Changes in Employment Relationship after a Layoff:A Longitudinal Study in Korea
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Abstract
Layoff is often regarded by the affected employee as a serious violation of his or her psychological contracts, which is an unwritten agreement that individuals form based on their beliefs concerning the terms of an exchange agreement with their employer. The violation may trigger a reevaluation of the obligations that make up the contract, resulting in a change in the focus and scope of those obligations. Based on longitudinal data in Korea, I examined the changes in the psychological contract with their future employers after the layoffs from the layoff victims viewpoint. While previous research showed that layoff survivors showed decreased commitment after layoffs (Brockner, 1988), the results indicate that, in building a new psychological contract with future employer, layoff victims increase their expectations of responsibilities from their subsequent employers in exchange for the higher commitment to them.
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