CHAPTER 1: INTRODUCTION

The frequency and scope of organizational downsizing in the automobile manufacturing

industry has affected the stability of the American workforce, the local communities’ economy,

and the lifestyle of employees who have suffered a job loss (Budros, 2005, p. 491; Wall Street

Journal, 2009; Farrel & Mavando, 2004, p. 390). Many individuals employed in the automobile

manufacturing industry have lost their jobs due to a downturn in sales and national economic

conditions. Local communities impacted due to loss of tax revenue have fewer community

amenities, and overall diminished community stability (Farrel & Mavando, 2004). These factors

influence economic development in local communities, such as better schools, new businesses,

and job creation. Job loss also influences the lifestyles of the unemployed workers. The primary

emphasis of the current research study is to determine if, how, and to what extent job loss affects

workers’ family relationships.

To study the phenomenon, the proposed dissertation “An Assessment of How Job Loss Affects

Economic Status and Family Relationships During the Adjustment Period: A Study of

Automobile Manufacturing Workers” will develop and review appropriate data to attain relevant

research findings. This study’s background information serves as the foundation, and provides a

historical description of circumstances that contribute to the central problem. This information

helps in the evaluation and assessment of the organizational downsizing phenomenon. The

population studied is described based on the former employment affiliation with the automobile

manufacturing industry. Study participants will consist of former employees of Ford Motor

Company, General Motors Corporation, Chrysler, and Delphi. This study differs from prior

studies based on current events that have influenced the automobile manufacturing industry and

its former employees’ peripheral quality of life issues. Prior studies have not focused on the

impact to downsized workers’ family relationships, but rather conversely focused on the impacts

to organizational factors such as competitiveness, productivity, layoff survivors’ morale, and

public image. Economic, physical, and emotional health issues have influenced unemployed

workers (Dohrenwend, Dodson, & Shrout (1984).

These added stressors equate to more reliance on service delivery systems that taxpayers are

responsible for maintaining. With fewer job opportunities, workers who have lost their jobs will

have fewer venues to make meaningful contributions to society unless other citizens provide

targeted assistance in the form of job creation or business development assistance,

encouragement, monetary resources to attend colleges or vocational schools, and enhanced social

service delivery programs. Organizational leaders are responsible for maintaining efficiencies

and protecting the assets of the company, all while reducing liability risks. When cost-saving

measures become integrated with human resource management, downsizing frequently occurs to

balance the organization’s budget.

Many organizations have heeded the lessons taught by the Enron and WorldCom scandals,

and recognize the need to maintain the highest integrity and ethical considerations while in a

leadership role. This requires personal integrity as expressed through candor, honesty, respectful

communication, and directness when addressing the difficult subject of downsizing. Chapter 1

will also include demographic data regarding the workers who have been impacted the most by

job loss in the automobile manufacturing industry and various other industries across the nation.

Background of the Problem

Approximately, 5 million jobs in the United States have been lost through organizational

downsizing since December 2007, due to the national recession (Department of Labor, 2009).

Unemployment is expected to escalate through 2009 to 10%, due to downsizing (Aversa, 2009).

The frequency and scope of organizational downsizing in the automobile manufacturing industry

has affected the stability of the American workforce, the local communities’ economy, and the

lifestyle of workers and their families who have suffered a job loss.

Downturns in economic conditions influence economic development, namely better schools,

new businesses, and job creation. Job loss also influences the lifestyles of the unemployed

workers, and likely affects family members. In the event that multiple family members in the

same household experienced job loss simultaneously, which is entirely possible in the current

economic climate, entire families could be displaced due to the inability to pay their mortgage

debts, utilities, food, transportation, or medical costs.

The budget cuts make it difficult to provide aid to those families who need it most at critical

times. During the 2007-2009 recession, workers with undergraduate college degrees have been

affected by massive layoffs throughout various industries in the United States (U.S). More

individuals have suffered unemployment during 2007-2009 overall, with the Michigan

unemployment rate at 8.7% during August 2008 (Michigan Department of Labor and Economic

Growth site, 2008); Ohio’s unemployment rate was 7.8% (The Job Center, 2009); Kansas’

unemployment rate was 4.9% during the same time (Recession, 2009).

Since the major industry in the Detroit and Dearborn, Michigan is automobile manufacturing

(Michigan Department of Labor and Economic Growth, 2008; Appendix A), Michigan labor

analysts recognize that a transfiguration of its workforce must take place to allow workers to use

their acquired skills to transition to new jobs in various industries within the state, and retain its

citizenry. Maintaining jobs is also crucial for Michigan to retain its population to strengthen

local economies. “Just as competition applies constant pressure on firms to improve and

innovate, workforce skill and knowledge requirements must evolve to keep pace with employer

demand” to improve employment opportunities for committed workers (Michigan Department of

Labor and Economic Growth, 2008, p. 1). “The economy’s size as described by real Gross

Domestic Product (GDP) does not speak to the standard of living for its citizens,” yet helps

describe the level of wealth within a specific locale (Michigan Department of Labor and

Economic Growth site, 2008, p.1).

