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This study aims to investigate the effects of attribution of responsibility (AOR) for layoffs on the components of ethical decision-making. Internal, external and no-fault AOR were examined using the model of moral intensity to determine if placement of blame for the layoff influences ethical awareness, judgment and intent.

Surveys were collected from 397 students. The survey provided a scenario about a layoff situation involving an African-American woman and a Caucasian woman. Respondents then answered questions about moral intensity, moral judgment and moral intent concerning the layoff and identified the reasons they believed the layoff occurred. We tested our hypotheses using multiple regression analysis.

Subjects were more likely to make a moral judgment about the situation when layoffs were blamed on the company’s actions (external AOR) and less likely to make a moral judgment when the layoff decision was blamed on employee performance (internal AOR) or on economic factors beyond anyone’s control (no-fault AOR). Results also indicate that layoffs blamed on employee performance negatively moderate the relationship between moral judgment and moral intent.

Previous studies of layoff ethics have not examined the influence of AOR for layoffs using the model of moral intensity. Thus, this paper extends the current understanding of these concepts in ethical decision-making.

This study aims to analyze the effect of cognitive load and social value orientation on managers’ preferences when they face with two types of restructuring choices in financially distressed firms: the first belonging to the family of organizational restructuring (massive layoffs) and the second to the family of financial restructuring (debt increases).

The authors investigate experimentally the impact of managers’ cognitive load and social value orientation on the decision to restructure leveraged buyout (LBO) firms in financial distress by using either massive layoffs or debt increases.

By investigating the impact of managers’ cognitive load and social value orientation on the restructuring decision of an LBO firm in financial distress, the research reveals that, on average, cognitively loaded managers prefer massive layoffs over increased debt levels. The massive layoffs seemingly provide a relatively easier way to avoid conflict with influential, residual claimants. In contrast, social value–oriented managers actively avoid massive layoffs and prefer to increase debt.

These results imply that the performance mechanisms emphasized to improve agency relations, for example, in LBOs, have their own limitations during periods of financial distress. This study shows that one of these limits is related to cognitive distortions and personality traits.

In this research, the originality lies in understanding how managers’ internal factors affect their restructuring decision-making, in the case of LBO firms in financial distress.

This study investigates the mediating role of wage and workforce adjustments, along with the moderating influence of collective bargaining system and employees’ localization, in elucidating the relationship between the COVID-19 shock and workplace employee relations (ER) tension.

Survey data from 1,483 enterprises across 21 prefectural cities in China’s Guangdong Province are collected. The hypotheses are tested by logistic regression.

The study reveals a positive correlation between the COVID-19 shock and workplace ER tension across crisis-hit enterprises, irrespective of their size or industrial sector. Wage reduction and mass layoffs emerge as significant mediators, while the collective bargaining system (CBS) and employees’ localization act as moderators.

The measurement of ER is limited in a single-item scale. Representation of China is also limited since the study exclusively focuses on Guangdong province. The study offers some contributions that firm-level data reveal the pathway through which COVID-19 creates ER tension.

On the one hand, the authors recommend the establishment of an effective communication system between employers and employees. On the other hand, managers should consider the role of informal institutions. Furthermore, the authors suggest implementing tailored strategies at the enterprise level.

Intense external shocks result in widespread layoffs and increased wage reductions within workplaces, and under such circumstances, formal or informal institutions may be insufficient to alleviate ER tension. In this case, the state authorities – including governments and other public agencies or bodies – are necessary to intervene in to organize tripartite dialogue.

While numerous emerging studies on COVID-19 explore how different countries manage industrial relations tension at the national level, few focus on ER at workplace level, particularly in developing countries. Understanding how workplace ER evolve during external shocks and identifying institutional measures to mitigate their negative impact is crucial for future crisis management.

This paper aims to study the effect of the COVID-19 economic slowdown on the restaurant industry in Jalisco, Mexico, identifying business-specific variables that improve/worsen restaurants’ odds of permanent closure.

