Data on the work environment for creativity and innovation were collected at four points in time from employees at a large high-technology firm that we call High Tech Electronics International. The first data collection, Baseline, occurred several months before High Tech's chairman announced a major restructuring. The second data collection, Wave 1, occurred approximately 18 months later, when the restructuring was about 60% complete. The third data collection, Wave 2, occurred 5 months after Wave 1, just as the restructuring was being completed. A fourth data collection, Wave 3, took place five months after Wave 2. In addition to measures of the work environment, the post-baseline data collections include questionnaire measures of employee's experienced changes, reactions, and feelings, as well as interviews with a subset of the questionnaire respondents.
Analyses of the quantitative data reveal that most indicators of the work environment, creativity,
and productivity show a significant decline from the pre-downsizing Baseline to Wave 1. However,
the Wave 2 and 3 data indicate a modest rebound effect. Examination of quantitative data on
employees' experiences, perceptions, and reactions reveals that few of the observed changes can
be directly attributed to the simple magnitude of the downsizing (reduction in force) already
experienced. Rather, most changes are more strongly related to other factors that accompany
restructuring and downsizing, especially the stability of one's work group, the anticipated future
change in the size of one's department, the degree of uncertainty experienced, and the efficiency
of communication within the organization. These results will be useful in considering ways in
which the negative effects of restructuring might be avoided or alleviated.
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