Several additional states employ a large number of automobile manufacturing workers in

Alabama, Tennessee, Kentucky, Georgia, North Carolina, South Carolina, Virginia, Texas,

Kansas, and Ohio (Glazer, L. & Grimes, D. (2009). The study will focus on Kansas and Ohio,

besides Michigan, due to the proximity to Michigan and large number of plants located in the

geographical region. Approximately 2, 400 workers continue to work at General Motor’s

Fairfax plant in Kansas City, Kansas, which was spared further downsizing due to the award of

new production plans to build several popular models (Heaster, 2009). General Motors plans to

close temporarily 13 plants from June through August 2009, which may impact some families

even further. In Ohio, significant manufacturing job losses have caused the number of

unemployed workers to increase during March 2009 to 578,000, up from 567,000 in February

2009 (The Job Center, 2009). “State officials expect Ohio will continue to see several more

months of losses and little recovery in the state's unemployment rate until early 2010” (The Job

Center, 2009, p. 1).

Mindful of the market shifts, Ford created Global 2000 that aimed to change its costs

structures and decrease prices paid to its ancillary vendors (Ford, 2008). Ford’s primary

competitor, General Motors, experienced significant difficulty in the fulfillment of its business

objectives due to lagging consumer sales. Likely, Ford, Chrysler, and General Motors will face

significant challenges in efforts to recapture their respective markets in the current economic

climate. Johnson (2009) stated that both General Motors (GM) and Chrysler were expected to

accept wage concessions of up to $7 per hour for automobile manufacturing workers to bring

labor costs in line, per mandates from the federal government’s legislative and executive

branches, which approved a $16 billion loan to maintain GM’s business for six months through

June 2009.

General Motors filed bankruptcy on June 1, 2009 (Rowley, 2009; Appendix L). Due to the

business restructuring, numerous manufacturing plant closings were announced (WJRT, Mid-

Michigan, 2009; Appendix M). The previous bankruptcy filing by Chrysler LLC on April 30,

2009 resulted in nationwide announcements of impending dealer and plant closings that will

likely lead to significant job losses (Welch & Kiley, 2009; Appendix N). Chrysler CEO Bob

Nardelli informed Chrysler employees that business and production schedules would resume

within sixty days, following the legal bankruptcy proceedings (Welch & Kiley, 2009). “Hourly

employees will receive unemployment benefits, as well as supplemental pay that will amount to

most of their base wages" (Welch & Kiley, 2009. p. 2).

The primary emphasis of this qualitative research study is to determine if, how, and to what

extent job loss affects workers’ family relationships. To study the phenomenon, the proposed

dissertation An Assessment of How Job Loss Affects Economic Status and Family Relationships

During the Adjustment Period: A Study of Automobile Manufacturing Workers will develop and

review appropriate data to attain relevant research findings. This study’s background information

serves as the foundation, and provides a historical description of circumstances that contributed

to the central problem. This information helps in the evaluation and assessment of the

organizational downsizing phenomenon, and if the resulting job loss impacts workers family

relationships in a significant manner.

The barrier may lie in if these workers possess the education and job skills to transition

successfully. An additional barrier to getting a job may be a lack of skills and experience. Some

older workers may face discrimination because of their age and expectation of higher salaries,

comparable to their former compensation. Glazer & Grimes (2009, p. 2) indicated that

Michigan’s sustainability is connected to the state’s ability to attract and retain talent.

Further, Glazer & Grimes (2009, p. 2) stated that automobile manufacturing workers are among

the highest paid manufacturing workforce in the nation, even though the group is considered

“low –education attainment” and earns 10/% more than the national average (Appendix J). “The

good-paying, low skill jobs which have been the backbone of the Michigan middle class will

almost surely decline” (Glazer & Grimes, 2009, p. 2).

The prospect of remaining unemployed may force workers to accept underemployment, just

to work and earn a living. While some individuals may enjoy more leisure time and less work

time, others prefer the structure and commitment of working to earn their living for family

support. Many workers have qualified for defined benefit pensions through long service with an

automobile manufacturer, and may have the option of retiring with full benefits. This action may

defuse any negative reactions from family members dependent on the worker’s financial support.

Statement of the Problem

The general problem is job loss caused by downsizing has the potential to be detrimental to

workers’ overall quality of life. The specific problem is workers who have experienced job loss

may find it difficult to maintain their economic status and family relationships, which influences

holistic survival issues. The threat of downsizing, some analysts believe, has made the wage cut

concept seem palatable. Ford has asked for wage concessions up to $7 per hour from tenured

workers (Webster, 2007) to minimize further assembly plant closings. Employees are concerned

that regular jobs may be phased out and replaced with temporary workers at lower wages

(Webster, 2007). Ford’s innovative robotics technology has increased safety in many plants, and

decreased staffing needs in plants where job tasks are repetitive and mundane (Ford, 2008).

Purpose Statement

The primary purpose of this qualitative phenomenological study is two-fold: to research how

job loss caused by downsizing impacts workers’ quality of life, and family relationships; and to

assess how workers maintain their economic status, which influences survival issues as they

experience job loss adjustment. The impacts of downsizing could include workers making

decisions whether or not to retain the family’s home residence, relocate to an area with better

employment prospects, accept under-employment in order to work again, sell personal property

to reduce debt and increase monetary assets, improve romantic relationships with spouses or

partners, improve relationships with other family members and extended family, increase church

attendance and spiritual faith, change careers, increase participation in recreational pursuits,

attend an educational institution, or pursue self-employment.