The data of a randomized survey on 438 restaurants conducted in October 2020 in Jalisco, Mexico, are analyzed using a binary logistic regression model in which the dependent variable depicts the perception of the restaurant owner regarding the possibility of closing the business for good because of COVID-19.

Layoffs and large year-on-year drops in sales increased the odds of permanent closure by 12.7 and 5.5 times, respectively. At the same time, being a small business had a protective effect against closure. For instance, a restaurant with 6 to 10 employees and 11 to 20 seats, respectively, had 87.9% and 45.1% lower odds of permanent closure than a different-sized restaurant. There is also an element of legacy in restaurant resilience. Every year the business has been open, it has 2.5% lower odds of permanent closure.

These results call for government financial support to the restaurant industry in extreme financial distress and help to understand the business-specific characteristics of resilient restaurants when liquidity vanishes, such as in the COVID-19 economic crisis.

This study fills a gap in the literature regarding the effect of COVID-19 on the restaurant industry in Mexico, which is scarcely studied. Moreover, it analyzes data collected in the recovery period after the first wave of COVID-19, providing a unique scenario to study critical variables for the resilience of restaurants.

Este documento estudia el efecto de la desaceleración económica de COVID-19 en la industria de restaurantes en Jalisco, México, identificando variables específicas del negocio que mejoran/empeoran las probabilidades de cierre permanente de los restaurantes.

Los datos de una encuesta aleatoria sobre 438 restaurantes realizada en octubre de 2020 en Jalisco, México, se analizan utilizando un modelo de regresión logística binaria en el que la variable dependiente representa la percepción del propietario del restaurante con respecto a la posibilidad de cerrar el negocio para siempre debido a COVID-19.

Los despidos y las grandes caídas interanuales en las ventas aumentaron las posibilidades de cierre permanente en 12.7 y 5.5 veces, respectivamente. Al mismo tiempo, ser una pequeña empresa tenía un efecto protector contra el cierre. Por ejemplo, un restaurante con 6 a 10 empleados y de 11 a 20 asientos, respectivamente, tenía 87.9% y 45.1% menos posibilidades de cierre permanente que un restaurante de diferente tamaño. También hay un elemento de legado en la resiliencia de los restaurantes. Cada año que el negocio ha estado abierto, tiene un 2.5% menos de posibilidades de cierre permanente.

Estos resultados respaldan la necesidad de apoyo financiero del gobierno a la industria restaurantera en periodos de dificultades financieras extremas y ayudan a comprender las características específicas de los restaurantes resilientes cuando la liquidez desaparece, como en la crisis económica de COVID-19.

Este estudio llena un vacío en la literatura sobre el estudio del efecto del COVID-19 en la industria de restaurantes en México, que apenas se ha estudiado. Además, analiza datos recolectados en el período de recuperación después de la primera ola de COVID-19, proporcionando un escenario único para estudiar variables clave para la resiliencia de los restaurantes.

Este artigo estuda o efeito da desaceleração econômica COVID-19 na indústria de restaurantes em Jalisco, México, identificando variáveis específicas do negócio que melhoram/pioram as chances de fechamento permanente dos restaurantes.

Os dados de uma pesquisa randomizada com 438 restaurantes realizada em outubro de 2020 em Jalisco, no México, são analisados por meio de um modelo de regressão logística binária em que a variável dependente retrata a percepção do dono do restaurante sobre a possibilidade de fechar definitivamente o negócio por causa da COVID-19.

Demissões e grandes quedas ano a ano nas vendas aumentaram as chances de fechamento definitivo em 12,7 e 5,5 vezes, respectivamente. Ao mesmo tempo, ser uma pequena empresa teve um efeito protetor contra o fechamento. Por exemplo, um restaurante com 6 a 10 funcionários e 11 a 20 lugares, respectivamente, teve 87,9% e 45,1% menos chances de fechamento permanente do que um restaurante de tamanho diferente. Há também um elemento de legado na resiliência dos restaurantes. A cada ano que o negócio é aberto, tem chances 2,5% menores de fechamento definitivo.

