Procedural Fairness, Managers' Self-Esteem, and Managerial Behaviors Following a Layoff

Abstract

The present research examined the predictors and consequences associated with managers' reactions to job layoffs. Whereas previous research suggests that procedural unfairness lowers self-esteem, we hypothesized that, in a downsizing context, the relationship between procedural unfairness and lower self-esteem would be more pronounced among managers than nonmanagers. The results of Study 1 supported the hypothesis and showed that the findings were attributable to managers' greater organizational commitment. Study 2 showed that managers who perceived procedures to be less fair were less likely to report practicing the behaviors needed from effective managers in times of change. Moreover, the relationship between procedural unfairness and managers' behaviors was mediated by their self-esteem. Subordinates of managers who engaged in less effective managerial behaviors, in turn, had more negative perceptions of their immediate work environments.