Mediating Effects of Job security on the Relationship between Trust in Management and Organizational Commitment in Downsizing Organizations

Abstract : Organizations have underestimated the adverse effects of downsizing and often overlook the challenges of motivating a remaining workforce that is emotionally affected by witnessing others lose their jobs. Yet, motivating these survivors to achieve higher productivity is vital for the company’s success and the job security of employees. It should be noted that, next to the death of a relative or friend, losing a job is one of the most traumatic experiences, as it disrupts careers and families. This research paper aims to study the mediating effect of job security on the relationship between trust in management and organizational commitment of employees. The present research findings suggest that if organizational downsizing is carried out in such a manner that employees perceive positive changes in their daily work experiences in the form of increased organizational support that enhances their trust for management and inculcates perceptions of the accuracy of the performance appraisal system, their affective and continuance commitment to the organization can be maintained or even increased. The study has significance for maintaining member loyalty by organizations which are resorting to downsizing through voluntary retirement schemes as in the Indian context. Research strongly suggests that survivors in the organization also suffer adverse effects after downsizing has occurred.