Abstract:
Given the face of globalization, most organizations involved in the implementation of
downsizing as one of the management strategies. However, the way being exercised has a
profound impact on survivors from layoff and on objective of downsizing. The objective of
this study is to determine how the perceptions of downsizing in relation to procedural and
distributive justice affect the level of organizational commitment and job insecurity of
survivors. To achieve the objective of the study data were collected from employees of Ethio
Telecom, who survive from downsizing, using questionnaire and unstructured interview. A
total of 252 survivors from two zones were included using simple random sampling
technique. Both descriptive and binary logistic regression methods were employed as a tool
for the empirical analysis using statistical package for social sciences (SPSS 16.0). The
study reveals that perception of organizational injustice in both procedural and distributive
justices have an impact on survivor’s commitment and feeling job insecurity. Procedural
justice has found a strong predictor for the outcome variables. While distributive justice has
become the second predictor that has an influence on components of organizational
commitment. However, this study did not found any relationship between distributive justice
and feeling of job insecurity with p-value of 0.532. In general, this study concludes that
perception of survivors towards downsizing implementation affects level of commitment and
job security. Based on these, it is recommended that Ethio Telecom better to practice an
organizational justice while making decisions and also advisable to adopt the involvement
of employees in the process to get a positive work related behavioral outcomes.
