Description
The beginning of the 21st century was witness to a wave of global forces and economic
shocks that threatened the job security of accountants. Events such as the bursting of
the stock market bubble, outsourcing, restructurings, and 9/11 created a dramatic rise in
layoffs of white-collar workers. Drawing from theoretical and empirical research in the
management and psychology literatures, the current study employed a field survey in testing
a comprehensive model of the relationship among layoff survivors’ perceptions, psychological
states, attitudes, and intentions. Our sample consisted of 125 accountants
who had survived recent workforce reductions at a United States aircraft manufacturer
in the wake of reduced demand following 9/11. The results of our structural equation analyses
indicated that accounting survivors’ perceptions of procedural and interactional organizational
justice affected their post-layoff stress and job insecurity, which in turn directly
and indirectly influenced job satisfaction, affective commitment, and intent to turnover.
Accountants as layoff survivors: A research note
John T. Sweeney
a,
*
, Jeffrey J. Quirin
b
a
Department of Accounting, Washington State University, Pullman, WA 99164, United States
b
School of Accountancy, Wichita State University, Wichita, KS 67260, United States
a r t i c l e i n f o a b s t r a c t
The beginning of the 21st century was witness to a wave of global forces and economic
shocks that threatened the job security of accountants. Events such as the bursting of
the stock market bubble, outsourcing, restructurings, and 9/11 created a dramatic rise in
layoffs of white-collar workers. Drawing from theoretical and empirical research in the
management and psychology literatures, the current study employed a ?eld survey in test-
ing a comprehensive model of the relationship among layoff survivors’ perceptions, psy-
chological states, attitudes, and intentions. Our sample consisted of 125 accountants
who had survived recent workforce reductions at a United States aircraft manufacturer
in the wake of reduced demand following 9/11. The results of our structural equation anal-
yses indicated that accounting survivors’ perceptions of procedural and interactional orga-
nizational justice affected their post-layoff stress and job insecurity, which in turn directly
and indirectly in?uenced job satisfaction, affective commitment, and intent to turnover.
Ó 2008 Elsevier Ltd. All rights reserved.
I. Introduction
Organizational accountants are increasingly vulnerable
to the loss of their jobs. Outsourcing, globalization, reorga-
nizations, restructures, mergers, and economic shocks rep-
resent contemporary threats to their job security. For layoff
victims, the loss of a job can be personally and economically
devastating. For survivors of layoffs, the memory of previ-
ous workforce reductions and the possibility of additional
cutbacks create uncertainty over future job prospects. For
management of the downsized entity, understanding how
to minimize layoff shock on the remaining employees can
reduce the negative impact of workforce reductions,
increasing the organization’s prospects for survival, and
decreasing the likelihood of future job cuts.
Drawing from theoretical and empirical research in the
management and psychology literatures, we developed
and tested a comprehensive, structural model of the rela-
tionship among layoff survivors’ perceptions, psychological
states, attitudes, and intentions. The sample consisted of
125 accountants/analysts at a large United States aircraft
manufacturer whom had recently survived signi?cant
workforce reductions in the wake of reduced demand fol-
lowing 9/11. The results of our study indicated that survi-
vors’ perceptions of procedural and interactional
organizational justice affected their post-layoff stress and
job insecurity, which in turn directly and indirectly in?u-
enced job satisfaction, affective commitment, and intent
to turnover.
This study contributes to the accounting research liter-
ature on several dimensions. First, it introduces to the lit-
erature the phenomenon of accountants as layoff
survivors. This is important because organizational
accountants at the beginning of the 21st century face esca-
lating threats to their job security, including globalization,
technology/automation, and outsourcing (Friedman, 2005).
Second, our model of the impact of organizational justice
on survivor reactions, including stress, job insecurity, and
important job-related attitudes, represents a more com-
prehensive testing of theoretically and empirically-derived
relationships compared to most studies in the extant liter-
ature. Third, the results of this study extend the literature
0361-3682/$ - see front matter Ó 2008 Elsevier Ltd. All rights reserved.
doi:10.1016/j.aos.2008.04.005
* Corresponding author.
E-mail addresses: [email protected] (J.T. Sweeney), jeffrey.quirin@
wichita.edu (J.J. Quirin).
Accounting, Organizations and Society 34 (2009) 787–795
Contents lists available at ScienceDirect
Accounting, Organizations and Society
j our nal homepage: www. el sevi er. com/ l ocat e/ aos
on organizational justice by providing evidence that proce-
dural justice and interactional justice have distinct contri-
butions in affecting survivors of layoffs.
The remainder of this paper is organized into four sec-
tions. The ?rst section presents the literature review and
theoretical development, while the second section dis-
cusses the research method, including data collection and
measurement information. In the third section, empirical
results are presented. The ?nal section contains a discus-
sion of the implications of the research and conclusions.
Literature review and theoretical development
Overview of layoffs
Workforce reductions have profound effects on the psy-
chological contract
1
between organizations and employees
(Bauer, Morrison, &Callister, 1998; Robinson, 1996; Robinson
& Rosseau, 1994). Traditionally, this contract has been rela-
tional in nature, as job security resulted from the employee’s
diligence and dedication. In recent years, the employer–em-
ployee relationship has become more transactional, eroding
guarantees of job security (Parks & Kidder, 1994).
Organizational breaches of the psychological contract
with employees are relatively common (Robinson & Ros-
seau, 1994). At the occurrence of a breach, the employee
revises the contract, trust declines, and expectations are
adjusted (Robinson, 1996). A layoff violates employees’
expectations of future employment, and their reactions
are likely to be negative and potentially harmful to the
organization (Brockner, DeWitt, Grover, & Reed, 1990;
Robinson & Rosseau, 1994). Survivors of the layoff may re-
spond by distancing themselves and engaging in behaviors
that are dysfunctional, such as retaliation (Brockner, Gro-
ver, Reed, DeWitt, & O’Malley, 1987; Folger & Skarlicki,
1998; Fowke, 1998; Konovsky & Folger, 1991). Layoffs also
have the potential to produce a number of generally unde-
sirable psychological states for survivors. Job stress and job
insecurity
2
are likely to increase following a layoff, and
these negative affective states have the potential to in?u-
ence important work attitudes and behaviors, including
commitment, satisfaction, performance, and turnover
(Brockner, 1992; Brockner, Siegal, Daly, Tyler, & Martin,
1997; Brockner et al., 2004; Greenhalgh & Rosenblatt,
1984; Kim, 2003; Konovsky & Brockner, 1993). Anger, relief,
guilt, and resentment are reactions commonly experienced
by employees remaining after a layoff (Brockner, 1988;
Konovsky & Brockner, 1993).
The manner in which management conducts the layoff
serves to inform survivors about the treatment that they
can expect in the future fromthe organization, and prior re-
search has indicated that survivor responses are partially
dependent upon how fairly they perceive the layoff (Brock-
ner, 1988, 2002; Folger & Skarlicki, 1998; Robinson & Ros-
seau, 1994; Spreitzer & Mishra, 2002). For example,
managers who provide adequate information in advance
and demonstrate interpersonal sensitivity may mitigate po-
tential negative reactions (Brockner et al., 1990; Konovsky&
Folger, 1991; Mansour-Cole &Scott, 1998; Spreitzer &Mish-
ra, 2002), while work force reductions conducted imperson-
ally and abruptly may provoke resentment and retaliation
(Konovsky & Folger, 1991; Skarlicki & Folger, 1997).
