Assessing the impact of the downsizing implemented in the Lebanese banking sector during the current economic crisis: measuring employee performance

Abstract

The purpose of this paper is to evaluate and describe the effect of the downsizing strategy on the Lebanese Banking sector and how employee performance is affected during this period. For that, primary data is collected and analyzed in order to elaborate and test the hypotheses. To conduct our research, a deductive quantitative research was used using a questionnaire distributed online and answered by Lebanese banking sector employees. The data obtained from 101 individuals was analyzed using SPSS to test the hypotheses and answer the research questions. The findings obtained highlight that employee morale and job insecurity have significant impact on employee performance. Whereas efficiency of communication did not show a significant impact on employee performance. Our results add to the understanding of employee performance during a downsizing period which can help bank managements in charge of integrating related downsizing strategies. Besides, the originality of this study lays in the fact that it is one of the few research studies tackling downsizing strategies that are currently taking place in Lebanon. It fills thereby this gap in the literature and proposes an action plan that can be implemented to overcome the current economic crisis and to ensure an efficient downsizing process.