The qualitative phenomenological research method is appropriate for this study because it

will allow former employees an appropriate outlet to express personal feelings, which may have

not occurred prior to the study. The research design selection is appropriate also because it

closely relates to the intention of gathering information in a “first person” point of view to delve

into conscious and sub-conscious held beliefs by the study participants. The research method

allows the focus to remain on the participants’ personal experience regarding the job loss.

Phenomenological study, which is “the study of structures of consciousness as experienced from

the first-person point of view,” allows a closer look into the sub-consciousness of the participants

(Stanford, 2007, p.1).

The major components of the downsizing action include: opportunities to change to more

stable careers and industries; loss of regular income and defined employee benefits; loss of or

restriction of consumer credit privileges; opportunity to make oneself more marketable by

attending school with personal savings or buy-out funds to earn a college degree, license, or

certification; increased likelihood that individuals will not seek frequent medical care due to

limited medical benefits; increased likelihood that individuals will seek specialized medical

examinations that are publicized in public service announcements and offered for free or

reduced fees; increased likelihood that individuals may engage in physical fitness activities;

increased likelihood that workers may have conflicts with family members and extended family;

decreased ability to pay for basic living needs and luxury items; opportunity to start a personal

business with buy-out funds and enhance earning potential; uncertainty regarding callback

timeframe; increased stress; and negative affects on individuals’ standards of living. As a

personal dilemma, each individual must find ways to influence outcomes and maintain economic

equilibrium without his or her regular income (Leana & Feldman, 1990, p. 1160).

Maintaining personal self-esteem and positive personal relationships before, during, and after

unemployment periods are desirable and logical objectives of workers (Leana & Feldman, 1990,

p. 1162). The research study will also focus on how well the former workers seek opportunities

to regain stability within their lives versus how poorly they adapt to their new status. A

representative sample from the target population will include 40 former automobile

manufacturing employees in Michigan (Detroit and Dearborn), Ohio (Dayton and Moraine), and

Kansas (Kansas City) who have experienced job loss within 2007-2009. The selected

methodology is appropriate for the proposed study selection to explore how individuals cope

with unemployment issues, and if job loss affects economic status, family relationships, and

quality- of- life issues.

The current research study is a qualitative study that does not require inclusion of a

dependent or independent variable. For illustrative purposes only, the terminology is used as

follows: The dependent variables of this study are the abilities of unemployed workers to make a

successful adjustment from unemployed status to employed status resulting in a comparable or

better job; or regularly to attend a college or vocational school, all without adapting behaviors

that depict depression or long-term stress damage. The dependent variables are: the adaptation

and sustenance of personal self-confidence levels, and a continuous positive and determined

attitude to successfully rebound from unemployment.

The variables are integrated and evaluated based on their effectiveness in protecting and

strengthening family relationships during the adjustment process. The independent or

exploratory variables are the workers’ healthcare benefits, the level of support from family and

associates, emotional involvement with family members, and access to the social service and

financial planning systems to derive basic living needs. The reason these variables are important

to the study is that they bring emphasis to the importance of emotional and physical support in

overcoming obstacles, and maintaining a positive attitude in dealing with adverse conditions.

Using 26 structured interview questions in successive face-to-face interviews to establish rapport

and generate meaningful dialogue will provide a section of the required triangulated data to

create relevant research information.

Significance of the Study

The significance of the study is that it will highlight the affects of job loss, illustrate how

organizations’ practices and protocols affect individuals’ quality of life and lead to restructuring

and evaluation of these factors to make economic and personal recovery more difficult. The

September 2008 jobless rate was 6.1% (Department of Labor, 2008). “In the deep recession of

1973/1974, the jobless rate reached almost 9%. There are currently about 148 million people in

the US civilian workforce. If unemployment rises to nearly 10%, another six million or more

people would be out of work” (McIntyre, 2008).

More people are likely to be directly affected by an organizational downsizing than ever

before (Wall Street Journal, 2009). Therefore, every American should learn about downsizing

trends in various industries, and begin to advocate for the creation of contingency management

plans, lobby for advocacy legislation, and strive to create transitional social service programs to

address the concerns of workers affected by job loss. Understanding the reasons why

organizations downsize is vital in understanding its expected outcomes and impacts

organizations in other industries as well.

Through evaluative processes including crisis mitigation research and prior strategic planning,

organizations can best determine if predictive methodologies are useful in averting personnel

restructuring crises. Assessing the most emergent and necessary benefits that individual workers

need to successfully transition to comparable jobs in other industries, yet still having the ability

to maintain their economic gains is one of the most important factors that organizational leaders

must acknowledge and work towards providing appropriate tools to help their affected workers.