Layoffs and fairness
Prior research suggests that employees view their orga-
nization as an active agent of justice (Schminke, Cropanz-
ano, & Rupp, 2002). Organizational justice theory posits
that employees’ feelings of equityinthe workplace andtheir
reactions to unwanted outcomes are determined primarily
by howdecisions affecting themare made and the personal
treatment they received from management (Aquino, Griff-
eth, Allen, & Horn, 1997; Bies, 1989; Brockner, 2002; Folger
&Konovosky, 1989; Greenberg, 1990). Whenorganizational
decisionoutcomes are negative, employees are more willing
to accept responsibility for their situation in the presence of
fair procedures (Brockner, 2002). However, if procedures
underlying unwanted outcomes are perceived as unfair,
employees are more likely to react negatively (Skarlicki &
Folger, 1997; Spreitzer & Mishra, 2002).
Greenberg (1990) distinguished two aspects of organi-
zational justice as distinct elements in survivor reactions
to layoffs: procedural justice, relating to the structural
characteristics of the decision, and interactional justice,
relating to the interpersonal aspects of the decision.
3
Pro-
cedural justice refers to how employees perceive the fair-
ness of formal procedures, decision processes, and
mechanisms (Greenberg, 1990). For example, the criteria
used to determine who to layoff and the amount of advance
notice the organization gives to laid-off employees are com-
ponents of procedural justice (Spreitzer & Mishra, 2002).
Survivor perceptions of a fair process may result from a lay-
off decision rule based upon relevant inputs, and from equi-
table treatment for laid-off employees (Brockner, 1988).
Prior research examining survivors’ reactions to layoffs
has focused primarily on procedural justice (Brockner,
1992, 2002). This research has indicated that the negative
impact of an unfavorable decision, such as a layoff, is less-
ened in the presence of a fair process (Brockner, 2002;
Brockner, Wiesen?eld, & Martin, 1995; Brockner et al.,
1997; Greenberg, 1990; Skarlicki & Folger, 1997). From
an instrumental perspective, procedural justice is impor-
tant to layoff survivors because of its inference for out-
comes that they may receive in the future (Brockner,
2002; Thibaut & Walker, 1975). From a relational perspec-
tive, procedural justice is important to layoff survivors be-
cause it suggests that their social and psychological needs
are more likely to be addressed when management is pro-
cedurally fair (Brockner, 2002; Spreitzer & Mishra, 2002;
Tyler & Lind, 1992).
1
The psychological contract refers to ‘‘employees’ perceptions of what
they owe to their employers and what their employers owe to them”
(Robinson, 1996, p. 574).
2
Job insecurity occurs when an employee perceives the future of his or
her job as ‘‘unstable or at risk” (Probst, 2003, p. 452).
3
Distributive justice, a third type of organizational justice, refers to the
perceived fairness of compensation or rewards an employee receives from
the organization (Folger & Konovosky, 1989). Prior research on distributive
justice in downsized organizations has focused on survivor perceptions of
the fairness of outcomes for layoff victims (Mishra & Spretizer, 1998).
788 J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795
Interactional justice refers to the perceived quality of
interpersonal treatment employees receive from superiors
within the organization. In the context of layoffs, compo-
nents of interactional justice would include the adequacy
of explanations, and the respect, empathy, and sensitivity
accorded by management to the laid-off employees and
survivors (Bies & Moag, 1986; Skarlicki & Folger, 1997; Ty-
ler & Bies, 1990). Brennan and Skarlicki (2004) maintain
that because immediate supervisors have greater control
over interactional justice, it is the most important dimen-
sion of organizational justice to layoff survivors. Employ-
ees who receive af?rmative interpersonal treatment by
management during a layoff may respond less negatively,
increasing the likelihood that the organization will meet
its objectives (Brockner, 1992). Skarlicki and Folger
(1997) found that employees were less likely to retaliate
in response to outcomes perceived as unfair when supervi-
sors treated them with sensitivity, dignity, and respect.
Post-layoff work environment
In the post-layoff work environment, survivors are
likely to experience the psychological states of high job
stress and job insecurity (Brockner, 1988; Brockner et al.,
2004; Cascio, 1993; Greenhalgh & Rosenblatt, 1984; Spre-
itzer & Mishra, 2002). Lazarus and Folkman (1984) con-
tend that stress results when an individual perceives an
environmental threat, such as future job reductions, and
feels unable to control the situation or counteract the
threat. Consistent with this notion, Brockner (1992) and
Brockner et al. (2004) found that survivors generally expe-
rienced increased job insecurity after a layoff because of
uncertainty regarding the potential for additional layoffs
and a perceived inability to control the outcome. Further-
more, because workloads can increase and job roles
change following a layoff, survivors may experience feel-
ings of being overwhelmed (Brockner, 1992; Mishra &
Spreitzer, 1998), and often report burnout symptoms (Cas-
cio, 1993).
The high stress environment encountered by post-layoff
employees may limit their effectiveness in meeting organi-
zational goals by negatively impacting important attitudes
and behaviors (Brockner et al., 2004). A perceived lack of
organizational justice, the demands of the post-layoff work
place, and uncertainty regarding future employment can
contribute to survivors’ job stress (Brockner, 1988; Brock-
ner et al., 2004; Fowke, 1998). Stress has been linked to a
number of job attitudes, including job satisfaction, affec-
tive organizational commitment, and turnover intentions
(Almer & Kaplan, 2002; Choo, 1986; Cordes & Dougherty,
1993; Fogarty, Singh, Rhoads, & Moore, 2000; Maslach,
Schaufeli, & Leiter, 2001). Stress can also affect job perfor-
mance, having a positive effect at moderate levels but a
negative impact at higher levels (Choo, 1986).
Hypotheses
Based upon the preceding discussion, the following
hypotheses are presented regarding the impact of organi-
zational justice on the reactions of surviving accountants
to layoffs:
H1: Accounting survivors’ post-layoff perceptions of
procedural justice will be negatively related to their
job stress, job insecurity, and intent to turnover, and
positively related to their job satisfaction.
H2: Accounting survivors’ post-layoff perceptions of
interactional justice will be negatively related to their
job stress, job insecurity, and intent to turnover, and
positively related to their job satisfaction.
H3: Accounting survivors’ post-layoff job insecurity will
be positively related to their job stress, and negatively
related to their job satisfaction and affective organiza-
tional commitment.
H4: Accounting survivors’ post-layoff job stress will be
negatively related to their job satisfaction and affective
organizational commitment.
Theoretical model
In sum, the study hypothesizes that accounting survi-
vors of layoffs who perceive their post-layoff organization
as high in procedural justice and interactional justice are
likely to experience less job stress and job insecurity (Bren-
nan & Skarlicki, 2004; Brockner, 1988; Brockner, 2002;
Brockner et al., 1995; Brockner et al., 1997; Fowke,
1998). Furthermore, the study hypothesizes that account-
ing survivors’ perceptions of procedural justice and inter-
actional justice are likely to affect important job
attitudes, such as job satisfaction and intent to remain with
the organization (Aquino et al., 1997; McFarlin & Sweeney,
1992). The theoretical model of the in?uence of organiza-
tional justice on layoff survivors’ job stress, job insecurity,
satisfaction, commitment, and intent to turnover is de-
picted in Fig. 1.
The model suggests that survivor perceptions of organi-
zational justice affect important job-related psychological
states, which in turn in?uence important attitudes towards
the organization and the job. Each path in the model posits
a directional in?uence between antecedent and outcome
variables. In addition to the hypothesized relationships,
the model also includes several control paths. The path be-
tween interactional justice and procedural justice controls
for their potential correlation (Colquitt, Conlon, Wesson,
Porter, & Ng, 2001; Spreitzer & Mishra, 2002). The in?u-
ences of job satisfaction and affective organizational com-
mitment on intent to turnover are also controlled for in the
model.
