Week 5

Common Organizational Changes: M&A, Downsizing

Required Readings
1. Merger and Acquisition (Understanding the Human Side of Merger and
Acquisition) - Seo and Hill (2005)

2. Downsizing (Managing Downsizing Process) - Cascio and Wynn (2004)

Lecture Analysis with the Elon Case study

Contents

M&A
1. High and Low-Status Member (Amiot, Terry, & Callan, 2007)
2. Realistic Merger Preview (Schweiger & Denisi, 1991)
3. Acculturation in Mergers and Acquisitions (Nahavandi & Malekzadeh, 1988)
4. Integrative framework (Seo and Hill 2005) Required reading
a. Anxiety Theory
b. Social Identity Theory
c. Role Conflict Theory
d. Organisation Justice Theory
e. Integrated Framework (Seo & Hill, 2005)

Downsizing

1. Downsizing Methods: Managerial and Employee Control (Greenhalgh, Lawrence, &

Sutton, 1988)
2. Strategic Decision-Making in Downsizing (Cascio & Wynn, 2004)
3. Survivor Syndrome (Brockner, 1988; Burke, 2004)
4. Concept: Survivor Reactions to Downsizing (Thornhill & Saunders, 1998)
5. Antecedents & Consequences of Justice on Survivor Reactions (Kernan & Hanges,
2002)
6. Gaps Between Research and Practice in Employment Downsizing (Cascio & Wynn,
2004)
7. Recommendations for Effective Downsizing (Cascio & Wynn, 2004)
Concept: High and Low Status Member
High and Low Status Member (Amiot et al. 2007)

