Message Manipulation: How Downsizing Messages are Encoded Based on the Intended Audience

Abstract

This research explores the differences between how organizations communicate downsizing messages to external receivers (e.g. consumers, shareholders, etc.) versus internal receivers (e.g. employees). This study uses a unique dataset of 145 mass layoff forms submitted to the Ontario Ministry of Labour, Training and Skills Development (OMLTSD) from 2013-2019, and the accompanying downsizing announcements made in the media. Linguistic Inquiry and Word Count (LIWC) text analysis software analyzed message formality, deception, confidence, emotional tone, and information quantity for downsizing announcements to both audiences. T-test analysis determines significant differences between these announcements. Downsizing messages communicated to internal receivers are more formal, confident, and succinct while downsizing messages communicated to external receivers are more deceptive and have a more negative emotional tone. This study uses an interdisciplinary approach (blending marketing and human resources management disciplines). In this study, the communications model is applied to organizational communication. Further, this is the first study to compare the same downsizing messages that were communicated to different audiences. Finally, this study uses a distinctly unique dataset to better explore and understand this complex topic.