Research method
Data collection
Data were collected with a ?eld survey administered to
a total of 167 accounting/analyst employees from a large
aircraft manufacturing company attending a company-
sponsored departmental training seminar.
4
The company
4
All participants worked in the same department. Management indi-
cated that the functions and tasks of accountants and analysts were very
similar and often crossed over job titles. The subject pool is therefore
referred to as accountants.
J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795 789
had recently imposed signi?cant layoffs as a response to re-
duced aircraft demand, and all employees in the survey were
hired before the layoffs. During the preceding 2-year period,
the company had terminated, in stages, approximately 30%
of its workforce. The subjects in this study represented sur-
vivors of the layoffs, and our data were gathered immedi-
ately after the last layoff. Similar layoffs had occurred at
other aircraft manufacturers in the region, limiting alterna-
tive employment opportunities for survivors.
For inclusion in the study, respondents were required to
be employed in the position of accountant/analyst or high-
er. As part of the training seminar, a survey instrument
packet was distributed directly to each employee by one
of the researchers. Accompanying each questionnaire was
a cover letter containing instructions for completing the
survey. Participation was voluntary and subjects were as-
sured of anonymity. Participants provided demographic
data but did not otherwise identify themselves, and were
allowed approximately 15 min to complete the research
instrument.
Of the 167 survey packets distributed, 125 employees
chose to participate and returned a completed instrument,
for a response rate of 75%. The employees who chose not to
participate returned a blank or uncompleted instrument to
the researcher.
5
The average respondent was 40-year old,
had been with the organization for 8.5 years, and held the
position of senior analyst/senior accountant. Males and fe-
males were represented almost equally in the sample, with
a 47% and 53% breakdown, respectively.
Measures
The variables measured in the questionnaire include
procedural justice, interactional justice, job exhaustion,
job satisfaction, affective commitment, job insecurity, and
intent to turnover. All measures were drawn from prior lit-
erature and, unless indicated, utilized seven-point Likert-
type response scales, with higher scores corresponding to
higher values for the construct. Summed totals from the
variable measures were utilized in model testing. Descrip-
tive statistics for all variables in the model are reported in
Table 1.
Procedural justice was measured using the eight-item
scale developed by Folger and Konovosky (1989). The scale
addressed the degree to which the formal procedures of
the organization demonstrated ‘‘consistency, bias suppres-
sion, accuracy, correctability, representativeness, and ethi-
cality” (Folger & Konovosky, 1989, p. 437). The Cronbach
alpha for the eight-item measure in the current study
was 0.90.
Interactional justice was measured with a nine-item
scale (Moorman, 1991; Skarlicki & Folger, 1997) that
gauged a subject’s beliefs regarding interpersonal treat-
ment received from superiors. Skarlicki, Folger, and Tesluk
(1999) provide evidence of strong reliability and validity
for both the interactional justice and the procedural justice
measures. The Cronbach alpha for the nine-item measure
in the current study was 0.95.
Stress was measured using the nine-item exhaustion
scale from the maslach burnout inventory (MBI) (Maslach
& Jackson, 1986; Maslach et al., 2001), a well-accepted
and validated measure of job stress (Cordes & Dougherty,
1993; Moore, 2000). Prior research has reported strong fac-
Fig. 1. Theoretical model.
5
A test for response bias between participants and non-participants was
not possible due to the anonymity given to the respondents.
790 J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795
torial, convergent, and discriminant validity as well as high
reliability for the measure (Byrne, 1991; Cordes, Dougher-
ty, & Blum, 1997; Maslach & Jackson, 1986). The Cronbach
alpha for the nine-item measure in the current study was
0.88.
Job satisfaction was assessed with a three-itemmeasure
fromthe job diagnostic survey (Hackman & Oldham, 1975).
The Cronbach alpha for the three-item measure in the cur-
rent study was 0.79.
Affective organizational commitment was assessed
using the eight-item affective commitment subscale of
the organizational commitment measure developed by Al-
len and Meyer (1990). The measure has demonstrated ade-
quate validity and reliability (Meyer & Allen, 1991). The
Cronbach alpha for the eight-item measure in the current
study was 0.87.
Job insecurity was measured using the nine-item job
security index (JSI) developed by Probst (2003). Respon-
dents indicate the extent to which the item describes their
job on a three-point scale, with responses of ‘‘yes”, ‘‘?”, and
‘‘no”. Probst (2003) reports adequate psychometric proper-
ties for the JSI. The Cronbach alpha for the nine-item mea-
sure in the current study was 0.91.
Intent to turnover was measured using one question
from Dougherty and Pritchard (1985). The item frames
the question in terms of how much the subject, without
any constraints preventing him or her from leaving, would
prefer to remain with the organization. The item was con-
structed on a seven-point Likert-type scale anchored by (1)
would very much prefer to leave, and (7) would very much
prefer to stay. The question was reverse-scored in the data
analyses, with higher values indicative of a stronger intent
to turnover.
Empirical results
Analyses
Table 2 reports the correlation matrix for the variables.
As shown in the table, all variables were signi?cantly cor-
related in the predicted direction.
The relatively high correlation between procedural jus-
tice and interactional justice suggests the possibility that
the scales may be representing substantially overlapping
constructs. To determine whether the procedural and
interactional justice constructs were distinct, we con-
ducted a con?rmatory factor analysis on the combined
items from the two scales. The standardized loadings
clearly indicated two distinct factors. All eight procedural
justice items loaded above .50 on the ?rst factor, and all
nine interactional justice items loaded above .50 on the
second factor. No items cross-loaded above .31.
6
Fig. 2 reports the results of the structural equation mod-
el used to evaluate the relationships contained in the the-
oretical model. An advantage of structural equation
modeling is that it provides an ef?cient technique for esti-
mating interrelated dependence relationships, such as
those proposed in this study (Hartmann & Moers, 1999;
Shields & Shields, 1998). The two-stage analysis method
recommended by Anderson and Gerbing (1988) was em-
ployed utilizing summed or ‘‘parceled” scores from the
construct scales. The parceling approach is commonly
adopted in empirical studies as a means of obtaining item
distributions that are more continuous and normally dis-
tributed (Bandalos, 2002), and is appropriate when the
unexplained variance of the latent variables is modeled
by incorporating a measure of scale reliability (Sass &
Smith, 2006).
As reliance upon a single measure of ?t can be problem-
atic, multiple measures of overall model ?t were computed
and are reported. The theoretical model appeared to pos-
sess a good ?t, as the adjusted goodness of ?t index (AGFI),
normed ?t index (NFI) (Bentler & Bonett, 1980), non-
normed ?t index (NNFI) (Bentler & Bonett, 1980), and com-
parative ?t index (CFI) (Bentler, 1990) values approached
1.0 in all instances. All signi?cant paths in the model were
in the predicted direction.
Tabular results of the structural equation analysis are
summarized in Table 3. As indicated in Table 3, and consis-
tent with the high model ?t indices, a large majority of the
hypothesized relationships were signi?cant.
As predicted in H1, survivors’ perceptions of procedural
justice positively impacted job insecurity and job satisfac-
tion. The higher the procedural justice perceived by layoff
survivors, the more secure they felt about the future of
their job, and the more satis?ed they were with that job.
Procedural justice did not directly affect job stress, but
did indirectly in?uence it through its effect on job insecu-
rity. Contrary to predictions, survivors’ turnover intentions
were not directly affected by their perceptions of proce-
dural justice.
H2 is supported by signi?cant, negative paths between
survivor perceptions of interactional justice and their lev-
els of job insecurity and job stress. This suggests that sur-
viving employees who perceived higher levels of
interactional justice had less job insecurity and experi-
enced less stress. Also consistent with H2, interactional
Table 1
Descriptive statistics.
