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SummaryThis 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.

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This paper explores the effects of three managerial ideologies on the degree of psychological contract breach perceived in connection with a downsizing event. Results from surveys conducted in the U.S. and Singapore suggest that a strong belief in the ideologies of market competition or shareholder interest reduces the perceived contract breach associated with a downsizing, while strong belief in the third ideology, the ideology of employee worth, has the opposite effect. Theoretical implications and suggestions for future research are discussed.