Downsizing and survivor reactions in malaysia: Modelling antecedents and outcomes of psychological contract violation

Rasidah Arshad, Paul Sparrow

Research output: Contribution to journalArticle

28 Citations (Scopus)

Abstract

This study provides an empirical test of a model of antecedents and consequences of psychological contract violation (PCV) caused by the experience of downsizing. A longitudinal survey method was used to collect data at two different points in time (a month after downsizing, and eight months later) from a sample of 281 survivors from a large Malaysian organization going through downsizing. Respondents were from the headquarters (HQ), factories and subsidiaries located across the country and were employed across hierarchical positions including managers, supervisors, technical, operating and administrative staff. A causal model is proposed and tested. The model proposes that the perception of justice and negative affectivity at time 1 (T1) predict PCV, which in turn predicts three attitudinal and behavioural outcomes of commitment, organizational citizenship behaviours (OCBs) and turnover intentions at time 2 (T2). Three variations of the model (fully-mediated, partially-mediated and unmediated) were tested with structural equation modelling. The results show that both the perception of justice and negative affectivity significantly predict PCV, and that there is a direct effect between PCV and commitment, an indirect effect between PCV and OCBs, and both direct and indirect effects between PCV and turnover intentions. The findings demonstrate the utility of psychological contact framework in explaining survivor reactions to downsizing.

Original languageEnglish
Pages (from-to)1793-1815
Number of pages23
JournalInternational Journal of Human Resource Management
Volume21
Issue number11
DOIs
Publication statusPublished - 2010

Fingerprint

Supervisory personnel
Industrial plants
Downsizing
Violations
Modeling
Malaysia
Psychological contract
Survivors
Managers
Justice
Organizational citizenship behavior
Indirect effects
Negative affectivity
Turnover intention
Direct effect
Psychological
Supervisors
Structural equation modeling
Staff
Factory

Keywords

  • Downsizing
  • Negative affectivity
  • Psychological contract

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Strategy and Management
  • Organizational Behavior and Human Resource Management

Cite this

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