2012) Two decades of post-socialism in Serbia: Lessons learned and emerging issues in human resource management, Journal for East European Management Studies, 17(4), pp. 445-463.

Bowman, E. & Singh, H. (1993) Corporate restructuring: Reconfiguring the firm, Strategic Management Journal, 14(S1), pp. 5-14.

Brockner, J., Siegel, P., Daly, J., Tyler, T. & Martin, C. (1997) When trust matters: The moderating effect of outcome favorability, Administrative Science Quarterly, 42(3), pp. 558-583.

Brockner, J., Tyler, T. & Cooper-Schneider, R. (1992) The influence of prior commitment to an institution on reactions to perceived unfairness: The higher they are, the harder they fall, Administrative Science Quarterly, 37(2), pp. 241-261.

Budros, A. (1999) A conceptual framework for analyzing why organizations downsize, Organization Science, 10(1), pp. 69-82.

Buono, A. (2003) The hidden costs and benefits of organizational resizing activities, In: De Meuse, K. & Marks, M. (eds) Resizing the organization: Managing layoffs, divestitures, and closings (San Francisco, CA: John Wiley & Sons), pp. 306-346.

Cameron, K. (1994) Strategies for successful organizational downsizing, Human Resource Management, 33(2), pp. 189-211.

Cameron, K., Freeman, S. & Mishra, A. (1991) Best practices in white-collar downsizing: Managing contradictions, Academy of Management Executive, 5(3), pp, 57-73.

Cameron, K., Freeman, S. & Mishra, A. (1993) Downsizing and redesigning organizations, In: Huber, P. G. & Glick, W. H. (eds) Organizational change and redesign (oxford: Oxford University Press), pp. 19-63.

Cascio, W. (1993) Downsizing: What do we know? What have we learned?, The Academy of Management Executive, 7(1), pp. 95-104.

Cascio, W. (2012) How does downsizng come about?, In: Cooper, C., Pandey, A. & Quick, J. (eds) Downsizing: Is less still more? (Cambridge University Press), pp. 51-76.

Cascio, W. (2014) Alternatives to downsizing: Efforts in responsible restructuring. Cooperative employment relations to preserve jobs: Responsible restructuring practices and shared work (Portland, OR: Labor and EMployment Relations Assocation).

Cierco, T. (2013) Public administration reform in Macedonia, Communist and Post-Communist Studies, 46(4), pp. 481-491.

Čudanov, M., Jaško, O. & Săvoiu, G. (2012) Public and Public Utility Enterprises Restructuring: Statistical and Quantitative Aid for Ensuring Human Resource Sustainability, Amfiteatru Economic Journal, 32, pp. 307-322.

Datta, D., Guthrie, J., Basuil, D. & Pandey, A. (2010) Causes and effects of employee downsizing: A review and synthesis, Journal of Management, 36(1), pp. 281-348.

De Meuse, K., Vanderheiden, P. & Bergmann, T. (1994) Announced layoffs: Their effect on corporate financial performance, Human Resource Management, 33(4), pp. 509-530.

De Vries, M. & Nemec, J. (2013) Public sector reform: an overview of recent literature and research on NPM and alternative paths, International Journal of Public Sector Management, 26(1), pp. 4-16.

Denhardt, R. B. (2004) Theories of Public Organization (Belmont, CA: Thomson Wadsworth).

DeWitt, R.-L. (1998) Firm, industry, and strategy influences on choice of downsizing approach, Strategic Management Journal, 19(1), pp. 59-79.

Dolan, S., Belout, A. & Balkin, D. (2000) Downsizing without downgrading: learning how firms manage their survivors, International Journal of Manpower, 21(1), pp. 34-47.

Dong, X.-Y. & Putterman, L. (2003) Soft budget constraints, social burdens, and labor redundancy in China's state industry, Journal of Comparative Economics, 31(1), pp. 110-133.

Đuričin, D. & Vuksanović, I. (2014) Quest for new development model and economic policy platform for Serbia: The role of industrial policy, Ekonomika preduzeća, 62(5-6), pp. 229-250.

EC. (2019) Serbia 2019 Report (Brussel: European Commission).