Esses resultados pedem apoio financeiro do governo para o setor de restaurantes em extrema dificuldade financeira e ajudam a entender as características específicas do negócio de restaurantes resilientes quando a liquidez desaparece, como na crise econômica COVID-19.

Este estudo preenche uma lacuna na literatura sobre o estudo do efeito do COVID-19 na indústria de restaurantes no México, que é pouco estudado. Além disso, analisa dados no período de recuperação após a primeira onda de COVID-19, fornecendo um cenário único para estudar variáveis-chave para a resiliência dos restaurantes.

This study aims to investigate the impact of job insecurity (JI) on employee work performance (WP) and service innovation behavior (SIB). It further examines the mediating role of affective commitment (AC) and the moderating role of organizational cynicism and financial job dependence (FJD).

By using a three-wave approach, the hypotheses were tested by collecting data from 473 full-time employees and their supervisors in the Thai hotel industry.

The results demonstrated that JI negatively affected WP and SIB. AC mediated these relationships. FJD moderated these relationships such that at high levels of job dependence, the negative relationships were weaker.

Human resource managers may reduce the negative effects of JI by creating a supportive and caring work environment through open communication. They may communicate openly with employees about the challenges the organization is facing, and involve them in planning, decision-making and implementation to mitigate the negative effects of JI. They may also provide training and development opportunities to help employees build their skills and increase their value to the organization.

Research on the behavioral consequences of JI is scant in the hospitality sector. Drawing on job–demand resource theory, this study attempts to fill this gap.

This case study attempts to sensitize the impact of restructuring on the organization’s employer brand. The students shall learn to appreciate the criticality of maintaining a balance between being an employee-centric organization and building a sustainable business model, to analyze the alternative people management strategies in emerging start-ups.

This case study illustrates the innovative human resource (HR) policies adopted by the start-up Meesho. Meesho was started as “Fashnear” by two Indian Institute of Technology graduates Sanjeev Barnwal and Vidit Aatrey in the year 2015, with the headquarters located in Bengaluru, Karnataka, India. It was a social commerce platform wherein the local apparel sellers or manufacturers could register themselves on the app and sell their products online to nearby consumers and the product would be delivered to their homes. Later, it was renamed Meesho (Meri E-Shop) with an improved business model. The innovative people-centric policies got Meesho recognition as one of the most employee-friendly start-ups and an innovative employer. However, later as part of the restructuring exercise, it had to lay off employees, which had a counter impact on its reputation and image as a desirable employer. This case study captures the dilemma faced by start-ups like Meesho who were in the process of sustaining their growth and optimizing their workforce and, at the same time, have to manage their employer brand in the process.

This case study can be used at the postgraduate level of management and in executive management programs.

Teaching notes are available for educators only.

CSS6: Human resource management.

While the effect of the minimum wage (MW) on employment has been widely studied, less is known about its impact on hirings and separations. Whereas the adverse effects of MW on hiring are quite familiar, results of studies indicating reductions in separations are less expected. This study aims to bridge the gap between theory and practice by performing a meta-analysis, which allows for understanding the real effect of MW on employment's two components: hirings and separations.

Since mixed results cloud understanding of the issue, a meta-regression analysis was conducted. This technique permits understanding the effect of MW on labor market transitions and offers additional explanations for controversial results.

Despite the evidence that MW increasing the turnover and reducing permanence could negatively affect employment, findings from meta-regression analysis pointed out that increases in MW reduce hirings but also separations offsetting the negative effect on employment. Overall, the results imply that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and separations. Evidence of negative publication bias is also found.

The results emphasize the importance of looking beyond employment rates to understand the impacts of MW. Overall, the evidence implies that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and layoffs. In addition, the results suggest that MW tends to have a much larger impact on employment flows than on employment levels. This finding has to be considered by policymakers when they make decisions about increasing the MW. These analyses assist in clarifying debates about the effects of MW on the labor market in the changing economic environment and conduct a labor policy in the right direction.