1. Concept: High and Low Status Members (Amiot, Terry, & Callan, 2007)
2. Theory:
Amiot, Terry, and Callan (2007) discuss the implications of status differences on employee
responses during organizational changes like mergers or acquisitions. High-status members
typically have greater influence and psychological security, often feeling a sense of control
over their environment. Conversely, low-status members may experience heightened
insecurity, uncertainty, and perceived lack of fairness due to their limited influence within the
organization. In times of major structural change, these status disparities can deepen,
impacting identity, group cohesion, and organizational outcomes. In particular, low-status
members may find it harder to adjust to new norms and expectations, affecting their job
satisfaction and commitment to the organization.
Key Points from the Theory:
 Status Impact on Perceived Threat: Lower-status members often feel more
vulnerable during transitions, particularly when layoffs or restructuring diminish
organizational stability.
 Fairness and Role Security: High-status members may feel their roles are protected
or valued, while low-status employees often worry about job security and fairness,
leading to trust issues with management.
 Adjustment Difficulties: Both groups experience adjustment challenges, but lower-
status members may feel marginalized and disconnected from organizational goals,
affecting their ability to perform effectively.
3. Problems Identified in the Case Study:
 Dismantling of High-Status Roles and Hierarchies: With Elon Musk’s acquisition,
Twitter’s established leadership hierarchy was dismantled. Top-level management,
including CEO Parag Agarwal, was removed, eroding the sense of security among
high-status employees and creating a power vacuum that left lower-status members
feeling abandoned and leaderless.
 Perceived Lack of Fairness and Transparency: The rapid, large-scale layoffs
conducted without warning or clear communication created an environment where
lower-status employees felt disregarded. Many employees, particularly those in roles
like “ethical AI,” marketing, and wellness, saw their positions terminated with little
acknowledgment, making them question the fairness and rationale behind Musk’s
decisions.
 Heightened Insecurity and Survivor Syndrome: The employees who remained,
particularly those in lower-status positions, faced increased workloads and anxieties
 under Musk’s new “hardcore” cultural expectations. This environment of intense
pressure and lack of job security fostered a “survivor syndrome” with lower morale, a
sense of disillusionment, and a fear of future layoffs, particularly among lower-status
employees who felt more expendable.
4. Case Evidence:
 Direct Quote: “Musk fired Twitter’s top management team, including the company’s
CEO, Parag Agarwal” and “Musk then informed the remaining workforce that his
new company vision…would require them to work long hours and assume a
‘hardcore’ culture”(W32382-PDF-ENG). This statement underscores the abrupt
change in organizational structure and expectations, affecting both high- and low-
status employees’ sense of security.
 Instance: The quote from a Twitter employee, “It’s like Twitter’s culture has been
completely turned inside out overnight,” illustrates the significant cultural and
hierarchical disruption caused by Musk’s acquisition. Employees, regardless of status,
faced a loss of role clarity and cohesion as new and unfamiliar expectations were
imposed(W32382-PDF-ENG).
5. Opinion/Rationale/Argumentation:
The theory by Amiot et al. (2007) aligns closely with the challenges seen in Musk’s
restructuring of Twitter. High-status employees typically play an essential role in fostering
organizational stability, yet Musk’s immediate elimination of Twitter’s leadership team
created a gap in decision-making and a breakdown of familiar hierarchies. This approach left
both high- and low-status members feeling uncertain, but the impact was more pronounced
among lower-status employees who lacked influence and perceived control.
Without established leaders or effective communication, low-status employees at Twitter
likely felt marginalized and unable to voice concerns or seek clarification. This lack of
perceived support is central to Amiot et al.'s (2007) argument, as low-status members
typically face greater stress, reduced job satisfaction, and identity conflicts when they feel
disconnected from organizational goals and processes.
In Twitter’s case, the sudden and unilateral changes undermined the social structure that had
previously allowed employees to work collaboratively and maintain a shared identity within
the organization. This approach, focusing only on immediate efficiency and productivity,
likely exacerbated the difficulties low-status employees faced in adapting to Musk’s new
“hardcore” demands, thereby diminishing their morale and commitment to Twitter.
6. Evidence-Based Recommendations:
Drawing from both the case study and the lecture slides, several evidence-based
recommendations could address the issues related to status and role insecurities at Twitter:
 Implementing Realistic Merger Previews: A Realistic Merger Preview (Schweiger
& Denisi, 1991) could have been beneficial for Twitter. Providing clear, realistic
information about changes, new roles, and expectations during the transition would
 help employees—especially those in lower-status roles—prepare for the cultural shift.
Realistic previews reduce uncertainty, lessen resistance, and improve job satisfaction,
as employees feel informed and involved in the change.
 Adopting an Acculturation Strategy with Integration Focus: Using
an Acculturation Model for Mergers(Nahavandi & Malekzadeh, 1988), Twitter
could aim to blend Musk’s “hardcore” culture with Twitter’s pre-existing values, such
as inclusivity and work-life balance, which many employees valued.
An Integrationapproach would allow the organization to bring aspects of both
cultures together, creating a hybrid work environment that maintains Twitter’s original
identity while embracing Musk’s vision. This would provide continuity for lower-
status employees, helping them feel part of a cohesive organization rather than feeling
culturally alienated.
 Strengthening Support Systems for Low-Status Employees: Given the heightened
anxiety and perceived unfairness among remaining employees, Social Support
Mechanisms (Robbins, 1999) could be instrumental. Offering formal support
channels, such as counseling services, peer networks, or dedicated HR
representatives, can help lower-status employees manage transition stress. Access to
support mechanisms reinforces organizational commitment by addressing their
specific concerns and demonstrating that the organization values their well-being.
 Promoting Organizational Justice: Ensuring Organizational Justice (Kernan &
Hanges, 2002) in communication, particularly in terms of distributive, procedural, and
interactional fairness, would encourage trust in Musk’s leadership among low-status
employees. Fair and transparent communication about decision-making processes and
resource allocation can foster greater acceptance of changes, thereby reducing
feelings of inequity and promoting a collaborative culture.
Summary of Key Takeaways: The challenges at Twitter following Musk’s acquisition
illustrate the complex effects of status dynamics during organizational upheavals. By
recognizing the distinct needs and concerns of high- and low-status members, and employing
a thoughtful approach to communication, acculturation, and support systems, Musk could
have mitigated some of the insecurity and resistance among employees. Providing low-status
members with realistic expectations, fostering an integrated culture, and supporting
organizational justice would be strategic steps in creating a more stable, committed workforce
at Twitter.
Concept: Realistic Merger Preview (Schweiger & Denisi, 1991)
2. Theory:
Schweiger and Denisi (1991) propose that a Realistic Merger Preview (RMP) can
significantly alleviate the stress and uncertainty that employees experience during mergers
and acquisitions. An RMP involves providing employees with honest, comprehensive
information about anticipated changes, challenges, and cultural adjustments in the merging or
acquiring organization. By setting realistic expectations, RMPs can reduce resistance to
change, increase job satisfaction, and foster trust in leadership. This approach is particularly
beneficial for reducing employees' uncertainty and helping them prepare for new roles or
cultural shifts within the organization.
Key Points from the Theory:
 Transparency: A realistic preview includes open communication about the merger’s
goals, expected outcomes, and potential disruptions.
 Preparedness for Change: Employees are more likely to adjust when they are
informed about changes in work structure, culture, and expectations.
 Trust in Leadership: Providing clear information builds trust and commitment, as
employees feel they are being treated as valued contributors rather than passive
recipients of change.
3. Problems Identified in the Case Study:
 Lack of Communication and Abrupt Changes: Musk implemented sweeping
changes without prior warning or explanation, such as large-scale layoffs,
restructuring, and new “hardcore” culture expectations. This lack of communication
heightened uncertainty and confusion, as employees were unsure of what to expect
under Musk’s leadership.
 Absence of Support for Cultural Transition: Twitter’s culture shifted dramatically
with Musk’s arrival. Employees accustomed to Twitter’s previous flexible, inclusive
environment were abruptly confronted with a high-intensity work culture with little
preparation or context, leading to morale issues and a sense of cultural dissonance.
 Increased Employee Turnover and Anxiety: Many Twitter employees left
voluntarily, unable to align with the sudden cultural shift. The departure of high-
performing employees further amplified workload pressures and anxieties among
remaining employees, who felt unprepared and unsupported.
4. Case Evidence:
 Direct Quote: “Musk then informed the remaining workforce that his new company
vision (which he referred to as ‘Twitter 2.0’) would require them to work long hours
and assume a ‘hardcore’ culture. Any workers who were not prepared to do so were
asked to leave the company and collect their severance pay”(W32382-PDF-ENG).
 This sudden imposition of new expectations illustrates the lack of an RMP, as
employees were abruptly required to choose between conforming to an unfamiliar
culture or exiting.
 Instance: The termination of Twitter’s entire top management team and drastic
layoffs without explanation fueled uncertainty. Many employees found out about
changes through public tweets or external news sources rather than direct internal
communication, which left employees feeling destabilized and uninformed(W32382-
PDF-ENG).
5. Opinion/Rationale/Argumentation:
In line with Schweiger and Denisi’s (1991) theory, Musk’s acquisition of Twitter
demonstrates the critical need for a Realistic Merger Preview in mergers and acquisitions.
Providing employees with an honest and detailed preview of the intended organizational
changes would have mitigated much of the confusion and resistance observed at Twitter. By
omitting this step, Musk’s approach heightened feelings of job insecurity, amplified cultural
clash, and led to employee turnover.
An RMP would have prepared Twitter employees for the new “hardcore” culture Musk
envisioned, allowing them to understand and potentially embrace the demands of “Twitter
2.0.” Without this, employees faced abrupt changes that created shock and distrust. An RMP
could have included clear expectations about working hours, performance standards, and the
cultural direction of Twitter under Musk, allowing employees to make informed decisions
about their roles.
Furthermore, an RMP helps retain critical talent by aligning employees' expectations with
organizational goals. With more transparency, Twitter might have retained valuable team
members who, instead of leaving, could have adapted and contributed to the organization’s
new direction. This lack of preparation and communication illustrates how the absence of an
RMP can disrupt organizational stability and employee commitment during mergers and
acquisitions.
6. Evidence-Based Recommendations:
Based on the case and lecture slides, here are several recommendations that could address the
need for a Realistic Merger Preview at Twitter:
 Structured and Transparent Communication: Implementing Realistic Merger
Previews (Schweiger & Denisi, 1991) at Twitter could start with structured, clear
communication about Musk’s vision for Twitter 2.0. This would involve town halls,
email communications, or Q&A sessions where Musk and other leaders discuss
expectations, goals, and potential changes. These discussions should detail the reasons
for the high-pressure culture, providing both context and support to employees.
 Incorporate Employee Feedback Mechanisms: Including feedback channels for
employees to express concerns or seek clarification on the merger’s impact would
foster a more supportive environment. When employees feel they can voice questions
 or provide input, they are more likely to feel included in the transition process,
thereby reducing resistance and improving alignment with organizational changes.
 Develop Onboarding Programs for Cultural Transition: Establishing an
onboarding program focused on acclimating employees to the new culture would help
bridge the gap between Twitter’s previous and new working environments. For
instance, orientation sessions could explain the expectations of “hardcore” culture,
work structure, and performance benchmarks, enabling employees to prepare
psychologically and professionally for the new requirements.
 Provide Continuous Support During Transition: Schweiger and Denisi emphasize
that a merger preview is not a one-time communication. Ongoing support, such as
regular updates from management, transition assistance programs, or peer support
networks, could ease employees' concerns and make the new culture more
manageable. Regular check-ins can help employees assess their fit with the new
culture over time, reinforcing commitment and trust.
 Leadership Engagement and Cultural Ambassadors: Assigning respected
employees as cultural ambassadors to represent Musk’s new vision could facilitate the
RMP process. Ambassadors from both Twitter’s original culture and Musk’s
“hardcore” advocates could collaborate to share insights, helping other employees
gradually adapt. This would create a bridge between past and future expectations,
fostering a sense of continuity amidst change.
Summary of Key Takeaways: The Realistic Merger Preview theory underscores the
importance of transparency and gradual adaptation during mergers or acquisitions. At Twitter,
an RMP would have empowered employees to make informed decisions about their roles,
reduced anxiety, and improved retention by preparing them for the shift toward a “hardcore”
culture. By implementing a comprehensive RMP with regular communication, feedback
mechanisms, and support systems, Twitter’s leadership could foster a more engaged and
adaptable workforce aligned with Musk’s vision.
Concept: Acculturation in Mergers and Acquisitions (Nahavandi
& Malekzadeh, 1988)
2. Theory:
Acculturation Theory, as explained by Nahavandi and Malekzadeh (1988), examines the
process through which two distinct organizational cultures interact and adjust in mergers and
acquisitions (M&A). This theory suggests that each organization brings its unique cultural
identity, networks, and subcultures, which interact to varying degrees, depending on factors
such as the mode of acculturation pursued and the organization’s openness to change.
Key Modes of Acculturation:
 Deculturation: Where members lose their original culture, often due to forced
assimilation.
 Assimilation: One organization adopts the cultural identity of the other, minimizing
its own.
 Separation: Both organizations maintain distinct cultural identities with minimal
integration.
 Integration: A blend forms, where both organizations retain some original cultural
traits while adapting to each other.
The choice of acculturation mode affects cultural differentiation and the success of
integration. If the desired integration mode is unclear or if employees resist it, acculturation
stress can result, leading to cultural clash and interorganizational conflict (Nahavandi &
Malekzadeh, 1988). Cultural clash, in particular, arises when employees feel threatened by
the merger, fearing the loss of familiar ways of working or their cultural identity. This often
manifests in decreased productivity, absenteeism, and increased turnover.
3. Problems Identified in the Case Study:
 Cultural Clash Due to Imposed “Hardcore” Work Culture: Musk’s abrupt
introduction of a high-demand work culture clashed with Twitter’s established values
of flexibility and inclusivity. The lack of alignment between Musk’s expectations and
Twitter’s culture resulted in cultural clash as employees felt alienated by the sudden
change.
 High Levels of Acculturation Stress Among Employees: The imposed changes
triggered acculturation stress, particularly as employees faced new expectations with
little time to adapt. Many employees felt their professional identity and work norms
were under threat, exacerbating stress levels and resistance.
 Turnover and Reduced Morale: The cultural discord led to a spike in voluntary
departures as employees struggled to reconcile Musk’s “hardcore” culture with their
values. Those who stayed faced diminished morale and engagement, impacting
overall productivity and cohesion within the organization.
4. Case Evidence:
 Direct Quote: Musk’s directive that employees must be “extremely hardcore” or
leave reflects an imposed assimilation approach, where employees are expected to
conform without retaining aspects of Twitter’s original culture. Employees faced with
this ultimatum likely felt cultural dissonance, intensifying acculturation stress
(W32382-PDF-ENG).
 Instance: The immediate firing of Twitter’s top management team and swift layoffs
created an atmosphere of instability and fear. Employees, lacking clarity on Musk’s
vision, found it difficult to adjust. This reaction indicates a lack of integration
strategy, leading to cultural clash as employees perceived Musk’s approach as
dismissive of Twitter’s legacy.
5. Opinion/Rationale/Argumentation:
Musk’s acquisition of Twitter underscores the risks associated with imposing a unilateral
acculturation mode without addressing the organization’s established culture. By enforcing
an assimilation approach, Musk sought to replace Twitter’s previous norms with his high-
performance “hardcore” culture. According to Nahavandi and Malekzadeh (1988), forced
assimilation can lead to acculturation stress and cultural resistance, as it disregards
employees' need for continuity and familiarity.
Twitter’s employees were accustomed to a culture that prioritized inclusivity and work-life
balance. Imposing a “hardcore” work style created a cultural clash, as employees viewed
Musk’s approach as antithetical to the values they identified with, which generated emotional
and professional resistance. Nahavandi and Malekzadeh (1988) highlight that acculturation
stress is likely when employees feel their cultural identity is threatened or disregarded. This
stress not only impacted productivity but also led to significant turnover, as many employees
felt they could not align with Musk’s expectations.
Additionally, cultural clash is intensified when employees perceive that their established
norms are being disregarded in favor of new, conflicting standards (Stahl & Mendenhall,
2005). The lack of a realistic preview or gradual adjustment strategy prevented Twitter’s
employees from preparing for these changes, amplifying stress and contributing to resistance.
As acculturation theory suggests, mutual adaptation between merging cultures can facilitate
smoother transitions. However, Musk’s approach overlooked this need, focusing instead on
immediate compliance with his vision for Twitter 2.0.
6. Evidence-Based Recommendations:
To mitigate acculturation stress and foster a more collaborative culture post-acquisition,
Musk could consider several strategies based on the case analysis and acculturation
principles:
 Adopt an Integration Acculturation Strategy: Rather than enforcing an assimilation
approach, Musk should adopt integration, which allows Twitter’s employees to retain
elements of their original culture while adapting to Musk’s “hardcore” vision.
 Integration respects the cultural identities of both parties and reduces acculturation
stress (Nahavandi & Malekzadeh, 1988). For instance, combining Twitter’s flexibility
with Musk’s productivity expectations could create a balanced, adaptable work
culture.
 Implement a Realistic Merger Preview (RMP): Following Schweiger and Denisi
(1991), implementing a Realistic Merger Preview would help set expectations and
reduce acculturation stress. By providing clear, honest communication on the cultural
changes, Musk could offer employees a better understanding of what “Twitter 2.0”
entails, allowing them to prepare and decide if they align with the new culture. This
preview could be delivered through Q&A sessions, team discussions, and orientation
workshops.
 Establish a Transitional Identity: Developing a transitional identity for Twitter, as
suggested by Clark et al. (2010), could bridge the cultural gap. A shared identity that
acknowledges Twitter’s legacy while highlighting the new goals under Musk’s
leadership would provide a sense of continuity. This identity could focus on
innovation and resilience while respecting Twitter’s roots, helping employees feel
connected to the transformation rather than alienated by it.
 Provide Cultural Training and Support Programs: Cultural training programs can
help employees understand and adapt to Musk’s new standards without feeling forced
to abandon their values. Training on productivity expectations, work-life balance
adjustments, and team collaboration under the new culture would reduce acculturation
stress by offering employees tools to manage the transition more effectively.
 Continuous Feedback Mechanisms for Cultural Integration: Feedback
mechanisms, such as surveys and focus groups, would allow employees to express
their concerns and experiences, helping leadership understand their adaptation
challenges. Continuous feedback facilitates a dynamic approach to acculturation,
where Musk could adjust policies or cultural practices based on employee responses.
Nahavandi and Malekzadeh (1988) highlight that such responsive mechanisms can
reduce cultural clash and foster a more adaptable organizational environment.
Summary of Key Takeaways: Musk’s acquisition of Twitter illustrates the importance of
managing cultural integration during mergers. Acculturation Theory (Nahavandi &
Malekzadeh, 1988) suggests that assimilation can lead to stress and resistance when
employees feel their values and identities are being overridden. By adopting an integration
approach, offering cultural orientation, and fostering a shared identity, Musk could alleviate
acculturation stress and create a balanced, cohesive work culture at Twitter. Such a strategy
would improve employee retention, morale, and productivity by respecting both Twitter’s
original culture and Musk’s vision.
A. Concept: Anxiety Theory
2. Theory:
Anxiety Theory addresses the psychological responses individuals exhibit when confronted
with uncertainty, particularly during large-scale organizational changes. Such changes often
trigger coping mechanisms rooted in worst-case scenario thinking, self-survival instincts,
and separation anxiety as individuals anticipate potential job loss, role changes, or cultural
shifts (Jetten, O'Brien, & Trindall, 2002).
Key Points from Anxiety Theory:
 Worst-Case Scenario Thinking: Employees under stress often imagine the worst
possible outcomes, such as termination or demotion, exacerbating feelings of
insecurity.
 Self-Survival Instincts: When faced with change, employees may adopt self-
protective behaviors, prioritizing individual security over organizational commitment.
 Separation Anxiety: Losing familiar roles or colleagues can heighten stress, as
individuals feel detached from established support systems and routines.
Anxiety Theory suggests that these psychological responses can undermine employee
performance, morale, and organizational stability if not addressed with targeted interventions,
such as formal communication, counseling, and social support systems (Schweiger & Denisi,
1991).
3. Problems Identified in the Case Study:
 Lack of Communication, Leading to Anxiety: Musk’s abrupt restructuring, which
included mass layoffs and leadership dismissals, was implemented with minimal
communication. This lack of clarity caused employees to speculate about their roles
and the company’s future, leading to heightened anxiety.
 Self-Preservation and Disengagement Among Employees: Facing an uncertain
future, Twitter employees likely prioritized personal survival over organizational
goals, manifesting in reduced engagement and decreased commitment.
 Separation Anxiety Following Leadership Changes: The immediate dismissal of
Twitter’s leadership team left remaining employees without familiar figures of
support, intensifying their sense of insecurity. This shift destabilized the existing
organizational culture, increasing employees’ detachment.
4. Case Evidence:
 Direct Quote: “Musk fired Twitter’s top management team, including the company’s
CEO, Parag Agarwal,” signaling an immediate change without any prior transition.
This abrupt dismissal fostered insecurity, as employees no longer had guidance from
leaders they trusted(W32382-PDF-ENG).
  Instance: The swift and large-scale layoffs heightened job insecurity among those
who remained, amplifying worst-case scenario thinking as employees speculated
about further layoffs and the potential collapse of Twitter’s established culture. This
reaction exemplifies the anxiety surrounding Musk’s drastic measures, which offered
little room for adjustment(W32382-PDF-ENG).
5. Opinion/Rationale/Argumentation:
Anxiety Theory, as applied to Musk’s acquisition of Twitter, highlights the psychological
challenges employees face when organizational change is sudden and poorly communicated.
By removing leadership and implementing sweeping changes with limited explanation,
Musk’s approach intensified anxiety among Twitter employees, triggering worst-case
scenario thinking and self-survival instincts. These responses align with Jetten et al.’s
(2002) findings that unaddressed anxiety often leads to a focus on self-preservation, reducing
collective commitment and productivity.
Anxiety Theory emphasizes that organizational leaders should anticipate these psychological
responses and address them with supportive interventions. Musk’s lack of engagement with
employees likely exacerbated separation anxiety, as they were forced to adapt to a radically
different workplace culture without familiar figures of stability or continuity. According to
Schweiger and Denisi (1991), clear and consistent communication during transitions reduces
employee anxiety, helping them manage the shift in expectations and re-establish a sense of
stability.
Additionally, interventions such as counseling and social support mechanisms can provide
employees with tools to cope with change, preventing anxiety from undermining
engagement. Musk’s failure to offer such support systems left employees feeling isolated and
uncertain, illustrating the importance of a structured approach to managing anxiety during
periods of disruption.
6. Evidence-Based Recommendations:
Based on Anxiety Theory, here are evidence-based recommendations that could mitigate
anxiety and foster a supportive environment during Twitter’s transition:
 Formal Communication Strategy: A structured, top-down communication plan
would help clarify Musk’s goals for Twitter 2.0, reducing worst-case scenario
thinking and offering employees a transparent view of their roles in the new structure
(Schweiger & Denisi, 1991). This could include regular updates on the company’s
progress, objectives, and employee expectations.
 Counseling and Support Services: Providing access to counseling services and
mental health resources can help employees manage their anxiety and develop coping
mechanisms. This support would reduce separation anxietyand encourage employees
to address stress constructively.
 Social Support Networks: Implementing formalized support networks, such as team-
building activities or mentorship programs, would help employees rebuild
 connections within Twitter’s new organizational structure. These networks could
provide a sense of continuity, helping employees navigate the cultural shift with peer
support.
 Golden Parachute for Senior Executives: Offering a golden parachute strategy for
high-level leaders could alleviate some of the immediate anxiety surrounding
leadership changes, as it signals a commitment to a smoother transition. This
approach would also retain essential institutional knowledge for a more structured
cultural shift, rather than a sudden, anxiety-inducing rupture.
 Encourage Open Forums and Feedback Channels: Open forums where employees
can express concerns and provide feedback on changes would enhance
communication and build trust. These forums allow leadership to understand
employee anxieties, demonstrating a commitment to their well-being and showing
flexibility during the transition.
Summary of Key Takeaways: Musk’s acquisition of Twitter illustrates how large-scale
organizational changes, when implemented without clear communication and support, can
amplify employee anxiety and undermine morale. Anxiety Theory suggests that organizations
should anticipate worst-case scenario thinking and provide structured interventions—such as
communication, counseling, and peer support systems—to address these psychological
responses. By employing a structured communication plan, social support networks, and
regular feedback mechanisms, Twitter could foster a more resilient workforce better prepared
to adapt to Musk’s vision for the company.
B. Concept: Social Identity Theory
2. Theory:
Social Identity Theory explores how individuals derive part of their identity from
membership in social groups, including organizations, workgroups, and professional
affiliations. In the context of mergers and acquisitions, these identities are disrupted as
employees experience shifts in organizational, professional, and workgroup associations.
Tajfel and Turner’s Social Identity Theory suggests that individuals seek a positive social
identity by identifying with high-status ingroups. During mergers, the distinction between
“us” (ingroup) and “them” (outgroup) often becomes more pronounced, leading to ingroup-
outgroup biases and potential intergroup conflict (Tajfel & Turner, 1979).
Key Points from the Theory:
 Organizational Identity: Employees may associate their identity with distinctive
attributes of the organization, which can be disrupted during mergers.
 Ingroup Bias and Outgroup Hostility: Social Identity Theory predicts that
employees will seek to position themselves positively within the new organizational
structure, which can intensify ingroup-outgroup biases. Employees from the
acquiring organization may feel superior, while those from the acquired organization
may feel resentment.
 Impact of Status on Identity: Employees’ willingness to adopt a new identity
depends on their perceived status within the organization. Those who gain promotions
or additional responsibilities may embrace the change, while those sidelined may
resist it, holding onto their previous identity.
3. Problems Identified in the Case Study:
 Strong Ingroup-Outgroup Biases Leading to Cultural Divide: Musk’s acquisition
created a clear divide between Twitter’s existing employees and the new expectations
imposed by Musk. Twitter’s employees, accustomed to a collaborative culture, viewed
Musk’s changes as an “invasion,” while Musk’s team may have seen themselves as a
superior force implementing a more “efficient” culture.
 Loss of Organizational Identity and Resistance: Employees identified strongly with
Twitter’s original identity, which was largely characterized by inclusivity and
flexibility. With Musk’s new “hardcore” culture, employees experienced a sudden
shift in values, causing them to feel detached from the organization and sparking
resistance.
 Status-Driven Reactions to Organizational Changes: Employees granted
promotions or significant roles in Musk’s new structure responded more positively to
the changes, aligning with the new organizational identity. In contrast, employees who
felt overlooked or marginalized reacted negatively, identifying with the previous
Twitter culture.
4. Case Evidence:
 Direct Quote: “Musk’s new company vision...would require them to work long hours
and assume a ‘hardcore’ culture.” This directive signaled a shift in organizational
identity, which left existing Twitter employees feeling as though they were outsiders
in a rapidly changing workplace(W32382-PDF-ENG).
 Instance: Many Twitter employees reacted with shock and disbelief, with some
expressing anger toward leadership for abandoning Twitter’s core values. Employees
reported feeling as though Musk’s “Twitter 2.0” discarded their previous
achievements and culture, leading to outgroup hostility and a struggle to identify
with the new organization(W32382-PDF-ENG).
5. Opinion/Rationale/Argumentation:
Social Identity Theory provides a framework to understand Twitter employees’ psychological
responses to Musk’s acquisition. The directive to embrace a “hardcore” culture clashed with
the values Twitter employees associated with their organizational identity, such as
flexibility, collaboration, and inclusivity. According to the theory, employees who strongly
identify with an organization are more likely to resist changes that threaten their social
identity (Tajfel & Turner, 1979). Musk’s new culture effectively created an “us vs. them”
scenario, where existing employees felt they were being forced to adopt an identity they did
not choose.
Furthermore, employees who were promoted or integrated into Musk’s vision might have
viewed the acquisition positively, aligning themselves with the new ingroup to gain status
and security. Conversely, employees who felt sidelined or forced out identified with Twitter’s
previous culture, viewing the changes as a threat to their professional identity and job
security. Social Identity Theory suggests that these individuals will exhibit resistance
and outgroup hostility due to a perceived loss of value and belonging (Jetten, O’Brien, &
Trindall, 2002).
Ingroup-outgroup biases also play a role in employees’ reactions, as Twitter employees
likely felt Musk’s team was imposing an “outsider” culture on them. This perceived
superiority among the new leadership created an atmosphere of resentment and cultural
divide, where long-standing employees viewed Musk’s actions as an attempt to erase
Twitter’s established identity.
6. Evidence-Based Recommendations:
To address the social identity challenges at Twitter, interventions based on Social Identity
Theory can foster a more cohesive environment:
 Promote an Inclusive Organizational Identity: Developing a shared organizational
identity that incorporates both Twitter’s original values and Musk’s new vision would
create a more inclusive culture. This identity could highlight common goals, such as
innovation and user-centricity, helping employees feel part of a unified organization.
  Implement Transitional Leadership Programs: By empowering long-standing
Twitter leaders as cultural ambassadors, Musk could bridge the cultural gap,
reducing ingroup-outgroup biases. These ambassadors could help convey the value of
the new culture in terms familiar to Twitter’s original identity, easing the transition.
 Differentiate Role Assignments Based on Identity Affinity: Providing opportunities
for employees who align with Musk’s new vision to take on additional responsibilities
could encourage them to embrace the new organizational identity. Meanwhile,
ensuring those less aligned still feel valued can reduce outgroup resistance, preventing
a divide.
 Create Open Forums for Identity Integration: Establishing forums where
employees can discuss the cultural transition openly would facilitate dialogue about
identity concerns, enabling leaders to understand and address sources of resistance.
Open forums would also foster mutual respect, as employees from both “sides” of the
organizational shift could communicate directly.
 Provide Identity-Based Support Programs: Implementing support programs aimed
at helping employees navigate changes to their professional, workgroup, and
organizational identities would aid in reducing identity loss. Social Identity Theory
suggests that providing tools to strengthen employees’ sense of belonging can
alleviate outgroup hostility and support smoother cultural integration.
Summary of Key Takeaways: Musk’s acquisition of Twitter illustrates how abrupt cultural
changes can disrupt social identities, sparking resistance and outgroup hostility. Social
Identity Theory suggests that a unified organizational identity, inclusion of cultural
ambassadors, and open forums for dialogue can help bridge the ingroup-outgroup divide,
reduce resistance, and foster a sense of belonging. By recognizing the impact of professional,
workgroup, and organizational identities, Musk’s leadership could mitigate the adverse
effects of identity disruption, creating a cohesive organizational culture that respects Twitter’s
past while embracing its future.
C. Concept: Role Conflict Theory
2. Theory:
Role Conflict Theory suggests that psychological tension arises when individuals occupy
roles with conflicting expectations or responsibilities (Katz & Kahn, 1978). During
organizational change, such as mergers and acquisitions, employees often face disruptions in
their established roles, leading to role conflict and role ambiguity. This theory posits that:
 Role Ambiguity occurs when there is a lack of clarity about what is expected in a
particular role, often due to changing job structures or unclear communication (Rizzo,
House, & Lirtzman, 1970).
 Role Conflict emerges when incompatible demands are placed upon an individual,
especially when new organizational roles and expectations clash with prior
responsibilities or values.
 The integration process in M&A often destabilizes existing structures, creating role
conflict as employees navigate new job roles while facing uncertainty about job
security and cultural alignment.
Key Points from the Theory:
 Threat to Existing Roles: The prospect of job loss or significant restructuring
disrupts employees’ roles, creating anxiety about their ability to fulfill responsibilities,
both professionally and personally.
 Impact on Motivation and Satisfaction: Role conflict and ambiguity lead to stress,
lowering employee motivation and increasing job dissatisfaction, particularly when
roles are not clearly defined or supported during transitions (Katz & Kahn, 1978).
3. Problems Identified in the Case Study:
 Role Ambiguity Due to Sudden Organizational Changes: Musk’s acquisition of
Twitter led to mass layoffs, organizational restructuring, and new role expectations
with little explanation. Employees faced role ambiguity, as they were uncertain about
their specific responsibilities and how to adapt to the new “hardcore” culture.
 Role Conflict from Conflicting Organizational Values: The cultural shift toward a
high-demand, “hardcore” environment conflicted with Twitter’s previous culture of
flexibility and support. Employees struggled to reconcile their previous roles with
Musk’s new expectations, creating internal conflict and stress.
 Job Insecurity Impacting Role as Providers: With the high turnover and lack of
communication regarding future roles, employees felt insecure about their positions.
This insecurity interfered with their roles as family providers, intensifying the stress
of maintaining employment stability in an unpredictable work environment.