Significance of the Study to Leadership

The significance of this study to the field of leadership is that organizations should become

cognizant of how job loss impacts a wide scope of American workers, their families, and the

nation’s economy at large. As an example, job exports have negatively impacted the American

workforce as more jobs are exported to international competitors that eradicate available jobs

and drive down wages within the middle class (Preeg, 2004). The United States’ middle class

cannot compete with global market leaders in terms of labor costs, mass production capabilities,

and technology innovation (Preeg, 2004). Some critics claim that China is eroding the United

States' leadership in technological innovation (Preeg, 2004).

“For the working middle class, this means job losses, job precariousness, weakening union

power, repressed wages, falling living standards, and many other social and individual woes”

(Preeg, 2004, p. 401). Many workers affected by the automobile manufacturing downsizings are

older workers in the Baby Boomer generation, eligible to retire within the next several years.

Rather than seeking new employment, many experienced workers with varying experiential and

educational attainment will likely choose to retire. Organizations will lose the benefit of the

workers’ knowledge and work experience.

Starting in 2010, retiring Baby Boomers will have a strong impact on the American

workforce. Since not enough replacement workers are available in the technology and related

fields, organizational leaders will be forced to exert pressure on the federal government to issue

more immigration visas to hire international workers until more American workers are trained

(US Department of Labor, 2009). With fewer workers and higher demands for workers with

specific skills, imported workers will command higher wages for immigrant workers, which

organizations will be forced to pay.

Leadership should act and treat workers in an ethical manner, and “motivate followers to

achieve a vision moored on objectives that include concern with all stakeholders, and act as a

mentor or role model to followers’ moral development” (Torpman, 2004, p. 42). “Ethical

leadership confers legitimacy to agencies and actors serving the public good” (Sama and Shoaf,

2008, p. 41). “The psychological contract between employers and employees has been argued to

involve employees providing effort and loyalty in exchange for pay and job security” (Vickers &

Parris, 2007; p. 118).

Leadership should remain mindful of ways to retain the workers’ talent and knowledge by

offering flexible schedules, mentoring opportunities, enhanced training for replacement workers,

comparable jobs, and an inclusive multi-generational workplace. “Instead of making the news of

redundancy such a shock, why not consider breaking the news of the possibility of redundancies

well ahead of time and in a more general way so that particular staff are not targeted, but are

warned of the downsizing likelihood” (Vickers & Parris, 2007, p. 123).

Proactive leadership can plan and provide career transitional tools to aid in the recovery

process following a corporate downsizing. If workers are not able to recover from losing their

employment, they will continue to drain society’s resources and further impact the national

economy (Dohrenwend et al., 1984; Liem & Liem, 1988; Pearlin et al., 1981).

Nature of the Study

The qualitative phenomenological research method will allow former employees an

appropriate outlet to express personal feelings, which may have not occurred prior to the study.

Examining the primary differences between a qualitative and a quantitative research study

revealed a qualitative study should be used when an inquiry approach is needed and when a

unique central theme will be explored, and information is gained from participants (Creswell,

2002; Sproull, 2003). Quality research addresses issues of real importance that advance the body

of knowledge on specific topics, has a defined constituency and a wider audience that can

generalize the findings for use (Marshall & Rossman, 1999).

By focusing on increasing comprehension, quality research can enhance knowledge regarding

perplexing problems that individuals, groups, and organizations face. A systematic approach is

necessary, that incorporates an ethical approach with a defined methodology, using careful

planning to measure variables and disclosure of measures to encourage replication and

transparency (Anderson & Kanuka, 2003).

The research design closely relates to the intention of gathering information in a “first person”

point of view to delve into conscious and sub-conscious held beliefs by the study participants.

The research method allows the focus to remain on the participants’ personal experience

regarding the job loss. Phenomenological study, which is “the study of structures of

consciousness as experienced from the first-person point of view,” allows a closer look into the

sub-consciousness of the participants (Stanford, 2007, p. 1). The central structure of an

experience is its intentionality of targeted attention towards a specific issue. “An experience is

directed toward an object by virtue of its content or meaning, which represents the object,

together with appropriate enabling conditions” (Stanford, 2007, p. 1).

A purposive sample of 40 former automobile manufacturing workers from Michigan (Detroit

and Dearborn), Ohio (Moraine and Dayton), and Kansas (Kansas City) areas will respond to

open-ended discussion questions in personal interviews to establish rapport, and allow the

gathering of data to conduct the research study. Questions will be asked about the individuals’

job loss adjustment experiences. With an opportunity to express true feelings of the affects of the

downsizing, furloughed workers may perceive that others are concerned for their personal well-

being, and sustain confidence that they will recover from the organizational downsizing. Prior

studies have not explored the impact to quality of life issues experienced by automobile

manufacturing workers who have suffered a job loss. As a personal dilemma, each worker must

find ways to maintain physical and mental health, influence outcomes, and maintain economic

equilibrium without his or her regular income. The literature search conducted on the topics

outlined in the problem statement and research variables includes the background and history of

downsizing, economic impacts to workers, job search results, available vocational training,

health impacts, and family relationships.