Faber, H. (1997) The changing face of job loss in the United States, 1981-1993 (Cambridge, MA: National bureau of economic research).

Franičević, V. & Matković, T. (2013) Croatia: Public sector adaptation and its impact on working conditions, In: Vaughan-Whitehead, D. (ed) Public Sector Shock (Edward Elgar Publishing).

Gandolfi, F. (2013) Workforce downsizing: Strategies, archetypes, approaches and tactics, Journal of Management Research, 13(2), pp. 67-76.

Gandolfi, F. & Littler, C. (2012) Downsizing is dead; long live the downsizing phenomenon: Conceptualizing the phases of cost-cutting, Journal of Management & Organization, 18(3), pp. 334-345.

Gautié, J. (2013) France: The public service under pressure, In: Vaughan-Whitehead, D. (ed) Public Sector Shock (Cheltenham: Edward Elgar Publishing), pp. 174-213.

Geys, B., Heinemann, F. & Kalb, A. (2010) Voter involvement, fiscal autonomy and public sector efficiency: Evidence from German municipalities, European journal of political economy, 26(2), pp. 265-278.

Grimshaw, D. (2013) Austerity, privatization and levelling down, In: Vaughan-Whitehead, D. (ed) Public Sector Shock (Cheltenham: Edward Elgar Publishing), p. 576.

Grossi, G. & Reichard, C. (2016) Variance in the institutions of local utility services: Evidence from several European countries, In: Wollmann, H., Koprić, I. &. Marcou,G. (eds) Public and Social Services in Europe (London, UK: Palgrave Macmillan), pp. 297-312.

Hall, D. & Lobina, E. (2005) The relative efficiency of public and private sector water (London: PSIRU, Business School, University of Greenwich).

Heywood, S., Layton, D. & Penttinen, R. (2009) A better way to cut costs (New York: McKinsey Company).

Horváth, T. M. (2016) From municipalisation to centralism: Changes to local public service delivery in Hungary, In: Wollmann, H., Koprić, I. & Marcou, G. (eds) Public and Social Services in Europe (London, UK: Palgrave Macmillan), pp. 185-199.

IMF (2015) IMF Executive Board Approves €1.2 billion Stand-By Arrangement for Serbia -Press Release No. 15/67 (Washington, DC: International Monetary Fund).

IMF (2015) Republic of Serbia - IMF Country Report No. 15/161 (Washington, DC: International Monetary Fund).

IMF (2016) IMF concludes visit to Serbia - Press Release No. 16/78 (Washington, DC: International Monetary Fund).

Janićijević, N. & Bogićević-Milikić, B. (2011) Public management in Serbia: From imitation to status quo, Sociologija, 53(4), pp. 433-452.

Jaško, O., Todorović, I. & Komazec, S. (2014) The Holding Company as a Possible Institutional Solution for the Public Sector Organization, In: Levi Jakšić, M., Barjaktarović Rakočević, S. & Martić, M. (eds) Innovative Management and Firm Performance: An Interdisciplinary Approach (Hampshire, UK: Palgrave MacMillan), pp. 165-186.

Jeon, D.-S. & Laffont, J.-J. (1999) The efficient mechanism for downsizing the public sector, The World Bank Economic Review, 13(1), pp. 67-88.

Kessides, I., Miniaci, R., Scarpa, C. & Valbonesi, P. (2009) Toward defining and measuring the affordability of public utility services (Washington DC: The World Bank).

Koprić, I., Musa, A. & Đulabić, V. (2016) Local government and local public services in Croatia, In: Wollmann, H., Koprić, I. & Gerrar, M. (eds) Public and social services in Europe (London: Palgrave Macmillan), pp. 201-215.

Labib, N. & Appelbaum, S. (1994) The impact of downsizing practices on corporate success, Journal of Management Development, 13(7), pp. 59-84.

Littler, C. (1998) Downsizing organisations: The dilemmas of change, Human resources management bulletin, 8, pp. 1-12.

Love, G. & Nohria, N. (2005) Reducing slack: The performance consequences of downsizing by large industrial firms, Strategic Management Journal, 26(12), pp. 1087-1108.

