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Downsizing and survivor reactions in Malaysia: modelling antedecents and outcomes of psychological contract violation

Arshad, R and Sparrow, P R (2010) Downsizing and survivor reactions in Malaysia: modelling antedecents and outcomes of psychological contract violation. The International Journal of Human Resource Management, 21 (11). pp. 1793-1815. ISSN 0958-5192

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    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.

    Item Type: Article
    Journal or Publication Title: The International Journal of Human Resource Management
    Uncontrolled Keywords: downsizing ; negative affectivity ; psychological contract
    Subjects:
    Departments: Lancaster University Management School > Lancaster University Management School - Other > Centre for Performance-Led HR
    ID Code: 45251
    Deposited By: ep_importer_pure
    Deposited On: 11 Jul 2011 19:29
    Refereed?: Yes
    Published?: Published
    Last Modified: 19 Dec 2013 16:32
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/45251

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