4. Case Evidence:
  Direct Quote: “Musk then informed the remaining workforce that his new company
vision…would require them to work long hours and assume a ‘hardcore’ culture.”
This shift in expectations created role ambiguity, as employees were left uncertain
about their precise roles and how to fulfill the new demands(W32382-PDF-ENG).
 Instance: The sudden departure of Twitter’s top management team and the lack of
structured role definitions after layoffs led to confusion. Employees reported feeling
unsupported and unsure of their job responsibilities, illustrating the role
conflict between maintaining their previous roles and adapting to Musk’s new
directives(W32382-PDF-ENG).
5. Opinion/Rationale/Argumentation:
Role Conflict Theory highlights the psychological challenges that Twitter employees
experienced as they navigated conflicting role expectations and ambiguity during Musk’s
acquisition. Katz and Kahn (1978) argue that role ambiguity and role conflict create stress
and lower motivation, which aligns with the situation at Twitter. The imposition of a
“hardcore” culture, without clear guidance on job roles, disrupted employees’ previous roles,
increasing anxiety about their responsibilities and future at the company.
Further, role conflict was exacerbated as Twitter employees were forced to adopt roles and
values conflicting with those they previously held in the organization. Musk’s new culture
emphasized productivity and intense commitment, clashing with Twitter’s prior values of
inclusivity and flexibility. This dissonance led employees to question their place in the
organization, decreasing morale and commitment. Rizzo, House, and Lirtzman (1970)
suggest that when role expectations are unclear, individuals experience greater dissatisfaction
and stress, which in Twitter’s case, led to increased turnover and disengagement.
Moreover, job insecurity interfered with employees’ roles as providers for their families. The
sudden layoffs and restructuring, without assurances about job stability, created heightened
anxiety. Role Conflict Theory suggests that this tension undermines employees’ ability to
fulfill their familial responsibilities, amplifying stress and job dissatisfaction (Katz & Kahn,
1978).
6. Evidence-Based Recommendations:
To address the role conflict and ambiguity at Twitter, implementing Role Conflict Theory
interventions would help clarify responsibilities and improve morale:
 Two-Way Communication and Active Listening: Implementing a two-way
communication strategy would allow employees to discuss role-related concerns
openly with management. Musk’s leadership team could create channels for
employees to express anxieties related to role conflict, thereby reducing ambiguity
and fostering a supportive culture (Rizzo, House, & Lirtzman, 1970).
 One-on-One Discussions to Clarify Role Expectations: Managers should conduct
one-on-one discussions with employees to establish clear role definitions and address
specific concerns related to Musk’s new expectations. These personalized discussions
 would help reduce role ambiguity by aligning individual responsibilities with
organizational goals, decreasing conflict and boosting satisfaction.
 Clear Guidelines on Role Expectations: Providing detailed, role-specific guidelines
for employees would address the role conflict between Twitter’s previous culture and
the new “hardcore” expectations. A formalized role description could bridge the gap
between past and present expectations, supporting employees as they adapt to the new
culture.
 Job Security Assurance to Reduce Role-Related Anxiety: Musk’s leadership should
offer assurances regarding job stability to help employees feel secure in their roles as
providers. Regular updates on job security and future prospects at Twitter could
alleviate stress related to job loss, allowing employees to focus on fulfilling their
redefined roles.
 Feedback and Adjustment Mechanisms: Establishing feedback mechanisms to
monitor role-related stress would help identify specific areas where role conflict is
highest. Managers could use this feedback to adjust role expectations or provide
additional resources to ensure employees have the support needed to meet their
responsibilities.
Summary of Key Takeaways: Musk’s acquisition of Twitter illustrates the detrimental
effects of role conflict and ambiguity when organizational change disrupts established roles.
Role Conflict Theory (Katz & Kahn, 1978) suggests that addressing role-related stress
through clear communication, role clarification, and support systems can alleviate tension
and foster higher job satisfaction. By implementing these strategies, Musk’s leadership could
reduce anxiety among Twitter employees, encouraging them to adapt to the new culture with
greater confidence and stability.
D. Concept: Organizational Justice Theory
2. Theory:
Organizational Justice Theory explores how fairness perceptions affect employee attitudes
and behavior, especially during disruptive changes like mergers and acquisitions. This theory
identifies three dimensions of justice:
 Procedural Justice: Fairness in the processes that lead to decisions, emphasizing
transparency, consistency, and unbiased policies (Colquitt et al., 2001). In M&A
scenarios, procedural justice is crucial as employees seek assurance that layoffs,
promotions, or role changes are handled impartially.
 Distributive Justice: Perceived fairness in the allocation of outcomes, such as pay,
job security, or promotions. Employees assess whether rewards or losses are
distributed equitably, based on contribution and organizational needs (Greenberg,
1990).
 Interactional Justice: The quality of interpersonal treatment during the change
process, focusing on respectful communication and providing clear explanations for
decisions. Interactional justice is essential during layoffs or structural changes to
ensure displaced employees feel valued and respected (Bies & Moag, 1986).
Key Points from the Theory:
 Fair treatment during M&A enhances employees’ adaptability to change.
 Procedural justice requires that change processes are transparent, with opportunities
for employees to participate in decision-making.
 Distributive justice ensures that outcomes align with both organizational needs and
employee contributions.
 Interactional justice fosters a respectful environment where employees receive
adequate information and support throughout the transition.
3. Problems Identified in the Case Study:
 Lack of Procedural Justice in Layoff Decisions: Twitter’s layoffs under Musk were
sudden, with little to no explanation regarding criteria, leaving employees feeling
blindsided. This lack of transparency disrupted employees’ perceptions of procedural
fairness, as they could not see a clear rationale for who was laid off versus who
remained.
 Absence of Distributive Fairness in Role Reassignments: As Musk’s “hardcore”
culture imposed longer hours and higher demands, many Twitter employees felt that
the distribution of workload and responsibilities was uneven and arbitrary,
diminishing their motivation and sense of equity.
  Poor Interactional Justice in Communication: Twitter employees experienced
limited communication from leadership about ongoing changes, exacerbating stress
and uncertainty. When layoffs occurred, communication was minimal, which
disregarded employees’ need for respectful treatment and clarity about their futures.
4. Case Evidence:
 Direct Quote: Musk’s ultimatum that remaining employees embrace a “hardcore”
work culture or leave the company indicated an absence of procedural and
interactional justice, as the criteria for “hardcore” alignment were vague, leaving
employees without clear guidelines on how to meet expectations(W32382-PDF-
ENG).
 Instance: Reports indicate that layoffs occurred without any direct communication or
explanation from Musk or senior leadership, leaving employees in a state of shock
and confusion. This approach lacked interactional justice, as employees were not
treated with the respect and transparency needed to cope with such a drastic change
(W32382-PDF-ENG).
5. Opinion/Rationale/Argumentation:
Organizational Justice Theory explains how the absence of fairness perceptions can lead to
employee dissatisfaction, resistance, and decreased commitment during organizational
change. Musk’s acquisition of Twitter shows how an M&A process that disregards
procedural, distributive, and interactional justice can disrupt employees’ trust and motivation.
Colquitt et al. (2001) assert that procedural justice is essential for employee buy-in, as
transparent processes help employees understand and accept restructuring decisions. At
Twitter, the sudden layoffs without established criteria for selection created perceptions of
unfairness, leaving employees feeling that decisions were arbitrary and unjust.
Distributive justice was also compromised, as Musk’s restructuring led to role changes and
increased demands without consideration of employees’ contributions or capacities.
According to Greenberg (1990), when employees feel that outcomes (such as workload or job
security) are not equitably distributed, their engagement and loyalty decrease. In Twitter’s
case, employees were expected to adopt a “hardcore” work ethic immediately, regardless of
their personal circumstances or prior achievements, which diminished perceptions of fairness.
Interactional justice was similarly lacking, as Twitter’s leadership provided limited
communication during the M&A process. Bies and Moag (1986) suggest that respectful
treatment and open communication during significant changes can mitigate employee stress
and improve acceptance. Without sufficient explanations or empathy, Twitter employees felt
dismissed and undervalued, leading to emotional detachment from the organization and
increased turnover.
6. Evidence-Based Recommendations:
Based on Organizational Justice Theory, several interventions could address the fairness
concerns at Twitter and improve employees’ adaptability to change:
  Enhance Procedural Justice Through Equal Participation: Involve employees
from various departments in decision-making processes regarding layoffs and
restructuring to foster procedural justice. This could include creating cross-
departmental advisory committees that contribute input on major changes.
Transparent communication regarding the criteria for layoffs and reassignments
would reduce uncertainty and perceptions of arbitrariness (Colquitt et al., 2001).
 Implement Distributive Justice by Aligning Roles with Skills and Needs: Ensure
that role assignments and workload distribution reflect both organizational needs and
employees’ skills. Offering training programs to fill skill gaps and clearly
communicating the rationale behind workload changes would create a more balanced
approach. Employees are more likely to embrace new roles if they feel these changes
are fair and aligned with their competencies (Greenberg, 1990).
 Improve Interactional Justice Through Respectful Communication: When
implementing layoffs or significant changes, Musk’s leadership should provide
displaced employees with respectful treatment, clear explanations, and recognition of
their contributions. A structured approach, including one-on-one discussions, would
enhance interactional justice, reducing emotional fallout and supporting those affected
by the transition (Bies & Moag, 1986).
 Assign an Integration Manager for Better Change Management: Appointing an
integration manager with expertise in organizational change would help guide the
process, ensuring consistency and empathy in decision-making. An integration team
could regularly communicate updates, address employee concerns, and ensure that
fairness principles guide all restructuring activities.
 Establish a Fairness Task Force to Monitor Justice Perceptions: Forming a
fairness task force to track employee perceptions of justice throughout the transition
would help identify and resolve emerging fairness issues. This task force could
facilitate feedback mechanisms, ensuring that decisions remain aligned with
organizational justice principles.
Summary of Key Takeaways: Musk’s acquisition of Twitter demonstrates the adverse
effects of neglecting procedural, distributive, and interactional justice. Organizational Justice
Theory emphasizes that transparent processes, equitable outcomes, and respectful treatment
are critical for maintaining employee morale and commitment during mergers and
acquisitions. By adopting structured communication, involving employees in decision-
making, and monitoring justice perceptions, Twitter’s leadership could foster a fairer and
more supportive organizational environment. These changes would enable employees to
adapt to the new culture with a stronger sense of trust and engagement, promoting a more
stable and cohesive workforce.
E. Concept: Integrated Framework (Seo & Hill, 2005)
2. Theory:
Seo and Hill’s (2005) Integrated Framework provides a structured approach to managing
organizational change, specifically during mergers and acquisitions (M&A). The framework
emphasizes understanding and addressing the stages of change and the psychological
stressors that employees face throughout the M&A process. This model helps organizations
recognize critical stress points, manage resistance, and provide the support required for a
smoother cultural and operational integration.
Key Components of the Framework:
 Stages of Change: Seo and Hill outline several stages, including premerger, initial
planning, formal combination, operational integration, and stabilization. Each stage
involves unique tasks and challenges, requiring careful management to prevent stress
escalation.
 Psychological Tensions and Stressors: These include feelings
of uncertainty, identity loss, role ambiguity, and conflict between old and new
values. Addressing these tensions through appropriate interventions at each stage
helps prevent resistance and disengagement.
 Importance of Justice and Support Mechanisms: Seo and Hill highlight the role of
fairness and support in reducing stress and promoting adaptability.
Emphasizing procedural justice, clear communication, and employee
engagement is essential for fostering trust during M&A transitions.
Application to M&A: The framework suggests a stage-by-stage approach, managing
stressors such as uncertainty and identity conflict by aligning the change process with
employees’ needs for stability, clarity, and continuity. This process reduces resistance and
encourages employees to commit to the organization’s new direction.
3. Problems Identified in the Case Study:
 Abrupt Changes Without Stage-Based Transition: Musk’s acquisition did not
follow the gradual, stage-based approach that Seo and Hill recommend. The rapid
layoffs, immediate leadership overhaul, and drastic culture shift imposed on Twitter
employees created a sense of shock, skipping the premerger, planning, and adaptation
stages crucial for smoother transitions.
 Intensified Psychological Stress Due to Loss of Identity and Role Ambiguity:
Musk’s imposed “hardcore” culture and operational changes generated identity
conflicts and role ambiguity as employees struggled to align with the new values.
The lack of a transitional phase increased stress and emotional resistance among
employees accustomed to Twitter’s previous, more inclusive culture.
 Perceived Lack of Justice and Limited Support: Twitter’s employees faced a
deficit in procedural, distributive, and interactional justice throughout the acquisition
 process. Decision-making around layoffs, role assignments, and communication was
inconsistent, creating feelings of unfairness and distrust in Musk’s leadership
approach.
4. Case Evidence:
 Direct Quote: Musk’s requirement for employees to “assume a ‘hardcore’ culture”
with “long hours” or leave, without prior consultation or staged implementation, left
employees feeling forced into a high-demand environment without transitional
support(W32382-PDF-ENG).
 Instance: The sudden dismissal of Twitter’s leadership team and the minimal
communication around layoffs created uncertainty and job insecurity. Employees
were left without a clear sense of their future role, illustrating the absence of a stage-
based process and a lack of justice and support mechanisms to reduce psychological
stress(W32382-PDF-ENG).
5. Opinion/Rationale/Argumentation:
Applying the Integrated Framework by Seo and Hill (2005) to Musk’s acquisition of
Twitter highlights how a staged, methodical approach could have reduced psychological
stress and increased employee buy-in. The framework emphasizes addressing each change
stage deliberately, beginning with clear communication about objectives and expectations,
followed by structured planning and gradual implementation.
 Premerger and Planning Stages: According to Seo and Hill, early stages should
involve extensive communication and planning, where employees receive realistic
previews of changes and are engaged in discussions about future roles and
organizational goals. Musk’s decision to bypass these stages by imposing abrupt
changes led to heightened uncertainty and identity loss among Twitter employees. By
skipping these foundational stages, employees were unprepared for the rapid shift,
leading to increased resistance.
 Operational Combination and Role Clarity: In the operational phase, role
expectations should be clarified to mitigate role ambiguity. However, Musk’s
“hardcore” approach lacked clarity on how employees could meet new standards,
creating ambiguity and insecurity. Seo and Hill’s framework advocates that during
this phase, organizations should implement clear communication strategies, role-
based support, and flexible adaptation options to reduce role conflict and clarify
employee expectations.
 Stabilization and Cultural Continuity: Stabilization, the final stage, is essential for
fostering a sense of security and solidifying employees’ alignment with the new
culture. Seo and Hill emphasize that during stabilization, a balance between
continuity and new cultural norms should be struck, ensuring employees retain
aspects of their previous identity. Musk’s approach, which aimed to replace Twitter’s
original culture with his “hardcore” model, clashed with the stabilization phase,
increasing resistance as employees struggled to reconcile their identities with the new
 demands. Preserving aspects of Twitter’s previous culture could have
reduced identity conflicts and helped employees feel valued.
Psychological Tensions and Justice Perceptions: The Integrated Framework underscores
that psychological tensions such as uncertainty, identity loss, and role ambiguity require
structured interventions to prevent employee disengagement. Musk’s lack of fair processes,
especially concerning layoffs and work expectations, diminished procedural, distributive, and
interactional justice. When employees perceive the absence of justice, they are more likely to
experience stress and resist organizational changes. Addressing these justice concerns could
have fostered trust, especially in the operational combination and stabilization phases,
allowing employees to better adapt to Twitter’s new goals.
6. Evidence-Based Recommendations:
To align Twitter’s acquisition with the Integrated Framework, the following interventions are
recommended for each phase of the M&A process:
 Premerger and Initial Planning:
o Conduct Realistic Merger Previews: Providing realistic previews of Musk’s
vision for Twitter 2.0 would help set employee expectations and reduce
psychological stress. By outlining the new values, expectations, and changes,
Musk could enable employees to make informed choices about their future at
Twitter, preparing them for gradual alignment.
o Engage Employees in Planning Discussions: Involving employees in
planning discussions and decision-making about their roles would enhance
procedural justice, encouraging employees to feel like active participants in
the transition rather than passive recipients of change (Seo & Hill, 2005).
 Formal Combination and Operational Integration:
o Establish Role Clarity and Fair Process for Assignments: Offering detailed
job descriptions and aligning role assignments based on employees’ skills and
organizational needs would mitigate role ambiguity. Setting objective criteria
for assignments would enhance distributive justice and help employees
understand how their roles fit into the new structure.
o Provide Psychological Support Systems: To address the psychological
stressors identified by Seo and Hill, Twitter could offer support networks,
counseling, and clear guidance on how employees can succeed in the
“hardcore” culture. This support would help employees adapt to new
expectations, reducing stress from the identity shift.
 Stabilization Phase:
o Appoint an Integration Manager and Support Team: Assigning a dedicated
integration manager and team to oversee cultural and operational transitions
 would enhance procedural and interactional justice, as employees would have
accessible points of contact to address concerns and receive updates.
o Preserve Aspects of Twitter’s Original Culture: During stabilization,
retaining elements of Twitter’s original culture would help employees bridge
their former identity with the new one. Emphasizing values like collaboration
and transparency, even within Musk’s new productivity-focused model, could
reduce identity conflicts and foster a more inclusive atmosphere (Seo & Hill,
2005).
 Maintain a Fairness Task Force to Monitor Justice Perceptions: Throughout the
process, a dedicated team to assess fairness perceptions can track and address
emerging concerns related to procedural, distributive, and interactional justice. This
ongoing feedback ensures that the integration process remains flexible and
responsive, creating a stronger alignment between Musk’s vision and employee
morale.
Summary of Key Takeaways: The Integrated Framework by Seo and Hill (2005) provides
essential strategies to address the psychological challenges of M&A, emphasizing the
importance of staged transitions, justice, and support mechanisms. By adopting this
framework, Twitter’s acquisition could be managed more effectively, reducing resistance and
enabling a balanced integration of Musk’s vision with Twitter’s established culture.
Structured communication, realistic expectations, and gradual cultural integration would ease
psychological stress and promote a cohesive organizational identity, enhancing stability and
adaptability at Twitter.
Downsizing

