Third-party perceptions of a layoff: Procedural, derogation, and retributive aspects of justice.

Abstract

Third-party observers (N = 123) learned about a layoff from a newspaper article developed for this study. Two aspects of the layoff procedure were manipulated in the article: (a) the level of input (voice) by layoff victims in the layoff procedure and (b) how the layoff was communicated to the victims. Both variables predicted observers' perceptions of the procedural justice of the layoff. Victim derogation was positively related to observers' procedural fairness of the layoff. Victim derogation also moderated the relationship between the justice manipulations and fairness. Procedural fairness predicted observers' behavioral intentions both as a customer and potential employee.