LAYOFFS, EQUITY THEORY, AND WORK PERFORMANCE: FURTHER EVIDENCE OF THE IMPACT OF SURVIVOR GUILT.

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Abstract
This study explored the effects of layoffs on survivors. We assessed subjects' work performance as a function of whether a co-worker had been laid off and the circumstances of that layoff. Consistent with equity theory, subjects worked harder when they believed that a co-worker's dismissal was based on a random process rather than on the relative merits of their and their co-worker's prior performance. Data drawn from questionnaires lent further support to equity theory as an explanation of these results.

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