Procedural fairness and organizational commitment under conditions of growth and decline

Abstract

We surveyed employees from seven relocating firms undergoing either an expansion or decline. Employees' judgments of procedural fairnes regarding the decision procedures used to implement the change showed a stronger effect on normative commitment for sites undergoing decline than for those undergoing growth. Procedural fairness concerns therefore seem to be more important to employees experiencing organizational decline. The finding has implications for research and for the management of organizational decline.