This study aimed to investigate how mass layoffs impact surviving employees in organizations. More specifically, this study ascertained the relationships between mass layoffs and employee work behaviors. It was theorized that mass layoffs will be negatively related to employee performance and OCB through its relationships with job insecurity and psychological contract breach. Moreover, it was expected that perceived manager support would buffer against the negative relations of contract breach with employee performance and OCB. A study among 615 employees in multiple Chilean organizations showed support for the hypotheses: job insecurity and psychological contract breach mediated the relationships between mass layoffs and employee performance and OCB. We also found moderating relationships of manager support, but the relations of breach with performance and OCB were particularly negative when manager support was high, indicating feelings of betrayal among high support employees in response to contract breach. Moreover, the relation of contract breach with performance was positive for low-support employees, and non-significant for high-support employees. Our study advances understanding of the processes underlying how mass layoffs influence employee behavior in the workplace, through introducing the psychological contract as a way of understanding the relationships
In this study, we develop a conceptual model of the relationship between job insecurity and job performance, which is mediated by affective organizational commitment and moderated via perceived organizational support in a Chilean company that has undergone downsizing. In this cross-sectional study, we focused on 400 Chilean employees from the retail sector. Our findings indicate that job insecurity negatively influences job performance, which is a relationship that is partially mediated by effective organizational commitment. Moreover, a high level of perceived organizational support helped intensify the effects of the relationship between job insecurity and affective organizational commitment. To minimize the negative effects of job insecurity on the active employees of a downsizing strategy, an effective intervention is required by developing a more realistic communication in terms of a worker's expectations toward the organization.
Purpose
The purpose of this paper is to examine the weekly effects of job insecurity on employee voice and silence. Specifically, the authors argue that because employment fulfils important needs, employees’ needs are less fulfilled when they feel that their job is at risk (i.e. high job insecurity). Consequently, the authors argue that employees engage in less voice and more silence because when employees’ needs are not fulfilled, they are less committed to the organization and/or protect their personal resources.
Design/methodology/approach
The authors tested their hypotheses in a five-week long diary study among 97 employees.
Findings
The authors found that employees reported lower need fulfilment in those weeks and the week after job insecurity was higher, which, in turn, decreased employee voice and increased employee silence in those weeks and the week after.
Research limitations/implications
The study shows that feelings about one’s job insecurity fluctuate from week to week and that the weekly negative effects associated with increased job insecurity can be explained from a needs fulfilment perspective. The study also highlights the importance of studying voice and silence simultaneously.
Practical implications
Managers could indirectly increase employees’ voice and decrease employees’ silence by reducing feelings of job insecurity to increase employees’ feelings of predictability of and control over their future.
Originality/value
The authors studied short-term effects of job insecurity on both employee voice and silence, and examined need fulfilment as an underlying mechanism to explain the effects of job insecurity.
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