Downsizing : victim and observer perceptions of procedural justice and retributive intentions

Abstract

These studies examined both victim and third parry observer fairness judgements of the procedures used in the sale of a business unit and their retributive intentions toward the organization as potential employees and customers. Two aspects of procedural justice were studied: "voice" and "explanation". In Study 1, Victims of downsizing reported lower perceptions of procedural fairness and higher retributive intentions toward the organization mainly due to the lack of explanation provided for the procedures and opportunity to voice their opinions to managers. In Study II, third party observers (N = 332) were randomly assigned to four experimental conditions: Voice (no voice vs voice) x Explanation (no explanation vs explanation). Third party observers reported higher perceptions of procedural fairness when the victim of the downsizing was provided with an explanation or voice in the downsizing process. Observers also reported lower retributive intentions toward the organization as potential customers when the victim was provided with an explanation or voice. Providing victims with opportunities to voice their opinion also results in lower third party observer retributive intentions as potential employees.