The meta-regression analysis (MRA) conducted in this study emphasizes the importance of looking beyond employment rates to understand the impacts of MW (Brochu and Green, 2013). Overall, the evidence implies that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and layoffs. Therefore, the evidence from the performed MRA is consistent with those previous meta-analysis studies that found little or no evidence about MW adversely affecting employment and, at the same time, provide additional explanation for these findings. In addition, the results suggest that MW tends to have a much larger impact on employment flows than on employment levels (Dube et al., 2016).

Even though hirings are reduced due to MW, this evidence could not necessarily imply a negative effect of MW on the labor market since job searching or matching is improved. Additionally, the increases in MW could improve the quality of the job and the job attachment, which are consistent with a recruitment-retention model (Dube et al., 2007). The evidence from this MRA, which is consistent with little or no impact of MW on employment, also could imply that although the MW is set relatively high to balance the supply and demand of labor, their level is close to optimal. Setting the right level is also associated with compliance with MW. This issue deserves attention since any adverse employment effects of MW could be strengthened by incomplete coverage. The effectiveness of the entire process of developing, putting into practice and enforcing MW rules hinges on compliance.

As prior meta-regression analysis did not have the same objective, the results of this article move current research forward. Based on the analysis, future research lines are delineated, and some public policy implications are assessed.

This study aims to explore how coping strategies (CS) mediate the relationship between job insecurity (JI) and subjective well-being (SWB) leading to presenteeism among millennials. This study has been tested based on the conservation of resources theory (Hobfoll, 2001) and the transactional theory of stress and coping (Lazarus and Folkman, 1984). In India, employees in the information technology (IT) and business process management sectors have been facing increased job insecurity over the last couple of years. The advent of technology has increased job insecurity among millennials, specifically in the IT sector. The Indian IT and information technology–enabled service (ITES) sector witnessed mass retrenchments by companies in 2016–2017. Instead of reskilling, the companies decided to lay off their employees. During the pandemic, the IT and ITES industries witnessed a massive culture shift in terms of technology and work engagement. Postpandemic, the recession is looming large on these industries. In 2022, tech layoffs have witnessed 135,000 employees impacted globally and many may lose their job in the coming year. This study chose Indian millennials because they form a large part of the Indian workforce, especially in the IT and ITES sector.

In this study, cross-sectional design is used where different individuals are part of the study at the same point in time. A sequential mixed method of research is adopted for this study, owing to the kind of research questions and the requirement to include critical realism. A qualitative study was carried out post the quantitative study, to corroborate the results from the quantitative study. Quantitative methodologies address questions about causality, generalizability or magnitude of outcome, whereas qualitative research methodologies explore why or how a phenomenon occurs, describe the nature of an individual’s experience during the study relevant to the context and/or develop a theory (Fetters et al., 2013). Because the study is about the millennial workforce in IT and the ITES sectors, the sample population comprised employees in Delhi and the national capital region (NCR) of Delhi in northern India. Out of a total of 374 ITES companies listed in the national association of software and service companies (2018), 103 are based out of Delhi/NCR; hence, companies from Delhi/NCR were chosen for the study. The other reason for opting for companies based in Delhi/NCR was that many millennials from second- and third-tier cities also are employed in these companies bringing in varied cultural perspectives. This study included 588 employees working in ITES organizations based in the National Capital Region of India. Mediation analysis for statistical verification was carried out with regression-based analysis in SPSS macro process (version 4).

The impact of job insecurity on the positive and negative affects of the subjective well-being of millennials was found to be substantial. Coping strategies moderated the relationship and it was seen that both engaged and disengaged strategies of coping had an impact on the positive affect of subjective well-being but did not have any impact on the negative affect of subjective well-being. The positive affect of subjective well-being was negatively related to presenteeism, and the negative affect of subjective well-being was positively related to presenteeism.