1. Concept: Different Organizational Strategies for

Downsizing (Cameron, 1994)

2. Theory:

Cameron (1994) identifies three primary strategies for downsizing that organizations can
adopt depending on their goals and the extent of structural changes required. Each strategy
involves a distinct approach to reducing the workforce while aiming to maintain
organizational efficiency and employee morale.

Key Strategies for Downsizing:

 Workforce Reduction Strategy: Focuses on immediate headcount reductions,

usually through layoffs, retirements, and attrition. This approach is direct and often
used when organizations need a rapid cost reduction.
 Organizational Redesign Strategy: Involves restructuring the organization’s roles,
functions, and processes. Rather than focusing solely on cutting positions, this
strategy aims to redesign job roles and departmental structures to improve efficiency.
 Systemic Change Strategy: A comprehensive approach where the organization’s
core processes, culture, and business model are transformed. This strategy seeks to
create a sustainable, long-term transformation that aligns the organization with its
strategic goals.

Application to Downsizing: Each strategy varies in impact and complexity. Workforce

reduction offers immediate results but can lead to employee morale issues if handled poorly.
Organizational redesign requires significant planning and role reallocation, while systemic
change represents a holistic overhaul, addressing cultural and operational shifts in tandem.

3. Problems Identified in the Case Study:

 Rapid Workforce Reduction Without Adequate Planning: Musk’s approach to

downsizing Twitter involved mass layoffs without clear communication about
selection criteria or role retention, creating instability. This form of workforce
reduction was sudden and lacked transitional support, leading to confusion and low
morale.
 Lack of Organizational Redesign: Following layoffs, there was minimal effort to
restructure job roles or clarify responsibilities, resulting in role ambiguity for
remaining employees. Without a redesigned organizational structure, employees faced
unclear expectations in Musk’s high-demand culture.
 Absence of Systemic Change Strategy for Cultural Integration: While Musk
imposed a “hardcore” work culture, there was no systemic change plan to integrate
this culture with Twitter’s previous values. Employees experienced cultural
dissonance, feeling forced into an unfamiliar environment without adequate
preparation.
4. Case Evidence:

 Direct Quote: Musk’s demand for employees to work long hours under a “hardcore”
culture or leave reflects a drastic shift toward workforce reduction without supporting
organizational redesign, leaving remaining employees uncertain of their roles and
expectations(W32382-PDF-ENG).
 Instance: The abrupt layoffs and limited restructuring suggest that workforce
reduction was prioritized over organizational redesign or systemic change, creating
disarray among the remaining workforce. Employees were left to adapt
independently, lacking the support typical of a more strategic downsizing approach
(W32382-PDF-ENG).