Variable Mean
a
Standard
deviation
Observed
range
Cronbach
alpha
Procedural
justice
36.19 8.06 14–56 0.90
Interactional
justice
47.86 10.82 14–63 0.95
Job stress 26.39 9.39 9–56 0.88
Job satisfaction 14.61 4.05 3–21 0.79
Affective
commitment
33.86 9.06 8–51 0.87
Job insecurity 17.32 5.81 9–27 0.91
Intent to
turnover
3.26 2.02 1–7 –
a
Mean values represent the mean of each summed instrument with
the exception of the intent to turnover variable, which was measured
using one-item.
6
Research investigating the distinctiveness of the procedural and
interactional justice constructs has demonstrated that they have different
correlates or independent effects, or both (e.g., Cropanzano & Prehar, 1999;
Skarlicki & Folger, 1997). Colquitt et al. (2001), utilizing a meta-analysis of
120 studies, found that procedural justice and interactional justice are
empirically distinguishable constructs.
J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795 791
justice was positively related to survivors’ job satisfaction
and negatively related to their intent to turnover.
As predicted in H3, higher job insecurity increased sur-
vivors’ job stress, and decreased their affective commit-
ment to the organization. However, job insecurity
impacted job satisfaction at only a marginal level
(p < .074).
Consistent with H4, job stress was inversely related to
job satisfaction, suggesting that layoff survivors who expe-
rienced greater stress were less satis?ed with their jobs.
Survivors’ job stress only marginally in?uenced their affec-
tive commitment (p < .075).
The control paths between procedural justice and inter-
actional justice, job satisfaction and affective commitment,
and affective commitment and intent to turnover were sig-
ni?cant and in the predicted direction. The results of the
structural equation model indicated that the theoretical
model was well-speci?ed and provided substantial support
for the hypotheses.
An additional advantage of using structural equation
modeling is the ability of the technique to identify paths
or relationships contained in the theoretical model that
impair model ?t, thereby allowing the researcher to deter-
mine a best-?t or optimal model. We compared the results
of the theoretical model in Fig. 1 to the optimal model. The
paths indicated in the model were consistent with the
hypotheses and the results were virtually identical to those
of the theoretical model. A chi-square difference test indi-
Table 2
Correlation matrix.
PRO INT STR SATIS AOC SEC TURN
PRO 1.000 0.558
**
À0.248
*
0.452
**
0.429
**
À0.339
**
À0.289
**
INT 1.000 À0.322
**
0.513
**
0.356
**
À0.311
**
À0.358
**
STR 1.000 À0.371
**
À0.372
**
0.294
**
0.331
**
SATIS 1.000 0.699
**
À0.334
**
À0.428
**
AOC 1.000 À0.393
**
À0.575
**
SEC 1.000 0.271
**
TUR 1.000
n = 125.
PRO, procedural justice; INT, interactional justice; STR, job stress; SATIS, job satisfaction; AOC, affective commitment; SEC, job insecurity; TURN, intent to
turnover.
*
p < .01.
**
p < .001 (one-tailed signi?cance).
Fig. 2. Structural equation model with path coef?cients.
792 J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795
cated that the variance accounted for by the optimal model
was not signi?cantly different from that attributable to the
theoretical model.
7
Implications and conclusions
At the beginning of the 21st century, accountants faced
increasing threats to their job security, including outsourc-
ing and the offshore transfer of administrative functions
(Friedman, 2005). For accountants who involuntary lose
their job as a result of downsizing, the psychological and
economic affects can be severe. For the downsized organi-
zation, survival may depend on the commitment and con-
tinued employment of those employees who remain.
Downsizing, however, breaks the psychological employ-
ment contract (Robinson, 1996), potentially creating inse-
curity and stress in survivors, and often results in
increased voluntary turnover (Spreitzer & Mishra, 2002).
This study extends previous research on layoff survivors
to the domain of accounting. The results of our model lar-
gely supported theoretical predictions and con?rmed that
organizational justice concepts have relevance in under-
standing survivors’ post-layoff perceptions, psychological
states, attitudes, and intentions. Managerial accountants
who perceived high levels of procedural and interactional
justice after surviving layoffs exhibited less job stress and
felt less job insecurity. Furthermore, accountants who felt
less stressed and less insecure were, in general, more satis-
?ed with their jobs, more committed to their organization,
and had stronger intentions of leaving the organization.
These results con?rm the importance of procedural justice
and interactional justice in minimizing the negative impact
of layoffs on survivors
There are both theoretical and practical implications of
this research. First, procedural and interactional justice
each had signi?cant in?uence on survivors’ psychological
states and attitudes, but only interactional justice directly
impacted their intention to turnover. This result indicates
that management can play an active and positive role in
in?uencing survivors’ reactions to a layoff and desire to
continue the employment relationship, and is consistent
with Brennan and Skarlicki’s (2004) emphasis on the
importance of interactional justice. Second, although lay-
offs are often viewed by employees as an undesirable form
of change, the survivors in our sample had both relatively
high levels of affective commitment to the organization
and high levels of job insecurity. This apparent paradox im-
plies that employees can feel allegiance even in the wake
of downsizing and potential threats to their job. Third,
the sample in this study survived layoffs attributable to
causes external to the organization. It is unclear whether
the results of this study would apply when a layoff results
from internal factors, such as managements’ decision to
offshore an accounting task. The recent growth in out-
sourcing, both in public accounting and in corporate
accounting (Friedman, 2005), provides opportunities for
future research. Fourth, our data were collected after a ser-
ies of layoffs had commenced. Future research on the im-
pact of layoffs may also contribute to the extant
knowledge base by longitudinally investigating the cumu-
lative effect of successive workforce reductions on survivor
reactions and productivity.
While the results of this study are substantially consis-
tent with theoretical predictions, their interpretation is
subject to a number of limitations. First, survey studies
lack the control of experimental designs and may be ex-
posed to potential biases sometimes associated with
self-reporting. Second, problems of omitted and uncon-
trolled intervening or moderating variables may exist.
Third, the measure of survivors’ intent to turnover was
based upon self-reported intentions. The extent to which
the measure is correlated with actual voluntary turnover
is unknown. Finally, this study focused only on accoun-
tants employed within a manufacturing organization.
Additional research is needed to ascertain the extent of
Table 3
Structural equation modeling results for the theoretical model.
Dependent variable Independent variable Directional prediction Path coef?cient t-Statistic p-Value
PRO INT + 0.558 7.49 0.001
SEC PRO H1, À À0.241 À2.40 0.009
INT H2, À À0.177 À1.76 0.042
STR PRO H1, À À0.050 À0.49 0.316
INT H2, À À0.231 À2.28 0.013
SEC H3, + 0.205 2.30 0.012
SATIS PRO H1, + 0.194 2.18 0.017
INT H2, + 0.308 3.43 0.001
STR H4, À À0.190 À2.43 0.009
SEC H3, À À0.117 À1.48 0.074
AOC STR H4, À À0.099 À1.46 0.075
SEC H3, À À0.160 À2.39 0.010
SATIS + 0.609 8.83 0.001
TURN PRO H1, À 0.043 0.38 0.322
INT H2, À À0.208 À2.06 0.014
SATIS À 0.044 0.37 0.346
AOC À À0.547 À5.26 0.001
n = 125.
7
For more detailed analysis of the data, please contact the authors.
J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795 793
generalizability to professional accountants employed in
other business sectors.
Acknowledgement
The authors gratefully acknowledge the helpful com-
ments of Lan Guo, Maureen Gowing, two anonymous
reviewers, and the research workshop participants at the
2007 Annual Meeting of the American Accounting
Association.
