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Issue Season

Summer

Document Type

Research Article

Author Bio(s)

Sandra Obilade, a visiting assistant professor of management at Sacred Heart University, obtained her Ph.D. degree from Southern Illinois University at Carbondale in 1982 and has taught courses in the general area of management studies and organizational behavior.

Abstract

Retaining employee loyalty after restructuring is a problem for all types of businesses. The major issue concerns how management and employees can establish a new, mutually acceptable "psychological contract" which ensures employee loyalty but not lifelong employment. Eighteen small businesses in Fairfield County, Connecticut were surveyed to investigate loyalty and motivation after downsizing. A significant correlation was found between loyalty and motivation. Furthermore, several motivational techniques employed were inconsistent with employee needs. Suggestions are offered on how to retain employee loyalty.