Managing Organizational Knowledge While Downsizing Organizations

In this paper we investigate potential influence of organizational downsizing on organizational knowledge and learning. We discuss organizational downsizing in order to show that in large it is an issue of organizational design, and as such, managerial activity that must be coordinated with another - managing organizational knowledge. From this standpoint, we theorize that if these two managerial activities are not coordinated, organizational downsizing can lead to uncontrolled knowledge leakages, which can show to have unforeseen effects on organizational well-being in long term.