Understanding the determinants of well-being and organizational attitudes during a plant closure: A Swedish case study

Abstract

The present study investigated to what extent perception of closure management (informational justice, severance package satisfaction) as well as individual resources and barriers (employability, tenure) were associated with well-being and organizational attitudes during plant closure. This was studied in a sample of 129 Swedish workers in a plant undergoing closure. The results showed that those who felt communication to be fair reported higher well-being and more positive attitudes. Those who were satisfied with the severance package reported lower intention to leave but also felt fewer obligations towards the organization. Those with higher employability reported higher subjective health. The results also indicated that tenure moderated the relation between informational justice and felt obligations, and employability moderated the relation between severance package satisfaction and organizational attitudes. It can be concluded that closure management together with employees’ different resources and barriers are vital for organizational attitudes and well-being during the closedown process.

The paradox of employee psychological well-being practices: an integrative literature review and new directions for research

“…Shantz, Arevshatian, Alfes, and Bailey 2016; as a degree of depressiveness e.g. Stengård, Bernhard-Oettel, Näswall, Ishäll, and Berntson (2015); as the inverse of burnout e.g. van Mierlo, Rutte, Vermunt, Kompier, and Doorewaard (2006); and as within the continuum anxiety-contentment e.g.…”

People, performance and transition: A case study of psychological contract and stakeholder orientation in the Toyota Australia plant closure

“…Businesses often close plants quickly such as in a matter of months, leaving little time to reskill workers 3 . Stengard et al (2015) apply psychological contract theory to focus on the stresses and strains experienced by employees during a plant closure process. They assess the degrees to which employee tenure and employability moderate the effects of information and compensation on employee's feelings of well‐being and organizational attitudes.…”

Developing a framework for responsible downsizing through best fit: the importance of regulatory, procedural, communication and employment responsibilities

“…An essential feature of responsible downsizing involves HR and management ensuring employees, and their representatives, are involved in the process. In addition to communicatory practices reinforcing regulatory and procedural responsibilities, such as negotiation processes and consultation periods, a further theme focuses on how communication responsibilities can enhance perceptions of fairness (Bergström & Arman, 2017;Eby & Buch, 1998;Hopkins & Hopkins, 1999;Kernan & Hanges, 2002;Kim, 2009;Pulignano & Stewart, 2013;Stengård et al, 2015;Tanner & Otto, 2016;Tourish et al, 2004). Key to communication is information sharing that ranges from minimal updates to strategic or financial rationales for downsizing.…”

“…Research has also pointed to the relationship between communication and improved informational justice (Kernan & Hanges, 2002;Kim, 2009;Stengård et al, 2015). Informational justice is the extent to which managerial decisions, such as downsizing, are seen as fair and delivered through honest interactions.…”

“…Informational justice is the extent to which managerial decisions, such as downsizing, are seen as fair and delivered through honest interactions. Where a heightened perception of informational justice exists, extant research has indicated improved well-being and less negative attitudes towards downsizing (Gilliland & Schepers, 2003;Stengård et al, 2015). While the quality of communicative practices is a vital support mechanism for victims of downsizing (Naumann et al, 1995), research by Kernan and Hanges (2002) points to the knock-on effects that positive perceptions of fairness can have on survivors who are more likely to view the organisation favourably as a result; similar to procedural justice.…”