Research Variables

The current research study is a qualitative study that does not require inclusion of a dependent

or independent variable. For illustrative purposes only, the terminology is used as follows: The

dependent variables of this study are the abilities of unemployed workers to make a successful

adjustment from unemployed status to employed status to a comparable or better job; or to

regularly attend a college or vocational school, all without adapting behaviors that depict

depression or long-term stress damage. The dependent variables are: the adaptation and

sustenance of personal self-confidence levels, and a continuous positive and determined attitude

to rebound from unemployment.

The variables are integrated and evaluated based on their effectiveness in protecting and

strengthening family relationships during the adjustment process. The independent or

exploratory variables are the workers’ healthcare benefits, the level of support from family and

associates, emotional involvement with family members, and access to the social service and

financial planning systems to derive basic living needs. The reason these variables are important

to the study is that they bring emphasis to the importance of emotional and physical support in

overcoming obstacles, and maintaining a positive attitude in dealing with adverse conditions.

Vroom’s (1995) Expectancy Theory and Weider’s (1980) Attribution Theory comprise the

study’s theoretical framework, which emphasizes individuals’ outcome expectations after

following specific behavior patterns to maximize pleasure and minimize pain.

Research Questions

The following targeted questions guide the research development and literature selection,

which is acceptable for qualitative research. Often, researchers prematurely signal how they want

readers to interpret the findings of the study. The research question for the qualitative study is

“posed as a general issue so as not to limit the inquiry” (Creswell, 2002, p. 70). The research

question for this study will focus on gaining an understanding about the impact that job loss has

on unemployed automobile manufacturing employees. The six (6) related sub-questions to study

the outcome of the study are:

1. Does job loss result in workers’ depression or feelings of long-term stress?

2. Is there an impact on workers’ depression if the organization does not make further

contact to offer assistance?

3. Does the job loss affect workers’ family relationships in terms of romantic

involvement, positive communications, ability to pay recurring expenses, mental

depression, or participation in recreational or family-oriented events when the

financial “buy-out” is exhausted?

4. Does family or personal associates’ emotional or financial support significantly affect

workers’ adjustment and ability to successfully transition after a job loss to a

comparable or better job?

5. Does timely, comprehensive financial planning influence the workers’ mental status or

the ability to make decisions about how to restructure or prioritize the family’s debt

obligations?

6. How likely is the worker to use a social service delivery system during his job loss

adjustment period?

Theoretical Framework

In formulating a theoretical perspective for examining how workers’ experiences during job

loss adjustment periods actively engage or disengage them, several theories were applicable and

considered, which were (a) Social Development Theory, (b) Social Learning Theory, (c)

Attribution Theory, and (d) Expectancy Theory. Each framed the study assumptions and

selected choice of research methods. Vygotsky's Social Development Theory posits that “social

interaction plays a fundamental role in the development of cognition” (Vygotsky, 1978, p. 1) or

learning and comprehension. This factor may be relevant in determining how workers conceive

job loss transitional issues that could impact the study’s research variables regarding family

relationships, mental health, and economic status.

Bandura’s Social Learning Theory emphasizes the importance of observing and modeling the

behaviors, attitudes, and emotional reactions of others. Bandura (1977, p. 146) states: "Learning

would be exceedingly laborious, not to mention hazardous, if people had to rely solely on the

effects of their own actions to inform them what to do.”Bandura’s and Vygotsky's theory

complements the other, and emphasizes the importance of human interaction to resolve

dilemmas. Supportive interaction is likely necessary to help downsized workers successfully

adjust after the job loss period.

The selected theoretical framework is based on Weiner’s Attribution Theory (1980, 1986;

Appendix J) and Vroom’s Expectancy Theory (1959; Appendix I). Attribution theory (Weiner,

1980, 1992) incorporates behavior modification in the sense that it emphasizes that individuals

are drawn to activities that produce a pleasant outcome. Pleasant experiences encourage them to

interpret these successes to personal efforts and commitment to the task (Weider, 1986).

Individuals’ self-perception and self-esteem levels influence how personal successes or failures

are conceptualized. “According to attribution theory, the explanations that

people tend to make to explain success or failure can be analyzed in terms

of three sets of characteristics that can cause the success or failure of the

effort: 1). may be internal or external, 2). may be either stable or unstable,

3). may be either controllable or uncontrollable (Weider, 1986).

A controllable factor is one which an individual feels confident about and

takes personal responsibility for successfully accomplishing a specific task.

Favorable conditions in a stable environment, one in which an individual

feels comfortable and motivated to succeed will likely yield positive results

(Weider, 1980). Conversely, if an individual believes that whatever task he

or she undertakes, the outcome is not controllable because other factors will

have a significant negative impact. Depending on the success of the task,

the individual will choose to take personal responsibility for a successful

outcome, or blame an unsuccessful outcome on external stimuli or factors

outside his or her personal sphere of control (Weider, 1980, p. 18).

Vroom (1959) posited that people engage in conscious processes to determine whether to act

or respond to a specific stimulus for a desired reward, and to maximize pleasure and minimize

pain (Clayton, 2008; Vroom, 1995). This is based on weighing available options and perusing

through mental calculations before acting upon natural instincts (Clayton, 2008). This link

between the effort individuals exert and the performance they believe is achievable, Vroom

called Expectancy.

