Adam, Helen (2025) Organizational Reputation: Effects of Mass Layoffs on Employees' Company Ratings. Master thesis, Psychology.
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Abstract
Organizational reputation can be influenced by many different factors like how an organization is perceived by different stakeholders or in public for example. Little is known about how an organization’s reputation can be shaped by its own employees, especially when it comes to word-of-mouth that is shared on different online review platforms. With a multilevel field study that includes 16,870 cases, this study investigates the association between mass layoffs and employees’ company ratings and how this relationship is influenced by the employees’ organizational tenure. I propose that there will be a difference in employees’ company ratings between mass layoff and no mass layoff condition, such that the mass layoff condition (no mass layoff condition) will lead employees to report lower (higher) company ratings. Further I propose that the employees’ organizational tenure will moderate the negative relationship between mass layoff condition (no mass layoff condition) and company ratings, such that with increasing tenure, the association between layoff condition and company ratings gets strengthened (weakened). Results showed no significant effect of the mass layoff condition on employees’ company ratings compared to the no mass layoff condition. In addition, organizational tenure does not have a moderating effect on this association. The present study adds to the existing literature by discussing the findings in light of Homans’ social exchange theory (1961; 1974) and by providing additional insight into the effect that organizational tenure can have on word-of-mouth communicated by employees. Lastly, the study gives practical recommendations for higher management in organizations. Keywords: mass layoff, company ratings, organizational tenure, organizational reputation, social exchange theory
| Item Type: | Thesis (Master) |
|---|---|
| Supervisor name: | Kitz, C.C. |
| Degree programme: | Psychology |
| Differentiation route: | Work, Organizational and Personnel Psychology (WOP) [Master Psychology] |
| Date Deposited: | 11 Jul 2025 13:45 |
| Last Modified: | 11 Jul 2025 13:45 |
| URI: | http://gmwpublic.studenttheses.ub.rug.nl/id/eprint/5465 |
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