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doc_624005772.pdf
The beginning of the 21st century was witness to a wave of global forces and economic
shocks that threatened the job security of accountants. Events such as the bursting of
the stock market bubble, outsourcing, restructurings, and 9/11 created a dramatic rise in
layoffs of white-collar workers. Drawing from theoretical and empirical research in the
management and psychology literatures, the current study employed a field survey in testing
a comprehensive model of the relationship among layoff survivors’ perceptions, psychological
states, attitudes, and intentions. Our sample consisted of 125 accountants
who had survived recent workforce reductions at a United States aircraft manufacturer
in the wake of reduced demand following 9/11. The results of our structural equation analyses
indicated that accounting survivors’ perceptions of procedural and interactional organizational
justice affected their post-layoff stress and job insecurity, which in turn directly
and indirectly influenced job satisfaction, affective commitment, and intent to turnover.
Accountants as layoff survivors: A research note
John T. Sweeney
a,
*
, Jeffrey J. Quirin
b
a
Department of Accounting, Washington State University, Pullman, WA 99164, United States
b
School of Accountancy, Wichita State University, Wichita, KS 67260, United States
a r t i c l e i n f o a b s t r a c t
The beginning of the 21st century was witness to a wave of global forces and economic
shocks that threatened the job security of accountants. Events such as the bursting of
the stock market bubble, outsourcing, restructurings, and 9/11 created a dramatic rise in
layoffs of white-collar workers. Drawing from theoretical and empirical research in the
management and psychology literatures, the current study employed a ?eld survey in test-
ing a comprehensive model of the relationship among layoff survivors’ perceptions, psy-
chological states, attitudes, and intentions. Our sample consisted of 125 accountants
who had survived recent workforce reductions at a United States aircraft manufacturer
in the wake of reduced demand following 9/11. The results of our structural equation anal-
yses indicated that accounting survivors’ perceptions of procedural and interactional orga-
nizational justice affected their post-layoff stress and job insecurity, which in turn directly
and indirectly in?uenced job satisfaction, affective commitment, and intent to turnover.
Ó 2008 Elsevier Ltd. All rights reserved.
I. Introduction
Organizational accountants are increasingly vulnerable
to the loss of their jobs. Outsourcing, globalization, reorga-
nizations, restructures, mergers, and economic shocks rep-
resent contemporary threats to their job security. For layoff
victims, the loss of a job can be personally and economically
devastating. For survivors of layoffs, the memory of previ-
ous workforce reductions and the possibility of additional
cutbacks create uncertainty over future job prospects. For
management of the downsized entity, understanding how
to minimize layoff shock on the remaining employees can
reduce the negative impact of workforce reductions,
increasing the organization’s prospects for survival, and
decreasing the likelihood of future job cuts.
Drawing from theoretical and empirical research in the
management and psychology literatures, we developed
and tested a comprehensive, structural model of the rela-
tionship among layoff survivors’ perceptions, psychological
states, attitudes, and intentions. The sample consisted of
125 accountants/analysts at a large United States aircraft
manufacturer whom had recently survived signi?cant
workforce reductions in the wake of reduced demand fol-
lowing 9/11. The results of our study indicated that survi-
vors’ perceptions of procedural and interactional
organizational justice affected their post-layoff stress and
job insecurity, which in turn directly and indirectly in?u-
enced job satisfaction, affective commitment, and intent
to turnover.
This study contributes to the accounting research liter-
ature on several dimensions. First, it introduces to the lit-
erature the phenomenon of accountants as layoff
survivors. This is important because organizational
accountants at the beginning of the 21st century face esca-
lating threats to their job security, including globalization,
technology/automation, and outsourcing (Friedman, 2005).
Second, our model of the impact of organizational justice
on survivor reactions, including stress, job insecurity, and
important job-related attitudes, represents a more com-
prehensive testing of theoretically and empirically-derived
relationships compared to most studies in the extant liter-
ature. Third, the results of this study extend the literature
0361-3682/$ - see front matter Ó 2008 Elsevier Ltd. All rights reserved.
doi:10.1016/j.aos.2008.04.005
* Corresponding author.
E-mail addresses: [email protected] (J.T. Sweeney), jeffrey.quirin@
wichita.edu (J.J. Quirin).
Accounting, Organizations and Society 34 (2009) 787–795
Contents lists available at ScienceDirect
Accounting, Organizations and Society
j our nal homepage: www. el sevi er. com/ l ocat e/ aos
on organizational justice by providing evidence that proce-
dural justice and interactional justice have distinct contri-
butions in affecting survivors of layoffs.
The remainder of this paper is organized into four sec-
tions. The ?rst section presents the literature review and
theoretical development, while the second section dis-
cusses the research method, including data collection and
measurement information. In the third section, empirical
results are presented. The ?nal section contains a discus-
sion of the implications of the research and conclusions.
Literature review and theoretical development
Overview of layoffs
Workforce reductions have profound effects on the psy-
chological contract
1
between organizations and employees
(Bauer, Morrison, &Callister, 1998; Robinson, 1996; Robinson
& Rosseau, 1994). Traditionally, this contract has been rela-
tional in nature, as job security resulted from the employee’s
diligence and dedication. In recent years, the employer–em-
ployee relationship has become more transactional, eroding
guarantees of job security (Parks & Kidder, 1994).
Organizational breaches of the psychological contract
with employees are relatively common (Robinson & Ros-
seau, 1994). At the occurrence of a breach, the employee
revises the contract, trust declines, and expectations are
adjusted (Robinson, 1996). A layoff violates employees’
expectations of future employment, and their reactions
are likely to be negative and potentially harmful to the
organization (Brockner, DeWitt, Grover, & Reed, 1990;
Robinson & Rosseau, 1994). Survivors of the layoff may re-
spond by distancing themselves and engaging in behaviors
that are dysfunctional, such as retaliation (Brockner, Gro-
ver, Reed, DeWitt, & O’Malley, 1987; Folger & Skarlicki,
1998; Fowke, 1998; Konovsky & Folger, 1991). Layoffs also
have the potential to produce a number of generally unde-
sirable psychological states for survivors. Job stress and job
insecurity
2
are likely to increase following a layoff, and
these negative affective states have the potential to in?u-
ence important work attitudes and behaviors, including
commitment, satisfaction, performance, and turnover
(Brockner, 1992; Brockner, Siegal, Daly, Tyler, & Martin,
1997; Brockner et al., 2004; Greenhalgh & Rosenblatt,
1984; Kim, 2003; Konovsky & Brockner, 1993). Anger, relief,
guilt, and resentment are reactions commonly experienced
by employees remaining after a layoff (Brockner, 1988;
Konovsky & Brockner, 1993).
The manner in which management conducts the layoff
serves to inform survivors about the treatment that they
can expect in the future fromthe organization, and prior re-
search has indicated that survivor responses are partially
dependent upon how fairly they perceive the layoff (Brock-
ner, 1988, 2002; Folger & Skarlicki, 1998; Robinson & Ros-
seau, 1994; Spreitzer & Mishra, 2002). For example,
managers who provide adequate information in advance
and demonstrate interpersonal sensitivity may mitigate po-
tential negative reactions (Brockner et al., 1990; Konovsky&
Folger, 1991; Mansour-Cole &Scott, 1998; Spreitzer &Mish-
ra, 2002), while work force reductions conducted imperson-
ally and abruptly may provoke resentment and retaliation
(Konovsky & Folger, 1991; Skarlicki & Folger, 1997).
