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Author:Korsgaard, M.A.
Sapienza, H.J.
Schweiger, D.M.
Title:Beaten before begun: The role of procedural justice in planning change
Journal:Journal of Management
2002 : VOL. 28:4, p. 497-516
Index terms:Management science
Employees
Industrial relations
Planning
Language:eng
Abstract:This study examines the potential adverse effects of planning strategic change on the employment relationship. This paper proposes that planning change can alter the psychological contract such that employees believe that organization obligations to the employee will diminish. It is also argued that planning change may adversely affect employees' perceived obligations to the organization, their trust in management, and their intention to remain with the organization but that such effects depend on whether employees perceive the planning process to be procedurally just. These hypotheses are tested in longitudinal study of a utility company undergoing reengineering planning. The findings support the proposition that reactions to planning change depend upon perceptions of procedural justice in that employee obligations and intention to remain were only adversely affected by planning when employees perceived the process as unjust. Surprisingly, planning change did not significantly affect trust for employees. Implications for practice and research are also discussed.
SCIMA record nr: 237171
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