Based on whether the outcome is sufficiently beneficial to take affirmative action, the

individual will complete the task or follow the steps to facilitate the expected outcome. The

qualitative study will use the theoretical framework as a broad guide to direct the researcher’s

steps in data collection and analysis, rather than as a specific test of what the theory would

predict. Workers likely are more motivated to conduct a job search with the expected outcome

of securing comparable or better re-employment after following the prescribed steps by an

outplacement agency or through other job search resources.

Since the central problem for this study is the impact that job loss has on workers from the

automobile manufacturing industry and their family relationships, workers likely are eager to

participate in the outplacement job search activities to secure employment within the projected

3.2 to 5.5 month timeframe (Wall Street Journal, 2009: Challenger, Gray & Christmas, 2009).

Due to harsh economic conditions, it may take longer to successfully attain comparable

employment. Therein develops the difficulty for workers and their families, if their thought

processes follow the logic. Thus, the workers’ job search would become more difficult, and the

job loss adjustment would take longer.

Considering that all steps are followed according to the prescribed job search program, the

worker should expect to become employed again relatively quickly. If not, disappointment

would likely develop, and the worker could become despondent, frustrated, angry, and fail to

fully participate in the job search activities. Typical behaviors initially associated with Vroom’s

Expectancy Theory may be: procrastination, selfishness, boredom, contentment.

Workers self-reflection may lead to the realization that expected outcomes should change if

the behaviors are not commensurate with meeting expected outcomes. A worker may become

discouraged after following established protocols and remaining unemployed. How this type of

setback will could affect workers’ expectancy levels shown through future job search efforts,

mental attitude, interpersonal relations, physical health, or emotional health will be evaluated

using Vroom’s Expectancy Theory.

To counteract a negative outcome, workers could choose to adjust their behavior by: openly

asking for support from family and close friends, participating in outplacement job training

activities, practicing positive affirmations, adding more job search tools, creating an online

presence on major career websites or weblogs, joining professional associations and networking

groups to enhance communication and job search skills, and subscribing to relevant magazines to

learn of job opportunities and pertinent economic factors. Subsequently, based on Vroom’s

Expectancy Theory, the adjustment would come in the form of a viable offer of employment. In

Vroom’s Expectancy Theory, the link between performance and anticipated outcome is what

Vroom called Instrumentality (1995).

Vroom (1995) believed that in every situation that involves potential decision-making,

individuals conduct a mental calculation to determine if the action is beneficial and relevant to

what they want to accomplish, and conceptualize it within the theory’s formula: Motivation (M)

= V (Valence) x E (Expectancy (Vroom, 1995; Manage 12 Business, 2009). If one or more of

these values is too low, individuals’ motivation to succeed or act will be low (Vroom, 1995). If

individuals do not believe in the merit of the proposition, they will not expend any effort to

achieve the goal or participate in the activity. Or, if they continually expend effort but do not

achieve the expected goal, individuals will stop trying and transition to another task.

With financial planning and educational benefits added to workers’ buyout portfolios,

workers appear more equipped to handle short-term budgetary goals and maintain their economic

status. However, with long term unemployment, the research may indicate that workers will face

more challenges in attaining comparable employment. Rather than remaining unemployed,

workers may have to choose underemployment and generate less income, change career fields,

or complete and educational program to be competitive with other job seekers.

In Hamilton, Hoffman, Broman, & Rauma (1993), job loss and failure of job seeking

depicted a strong causal relationship with depression and suicidal thoughts. In the current study,

with the possibility that workers may have participated in prior financial planning initiatives or

saved money to cover an unemployment period, workers may not experience significant feelings

of depression. Workers may also choose a lifestyle change, such as educational attainment,

which may significantly delay a job search.

Research indicates that economic, physical, and emotional health issues have influenced

unemployed workers (Dohrenwend, Dodson, & Shrout (1984). The term downsizing has become

synonymous with business downturns, negative economic impact, and poor fiscal controls and

strategic operations management (Aversa. 2009). When organizations downsize, they normally

follow specific steps 1.) workforce reduction, 2). organizational redesign, 3).systematic strategy

focused on changing the attitudes, values, and culture of the organization (Huber and Glick,

1993). Cole (1995) describes the methodology used to reduce headcount: early retirement,

transfers, outplacement services, and buy-out packages.

The current number of people receiving unemployment compensation benefits is the highest

since May 1983, following a steep recession (Department of Labor, 2009). Research suggests

that employment has improved in education, healthcare, engineering, information technology,

and federal government job classifications in multiple organizations in the nation (Department of

Labor, 2009). Individuals work for various reasons, even in occupations that are distasteful for

various reasons. The automobile manufacturing industry has provided stable and lucrative

middle-class incomes and lifestyles to workers with low education levels (Glazer & Grimes,

2009, p. 1), who have adapted to the factory culture and changes inherent within the industry.

Clearly, this phenomenon suggests that workers are having difficulty finding new employment.

The intent of this research study is to add to the body of knowledge on Attribution Theory and

Expectancy Theory related to job loss by addressing how leadership and family members

influence, motivate, or demotivate workers as they strive to successfully adjust.

