Abstract:

This study investigates how and when downsizing leads to different types of vertical conflicts (i.e., task, process, and relationship conflicts) between survivors and their supervisors by examining the mediating role of psychological contract breach (PCB) and the moderating effects of discretionary HR practices. We tested our research model in a field study using multilevel, multi-wave, and multisource data collected from 444 employees nested in 70 organizations in Pakistan. The results revealed that downsizing was positively related to task, process, and relationship conflicts between survivors and their supervisors, and survivors’ PCB mediated this relationship. Moreover, discretionary HR practice negatively moderated the relationship between downsizing and PCB and the indirect relationship between downsizing and conflicts between survivors and their supervisors via PCB. Our study highlighted an essential underlying mechanism – psychological contract breach – that elicited conflicts between survivors and their supervisors. Additionally, our results indicated that discretionary HR practices help in the restoration of survivors’ psychological contracts post-downsizing, subsequently mitigating conflicts between survivors and their supervisors.

Please choose your submission type: Full Paper

Primary Track: Human Resource Management

Keywords: Organizational behaviour and psychological state

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Dr. Subhan Shahid