Layoffs and fairness
Prior research suggests that employees view their orga-
nization as an active agent of justice (Schminke, Cropanz-
ano, & Rupp, 2002). Organizational justice theory posits
that employees’ feelings of equityinthe workplace andtheir
reactions to unwanted outcomes are determined primarily
by howdecisions affecting themare made and the personal
treatment they received from management (Aquino, Griff-
eth, Allen, & Horn, 1997; Bies, 1989; Brockner, 2002; Folger
&Konovosky, 1989; Greenberg, 1990). Whenorganizational
decisionoutcomes are negative, employees are more willing
to accept responsibility for their situation in the presence of
fair procedures (Brockner, 2002). However, if procedures
underlying unwanted outcomes are perceived as unfair,
employees are more likely to react negatively (Skarlicki &
Folger, 1997; Spreitzer & Mishra, 2002).
Greenberg (1990) distinguished two aspects of organi-
zational justice as distinct elements in survivor reactions
to layoffs: procedural justice, relating to the structural
characteristics of the decision, and interactional justice,
relating to the interpersonal aspects of the decision.
3
Pro-
cedural justice refers to how employees perceive the fair-
ness of formal procedures, decision processes, and
mechanisms (Greenberg, 1990). For example, the criteria
used to determine who to layoff and the amount of advance
notice the organization gives to laid-off employees are com-
ponents of procedural justice (Spreitzer & Mishra, 2002).
Survivor perceptions of a fair process may result from a lay-
off decision rule based upon relevant inputs, and from equi-
table treatment for laid-off employees (Brockner, 1988).
Prior research examining survivors’ reactions to layoffs
has focused primarily on procedural justice (Brockner,
1992, 2002). This research has indicated that the negative
impact of an unfavorable decision, such as a layoff, is less-
ened in the presence of a fair process (Brockner, 2002;
Brockner, Wiesen?eld, & Martin, 1995; Brockner et al.,
1997; Greenberg, 1990; Skarlicki & Folger, 1997). From
an instrumental perspective, procedural justice is impor-
tant to layoff survivors because of its inference for out-
comes that they may receive in the future (Brockner,
2002; Thibaut & Walker, 1975). From a relational perspec-
tive, procedural justice is important to layoff survivors be-
cause it suggests that their social and psychological needs
are more likely to be addressed when management is pro-
cedurally fair (Brockner, 2002; Spreitzer & Mishra, 2002;
Tyler & Lind, 1992).
1
The psychological contract refers to ‘‘employees’ perceptions of what
they owe to their employers and what their employers owe to them”
(Robinson, 1996, p. 574).
2
Job insecurity occurs when an employee perceives the future of his or
her job as ‘‘unstable or at risk” (Probst, 2003, p. 452).
3
Distributive justice, a third type of organizational justice, refers to the
perceived fairness of compensation or rewards an employee receives from
the organization (Folger & Konovosky, 1989). Prior research on distributive
justice in downsized organizations has focused on survivor perceptions of
the fairness of outcomes for layoff victims (Mishra & Spretizer, 1998).
788 J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795
Interactional justice refers to the perceived quality of
interpersonal treatment employees receive from superiors
within the organization. In the context of layoffs, compo-
nents of interactional justice would include the adequacy
of explanations, and the respect, empathy, and sensitivity
accorded by management to the laid-off employees and
survivors (Bies & Moag, 1986; Skarlicki & Folger, 1997; Ty-
ler & Bies, 1990). Brennan and Skarlicki (2004) maintain
that because immediate supervisors have greater control
over interactional justice, it is the most important dimen-
sion of organizational justice to layoff survivors. Employ-
ees who receive af?rmative interpersonal treatment by
management during a layoff may respond less negatively,
increasing the likelihood that the organization will meet
its objectives (Brockner, 1992). Skarlicki and Folger
(1997) found that employees were less likely to retaliate
in response to outcomes perceived as unfair when supervi-
sors treated them with sensitivity, dignity, and respect.
Post-layoff work environment
In the post-layoff work environment, survivors are
likely to experience the psychological states of high job
stress and job insecurity (Brockner, 1988; Brockner et al.,
2004; Cascio, 1993; Greenhalgh & Rosenblatt, 1984; Spre-
itzer & Mishra, 2002). Lazarus and Folkman (1984) con-
tend that stress results when an individual perceives an
environmental threat, such as future job reductions, and
feels unable to control the situation or counteract the
threat. Consistent with this notion, Brockner (1992) and
Brockner et al. (2004) found that survivors generally expe-
rienced increased job insecurity after a layoff because of
uncertainty regarding the potential for additional layoffs
and a perceived inability to control the outcome. Further-
more, because workloads can increase and job roles
change following a layoff, survivors may experience feel-
ings of being overwhelmed (Brockner, 1992; Mishra &
Spreitzer, 1998), and often report burnout symptoms (Cas-
cio, 1993).
The high stress environment encountered by post-layoff
employees may limit their effectiveness in meeting organi-
zational goals by negatively impacting important attitudes
and behaviors (Brockner et al., 2004). A perceived lack of
organizational justice, the demands of the post-layoff work
place, and uncertainty regarding future employment can
contribute to survivors’ job stress (Brockner, 1988; Brock-
ner et al., 2004; Fowke, 1998). Stress has been linked to a
number of job attitudes, including job satisfaction, affec-
tive organizational commitment, and turnover intentions
(Almer & Kaplan, 2002; Choo, 1986; Cordes & Dougherty,
1993; Fogarty, Singh, Rhoads, & Moore, 2000; Maslach,
Schaufeli, & Leiter, 2001). Stress can also affect job perfor-
mance, having a positive effect at moderate levels but a
negative impact at higher levels (Choo, 1986).
Hypotheses
Based upon the preceding discussion, the following
hypotheses are presented regarding the impact of organi-
zational justice on the reactions of surviving accountants
to layoffs:
H1: Accounting survivors’ post-layoff perceptions of
procedural justice will be negatively related to their
job stress, job insecurity, and intent to turnover, and
positively related to their job satisfaction.
H2: Accounting survivors’ post-layoff perceptions of
interactional justice will be negatively related to their
job stress, job insecurity, and intent to turnover, and
positively related to their job satisfaction.
H3: Accounting survivors’ post-layoff job insecurity will
be positively related to their job stress, and negatively
related to their job satisfaction and affective organiza-
tional commitment.
H4: Accounting survivors’ post-layoff job stress will be
negatively related to their job satisfaction and affective
organizational commitment.
Theoretical model
In sum, the study hypothesizes that accounting survi-
vors of layoffs who perceive their post-layoff organization
as high in procedural justice and interactional justice are
likely to experience less job stress and job insecurity (Bren-
nan & Skarlicki, 2004; Brockner, 1988; Brockner, 2002;
Brockner et al., 1995; Brockner et al., 1997; Fowke,
1998). Furthermore, the study hypothesizes that account-
ing survivors’ perceptions of procedural justice and inter-
actional justice are likely to affect important job
attitudes, such as job satisfaction and intent to remain with
the organization (Aquino et al., 1997; McFarlin & Sweeney,
1992). The theoretical model of the in?uence of organiza-
tional justice on layoff survivors’ job stress, job insecurity,
satisfaction, commitment, and intent to turnover is de-
picted in Fig. 1.
The model suggests that survivor perceptions of organi-
zational justice affect important job-related psychological
states, which in turn in?uence important attitudes towards
the organization and the job. Each path in the model posits
a directional in?uence between antecedent and outcome
variables. In addition to the hypothesized relationships,
the model also includes several control paths. The path be-
tween interactional justice and procedural justice controls
for their potential correlation (Colquitt, Conlon, Wesson,
Porter, & Ng, 2001; Spreitzer & Mishra, 2002). The in?u-
ences of job satisfaction and affective organizational com-
mitment on intent to turnover are also controlled for in the
model.
Research method
Data collection
Data were collected with a ?eld survey administered to
a total of 167 accounting/analyst employees from a large
aircraft manufacturing company attending a company-
sponsored departmental training seminar.
