The Influence of Empowerment and Job Enrichment on Employee Loyalty in a Downsizing Environment

Abstract

Maintaining survivors’ loyalty in a downsizing environment is a difficult problem for management practitioners. Theorists have suggested that empowerment and job enrichment are mechanisms that allow survivors to cope with the stress of downsizing. This study examined the relationships between managerial empowerment behaviors, perceptions of job enrichment, and loyalty behaviors with employees who have survived downsizing in an organization. Results showed that empowerment does not have a direct effect on loyalty but affects loyalty indirectly through job enrichment. The results are discussed in terms of their implications for theory and practice.