5. Opinion/Rationale/Argumentation:

Cameron’s (1994) downsizing strategies highlight the risks and potential benefits of each
approach, illustrating how Musk’s workforce reduction at Twitter could have been more
effectively managed with a comprehensive strategy. The Workforce Reduction Strategy,
when implemented without a clear framework, as seen in Twitter’s case, can lead to
instability and low morale. Employees faced job insecurity due to the absence of transparent
criteria for layoffs and unclear job expectations, which aligns with Cameron’s warning that
poorly executed downsizing can erode trust and organizational cohesion.

Had Musk employed an Organizational Redesign Strategy, the layoffs could have been
coupled with a structured realignment of roles and functions to support the new productivity
standards. For example, realigning departmental structures to clarify responsibilities under
the “hardcore” culture would reduce role ambiguity and empower remaining employees to
meet Musk’s expectations more effectively. Cameron (1994) emphasizes that such redesigns
should align with the organization’s long-term objectives, creating stability rather than
merely cutting costs.

A Systemic Change Strategy would have allowed Musk to address Twitter’s cultural
integration needs, blending his high-performance culture with Twitter’s existing values to
form a cohesive organizational identity. This holistic approach to change management would
have provided employees with a sense of continuity, fostering greater adaptability by
connecting new cultural values with established practices. Cameron (1994) suggests that
systemic change, though complex, creates a more sustainable organizational transformation,
enabling employees to embrace new standards within a supportive framework.

6. Evidence-Based Recommendations:

Based on Cameron’s (1994) downsizing strategies, the following recommendations would

help Twitter manage downsizing more effectively and foster long-term resilience:

 Structured Workforce Reduction with Transparency: If immediate workforce

reduction is necessary, Musk’s leadership should adopt a transparent, criteria-based
approach to layoffs. Providing employees with a clear understanding of the rationale
behind downsizing decisions and offering severance support would mitigate the
negative impact on morale and help retain trust within the workforce.
 Organizational Redesign to Clarify Roles and Responsibilities: Redesigning
Twitter’s organizational structure to align roles with Musk’s “hardcore” expectations
 would improve productivity and reduce confusion among remaining employees. For
instance, reorganizing departments based on efficiency goals and assigning specific
performance metrics could provide employees with a clearer path forward, promoting
role clarity and engagement.
 Adopt a Systemic Change Strategy to Blend Cultures: Integrating Musk’s
productivity-oriented values with Twitter’s existing culture would facilitate a
smoother cultural transition. Establishing shared cultural values, training employees
on Musk’s vision, and creating programs that bridge the old and new organizational
identities would enhance employee alignment and reduce resistance.
 Establish a Continuous Feedback Mechanism for Organizational Support:
Implementing a feedback system to monitor employee morale and responses to
downsizing decisions would provide leadership with insights to make responsive
adjustments. This ongoing feedback would allow Musk’s team to address emerging
issues, minimizing disruption and supporting employees through the transition.
 Design Support Systems to Manage Emotional and Role-Based Challenges:
Establishing support resources, such as counseling services and career development
programs, would help employees adjust to role changes. By providing structured
resources and support, Twitter’s leadership could facilitate a smoother adjustment
process for employees facing new or expanded responsibilities in the redesigned
organization.

Summary of Key Takeaways: Musk’s acquisition of Twitter could benefit significantly

from Cameron’s (1994) downsizing strategies, balancing immediate workforce reduction
with a focus on organizational redesign and systemic change. By adopting a comprehensive
downsizing approach, Twitter’s leadership could foster a structured, supportive transition that
reduces employee stress, clarifies roles, and aligns cultural values. Implementing Cameron’s
strategies would improve employee resilience, creating a stronger foundation for Musk’s
vision of Twitter 2.0.

2. Different Downsizing Methods

 Natural attrition
 Early retirement
 Voluntary/compulsory redundancies
 Recruitment freezes
 Redeployment & retraining
A. Concept: Downsizing Methods: Managerial and Employee
Control (Greenhalgh, Lawrence, & Sutton, 1988)
2. Theory:

The downsizing model presented by Greenhalgh, Lawrence, and Sutton (1988) categorizes
methods based on the levels of managerial control and employee influence involved in
downsizing decisions. The approach taken can influence how employees perceive and react
to the downsizing, impacting morale, engagement, and overall organizational stability.

Key Downsizing Methods:

 High Managerial Control:

o Compulsory Redundancy with Outplacement: Management enforces
layoffs but provides outplacement support, such as job search assistance and
career counseling, to help affected employees transition.
o Induced Redeployment: Management encourages or requires employees to
shift to other roles within the organization, maintaining control while avoiding
layoffs.
 High Employee Influence:
o Natural Attrition: Employees leave voluntarily over time due to retirements
or resignations, minimizing direct managerial intervention.
o Voluntary Redundancy: Employees choose to leave with severance
packages, which offers autonomy and reduces the negative impact on morale.
 Balanced Approaches:
o Early Retirement: Employees are offered incentives to retire early, balancing
managerial control and employee choice.
o Involuntary Redeployment: Employees are required to move to different
roles or locations, which allows restructuring without layoffs but limits
employee choice.

Application to Downsizing: These downsizing methods provide flexibility based on

organizational goals and employee considerations. Approaches with high employee influence
are generally less disruptive to morale but may be slower, while methods with high
managerial control offer faster results but can impact morale and trust if not managed well.

3. Problems Identified in the Case Study:

 Compulsory Redundancy Without Support: Musk’s approach to downsizing at

Twitter involved large-scale layoffs without much communication or outplacement
support. This type of compulsory redundancy created uncertainty, resentment, and
fear among the remaining workforce.
 Absence of Voluntary Options: Twitter’s employees were not given the option
of voluntary redundancy or other alternatives that could have provided them with a
sense of control over their exit. The lack of such options intensified feelings of
instability and decreased morale.
 Failure to Implement Induced Redeployment: Rather than reassigning employees
to new roles that might align with Musk’s goals, Twitter’s leadership opted for abrupt
 layoffs. This missed opportunity for induced redeployment increased role ambiguity
among remaining employees and heightened concerns about future job security.

4. Case Evidence:

 Direct Quote: Musk’s ultimatum for employees to adopt a “hardcore” culture or

leave the company demonstrated a form of compulsory redundancy without adequate
support mechanisms, as employees were forced to comply or exit abruptly(W32382-
PDF-ENG).
 Instance: The sudden layoff of Twitter’s workforce without offering redeployment or
voluntary redundancy options led to high turnover and decreased morale, highlighting
the impact of limited employee influence in the downsizing process(W32382-PDF-
ENG).

5. Opinion/Rationale/Argumentation:

Greenhalgh, Lawrence, and Sutton’s (1988) framework illustrates the importance of

balancing managerial control and employee influence in downsizing decisions. Musk’s
approach at Twitter reflects a high-control, low-influence strategy that relied on compulsory
redundancy without outplacement support. This approach aligns with the model’s prediction
that high-control methods can lead to morale issues, as employees felt the layoffs were
sudden, arbitrary, and unsupportive.

By neglecting options like voluntary redundancy or induced redeployment, Twitter’s

leadership missed opportunities to involve employees in the downsizing process. Voluntary
redundancy, for instance, would have allowed employees who did not align with the new
“hardcore” culture to exit on their terms, reducing the shock among the remaining workforce
and preserving morale. Additionally, induced redeployment could have supported a smoother
transition by reallocating employees to roles aligned with Musk’s goals, reducing role
ambiguity and fostering a sense of stability among employees who remained.

The framework suggests that methods with higher employee influence, such as natural
attrition or voluntary redundancy, can reduce resistance to downsizing by offering
employees a degree of autonomy. Applying such approaches at Twitter could have facilitated
a more respectful and phased transition, enhancing perceptions of fairness and allowing
employees to feel valued during the restructuring.

6. Evidence-Based Recommendations:

Based on the downsizing model by Greenhalgh, Lawrence, and Sutton (1988), the following
recommendations could improve Twitter’s downsizing approach:

 Offer Voluntary Redundancy with Severance Benefits: Providing voluntary

redundancy options would give employees autonomy over their exit, minimizing
resentment and allowing those not aligned with Musk’s “hardcore” culture to leave on
their terms. This approach would help maintain morale and reduce involuntary
turnover.
 Implement Induced Redeployment Programs: Instead of immediate layoffs,
Twitter could redeploy employees to other roles that align with the company’s new
 strategic direction. This would reduce job loss anxiety and enhance engagement by
offering employees opportunities to adapt to the new culture.
 Provide Outplacement Support for Displaced Employees: For employees who are
let go, outplacement services such as career counseling, resume workshops, and job
search assistance would soften the impact of compulsory redundancy. This support
demonstrates a commitment to employee well-being, which can positively influence
remaining employees’ perceptions.
 Use Early Retirement Incentives: Offering early retirement packages would allow
employees nearing retirement to exit the organization voluntarily, balancing
managerial needs with employee influence. This would provide an additional option
to achieve workforce reduction without mandatory layoffs.
 Continuous Communication and Feedback Channels: Establishing ongoing
communication and feedback mechanisms would allow employees to understand the
downsizing criteria and express concerns. This would provide Twitter’s leadership
with insights into employee morale, enabling responsive adjustments to the
downsizing process.

Summary of Key Takeaways: The downsizing framework by Greenhalgh, Lawrence, and

Sutton (1988) offers a valuable perspective on balancing managerial control and employee
influence. Musk’s high-control, low-influence approach at Twitter demonstrates the potential
pitfalls of compulsory redundancy without support mechanisms. By incorporating voluntary
options, redeployment opportunities, and outplacement support, Twitter could adopt a more
humane and strategic downsizing process, fostering stability and engagement among
remaining employees.

Concept: Strategic Decision-Making in Downsizing (Cascio &

Wynn, 2004)
2. Theory:

Cascio and Wynn (2004) emphasize that downsizing requires careful strategic decision-
making to balance cost reduction with maintaining morale and productivity. Effective
downsizing strategies consider both the short-term financial gains and the long-term
impacts on organizational culture, employee trust, and operational efficiency. Different
methods—such as layoffs, pay cuts, sabbaticals, and retirement incentives—have distinct
advantages and disadvantages, impacting employees and the organization in various ways.

Key Downsizing Methods:

 Layoffs: Often a “quick fix” for cost reduction, layoffs can boost shareholder
confidence temporarily but may damage trust and lower productivity.
 Pay Cuts/Shutdowns: Delaying layoffs with temporary pay cuts or shutdowns can
engage employees in cost-cutting efforts, fostering a sense of collective responsibility.
However, it risks undermining morale if not managed carefully.
 Special Unpaid Sabbaticals and Severance Incentives: These strategies offer
temporary relief from payroll while preserving talent by giving employees options.
They may be favorable externally and can be seen as proactive measures, though they
may still have drawbacks if they don’t attract enough participants or are perceived
negatively.
  Early Retirement: Targeting employees already considering retirement can reduce
the workforce without forced layoffs, although it risks losing experienced talent.
 Regular Unpaid Sabbaticals: This method appeals to employees who value time off
and enables the organization to reduce costs without layoffs, but it may not have
enough of an impact if voluntary uptake is low.

Application to Downsizing: Cascio and Wynn (2004) suggest that downsizing methods
should align with strategic goals and cultural values. A mix of approaches can help minimize
negative impacts on morale, sustain productivity, and maintain positive relationships with
remaining employees.

3. Problems Identified in the Case Study:

 Loss of Trust and Morale Due to Layoffs: Layoffs at Twitter, implemented with
little communication, reduced employee trust in leadership and fostered an
atmosphere of insecurity. Employees felt disengaged, seeing layoffs as a sign of
instability and lack of vision, which echoes the table’s downside of layoffs causing
demoralization and loss of loyalty.
 Risk of Losing Key Talent: Without voluntary separation incentives or redeployment
options, Twitter faced a risk of losing valuable talent. The absence of such programs
meant that layoffs were conducted without regard for skill retention, a drawback also
noted in the table, where severance programs carry the risk of losing essential talent.
 Potential for a Survivalist Culture: The threat of continuous layoffs fostered a
survivalist mentality among remaining Twitter employees, leading to reduced
collaboration and increased stress. This aligns with the observation that poorly
managed downsizing can create a "survival behavior," undermining teamwork and
innovation.

4. Case Evidence:

 Direct Quote: Musk’s mandate that employees adopt a “hardcore” culture or leave
illustrates a form of compulsory, high-control downsizing that overlooked voluntary
options or softer alternatives like sabbaticals, which the table suggests could mitigate
immediate financial pressures without damaging morale(W32382-PDF-ENG).
 Instance: The absence of pay cuts, voluntary severance incentives, or retirement
options in Musk’s approach at Twitter meant that employees faced layoffs as the sole
downsizing tool. This approach intensified fears, reflecting the table’s downside of
layoffs leading to loss of trust and increased employee stress(W32382-PDF-ENG).

5. Opinion/Rationale/Argumentation:

According to Cascio and Wynn (2004), downsizing decisions should be strategic, balancing
financial objectives with long-term employee engagement and organizational health. Musk’s
use of layoffs as the primary downsizing tool at Twitter contrasts with Cascio and Wynn’s
guidance, which highlights the benefits of diversified downsizing methods like pay cuts,
special sabbaticals, and voluntary severance incentives.

Layoffs, while offering a quick financial fix, often damage employee morale and trust if used
excessively. The table supports this by listing demoralization and decreased productivity as
major downsides to layoffs. Had Musk implemented voluntary severance incentives,
employees could have been given the autonomy to choose departure, likely reducing
resistance and preserving morale among those who stayed. Similarly, special
sabbaticals would have allowed temporary cost reductions, with the possibility of calling
back employees as needed.

