Ideological Foundations of Perceived Contract Breach Associated With Downsizing: An Empirical Investigation

Abstract

This paper explores the effects of three managerial ideologies on the degree of psychological contract breach perceived in connection with a downsizing event. Results from surveys conducted in the U.S. and Singapore suggest that a strong belief in the ideologies of market competition or shareholder interest reduces the perceived contract breach associated with a downsizing, while strong belief in the third ideology, the ideology of employee worth, has the opposite effect. Theoretical implications and suggestions for future research are discussed.