How Managerial Ideologies Moderate the Relationship Between Change in Profitability and Downsizing

Topics:
Layoffs
Tags:
Downsizing,
Human Resources,
Ideology,
Workforce Management
Source:
Journal of Behavioral and Applied Management

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Overview: This study investigates the moderating effects of three managerial ideologies on the relationship between change in profitability and subsequent downsizing. Results of a moderated regression analysis reveal that the managerial ideologies moderate the relationship between change in profitability and downsizing in a consistent manner. Strong belief in the ideologies increases the negative relationship between change in profitability and downsizing, suggesting that the ideologies enhance management's willingness to downsize when profits are stagnant or declining. The results are interpreted in terms of a theory of "rationalization," in which managerial ideologies are seen as mechanisms that rationalize or purify the ambiguous signals communicated by change in financial performance.

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Format: HTML | Date: Jan 2002 | Pages: 1

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