Perceived Breach of Contract for One's Own Layoff vs. Someone Else's Layoff: Personal Pink Slips Hurt More

Abstract

In this study we examine how the perception of layoff as a violation of a psychological contract can vary depending upon one's perception of employer contractual obligation. We also investigate how perceptions of layoffs vary depending on whether one is focusing on his/her own layoff or the layoff of someone else. Survey results from 81 layoff victims reveal that respondents perceive their own layoff as a breach of contract more than they do the layoff of someone else. In addition, respondents who believe strongly in employee self reliance perceive their own layoff as less of a contract breach. Ideas for future research and implications for managers are discussed in our conclusions.