4
The company
4
All participants worked in the same department. Management indi-
cated that the functions and tasks of accountants and analysts were very
similar and often crossed over job titles. The subject pool is therefore
referred to as accountants.
J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795 789
had recently imposed signi?cant layoffs as a response to re-
duced aircraft demand, and all employees in the survey were
hired before the layoffs. During the preceding 2-year period,
the company had terminated, in stages, approximately 30%
of its workforce. The subjects in this study represented sur-
vivors of the layoffs, and our data were gathered immedi-
ately after the last layoff. Similar layoffs had occurred at
other aircraft manufacturers in the region, limiting alterna-
tive employment opportunities for survivors.
For inclusion in the study, respondents were required to
be employed in the position of accountant/analyst or high-
er. As part of the training seminar, a survey instrument
packet was distributed directly to each employee by one
of the researchers. Accompanying each questionnaire was
a cover letter containing instructions for completing the
survey. Participation was voluntary and subjects were as-
sured of anonymity. Participants provided demographic
data but did not otherwise identify themselves, and were
allowed approximately 15 min to complete the research
instrument.
Of the 167 survey packets distributed, 125 employees
chose to participate and returned a completed instrument,
for a response rate of 75%. The employees who chose not to
participate returned a blank or uncompleted instrument to
the researcher.
5
The average respondent was 40-year old,
had been with the organization for 8.5 years, and held the
position of senior analyst/senior accountant. Males and fe-
males were represented almost equally in the sample, with
a 47% and 53% breakdown, respectively.
Measures
The variables measured in the questionnaire include
procedural justice, interactional justice, job exhaustion,
job satisfaction, affective commitment, job insecurity, and
intent to turnover. All measures were drawn from prior lit-
erature and, unless indicated, utilized seven-point Likert-
type response scales, with higher scores corresponding to
higher values for the construct. Summed totals from the
variable measures were utilized in model testing. Descrip-
tive statistics for all variables in the model are reported in
Table 1.
Procedural justice was measured using the eight-item
scale developed by Folger and Konovosky (1989). The scale
addressed the degree to which the formal procedures of
the organization demonstrated ‘‘consistency, bias suppres-
sion, accuracy, correctability, representativeness, and ethi-
cality” (Folger & Konovosky, 1989, p. 437). The Cronbach
alpha for the eight-item measure in the current study
was 0.90.
Interactional justice was measured with a nine-item
scale (Moorman, 1991; Skarlicki & Folger, 1997) that
gauged a subject’s beliefs regarding interpersonal treat-
ment received from superiors. Skarlicki, Folger, and Tesluk
(1999) provide evidence of strong reliability and validity
for both the interactional justice and the procedural justice
measures. The Cronbach alpha for the nine-item measure
in the current study was 0.95.
Stress was measured using the nine-item exhaustion
scale from the maslach burnout inventory (MBI) (Maslach
& Jackson, 1986; Maslach et al., 2001), a well-accepted
and validated measure of job stress (Cordes & Dougherty,
1993; Moore, 2000). Prior research has reported strong fac-
Fig. 1. Theoretical model.
5
A test for response bias between participants and non-participants was
not possible due to the anonymity given to the respondents.
790 J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795
torial, convergent, and discriminant validity as well as high
reliability for the measure (Byrne, 1991; Cordes, Dougher-
ty, & Blum, 1997; Maslach & Jackson, 1986). The Cronbach
alpha for the nine-item measure in the current study was
0.88.
Job satisfaction was assessed with a three-itemmeasure
fromthe job diagnostic survey (Hackman & Oldham, 1975).
The Cronbach alpha for the three-item measure in the cur-
rent study was 0.79.
Affective organizational commitment was assessed
using the eight-item affective commitment subscale of
the organizational commitment measure developed by Al-
len and Meyer (1990). The measure has demonstrated ade-
quate validity and reliability (Meyer & Allen, 1991). The
Cronbach alpha for the eight-item measure in the current
study was 0.87.
Job insecurity was measured using the nine-item job
security index (JSI) developed by Probst (2003). Respon-
dents indicate the extent to which the item describes their
job on a three-point scale, with responses of ‘‘yes”, ‘‘?”, and
‘‘no”. Probst (2003) reports adequate psychometric proper-
ties for the JSI. The Cronbach alpha for the nine-item mea-
sure in the current study was 0.91.
Intent to turnover was measured using one question
from Dougherty and Pritchard (1985). The item frames
the question in terms of how much the subject, without
any constraints preventing him or her from leaving, would
prefer to remain with the organization. The item was con-
structed on a seven-point Likert-type scale anchored by (1)
would very much prefer to leave, and (7) would very much
prefer to stay. The question was reverse-scored in the data
analyses, with higher values indicative of a stronger intent
to turnover.
Empirical results
Analyses
Table 2 reports the correlation matrix for the variables.
As shown in the table, all variables were signi?cantly cor-
related in the predicted direction.
The relatively high correlation between procedural jus-
tice and interactional justice suggests the possibility that
the scales may be representing substantially overlapping
constructs. To determine whether the procedural and
interactional justice constructs were distinct, we con-
ducted a con?rmatory factor analysis on the combined
items from the two scales. The standardized loadings
clearly indicated two distinct factors. All eight procedural
justice items loaded above .50 on the ?rst factor, and all
nine interactional justice items loaded above .50 on the
second factor. No items cross-loaded above .31.
6
Fig. 2 reports the results of the structural equation mod-
el used to evaluate the relationships contained in the the-
oretical model. An advantage of structural equation
modeling is that it provides an ef?cient technique for esti-
mating interrelated dependence relationships, such as
those proposed in this study (Hartmann & Moers, 1999;
Shields & Shields, 1998). The two-stage analysis method
recommended by Anderson and Gerbing (1988) was em-
ployed utilizing summed or ‘‘parceled” scores from the
construct scales. The parceling approach is commonly
adopted in empirical studies as a means of obtaining item
distributions that are more continuous and normally dis-
tributed (Bandalos, 2002), and is appropriate when the
unexplained variance of the latent variables is modeled
by incorporating a measure of scale reliability (Sass &
Smith, 2006).
As reliance upon a single measure of ?t can be problem-
atic, multiple measures of overall model ?t were computed
and are reported. The theoretical model appeared to pos-
sess a good ?t, as the adjusted goodness of ?t index (AGFI),
normed ?t index (NFI) (Bentler & Bonett, 1980), non-
normed ?t index (NNFI) (Bentler & Bonett, 1980), and com-
parative ?t index (CFI) (Bentler, 1990) values approached
1.0 in all instances. All signi?cant paths in the model were
in the predicted direction.
Tabular results of the structural equation analysis are
summarized in Table 3. As indicated in Table 3, and consis-
tent with the high model ?t indices, a large majority of the
hypothesized relationships were signi?cant.
As predicted in H1, survivors’ perceptions of procedural
justice positively impacted job insecurity and job satisfac-
tion. The higher the procedural justice perceived by layoff
survivors, the more secure they felt about the future of
their job, and the more satis?ed they were with that job.
Procedural justice did not directly affect job stress, but
did indirectly in?uence it through its effect on job insecu-
rity. Contrary to predictions, survivors’ turnover intentions
were not directly affected by their perceptions of proce-
dural justice.
H2 is supported by signi?cant, negative paths between
survivor perceptions of interactional justice and their lev-
els of job insecurity and job stress. This suggests that sur-
viving employees who perceived higher levels of
interactional justice had less job insecurity and experi-
enced less stress. Also consistent with H2, interactional
Table 1
Descriptive statistics.
