Understanding the Determinants of Who Gets Laid Off: Does Affective Organizational Commitment Matter?

• Date: 01 November 2015
• Author: Roderick D. Iverson,Stephen J. Deery,Christopher D. Zatzick
• Published date: 01 November 2015
• DOI: http://doi.org/10.1002/hrm.21641

Human Resource Management, November–December 2015, Vol. 54, No. 6. Pp. 877–891

© 2015 Wiley Periodicals, Inc.

Published online in Wiley Online Library (wileyonlinelibrary.com).

DOI:10.1002/hrm.21641

Correspondence to: Christopher D. Zatzick, Beedie School of Business, Simon Fraser University, Burnaby,

BritishColumbia V5A 1S6, Phone: (778) 782-9845, Fax: (778) 782-4920, E-mail: czatzick@sfu.ca

2012; Elvira & Zatzick, 2002; Iverson & Pullman,

2000). From an employee perspective, it is essen-

tial to understand how individuals can increase

job security and reduce layoff chances. From an

organizational perspective, managers are con-

cerned about retaining the best employees who

will remain productive after layoffs. Despite the

importance of examining which employees are

laid off, confidentiality and legal issues have lim-

ited the number of studies examining the factors

associated with actual layoffs.

Three decades of downsizing research

has primarily focused on understand-

ing either the financial consequences of

downsizing or the impact of downsizing

on surviving employees (Brockner, 1988;

Cascio, 1993; Chadwick, Hunter, & Walston,

2004; Datta, Guthrie, Basil, & Pandey, 2010;

Iverson & Zatzick, 2011). An understudied, but

still important area of research involves under-

standing the factors related to an individual’s

layoff chances (Cornfield, 1982, 1983; Dencker,

UNDERSTANDING THE

DETERMINANTS OF WHO GETS

LAID OFF: DOES AFFECTIVE

ORGANIZATIONAL COMMITMENT

MATTER?

CHRISTOPHER D. ZATZICK, STEPHEN J. DEERY,

ANDRODERICK D. IVERSON

Whereas prior research has focused on structural, demographic, and human capi-

tal factors to predict who gets laid off, the current study examines affective organi-

zational commitment as an additional attribute related to an employee’s layoff

chances. Specifi cally, we investigate the relationship between affective organi-

zational commitment and an individual’s layoff chances, as well as whether this

relationship differs between high and low performers. Event history analysis is

conducted using survey data with matched personnel records from 3,057 employ-

ees across 563 Australian bank branches. After controlling for numerous predic-

tors of layoffs, the results demonstrate that affective organizational commitment

decreases the likelihood of an employee being laid off. Further, the effects of affec-

tive organizational commitment on an individual’s layoff chances are greater for

lower performers than higher performers. We discuss the implications of these

fi ndings for researchers and practitioners. ©2015 Wiley Periodicals,Inc.

Keywords: layoffs, affective organizational commitment, task performance