Cascio and Wynn’s (2004) framework suggests that strategic decision-making in

downsizing involves more than just headcount reduction; it requires consideration of both
employee perceptions and external reputational impacts. Programs like pay
cuts or shutdowns can foster a sense of collective responsibility, allowing employees to feel
like “part of the solution.” For instance, temporary pay reductions or furloughs would have
offered Twitter a way to address financial goals while keeping employees engaged and
feeling valued.

Finally, early retirement could serve as an effective tool for reducing headcount without
affecting morale, especially among long-term employees already considering leaving. This
method aligns with Cascio and Wynn’s advice on managing downsizing impacts on culture,
as it respects the contributions of senior employees while achieving workforce reduction.

6. Evidence-Based Recommendations:

Based on Cascio and Wynn’s (2004) approach to managing downsizing, Twitter’s leadership
could consider the following strategies to create a more balanced downsizing process:

 Introduce Voluntary Severance Programs: Offering voluntary severance with

attractive incentives would allow employees to make their own exit decisions,
reducing morale damage and giving Twitter more control over workforce size. This
approach empowers employees to leave on positive terms, which could alleviate
feelings of distrust and fear.
 Implement Temporary Pay Cuts or Work Shutdowns: Instead of immediate
layoffs, instituting pay cuts or temporary work shutdowns would foster a sense of
shared sacrifice, engaging employees in cost-cutting efforts. Employees may be more
willing to adapt if they feel part of the decision-making process.
 Offer Special Sabbaticals or Educational Leave: Providing unpaid sabbaticals
would allow Twitter to reduce costs while maintaining connections with employees,
who could return if needed. Special sabbaticals could focus on skill development or
education, benefiting both employees and the organization in the long term.
 Create an Early Retirement Incentive Program: Encouraging employees nearing
retirement to depart voluntarily would help achieve headcount reduction without
triggering the negative impacts associated with layoffs. This strategy respects the
careers of senior employees, easing the transition while minimizing negative
perceptions.
 Enhance Transparency and Communication: Cascio and Wynn (2004) emphasize
the importance of communication during downsizing. Twitter’s leadership should be
transparent about downsizing decisions and the reasons behind them, which would
reduce anxiety and promote trust among employees who remain.

Summary of Key Takeaways: Cascio and Wynn’s (2004) strategic approach to downsizing
highlights that a diverse array of downsizing options—such as voluntary severance,
sabbaticals, pay cuts, and early retirement—can achieve cost reductions while preserving
employee morale and trust. Twitter’s reliance on layoffs as the primary downsizing strategy
under Musk created uncertainty and lowered morale, which could have been mitigated with a
more balanced approach. By implementing these recommendations, Twitter’s leadership
could create a more sustainable and employee-friendly downsizing process, enhancing long-
term stability and trust.

B. Concept: Survivor Syndrome (Brockner, 1988; Burke, 2004)

2. Theory:

Survivor Syndrome refers to the psychological and emotional responses experienced by

employees who remain in an organization after others have been laid off. This syndrome, as
outlined by Brockner (1988) and Burke (2004), is characterized by anxiety, decreased
loyalty, and guilt, leading to reduced morale and engagement. The theory suggests that
layoffs not only impact those who lose their jobs but also have significant effects on those
who remain, often leading to a decline in overall organizational performance.

Key Symptoms of Survivor Syndrome:

 Increased Anxiety About Job Security: Survivors often worry that they might be
next to be laid off, which can lead to stress, distraction, and a decline in productivity.
 Decreased Organizational Loyalty and Commitment: Witnessing colleagues lose
their jobs can erode trust in the organization, reducing survivors’ sense of loyalty and
commitment.
 Guilt Feelings Toward Laid-Off Colleagues: Many survivors experience guilt,
feeling uncomfortable or undeserving for having kept their jobs while others were
dismissed, which affects morale and engagement.

Application in Downsizing Context: Survivor Syndrome illustrates that downsizing impacts

not only the individuals who are laid off but also those who remain, potentially leading to a
decline in organizational effectiveness if not managed properly. Addressing the emotional
and psychological needs of surviving employees is crucial for maintaining morale and
commitment.

3. Problems Identified in the Case Study:

 Heightened Anxiety Due to Lack of Job Security: Following Musk’s large-scale

layoffs at Twitter, remaining employees felt insecure about their positions, fearing
that additional layoffs might occur without warning. This ongoing anxiety affected
their focus and productivity.
 Reduced Organizational Loyalty and Trust: Twitter employees observed abrupt
layoffs with minimal communication, leading to a decrease in loyalty. Survivors
questioned the stability of the organization and their long-term future within it, which
undermined their commitment to Musk’s vision.
 Feelings of Guilt Toward Laid-Off Colleagues: Many Twitter employees who
retained their jobs felt uncomfortable about their own positions, experiencing guilt as
they saw colleagues dismissed abruptly. This guilt contributed to low morale and
made it harder for them to fully engage in the organization’s new direction.

4. Case Evidence:
  Direct Quote: Following the layoffs, Musk informed the remaining workforce that
“his new company vision...would require them to work long hours and assume a
‘hardcore’ culture,” heightening survivor anxiety by creating an environment where
job security felt increasingly precarious(W32382-PDF-ENG).
 Instance: The sudden layoffs without a transparent process or outplacement support
caused survivors to feel guilty and disillusioned, as they questioned the fairness and
ethics behind the decisions. This lack of closure and respect for those dismissed
intensified the psychological burden on the remaining workforce(W32382-PDF-
ENG).

5. Opinion/Rationale/Argumentation:

Survivor Syndrome, as described by Brockner (1988) and Burke (2004), illustrates the
psychological toll that layoffs can have on the remaining employees if not managed carefully.
In Musk’s approach at Twitter, the abrupt and large-scale layoffs created an atmosphere of
fear and insecurity among survivors, amplifying the anxiety about job stability. This aligns
with Brockner’s observation that survivors often experience increased stress due to the
uncertainty of future layoffs.

Moreover, the absence of transparent communication and support during the layoffs led
to decreased loyalty among the remaining workforce, as employees felt abandoned by the
organization. Burke (2004) notes that organizational commitment often declines when
employees perceive management as unsupportive, which was evident in Twitter’s case. The
lack of guidance on job security, combined with Musk’s “hardcore” culture expectations,
likely intensified survivors’ feelings of disconnection and reluctance to fully engage with
Twitter’s new vision.

Guilt feelings also played a significant role, as employees struggled with the emotional
weight of seeing colleagues laid off. This guilt can diminish morale, leading survivors to
disengage from work as they grapple with the fairness of the situation. Addressing these
feelings with counseling or support mechanisms would reduce emotional tension and help
survivors focus on their roles, as recommended by Burke (2004).

6. Evidence-Based Recommendations:

Based on Survivor Syndrome theory, the following recommendations would help Twitter
manage the psychological impact on its remaining workforce:

 Establish Transparent Communication Channels: Regularly updating employees

on organizational changes and downsizing criteria would alleviate survivors’ anxiety
by giving them a clearer sense of job security. Open communication fosters trust,
helping employees feel respected and informed about their future.
 Provide Counseling and Support Services: Offering access to mental health
resources, such as counseling and support groups, would help survivors manage guilt
and anxiety. These services would allow employees to process their emotions
constructively, preventing disengagement and improving morale.
 Implement Team-Building and Cohesion Programs: Organizing team-building
activities for the remaining workforce would rebuild trust and loyalty. Providing
opportunities for survivors to reconnect with their peers in a supportive setting would
reduce the isolation that often accompanies Survivor Syndrome.
  Acknowledge Contributions of Laid-Off Employees: Holding an internal
acknowledgment or appreciation event for laid-off colleagues would help provide
closure. Publicly recognizing their contributions reinforces a culture of respect and
allows survivors to feel less guilty about remaining in the organization.
 Offer Career Development and Stability Assurance: Providing remaining
employees with opportunities for career growth and development would help rebuild
loyalty. Ensuring that survivors feel valued for their contributions reduces the
inclination toward a “survivalist” mentality, fostering a more committed and
productive workforce.

Summary of Key Takeaways: Survivor Syndrome, as explained by Brockner (1988) and

Burke (2004), highlights the need for organizations to address the emotional impact of
downsizing on the remaining workforce. Twitter’s abrupt layoffs under Musk intensified
survivors’ anxiety, decreased loyalty, and triggered guilt, which could be mitigated with
transparent communication, counseling, and employee support initiatives. By implementing
these strategies, Twitter’s leadership could help survivors feel more secure, valued, and
engaged, promoting a healthier, more resilient organizational culture.

1. Concept: Survivor Syndrome (Brockner, 1988; Burke, 2004)

2. Theory:

Survivor Syndrome refers to the psychological and emotional responses experienced by

employees who remain in an organization after others have been laid off. This syndrome, as
outlined by Brockner (1988) and Burke (2004), is characterized by anxiety, decreased
loyalty, and guilt, leading to reduced morale and engagement. The theory suggests that
layoffs not only impact those who lose their jobs but also have significant effects on those
who remain, often leading to a decline in overall organizational performance.

Key Symptoms of Survivor Syndrome:

 Increased Anxiety About Job Security: Survivors often worry that they might be
next to be laid off, which can lead to stress, distraction, and a decline in productivity.
 Decreased Organizational Loyalty and Commitment: Witnessing colleagues lose
their jobs can erode trust in the organization, reducing survivors’ sense of loyalty and
commitment.
 Guilt Feelings Toward Laid-Off Colleagues: Many survivors experience guilt,
feeling uncomfortable or undeserving for having kept their jobs while others were
dismissed, which affects morale and engagement.

Application in Downsizing Context: Survivor Syndrome illustrates that downsizing impacts

not only the individuals who are laid off but also those who remain, potentially leading to a
decline in organizational effectiveness if not managed properly. Addressing the emotional
and psychological needs of surviving employees is crucial for maintaining morale and
commitment.

3. Problems Identified in the Case Study:

 Heightened Anxiety Due to Lack of Job Security: Following Musk’s large-scale

layoffs at Twitter, remaining employees felt insecure about their positions, fearing
 that additional layoffs might occur without warning. This ongoing anxiety affected
their focus and productivity.
 Reduced Organizational Loyalty and Trust: Twitter employees observed abrupt
layoffs with minimal communication, leading to a decrease in loyalty. Survivors
questioned the stability of the organization and their long-term future within it, which
undermined their commitment to Musk’s vision.
 Feelings of Guilt Toward Laid-Off Colleagues: Many Twitter employees who
retained their jobs felt uncomfortable about their own positions, experiencing guilt as
they saw colleagues dismissed abruptly. This guilt contributed to low morale and
made it harder for them to fully engage in the organization’s new direction.

4. Case Evidence:

 Direct Quote: Following the layoffs, Musk informed the remaining workforce that
“his new company vision...would require them to work long hours and assume a
‘hardcore’ culture,” heightening survivor anxiety by creating an environment where
job security felt increasingly precarious(W32382-PDF-ENG).
 Instance: The sudden layoffs without a transparent process or outplacement support
caused survivors to feel guilty and disillusioned, as they questioned the fairness and
ethics behind the decisions. This lack of closure and respect for those dismissed
intensified the psychological burden on the remaining workforce(W32382-PDF-
ENG).

5. Opinion/Rationale/Argumentation:

Survivor Syndrome, as described by Brockner (1988) and Burke (2004), illustrates the
psychological toll that layoffs can have on the remaining employees if not managed carefully.
In Musk’s approach at Twitter, the abrupt and large-scale layoffs created an atmosphere of
fear and insecurity among survivors, amplifying the anxiety about job stability. This aligns
with Brockner’s observation that survivors often experience increased stress due to the
uncertainty of future layoffs.

Moreover, the absence of transparent communication and support during the layoffs led
to decreased loyalty among the remaining workforce, as employees felt abandoned by the
organization. Burke (2004) notes that organizational commitment often declines when
employees perceive management as unsupportive, which was evident in Twitter’s case. The
lack of guidance on job security, combined with Musk’s “hardcore” culture expectations,
likely intensified survivors’ feelings of disconnection and reluctance to fully engage with
Twitter’s new vision.

Guilt feelings also played a significant role, as employees struggled with the emotional
weight of seeing colleagues laid off. This guilt can diminish morale, leading survivors to
disengage from work as they grapple with the fairness of the situation. Addressing these
feelings with counseling or support mechanisms would reduce emotional tension and help
survivors focus on their roles, as recommended by Burke (2004).

6. Evidence-Based Recommendations:

Based on Survivor Syndrome theory, the following recommendations would help Twitter
manage the psychological impact on its remaining workforce:
  Establish Transparent Communication Channels: Regularly updating employees
on organizational changes and downsizing criteria would alleviate survivors’ anxiety
by giving them a clearer sense of job security. Open communication fosters trust,
helping employees feel respected and informed about their future.
 Provide Counseling and Support Services: Offering access to mental health
resources, such as counseling and support groups, would help survivors manage guilt
and anxiety. These services would allow employees to process their emotions
constructively, preventing disengagement and improving morale.
 Implement Team-Building and Cohesion Programs: Organizing team-building
activities for the remaining workforce would rebuild trust and loyalty. Providing
opportunities for survivors to reconnect with their peers in a supportive setting would
reduce the isolation that often accompanies Survivor Syndrome.
 Acknowledge Contributions of Laid-Off Employees: Holding an internal
acknowledgment or appreciation event for laid-off colleagues would help provide
closure. Publicly recognizing their contributions reinforces a culture of respect and
allows survivors to feel less guilty about remaining in the organization.
 Offer Career Development and Stability Assurance: Providing remaining
employees with opportunities for career growth and development would help rebuild
loyalty. Ensuring that survivors feel valued for their contributions reduces the
inclination toward a “survivalist” mentality, fostering a more committed and
productive workforce.