The current research study fits within the existing literature and research in the field by giving

updated data from 1993 regarding downsizing of automobile manufacturing workers.

The current research study will contribute to the existing body of literature by updating

stakeholders on the progress made to help downsized workers as they make the adjustment after

the job loss to finding suitable income replacement or educational opportunities. Since 1993, the

year of the last comprehensive study on downsized automobile manufacturing workers

(Hamilton, Broman, Hoffman, & Renner, 1990; Hamilton, Hoffman, Broman, & Rauma (1993),

more targeted benefits have been added to provide direct assistance to workers. However, in the

current economic climate, workers may face additional challenges to make a successful

adjustment.

Definition of Terms

Throughout the study, various terms have been used to communicate relevant principles

regarding the impact of job loss to workers. Many have similar meanings but are used in various

contexts. To provide consistency and comprehension throughout the study, specific definitions

are provided.

Buyout is a financial incentive offered to an employee in exchange for an early retirement or

voluntary resignation (Merriam Webster Dictionary Online, 2008). The typical buyout programs

include lump sum payments of up to $140K, tuition reimbursement and traditional early-

retirement packages (Ford, 2008). Automobile manufacturing workers are typically given the

option of remaining with the company and facing possible layoffs, wage and benefit reductions,

or severing all connections with the employer for a specified amount of money that is dependent

on tenure and job classifications (General Motors, 2009; Ford Motor Company, 2009). Due to

the bankruptcy filing of Chrysler, and the likely bankruptcy filing of General Motors, employee

buyouts may become entangled in upcoming court proceedings. As more employees face the

likelihood of job losses, the impact to their economic status and family relationships may be even

more significant than anticipated.

Corporation is a body formed and authorized by law to act as a single person although

constituted by one or more persons and legally endowed with various rights and duties including

the capacity of succession (Merriam Webster Dictionary, 2008). A corporation’s owners have

limited liability, which allows the corporation to stand alone separate from the personal assets of

the owners and board members (Investor Words, 2009). Typically, automobile manufacturing

organizations are aggregate corporations, meaning multiple owners are involved (Investor

Words, 2009). Within a corporation, senior executives are expected to make strategic decisions

about operational priorities to protect corporate assets.

Displaced worker is an employee who has been forced to terminate his or employment

(Merriam Webster Dictionary, 2008; US Department of Labor, 2009). All 50 states administer

the federal program for dislocated or displaced workers, to provide employment and subsidized

training to enhance personal marketability for workers who have suffered a job loss through no

fault of their own. As companies continue to downsize, they can turn to a variety of innovative

programs that are available from both federal and state governments. Helping downsized

workers become more marketable to gain new employment, displaced workers receive targeted

assistance to prepare for now careers in healthcare, law, information technology, among other

fields (Barnes, 1983). The federal Workforce Investment Act of 1998 (WIA) provides services

through funding that is based on a formula that refers to the distribution of unemployment in

each state’s area (US Department of Labor, 2009). WIA allows each state to provide eligible

workers enhanced re-training to become eligible for high growth jobs (U.S. Department of

Labor, 2009).

Downsizing is similar to displacing a worker, and involves firing the employees for the

purpose of saving expenses for an organization. The typical practice is allowing the displaced

worker to receive a severance package to provide financial assistance for a specified period

(Merriam Webster Dictionary, 2008). Downsizing is also referred to as termination for

convenience, which is commonly incorporated into government contracts (Business Dictionary,

2009). In Vickers & Parris, (2007) downsizing is defined as the intentional or planned

elimination of positions or jobs; being made redundant.

Downturn describes a measurable decline in business and economic activity (Merriam

Webster Dictionary, 2008). “Marked by high unemployment, stagnant wages, and fall in retail

sales, a recession generally does not last longer than one year and is much milder than an

economic depression (Business Dictionary, 2009). Typically, the economy travels through a

predictable cycle that includes expansion, peak, recession, and recovery (National Bureau of

Economic Research, 2009).

Phenomenological is a philosophical movement that describes the formal structure of the

objects of awareness, and of awareness itself in abstraction from any claims concerning

existence. When allowing a study participant to tell his or her story, it allows the participant to

share his or her firsthand story, the lived experience (Merriam Webster Dictionary, 2008).

Phenomenological design allows researchers the unique ability to examine everyday human

experience in close, detailed ways (DeMarrias & Lapan, 2004, p. 56). Phenomenological study,

which is “the study of structures of consciousness as experienced from the first-person point of

view,” allows a closer look into the sub-consciousness of the participants (Stanford, 2007).

Recession is described as a period of an economic contraction measured by unemployment

statistics and low economic growth and a widespread decline in the Gross Domestic Product

(GDP), which the consumption of gross investments and government is spending plus exports

minus imports (Merriam Webster Dictionary, 2009; Wall Street Journal, 2009). Since December

2007, the U.S. has been in an economic recession, which has contributed to the resulting layoffs

and downsizings across the nation (Wall Street Journal, 2009).

Reorganization is the financial reconstruction of a business concern, typically used as a cost

savings measure that may involve downsizings or furloughs (Merriam-Webster Dictionary,

2008). Unemployment is a problem that comes and goes with the modern financial cycle and

business downturns that equates to job loss that may include compensation and employee fringe

benefit packages (Recession, 2009; National Economic Research, 2009).

