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Procedural Fairness, Managers' Self-Esteem, and Managerial Behaviors Following a Layoff.
Wiesenfeld1, Brockner, Thibault
1San Francisco, California
Summary
Managers experiencing procedural unfairness during layoffs suffer lower self-esteem, especially compared to nonmanagers. This impacts their effectiveness and subordinates
Area of Science:
- Organizational Psychology
- Human Resource Management
- Business Ethics
Background:
- Procedural unfairness in organizational change, such as layoffs, is known to negatively impact employee self-esteem.
- The specific impact of procedural unfairness on managers during downsizing events requires further investigation.
- Organizational commitment is a key factor influencing employee responses to workplace changes.
Purpose of the Study:
- To examine predictors and consequences of managers' reactions to job layoffs.
- To test the hypothesis that procedural unfairness more strongly affects managers' self-esteem than nonmanagers' self-esteem.
- To investigate the mediating role of self-esteem in the relationship between procedural unfairness and managerial behavior during change.
Main Methods:
- Two studies were conducted to analyze managers' and nonmanagers' reactions to procedural unfairness in downsizing contexts.
- Study 1 assessed the relationship between procedural unfairness, self-esteem, and organizational commitment.
- Study 2 examined the impact of procedural unfairness on managerial behaviors, with self-esteem as a mediator.
Main Results:
- Procedural unfairness led to lower self-esteem in managers, a more pronounced effect than in nonmanagers, linked to higher organizational commitment.
- Managers perceiving unfair procedures were less likely to exhibit effective change-related behaviors.
- Managerial self-esteem mediated the link between perceived procedural unfairness and less effective managerial actions.
Conclusions:
- Managers' heightened organizational commitment exacerbates the negative impact of procedural unfairness on their self-esteem during layoffs.
- Perceived procedural unfairness undermines managers' ability to enact effective behaviors crucial for navigating organizational change.
- Subordinate perceptions of the work environment are negatively affected by the diminished effectiveness of managers facing unfair procedures.