Variable Mean
a
Standard
deviation
Observed
range
Cronbach
alpha
Procedural
justice
36.19 8.06 14–56 0.90
Interactional
justice
47.86 10.82 14–63 0.95
Job stress 26.39 9.39 9–56 0.88
Job satisfaction 14.61 4.05 3–21 0.79
Affective
commitment
33.86 9.06 8–51 0.87
Job insecurity 17.32 5.81 9–27 0.91
Intent to
turnover
3.26 2.02 1–7 –
a
Mean values represent the mean of each summed instrument with
the exception of the intent to turnover variable, which was measured
using one-item.
6
Research investigating the distinctiveness of the procedural and
interactional justice constructs has demonstrated that they have different
correlates or independent effects, or both (e.g., Cropanzano & Prehar, 1999;
Skarlicki & Folger, 1997). Colquitt et al. (2001), utilizing a meta-analysis of
120 studies, found that procedural justice and interactional justice are
empirically distinguishable constructs.
J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795 791
justice was positively related to survivors’ job satisfaction
and negatively related to their intent to turnover.
As predicted in H3, higher job insecurity increased sur-
vivors’ job stress, and decreased their affective commit-
ment to the organization. However, job insecurity
impacted job satisfaction at only a marginal level
(p < .074).
Consistent with H4, job stress was inversely related to
job satisfaction, suggesting that layoff survivors who expe-
rienced greater stress were less satis?ed with their jobs.
Survivors’ job stress only marginally in?uenced their affec-
tive commitment (p < .075).
The control paths between procedural justice and inter-
actional justice, job satisfaction and affective commitment,
and affective commitment and intent to turnover were sig-
ni?cant and in the predicted direction. The results of the
structural equation model indicated that the theoretical
model was well-speci?ed and provided substantial support
for the hypotheses.
An additional advantage of using structural equation
modeling is the ability of the technique to identify paths
or relationships contained in the theoretical model that
impair model ?t, thereby allowing the researcher to deter-
mine a best-?t or optimal model. We compared the results
of the theoretical model in Fig. 1 to the optimal model. The
paths indicated in the model were consistent with the
hypotheses and the results were virtually identical to those
of the theoretical model. A chi-square difference test indi-
Table 2
Correlation matrix.
PRO INT STR SATIS AOC SEC TURN
PRO 1.000 0.558
**
À0.248
*
0.452
**
0.429
**
À0.339
**
À0.289
**
INT 1.000 À0.322
**
0.513
**
0.356
**
À0.311
**
À0.358
**
STR 1.000 À0.371
**
À0.372
**
0.294
**
0.331
**
SATIS 1.000 0.699
**
À0.334
**
À0.428
**
AOC 1.000 À0.393
**
À0.575
**
SEC 1.000 0.271
**
TUR 1.000
n = 125.
PRO, procedural justice; INT, interactional justice; STR, job stress; SATIS, job satisfaction; AOC, affective commitment; SEC, job insecurity; TURN, intent to
turnover.
*
p < .01.
**
p < .001 (one-tailed signi?cance).
Fig. 2. Structural equation model with path coef?cients.
792 J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795
cated that the variance accounted for by the optimal model
was not signi?cantly different from that attributable to the
theoretical model.
7
Implications and conclusions
At the beginning of the 21st century, accountants faced
increasing threats to their job security, including outsourc-
ing and the offshore transfer of administrative functions
(Friedman, 2005). For accountants who involuntary lose
their job as a result of downsizing, the psychological and
economic affects can be severe. For the downsized organi-
zation, survival may depend on the commitment and con-
tinued employment of those employees who remain.
Downsizing, however, breaks the psychological employ-
ment contract (Robinson, 1996), potentially creating inse-
curity and stress in survivors, and often results in
increased voluntary turnover (Spreitzer & Mishra, 2002).
This study extends previous research on layoff survivors
to the domain of accounting. The results of our model lar-
gely supported theoretical predictions and con?rmed that
organizational justice concepts have relevance in under-
standing survivors’ post-layoff perceptions, psychological
states, attitudes, and intentions. Managerial accountants
who perceived high levels of procedural and interactional
justice after surviving layoffs exhibited less job stress and
felt less job insecurity. Furthermore, accountants who felt
less stressed and less insecure were, in general, more satis-
?ed with their jobs, more committed to their organization,
and had stronger intentions of leaving the organization.
These results con?rm the importance of procedural justice
and interactional justice in minimizing the negative impact
of layoffs on survivors
There are both theoretical and practical implications of
this research. First, procedural and interactional justice
each had signi?cant in?uence on survivors’ psychological
states and attitudes, but only interactional justice directly
impacted their intention to turnover. This result indicates
that management can play an active and positive role in
in?uencing survivors’ reactions to a layoff and desire to
continue the employment relationship, and is consistent
with Brennan and Skarlicki’s (2004) emphasis on the
importance of interactional justice. Second, although lay-
offs are often viewed by employees as an undesirable form
of change, the survivors in our sample had both relatively
high levels of affective commitment to the organization
and high levels of job insecurity. This apparent paradox im-
plies that employees can feel allegiance even in the wake
of downsizing and potential threats to their job. Third,
the sample in this study survived layoffs attributable to
causes external to the organization. It is unclear whether
the results of this study would apply when a layoff results
from internal factors, such as managements’ decision to
offshore an accounting task. The recent growth in out-
sourcing, both in public accounting and in corporate
accounting (Friedman, 2005), provides opportunities for
future research. Fourth, our data were collected after a ser-
ies of layoffs had commenced. Future research on the im-
pact of layoffs may also contribute to the extant
knowledge base by longitudinally investigating the cumu-
lative effect of successive workforce reductions on survivor
reactions and productivity.
While the results of this study are substantially consis-
tent with theoretical predictions, their interpretation is
subject to a number of limitations. First, survey studies
lack the control of experimental designs and may be ex-
posed to potential biases sometimes associated with
self-reporting. Second, problems of omitted and uncon-
trolled intervening or moderating variables may exist.
Third, the measure of survivors’ intent to turnover was
based upon self-reported intentions. The extent to which
the measure is correlated with actual voluntary turnover
is unknown. Finally, this study focused only on accoun-
tants employed within a manufacturing organization.
Additional research is needed to ascertain the extent of
Table 3
Structural equation modeling results for the theoretical model.
Dependent variable Independent variable Directional prediction Path coef?cient t-Statistic p-Value
PRO INT + 0.558 7.49 0.001
SEC PRO H1, À À0.241 À2.40 0.009
INT H2, À À0.177 À1.76 0.042
STR PRO H1, À À0.050 À0.49 0.316
INT H2, À À0.231 À2.28 0.013
SEC H3, + 0.205 2.30 0.012
SATIS PRO H1, + 0.194 2.18 0.017
INT H2, + 0.308 3.43 0.001
STR H4, À À0.190 À2.43 0.009
SEC H3, À À0.117 À1.48 0.074
AOC STR H4, À À0.099 À1.46 0.075
SEC H3, À À0.160 À2.39 0.010
SATIS + 0.609 8.83 0.001
TURN PRO H1, À 0.043 0.38 0.322
INT H2, À À0.208 À2.06 0.014
SATIS À 0.044 0.37 0.346
AOC À À0.547 À5.26 0.001
n = 125.
7
For more detailed analysis of the data, please contact the authors.
J.T. Sweeney, J.J. Quirin/ Accounting, Organizations and Society 34 (2009) 787–795 793
generalizability to professional accountants employed in
other business sectors.
Acknowledgement
The authors gratefully acknowledge the helpful com-
ments of Lan Guo, Maureen Gowing, two anonymous
reviewers, and the research workshop participants at the
2007 Annual Meeting of the American Accounting
Association.
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