Summary of Key Takeaways: Survivor Syndrome, as explained by Brockner (1988) and

Burke (2004), highlights the need for organizations to address the emotional impact of
downsizing on the remaining workforce. Twitter’s abrupt layoffs under Musk intensified
survivors’ anxiety, decreased loyalty, and triggered guilt, which could be mitigated with
transparent communication, counseling, and employee support initiatives. By implementing
these strategies, Twitter’s leadership could help survivors feel more secure, valued, and
engaged, promoting a healthier, more resilient organizational culture.

C. Concept: Survivor Reactions to Downsizing (Thornhill &

Saunders, 1998)
2. Theory:

Thornhill and Saunders (1998) describe the emotional, psychological, and behavioral
reactions that employees experience when they remain in an organization following
downsizing. These reactions—collectively known as Survivor Syndrome—capture the
complex responses that impact survivors’ work attitudes, productivity, and overall
commitment. The framework emphasizes the range of emotions, psychological states,
and behavioral responses that arise from downsizing, which affect organizational
effectiveness if not managed properly.

Key Components of Survivor Reactions:

 Emotions and Psychological States: Common emotional responses include anger,

anxiety, guilt, and stress, which stem from witnessing colleagues lose their jobs.
 Survivors often experience job insecurity, decreased job satisfaction, and lower
morale.
 Work Attitudes: Perceptions of organizational fairness, commitment, and feelings
of remorse or uncertaintyimpact survivors’ view of the organization. A perceived
lack of fairness can erode trust and loyalty, while uncertainty about future layoffs can
keep survivors in a prolonged state of insecurity.
 Behavioral Reactions: Emotional and psychological states often translate into
behavioral outcomes, such as absenteeism, turnover intentions, resistance to
change, and changes in work performance. These behaviors reflect survivors’
struggles to adapt to the new organizational reality, often affecting productivity and
morale.

Application to Downsizing: The theory highlights the importance of addressing survivor

reactions to maintain morale and prevent declines in productivity. Organizations must
recognize these responses and implement supportive measures to manage survivors’
emotional and psychological well-being, ensuring a smoother transition post-downsizing.

3. Problems Identified in the Case Study:

 Heightened Anxiety and Job Insecurity: Following Musk’s large-scale layoffs at

Twitter, survivors felt heightened anxiety and insecurity regarding their own
positions. The lack of communication and transparency increased their stress,
impacting productivity and focus.
 Erosion of Organizational Commitment and Morale: Witnessing abrupt layoffs
without clear criteria eroded survivors’ trust in Twitter’s leadership, leading to
decreased organizational commitment. Employees questioned the fairness of the
downsizing process, which undermined morale.
 Increased Absenteeism and Turnover Intentions: The emotional toll of witnessing
layoffs and the anxiety about job security led many Twitter employees to consider
leaving voluntarily. Increased absenteeism and a lack of motivation to adapt to the
new “hardcore” culture were evident, affecting the organization’s effectiveness.

4. Case Evidence:

 Direct Quote: Musk’s statement that Twitter employees would need to embrace a
“hardcore” work environment or leave created a climate of job insecurity, fueling
anxiety and resistance among survivors as they feared additional layoffs or unrealistic
expectations(W32382-PDF-ENG).
 Instance: The absence of a structured support system for remaining employees led to
an increase in turnover intentions and absenteeism, as survivors dealt with the
emotional and psychological fallout of the layoffs. The lack of perceived fairness and
transparency contributed to feelings of resentment and disengagement among
employees(W32382-PDF-ENG).

5. Opinion/Rationale/Argumentation:

According to Thornhill and Saunders (1998), the emotional and psychological reactions of
survivors are critical factors that organizations must manage post-downsizing to sustain
engagement and performance. At Twitter, the downsizing process intensified survivors'
feelings of job insecurity and anxiety due to the sudden layoffs and minimal
communication, which aligns with the framework’s findings on emotional responses.
Thornhill and Saunders emphasize that uncertainty and perceived unfairness can lower
morale and commitment, leading survivors to withdraw from organizational goals. This
eroded trust at Twitter and reduced survivors’ willingness to invest effort in their roles.

The behavioral reactions observed at Twitter also reflect the framework’s predictions.
Increased absenteeism and turnover intentions among Twitter’s workforce indicate that
employees felt detached and unmotivated in the new “hardcore” culture. Thornhill and
Saunders (1998) suggest that when survivors perceive the downsizing process as unjust or
unclear, they often become resistant to change, exhibiting low productivity and engagement.
Musk’s failure to address survivors' emotional needs likely amplified these responses, as
survivors felt alienated in a drastically altered work environment.

Furthermore, feelings of guilt and remorse among Twitter survivors were compounded by
the abruptness of the layoffs, with employees feeling uncomfortable about keeping their jobs
while others lost theirs. This survivor guilt can negatively affect morale and hinder
productivity, as employees struggle with the emotional fallout of the downsizing. Thornhill
and Saunders highlight the importance of managing survivors’ emotional states to prevent
these behaviors from impacting organizational cohesion and effectiveness.

6. Evidence-Based Recommendations:

Based on Thornhill and Saunders’s (1998) framework, the following recommendations could
help Twitter address survivor reactions and improve morale and productivity:

 Establish Transparent Communication and Fairness: Regularly updating

survivors on the status of the organization and the reasoning behind layoffs would
reduce job insecurity and anxiety. Transparency fosters a sense of fairness,
encouraging survivors to stay committed to the organization’s new goals.
 Implement Counseling and Support Services: Offering counseling or mental health
resources would help survivors manage their emotions, including guilt and stress.
Such support could help employees process their feelings constructively, reducing
absenteeism and improving engagement.
 Encourage Team-Building Activities for Cohesion: Rebuilding trust and
collaboration among survivors through team-building activities would address the
psychological effects of downsizing. These activities foster a supportive environment,
helping survivors regain a sense of stability and connection with their peers.
 Acknowledge Employee Contributions: Publicly recognizing the contributions of
laid-off employees provides closure for survivors, helping them feel less guilty and
reinforcing a culture of respect. Acknowledgment and appreciation contribute to a
positive work environment, boosting morale and helping survivors move forward.
 Offer Career Development and Role Security Programs: Providing career growth
opportunities and reassurance regarding role stability would reinforce survivors'
commitment. Structured development programs give survivors confidence in their
roles and career paths, reducing turnover intentions and encouraging active
engagement in Twitter’s new direction.

Summary of Key Takeaways: Thornhill and Saunders (1998) illustrate that downsizing
impacts survivors' emotions, work attitudes, and behaviors, leading to job insecurity, lower
morale, and resistance if not managed properly. Twitter’s downsizing process under Musk
created heightened anxiety, reduced loyalty, and disengagement, which could be mitigated by
transparent communication, mental health support, and recognition of survivors'
contributions. Implementing these strategies would help Twitter maintain a committed and
productive workforce, easing the emotional and psychological toll of downsizing.

D. Concept: Gaps Between Research and Practice in Employment

Downsizing (Cascio & Wynn, 2004)
2. Theory:

Cascio and Wynn (2004) identify five significant gaps between what research suggests about
effective downsizing practices and how organizations commonly execute downsizing. Each
gap highlights a disconnect that, if addressed, could lead to more effective, ethical, and
strategically beneficial downsizing practices. The gaps cover targeted downsizing methods,
the financial impacts of indiscriminate downsizing, the importance of employee involvement,
psychological contract considerations, and procedural fairness.

Key Gaps:

 Gap 1: Targeted vs. Attrition-Based Downsizing – Research shows that targeted

downsizing, focusing on performance-based reductions or non-essential roles, is more
effective than attrition-based or across-the-board cuts. However, only about half of
HR professionals recognize this as a more profitable approach.
 Gap 2: Indiscriminate Downsizing and Profitability – Despite a common
managerial belief that broad downsizing boosts profitability by cutting payroll,
research (Cascio & Young, 2003) shows no significant correlation between
downsizing and improved financial performance, and companies maintaining stable
employment often perform better.
 Gap 3: Lack of Employee Involvement – Research emphasizes the benefits of
involving employees in downsizing decisions, which can mitigate negative
psychological effects, such as stress and reduced commitment. However, downsizing
efforts often exclude employees from decision-making.
 Gap 4: Breaking the Psychological Contract – Downsizing frequently breaches the
unwritten psychological contract between employer and employee, reducing job
satisfaction, commitment, and perceptions of fairness. This breach can lead to a "Me,
Inc." mentality, where employees feel less loyal to the organization.
 Gap 5: Fair Treatment and Procedural Justice – Fairness in the downsizing
process is critical. Perceived fairness improves job satisfaction and commitment,
while unfair treatment can lead to negative behaviors like theft or sabotage
(Greenberg, 1997; Konovsky, 2000).

3. Problems Identified in the Case Study:

 Indiscriminate Layoffs Without Targeted Reductions: Musk’s approach to

downsizing at Twitter relied on widespread layoffs without focusing on specific units
or performance metrics. This indiscriminate approach likely overlooked more
strategic, targeted methods, as identified in Gap 1, that could have preserved essential
talent and reduced non-essential expenditures.
  Lack of Employee Involvement in Decision-Making: Twitter’s downsizing did not
involve input from employees, leading to a sense of helplessness and increased
uncertainty. Cascio and Wynn’s research suggests that employee involvement can
mitigate stress and improve commitment, but Twitter’s approach likely intensified
negative psychological impacts among employees.
 Breaking the Psychological Contract: The abrupt downsizing broke Twitter’s
psychological contract with its employees. Many employees had previously trusted
Twitter’s commitment to inclusivity and flexibility, but the sudden shift to a
“hardcore” culture and immediate layoffs undermined these expectations, reducing
loyalty and job satisfaction.
 Limited Perceptions of Procedural Fairness: The lack of transparency and
perceived unfairness during layoffs at Twitter contributed to a decrease in trust and
morale. Employees felt that the process was arbitrary and lacked procedural fairness,
aligning with the issues identified in Gap 5.

4. Case Evidence:

 Direct Quote: Musk’s mandate for employees to adopt a “hardcore” work culture or
leave highlights a lack of procedural fairness and employee involvement in the
downsizing process, as employees were forced into decisions without clear rationale
or transparency(W32382-PDF-ENG).
 Instance: The mass layoffs at Twitter were conducted without employee input, which
created an atmosphere of insecurity and helplessness. This approach contrasts with the
research emphasis on involving employees to reduce stress and commitment issues,
underscoring Gap 3 in Cascio and Wynn’s analysis(W32382-PDF-ENG).

5. Opinion/Rationale/Argumentation:

Cascio and Wynn (2004) illustrate that effective downsizing requires a balance between
strategic decision-making and employee engagement. Musk’s approach to downsizing at
Twitter failed to align with several research-backed practices, as identified in the five gaps.
The lack of targeted downsizing meant that layoffs were likely indiscriminate, potentially
removing valuable talent and reducing employee morale. By not focusing on performance or
specific units, Twitter may have inadvertently undermined its own operational efficiency, as
highlighted in Gap 1.

Additionally, excluding employees from downsizing decisions likely intensified stress and
reduced commitment. Research suggests that involving employees can alleviate stress by
providing them with a sense of control, which Twitter’s approach ignored. Cascio and Wynn
(2004) emphasize that including employees can mitigate the psychological strain of
downsizing, yet Twitter’s process amplified feelings of helplessness, highlighting the
disconnect between research insights and practice (Gap 3).

Breaking the psychological contract further damaged morale. Twitter’s employees,

accustomed to a supportive culture, experienced an abrupt shift, which breached implicit
promises of job stability and inclusivity. Cascio and Wynn (2004) explain that such breaches
lead to reduced job satisfaction, as employees feel that the organization no longer values their
loyalty. Twitter’s layoffs, without transitional support or transparency, contributed to a “Me,
Inc.” mindset, where employees see themselves as independent agents rather than loyal
contributors, exemplifying Gap 4.
Lastly, the lack of procedural fairness during Twitter’s downsizing impacted trust and
morale. Employees perceived the process as arbitrary, which research shows can lead to
counterproductive behaviors like absenteeism, decreased commitment, or even retaliation
(Greenberg, 1997). Cascio and Wynn highlight that perceived fairness is essential in
downsizing, as it helps maintain positive behaviors and commitment. Twitter’s absence of
clear, fair processes likely contributed to the erosion of loyalty and trust, as illustrated in Gap
5.

6. Evidence-Based Recommendations:

To address these gaps, Twitter’s leadership could consider the following recommendations
based on Cascio and Wynn’s (2004) findings:

 Implement Targeted Downsizing: Rather than broad layoffs, Twitter should adopt
targeted downsizing, focusing on non-essential units or performance-based
reductions. This approach could preserve critical talent and streamline expenditures,
aligning with Gap 1.
 Increase Employee Involvement in Decision-Making: Involve employees in the
downsizing process to reduce stress and build commitment. This could include
feedback sessions, allowing employees to contribute ideas on cost-saving measures or
role realignments. By fostering employee involvement, Twitter could alleviate the
psychological strain identified in Gap 3.
 Rebuild the Psychological Contract Through Transparency: Twitter should
communicate openly about the reasons behind downsizing and emphasize the
organization’s values and goals moving forward. Providing clarity and reinforcing a
commitment to employee growth and development would help rebuild trust and
mitigate the effects of the broken psychological contract (Gap 4).
 Emphasize Procedural Fairness in Downsizing Decisions: Twitter should ensure
transparent, consistent processes for layoffs and redeployment to enhance perceptions
of fairness. This includes clearly communicating criteria for layoffs and offering
support to affected employees. Fostering procedural fairness would reduce the
likelihood of negative behaviors and promote a culture of respect (Gap 5).
 Establish Continuous Feedback Channels: Creating feedback mechanisms to gauge
employee sentiment would help Twitter’s leadership understand how downsizing
affects morale. By addressing employee concerns, Twitter could build a more
responsive, supportive downsizing process that aligns with research-based insights on
employee engagement and well-being.

