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We estimate the effects of job insecurity on the mental health of older workers in the United States. To address endogeneity problems, we exploit panel data and plausibly exogenous changes in job loss expectations following eliminations of similar positions and other types of jobs at the worker’s employer, as well as changes in employment at the industry–state level. We provide evidence that job insecurity, as measured by the self-reported probability of job loss, increases stress at work and the risk of clinical depression. We also find that the use of instrumental variables increases the size of the estimated effects. We interpret this as evidence that job insecurity which is outside the control of workers may have much larger effects on mental health. Our findings suggest that employers should worry about the mental health of workers in periods of downsizing, periods which are crucial for the recovery of firms in financial difficulties and which may depend particularly on the productivity of its workers.

Notes that sizable workforce reductions have been commonplace in the US economy in the 1980s and 1990s. However, some employers have resisted the temptation to reduce costs through massive layoffs, believing that it is more advantageous to retain their employees than to terminate them. These employers have managed to minimize or even prevent layoffs by using a variety of strategies. Describes some widely used strategies and provides examples of companies that have implemented them successfully.

The purpose of this paper is to analyze the determinants of employers' motives behind outplacement activities, the relationship between these motives, and the specific activities of firms in outplacement.

Theoretical assumptions were tested on a sample of 431 German firms, differentiating between specific outplacement activities and asking in detail about motives and rationales of outplacement. Factor analysis and Mann‐Whitney U‐Tests are applied.

Different types of motives can be identified and related to theoretical approaches. The relative importance of different motives is influenced by several situational and structural factors. The types of motives have an impact on the termination benefits offered to redundant employees.

Termination benefits are increasingly gaining importance, but the theoretical and empirical knowledge about the incidence, structure, motives, and effects of outplacement is still limited. This paper extends previous studies by shedding more light on the economic motives of employers to invest in outplacement activities, the determinants of these motives and the relationship between motives and specific bundles of activities.

This special “Anbar Abstracts” issue of the International Journal of Manpower is split into seven sections covering abstracts under the following headings: Human Resource Management; Career Planning & Recruitment; Women/Dependant Care; Health & Safety ; Education & Training ; Industrial Relations & Participation ; Redundancy.

The purpose of this paper is to examine the role of cultural value orientations (mastery and subjugation) in moderating the relationship between psychological contract violation (PCV) and turnover intention.

A longitudinal survey method was used to collect data from downsizing survivors in two phases. The final sample was 281 cases. Confirmatory factor analysis and hierarchical regression models were used to test the hypotheses.

PCV is positively related to turnover intention, and the relationship is moderated by cultural value orientations. Specifically, the relationship is stronger among downsizing survivors with a high level of subjugation orientation (SO) and/or a low level of mastery orientation (MO) in comparison with downsizing survivors with a low level of SO and/or a high level of MO.

The contribution of the study lies in the utility of examining culture at an individual level of analysis in relation to PC and downsizing research. Despite a generic human functioning model, some subtle cultural influences exist affecting the processes within the model. The negative reactions to downsizing are not simply a function of situational factors, but also reflect individual differences in cultural value orientations.

The study addresses the need to examine the role of cultural value orientations in influencing the relationship between PCV, and employee behaviors. Such an examination is important because cultural differences may result in unique interpretations and reactions to PCV.

Purpose – The purpose of this chapter is to recast downsizing as an act of corporate social irresponsibility by showing it to be contrary to ethical principles available to defend any course of action against the alternatives.

Methodology – Ethics theory is used to analyse the prevalent business practice of downsizing, drawing upon literature that examines downsizing and/or explains and demonstrates the application of ethical principles.

Findings – Downsizing, as defined in this chapter, is an unethical and irresponsible business practice because it reduces utility, ignores rights, creates injustice, breaks social contracts, creates agency relationships where none exist and fails to respond to the legitimate claims that employees, as a stakeholder, make upon corporations.

Practical implications – Change becomes necessary to the business practice of downsizing when it is carried out by profitable companies without proper appeal to ethics principles for justification. Ethical principles may, instead, suggest alternative courses of action or techniques.

Social implications – Downsizing (and other forms of mass layoffs) is not a morally neutral activity, as it engenders significant social implications (i.e. harm) that necessitate ethical consideration. Moreover, when business actions have social consequences, the interests of other stakeholders may become legitimate.

Value of the chapter – This chapter illustrates the formulation and application of principles that help guide business people to take morally right courses of action. It also serves as a template for analysing other aspects of the employment relationship for a more critical approach to corporate responsibility. As shown in this chapter, ethics can have more than a peripheral role in business decision making.

The purpose of this paper is to investigate individuals' learning and propensity for changing their job situation during downsizing in a company.

A case study was carried out in an industrial company that had undergone major downsizing to adapt to changes in production. Approximately 100 employees retrained at the company's training program and 350 employees received notice to quit their jobs. Data for this study consisted of qualitative interviews with 20 workers who faced different transition situations.

Three general learning trajectories labeled stayers, leavers and reemployed leavers emerged as a consequence of the downsizing. The stayers were the individuals who remained at the company and later retrained to new jobs. The leavers were the individuals who more or less voluntarily left the company to start a new career. The reemployed leavers were dismissed and left involuntarily but were later reemployed at the company.

In cases of downsizing it is important that the organization meets latent wishes for change and considers differentiated reactions connected to age, length of employment, former education, etc., among workers who face different transition situations.

The results imply that the learning trajectories were shaped through participation, thus learning, in the transition program and workplace activities. Each worker has a specific history of experience that shapes their disposition to learning and in which way they are able to adjust to a new job situation.

While downsizing has become an increasingly popular organizational tool in the achievement and/or maintenance of competitiveness and increased productivity, the negative side effect known as survivor syndrome continues to plague many post‐downsizing organizations. This two‐part article examines the full spectrum of research, with the goal of producing a model. The model is based upon the problems survivors experienced and modeled after the John Wanous realistic job preview (RJP). The realistic downsizing preview (RDP), which can be effectively used before the downsizing, is implemented to prevent survivor syndrome in the aftermath of the downsizing. The foundation of the RDP model is that by addressing issues that have been observed as survivor syndromes prior to a downsizing, the negative outcomes can be minimized. Part I considers downsizing, its effects on survivors and their needs, and the importance of good communication and perceived fairness within the process.

Outlines the legal position in which US firms can downsize. Comments that the current climate of laying off workers could lead to significant increases in claims if employers do not follow correct procedures. Consider issues such as wrongful termination, violence, age and disability discrimination. Looks at recent trends within this area of litigation and concludes that whilst job security for life is thing of the past, companies still have a responsibility to deal sensitively in this area.

Using an organizational justice framework, this paper aims to examine survivors' attitudinal and behavioral correlates to downsizing in Chinese state‐owned enterprises (SOEs).

The authors conducted one qualitative study involving personal interviews and one quantitative study involving structured surveys to develop an understanding of the phenomenon.

The studies revealed that justice‐enhancing managerial practices were associated with survivors' evaluations of their outcomes after the downsizing, which in turn, were related to survivors' positive attitudinal and behavioral reactions.

The findings suggest that organizational justice provides a useful avenue for understanding survivors' perspectives in the downsizing context in China. However, retrospective, cross‐sectional data were used. Future research might investigate causality in the downsizing process by using a quasi‐experimental design.

Managerial practices that address the relational aspects of organizational justice (informational and interpersonal justice) can serve as effective downsizing strategies in China.

The studies are among the first to explore survivors' perspectives of downsizing from a micro‐level, organizational justice perspective in China. They contribute to the organizational justice literature by examining the relative importance of various justice perceptions in a collectivist culture.