Abstract
Purpose. This dissertation investigated the effects of layoffs on the work effort of employees (survivors) who survived a personnel layoff. It was hypothesized that survivors of layoffs worked harder when they believed that a dismissal was based on a random selection process rather than on the relative merits of their and their coworkers' prior performance. The dissertation also examined job satisfaction and internal work motivation as secondary independent variables that may affect work effort. Theoretical framework. The study was based on equity theory, developed by James S. Adams. Equity exists whenever a worker perceives that the ratio of his or her work outcomes to inputs is equal to the ratio of work outcomes to work inputs of relevant others. Individuals compare their job inputs and outcomes with those of others, and respond so as to eliminate any inequities. Methodology. Data were acquired through an interview and a survey questionnaire. The interview was conducted through a sample group of thirty-six individuals, systematically selected, while the questionnaire was distributed to four hundred randomly selected factory workers of a large automobile company in Thailand. Statistical analyses were used to examine the relationship between the independent variables and the dependent variable. Findings. The study revealed that work effort might not be greater for survivors who perceived their layoff as random based. Analysis of data also revealed that there was a positive and significant relationship between internal work motivation and work effort, and that there was a positive relationship between job satisfaction and the work effort of the survivors. Survivors with low job satisfaction or low internal work motivation worked less hard than those with higher job satisfaction or internal work motivation. Recommendations. This study made important contributions to more effective management of the surviving workforces. The findings of this study suggest that strict adherence to a merit-based workforce reduction policy, along with effective and timely communications of the layoff process, may improve the work effort of survivors.