Summary of Key Takeaways: Cascio and Wynn (2004) emphasize that bridging the gap
between research and downsizing practice requires a targeted, transparent, and employee-
centered approach. Musk’s downsizing strategy at Twitter failed to incorporate several
research-backed principles, leading to decreased morale, trust, and engagement. By adopting
targeted downsizing, involving employees, rebuilding the psychological contract, and
ensuring procedural fairness, Twitter’s leadership could improve employee morale and foster
a more stable and productive organizational culture.
Antecedents & Consequences of Justice on Survivor Reactions (Kernan &
Hanges, 2002)

2. Theory:

Kernan and Hanges (2002) explore how perceptions of justice during downsizing impact
survivors' emotional and behavioral reactions. Their framework categorizes justice into three
main types—Procedural Justice, Interpersonal Justice, and Informational Justice—each
shaped by specific antecedents. These forms of justice influence outcomes such as
organizational commitment, job satisfaction, turnover intentions, and management trust.
According to the theory, ensuring fair treatment and transparent communication during
downsizing can improve survivors’ experiences, reducing negative reactions and fostering a
more resilient workforce.

Types of Justice and Their Antecedents:

 Procedural Justice: Fairness in processes, influenced by employee input and clear

implementation methods. When survivors perceive downsizing processes as fair, they
exhibit higher organizational commitment and job satisfaction.
 Interpersonal Justice: Fair treatment and respect during interpersonal interactions,
supported by communication and emotional support for laid-off employees. This form
of justice helps mitigate survivors’ turnover intentions and enhances their overall
satisfaction with the organization.
 Informational Justice: Quality and transparency of information, influenced by open
communication and clear explanations of downsizing decisions. High informational
justice builds trust in management and reduces uncertainty, helping survivors feel
more secure and respected.

Outcomes of Justice Perceptions:

 Positive perceptions of procedural, interpersonal, and informational justice are

associated with higher organizational commitment, job satisfaction, management
trust, and reduced turnover intentions. Survivors who feel that they have been
treated fairly are more likely to remain engaged and loyal to the organization.

3. Problems Identified in the Case Study:

 Lack of Procedural Justice in Downsizing Process: Twitter’s downsizing under

Musk lacked employee input and transparency in how layoffs were implemented,
reducing survivors' perceptions of procedural fairness. The absence of a clear and fair
process left survivors feeling insecure about their own roles.
 Inadequate Interpersonal Justice for Departing Employees: Musk’s approach to
layoffs lacked empathy and support for those being dismissed. The impersonal nature
of the layoffs, without support mechanisms, lowered survivors' morale, as they felt
that their organization did not value or respect its people.
 Insufficient Informational Justice and Communication: Twitter’s leadership did
not prioritize regular or transparent communication regarding the rationale and criteria
for downsizing. This lack of informational justice eroded survivors’ trust in
 management and created uncertainty, leading to confusion and anxiety among
remaining employees.

4. Case Evidence:

 Direct Quote: Musk’s instruction for employees to commit to a “hardcore” culture or

leave, without further explanation or support, demonstrates the absence of
informational and interpersonal justice, as survivors were not given sufficient
information or treated with respect during the process(W32382-PDF-ENG).
 Instance: The mass layoffs at Twitter occurred abruptly, with minimal involvement
from employees and no clear criteria for who would be let go, leading survivors to
perceive the process as unfair and arbitrary. This aligns with the consequences
outlined in Kernan and Hanges’s model, where a lack of procedural and informational
justice decreases organizational commitment and increases turnover intentions
(W32382-PDF-ENG).

5. Opinion/Rationale/Argumentation:

Kernan and Hanges (2002) highlight that perceptions of justice are critical in shaping
survivor reactions after downsizing. Twitter’s approach under Musk failed to incorporate
principles of procedural, interpersonal, and informational justice, which likely exacerbated
negative reactions among survivors. The absence of procedural justice—manifested in the
lack of employee input and a clear, fair process for layoffs—left survivors feeling insecure
and dissatisfied with the organization. Procedural justice has been shown to
foster organizational commitment and job satisfaction when employees perceive the
downsizing process as fair (Kernan & Hanges, 2002), which Twitter’s approach did not
achieve.

Additionally, interpersonal justice was notably lacking. Musk’s high-control downsizing

process did not provide support or respect for laid-off employees, which would have been
essential for maintaining morale among survivors. Kernan and Hanges emphasize that
interpersonal justice, supported by respectful treatment and communication,
reduces turnover intentions among survivors. At Twitter, the impersonal layoffs and
minimal empathy toward departing employees likely intensified survivors’ feelings of
detachment, increasing the risk of turnover.

Informational justice was similarly absent, as survivors were not provided with adequate
communication or transparency regarding the reasons behind the layoffs. According to
Kernan and Hanges (2002), informational justice builds trust in management by providing
survivors with clear explanations, which fosters a sense of respect and security. Twitter’s lack
of transparency created uncertainty and eroded trust, leaving survivors skeptical of leadership
and anxious about future changes.

6. Evidence-Based Recommendations:

Based on Kernan and Hanges’s (2002) justice framework, the following recommendations
would enhance Twitter’s downsizing approach, ensuring fair treatment and improving
survivor morale:
  Implement Procedural Justice with Clear Criteria and Employee Involvement:
Twitter should establish transparent, fair criteria for layoffs, communicated to
employees in advance. Including employee input in the downsizing process would
help survivors feel valued and reduce perceptions of arbitrariness, improving
commitment and satisfaction.
 Enhance Interpersonal Justice Through Support Programs: Providing counseling
and career transition support for laid-off employees would demonstrate respect and
empathy. This focus on interpersonal justice would signal to survivors that the
organization values its people, reducing turnover intentions and maintaining morale.
 Ensure Informational Justice with Transparent Communication: Regular updates
on the downsizing process, its rationale, and expected outcomes would foster
informational justice. By using multiple channels to communicate these details,
Twitter’s leadership can rebuild trust with survivors, reducing anxiety and reinforcing
commitment.
 Create a Leadership Visibility Program: Visible, consistent communication from
Musk and other leaders would increase management trust among survivors. Leaders
should be available to answer questions and address concerns, providing the
transparency and empathy needed for survivors to feel supported.
 Promote a Culture of Fairness Post-Downsizing: By focusing on fair treatment
across all forms of justice—procedural, interpersonal, and informational—Twitter can
reinforce a culture of respect and transparency, improving job satisfaction and loyalty
among remaining employees.

Summary of Key Takeaways: Kernan and Hanges (2002) demonstrate that procedural,
interpersonal, and informational justice play essential roles in shaping survivor reactions to
downsizing. Twitter’s approach under Musk lacked these forms of justice, likely contributing
to reduced organizational commitment, increased turnover intentions, and eroded trust.
Implementing the recommended practices for justice—such as fair selection criteria,
empathetic support, and transparent communication—would help Twitter mitigate these
negative reactions, promoting a healthier, more committed post-downsizing workforce.
Concept: Recommendations for Effective Downsizing (Cascio &
Wynn, 2004)
2. Theory:

Cascio and Wynn (2004) provide a set of best practices for managing downsizing in a way
that minimizes negative impacts on both departing and remaining employees. Their
recommendations highlight the importance of transparency, fairness, employee involvement,
and strategic alignment. By following these guidelines, organizations can foster a more stable
and committed workforce, reducing the potential for negative morale, turnover, and
productivity issues often associated with poorly managed downsizing.

Key Recommendations for Effective Downsizing:

 Evaluate Downsizing Rationale: Downsizing should be a strategic decision, taking

into account the impact on employees, customers, and overall performance.
 Emphasize Stability: Stability fosters loyalty and a sense of belonging, which can be
crucial during times of uncertainty.
 Seek Employee Input: Employees who help shape the process are more likely to
support it.
 Lead by Example: Top management should make sacrifices to show solidarity with
employees.
 Ensure Fair Selection and Transparency: The process should be transparent, fair,
and consistent, with advance notice and personal choice for employees.
 Communicate Regularly: Frequent, transparent communication helps alleviate
anxiety and keeps employees informed.
 Provide Reasons for Survivors to Stay: Survivors need clear reasons to stay, such as
a compelling business plan and stability.
 Invest in Training: Training for new roles can maintain productivity and morale.
 Reassess Management Systems: Management systems should be realigned to
support the new strategic direction post-downsizing.

3. Problems Identified in the Case Study:

 Lack of Strategic Rationale: Twitter’s layoffs appeared abrupt and were not clearly
connected to a long-term strategic rationale, leading to confusion among employees.
Musk’s focus on a “hardcore” culture was not fully explained in terms of how it
would benefit Twitter’s long-term goals, leaving employees uncertain about the
future.
 Minimal Employee Involvement: Twitter’s downsizing did not include employee
input or collaboration, which created an environment of helplessness and distrust.
This lack of involvement intensified negative emotions, such as anxiety and
resentment, among employees.
 Absence of Clear Communication and Stability: Twitter’s leadership did not
prioritize frequent communication, and the lack of stability created anxiety among
employees about future layoffs. This absence of reassurance or clarity further
disrupted morale.
  Limited Support and Training for Survivors: Musk’s immediate push for high
productivity did not include provisions for employee training or support, causing
survivors to feel unprepared for the demands of the new culture and their roles.
 Failure to Reassess Management Systems: Twitter’s management systems,
including performance expectations and communication channels, were not adapted to
support the downsized workforce and Musk’s new cultural standards.

4. Case Evidence:

 Direct Quote: Musk’s ultimatum for employees to work “hardcore” or leave

highlights the lack of stability and communication, as employees were not given a
clear understanding of how this culture shift would benefit Twitter or their roles
within it(W32382-PDF-ENG).
 Instance: The sudden layoffs without consultation or communication created an
environment of fear and uncertainty. Employees felt that decisions were made
arbitrarily, and survivors did not have adequate support or reassurance, aligning with
the issues identified in the recommendations from Cascio and Wynn (2004)(W32382-
PDF-ENG).

5. Opinion/Rationale/Argumentation:

Cascio and Wynn (2004) emphasize that downsizing is a sensitive process requiring strategic
planning and careful attention to employee well-being. Twitter’s downsizing under Musk did
not follow many of these recommendations, which likely exacerbated negative reactions
among employees. For example, evaluating the downsizing rationalewould have provided
employees with a better understanding of why these layoffs were necessary and how they
would contribute to Twitter’s long-term goals. Without this clear rationale, employees were
left uncertain and skeptical of the process.

Involving employee input could have given Twitter’s workforce a sense of control and
ownership over the downsizing process. Cascio and Wynn (2004) note that employees who
participate in shaping downsizing decisions are more likely to support them, as this
involvement reduces feelings of helplessness and stress. Twitter’s downsizing, however,
excluded employees entirely, contributing to anxiety and disengagement.

Cascio and Wynn also highlight the importance of fair selection and transparency. The
sudden layoffs at Twitter were perceived as arbitrary and unfair, damaging trust and morale.
Transparent criteria for layoffs, along with advance notice, would have made the process feel
more predictable and just, reducing resentment and fostering a sense of respect among
survivors.

Regular communication is crucial during downsizing, as it provides clarity and reduces

anxiety. Cascio and Wynn recommend that leaders maintain visibility and engage openly
with employees throughout the process, but Musk’s approach at Twitter lacked consistent,
transparent communication. This absence likely worsened survivor anxiety and contributed to
disengagement, as employees felt disconnected from the organization’s direction.

Finally, investing in training for survivors would have supported employees in adapting to
new roles and responsibilities. Cascio and Wynn’s research suggests that training improves
productivity and morale, but Twitter’s lack of such support left survivors feeling unprepared,
further diminishing engagement and motivation.

6. Evidence-Based Recommendations:

Based on Cascio and Wynn’s (2004) recommendations, the following strategies could
improve Twitter’s downsizing process:

 Evaluate the Downsizing Rationale and Communicate It Clearly: Twitter’s

leadership should develop a clear, strategic rationale for downsizing, explaining how
it aligns with long-term goals. Sharing this rationale with employees would foster
understanding and reduce uncertainty.
 Seek Employee Input and Involvement: Engaging employees, especially influential
team members, in discussions about downsizing could reduce anxiety and build
commitment. Allowing employees to provide input on cost-saving measures or role
realignments would make the process feel more inclusive and respectful.
 Emphasize Stability and Fair Selection: Twitter’s leadership should prioritize
stability where possible, maintaining a core workforce to reassure survivors. If layoffs
are unavoidable, establishing clear, fair criteria and offering advance notice would
promote procedural fairness and trust.
 Lead by Example with Management Sacrifices: Musk and Twitter’s leadership
could demonstrate solidarity by taking pay cuts or foregoing bonuses, signaling that
downsizing is a last-resort measure. This act would foster respect and loyalty among
employees.
 Implement Frequent, Transparent Communication Channels: Regular updates on
Twitter’s direction and the downsizing process, delivered through multiple channels,
would keep employees informed. Leaders should engage directly with employees,
addressing both survivors and those affected by layoffs.
 Provide Compelling Reasons for Survivors to Stay: Developing a clear business
plan that outlines how Twitter will thrive post-downsizing would help restore the
psychological contract with survivors, giving them a reason to stay and commit to the
organization’s vision.
 Invest in Training and Support for Survivors: Offering training for new
responsibilities and roles would help survivors feel more capable and motivated. This
support could include skill development and coaching to ease the transition and boost
productivity.
 Reassess Management Systems to Align with New Goals: Twitter’s leadership
should review and adapt performance management, recruitment, and compensation
systems to support the new organizational structure. This reassessment would ensure
that management practices align with the company’s updated goals and culture,
reinforcing stability for survivors.

Summary of Key Takeaways: Cascio and Wynn’s (2004) recommendations for effective
downsizing highlight the importance of strategic planning, transparency, and employee
support. Twitter’s approach under Musk, which lacked clear rationale, employee
involvement, and consistent communication, likely contributed to a decline in morale and
trust. By implementing these recommendations, Twitter could foster a more supportive
downsizing process, maintaining stability and employee engagement to sustain long-term
organizational health.