McKibbin, W. J. & Roshen, F. (2020) The global macroeconomic impacts of COVID-19: Seven scenarios, CAMA EWorking Paper No. 19/2020, available at https://ssrn.com/abstract=3547729, http://dx.doi.org/10.2139/ssrn.3547729.

Mentzer, M. (1996) Corporate Downsizing and Profitability in Canada, Canadian Journal of Administrative Sciences, 13(3), pp. 237-250.

Mihaiu, D., Opreana, A. & Cristescu, M. (2010) Efficiency, effectiveness and performance of the public sector, Romanian Journal of Economic Forecasting, 4(1), pp. 132-147.

Mishra, A. & Mishra, K. (1994) The role of mutual trust in effective downsizing strategies, Human Resource Management, 33(2), pp. 267-279.

Mishra, A., Mishra, K. & Spreitzer, G. (2009) Downsizing the company without downsizing morale, MIT Sloan Management Review, 50(3), pp. 39-44.

Mone, M. (1994) Relationships between self‐concepts, aspirations, emotional responses, and intent to leave a downsizing organization, Human Resource Management, 33(2), pp. 281-298.

Mone, M., McKinley, W. & Barker , V. (1998) Organizational decline and innovation: A contingency framework, Academy of Management Review, 23(1), pp. 115-132.

Nixon, R., Hitt, M., Lee, H.-U. & Jeong, E. (2004) Market Reactions to Announcements of Corporate Downsizing Actions and Implementation, Strategic Management Journal, 25(11), pp. 1121-1129.

OECD. (2011) Government at a Glance (Paris: OECD).

Petrović, P., Brčerević, D. & Minić, S. (2016) Economic recovery, employment and fiscal consolidation: Lessons from 2015 and prospects for 2016 and 2017, Ekonomika preduzeća, 64(1-2), pp. 53-73.

Rama, M. (1999) Public sector downsizing: An introduction, The World Bank Economic Review, 13(1), pp. 1-22.

Rama, M. & Besler, P. (2001) State ownership and labor redundancy: estimates based on enterprise-level data from Vietnam (Washinton DC: The World Bank).

Rato, H. (2013) Portugal: Structural reforms interrupted by austerity, In: Vaughan-Whitehead, D. (ed) Public Sector Shock (Celthenham: Edward Elgar Publishing), pp. 411-448.

Rynes, S., Colbert, A. & Brown, K. (2002) HR professionals' beliefs about effective human resource practices: Correspondence between research and practice, Human Resource Management, 41(2), pp. 149-174.

SIGMA. (2019) Monitoring report - Serbia (Brussels, BelgiumS: OEDC).

Soukopová, J., Ochrana, F., Klimovský, D. & Mikusova Mericková, B. (2016) Factors influencing the efficiency and effectiveness of municipal waste management expenditure, Lex Localis – Journal of Local Self-Government, 14(3), pp. 358-378.

Van Dalen, H. & Henkens, K. (2013) Dilemmas of downsizing during the Great Recession: Crisis strategies of European employers, De Economist, 161(3), pp. 307-329.

Vaughan-Whitehead, D. (2013) Public sector shock in Europe: Between structural reforms and quantitative adjustment, In: Vaughan-Whitehead, D. (ed) Public Sector Shock (Celtenham: Edward Elgar Publishing), pp. 1-42.

Vujović, D. (2017) Serbia: Two years of fiscal consolidation: Results and medium-term sustainability issues, Ekonomika preduzeća, 65(1-2), pp. 25-41.

World Bank (2015) Republic of Serbia - Public Finance Review - Report No. 96451-YF (Washington, D.C.: World Bank Group).

World Bank (2020) Doing Business 2020 (Washington, D.C.: World Bank Group).

Wyatt Group (1993) Best practices in corporate restructuring (Washington DC: The Wyatt Company).

Zartaloudis, S. (2014) The Impact of the Fiscal Crisis on Greek and Portuguese Welfare States: Retrenchment before the Catch‐up?, Social Policy & Administration, 48(4), pp. 430-449.

Zatzick, C. & Iverson, R. (2006) High-involvement management and workforce reduction: competitive advantage or disadvantage?, Academy of management Journal, 49(5), pp. 999-1015.

Published
2020-10-29
Section
Article