HRM and organisational performance under closure conditions: evidence from a case study

Little has been published which analyses the performance of a workforce after the announcement that their organisation is to be closed. Of the few published cases analysing closure, in a small number of instances it has been reported that substantial improvements occurred in the organisation’s performance during the period from the announcement until the final day. Such improvements were generally contrary to the predictions of the downsizing literature and the instinctive expectations of the managers who were involved. Using a case study analysis of the closure of a steelworks in Australia in which very significant improvements in performance were recorded, this paper examines the role of the company’s human resource management interventions as an explanatory factor for these improvements.