This study is carried out only in the ITES industry and on millennials. With the advent of technology, other industries are going through challenges concerning layoffs even though the severity of the same might be less. In times to come, for strategizing employee engagement, it is necessary to understand how the workforce copes with various work-related stress factors. The positive affects and negative affects of well-being and responses have been studied from an employee perspective only. Further research should be conducted to explore responses from both employers and employees to establish presenteeism and the antecedents of presenteeism in conjunction with positive and negative affects of well-being. There is further scope to study the impact of job insecurity on adaptive presenteeism in older generations and various industries given the current job scenario and talent-reskilling issues.

This study brings forth original insights into the impact of constant job threats on millennials employed in the IT and/or IT service sectors. The key findings contribute to literature knowledge and help managers recognize the unfavorable consequences of continuous job threats on the well-being of employees. There is an immediate need for managers to recognize the problem and devise various policies and communication strategies to enable millennial employees to cope with the constant changes in the organization, owing to various technological, political and environmental factors. Organizations should be mindful of this impact, which can subsequently have serious consequences on the productivity of the employees, resulting in decreased overall performance and health of the organization.

This study of job insecurity as a job stressor, triggering coping strategies in Indian millennials working in the ITES and IT industry, presents original insights. This study explores and presents how the impact of job insecurity may increase presenteeism as a result of coping. This study brings value to practitioners and this study may help organizations improve the overall well-being of their employees, thus improving productivity. On the contrary, it also opens opportunities for exploring the impact of job insecurity as a challenge stressor.

This paper aims to identify the disproportionate impacts of the COVID-19 pandemic on labor markets.

The authors conduct a large-scale survey on 16,000 firms from 82 industries in Ho Chi Minh City, Vietnam, and analyze the data set by using different machine-learning methods.

First, job loss and reduction in state-owned enterprises have been significantly larger than in other types of organizations. Second, employees of foreign direct investment enterprises suffer a significantly lower labor income than those of other groups. Third, the adverse effects of the COVID-19 pandemic on the labor market are heterogeneous across industries and geographies. Finally, firms with high revenue in 2019 are more likely to adopt preventive measures, including the reduction of labor forces. The authors also find a significant correlation between firms' revenue and labor reduction as traditional econometrics and machine-learning techniques suggest.

This study has two main policy implications. First, although government support through taxes has been provided, the authors highlight evidence that there may be some additional benefit from targeting firms that have characteristics associated with layoffs or other negative labor responses. Second, the authors provide information that shows which firm characteristics are associated with particular labor market responses such as layoffs, which may help target stimulus packages. Although the COVID-19 pandemic affects most industries and occupations, heterogeneous firm responses suggest that there could be several varieties of targeted policies-targeting firms that are likely to reduce labor forces or firms likely to face reduced revenue. In this paper, the authors outline several industries and firm characteristics which appear to more directly be reducing employee counts or having negative labor responses which may lead to more cost–effect stimulus.

We enquire whether short-time work (STW) avoids firings as intended by policymakers and is associated with unintended side effects by subsidising some establishments and locking in some employees. Additionally, where it was feasible, establishments used working from home (WFH) to continue working without risking an increase in COVID-19 infections and allowing employed parents to care for children attending closed schools.

Using 21 waves of German high-frequency establishment panel data collected during the COVID-19 crisis, we investigate how STW and WFH are associated with hirings, firings, resignations and excess labour turnover (or churning).

Our results show the important influences of STW and working from home on employment dynamics during the pandemic. By means of STW, establishments are able to avoid an increase in involuntary layoffs and hiring decreases significantly. In contrast, WFH is associated with a rise in resignations, as can be expected from a theoretical perspective.

While most of the literature on STW and WFH is unrelated and remains descriptive, we consider them in conjunction and conduct panel data analyses. We apply data and methods that allow for the dynamic pattern of STW and working from home during the pandemic. Furthermore, our data include relevant establishment-level variables, such as the existence of a works council, employee qualifications, establishment size, the degree to which the establishment was affected by the COVID-19 crisis, industry affiliation and a wave indicator for the period the survey was conducted.