Business ideologies and perceived breach of contract during downsizing: the role of the ideology of employee self-reliance

Abstract

This paper represents an initial effort to explore the empirical relationship between business ideologies and perceptions of organizational downsizing. The results of four studies, two conducted in the US and one each in Singapore and Korea, suggest that respondents' belief in the ideology of employee self‐reliance reduces the degree to which they perceive layoffs as a breach of the psychological contract. This finding appears to generalize to respondents' perceptions of their own layoffs and also to respondents' perceptions of layoffs happening to others. We spell out the implications of these results for the evolving theory of the ideological foundations of perceptions of downsizing.