Assumptions

Several assumptions can be made in this qualitative phenomenological study; that employees

depend on personal incomes to survive on a daily basis and take care of family needs. More

workers are interested in re-employment in comparable or better manufacturing jobs than

attending college or vocational school for a degree, license, or certification. Logical

interpretation of the data indicates that automobile manufacturing workers’ educational level is at

or above the ninth grade level making them capable of learning new job skills; job performance

issues do not impact the downsizing decision; consideration of race, gender, or age does not

impact the overall downsizing decision.

Scope

This study’s scope will focus on automobile manufacturing and related industry workers who

have suffered a job loss in Michigan (Detroit and Dearborn), Kansas (Kansas City), and Ohio

(Moraine and Dayton). An evaluation of the affects of job loss on automobile manufacturing

industry employees is the central theme of this study. A significant number of study limitations

exist, which have the potential to influence the research findings.

Limitations

Due to organizational privacy concerns, there may be a lack of exposure to internal

environments within the automobile manufacturing plants may make attaining data more

difficult. Outreach efforts to multiple agencies who have direct contact with downsized workers

may provide additional access for research purposes. The possibility exists that not enough

former workers will participate in the research study in a single location. This underscores the

importance of conducting the research in multiple locations with large populations of downsized

workers from various organizations. Respondents may give untruthful answers to interview

questions to protect their privacy. Establishing rapport with respondents and ensuring

confidentiality of the responses, personally identifying information and proper records

maintenance is necessary.

Timely completion of interview responses is necessary to meet the university’s

requirements and maintain respondents’ interest in participating in the study. The inability to

secure enough participants will limit data collection and analysis. Therefore, aggressive and

timely recruitment of eligible participants will likely generate a significant number of

participants in each of the 3 locations. The literature is primarily limited to scholarly articles, not

devoted to job loss or impact to families. Most of the peer-reviewed articles on the specific

research topic were developed 20 years prior to the current study. Another limitation is the

researcher may have personal biases based on family members’ occupations in the automobile

manufacturing industry, and the researcher’s personal experience with job loss due to

organizational downsizing in a different industry.

Delimitations

To counteract the described limitations to the study, it may be helpful to customize a

questionnaire to the industry and specific geographic locations. Stressing confidentiality of the

study responses and findings may encourage open and truthful communication. The researcher

can offer to send a copy of transcribed individual responses to participants, and a summary

report without clients’ personally identifiable information to the participating organizations.

Informing the respondents of possible benefits if the hosting organization receives a blind

summary of the findings may encourage open communication. Communicating the importance

of the participants’ feedback in possibly changing future corporate protocols and practices that

could influence similarly situated individuals in the future may also encourage more productive

communication between the respondents and the researcher.

Summary and Organization of the Remainder of Study

The national recession of 2007-2009 has negatively impacted the automotive manufacturing

industry that has caused widespread plant closings and massive job losses for its workers.

Chapter 1 introduced the problem statement and purpose statement to provide the research’s

intent, objectives, and importance. The role of organizational leaders was discussed, coupled

with how they must assess the impact of job loss on workers and their families who share the

collective burdens of the aftermath. In this way, support of the workers’ quality of life issues can

be provided in a balanced fashion, allowing workers to find alternative methods to generate

suitable income and preserve the family’s status. Milkman (1997) posited that a job loss was

beneficial for many workers who found the work conditions oppressive and unsuitable. These

individuals took the buyout incentive, and volunteered for the job separation in order to find

satisfaction in an alternative career or personal pursuit. Other downsized workers were forced

into the job loss through downsizing, which may have been caused drastic life adjustments.

The information in Chapter 2 indicates that job loss is not exclusive to the automotive

manufacturing industry. In the current economic climate, many organizations and approximately

5 million jobs in the United States have been lost through downsizing since December 2007 (US

Department of Labor). Due to the overarching impact of job loss to the U.S. workforce, further

studies warrant deeper investigation to determine and evaluate specific impacts and possible

crossover effects across various industries and organizations. Coping strategies, family dynamics

related to job loss, alternative career searches, prior research, and current literature findings will

be provided for consideration.

Chapter 3 will present the study’s proposed phenomenological design research design and

methodology. Phenomenological design “allows researchers the unique ability to examine

everyday human experience in close, detailed ways” (DeMarrias & Lapan, 2004, p. 56).

Participation in a face-to-face interview with selected study participants using targeted

recruitment methods will allow a closer look into the sub-consciousness of the participants

(Stanford, 2007). The research variables and emerging themes will be integrated with the central

research question to incorporate projected findings. Chapter 4 will provide the results of the

research, interview transcripts, and data coding methods used to classify the data (Blum,

Edwards, Goes, Morelli, Salerno & Simon, 2005). Demonstrating the efficiency of Vroom’s

Expectancy Theory will be included in Chapter 4, as well. Lastly, Chapter 5 will provide the

study’s conclusions, implications from research findings, emergent theme patterns, and

recommendations for further research.