Survivor reactions to organizational downsizing: The influence of justice perceptions and the psychological contract.
Description: The present study examined the relationships of organizational justice and the psychological contract with four outcome variables in a downsizing context. Multinational data were gathered from survivors representing a variety of organizations and industries. The main focus of the current study examined the relationships between survivors' perceptions of procedural, interpersonal, and informational justice and organizational commitment, job satisfaction, turnover intentions, and trust in management. Correlational data indicated that procedural, interpersonal, and informational justice all demonstrated significant correlations with the outcome variables with interpersonal justice demonstrating higher correlations with the outcome variables than procedural justice. Additionally, the results of two structural models indicated that, although both models fit the data equally well, interpersonal justice was the dominant predictor of the outcome variables. Finally, moderated multiple regression analyses indicated that the psychological contract did not act as a moderator on the relationships between the justice and the outcome variables. However, supplemental confirmatory factor analysis suggested that the justice variables might act as a mediator of the psychological contract - outcome variable relationships. Possible explanations of the results as well as implications for practice and future research are provided.
Date: December 2004
Creator: Calderone, Wilma K.