Organizational Culture and Commitment Among Lay-Off Survivors:A Tale of Two MNCs in India

Although a large volume of research has examined the causes and consequences of downsizing, the role of organizational culture in the process of layoffs has been largely unaddressed. We examine the relationship between organizational culture and employee commitment among layoff survivors in two MNCs in India. We identify and categorize organizational culture (strong - synergetic versus weak - soft) in the context of values. Using a sample of employees from two Indian MNCs in the service sector, we show that reactions of layoff survivors have a direct effect on their organizational commitment. We contribute to the literature by showing that this direct effect is moderated by organizational culture with a positive effect in strong cultures versus weak cultures. Findings of this study highlight that there is strong association between commitment of lay-off survivors with strong work culture. We highlight our contributions, discuss our findings, and identify limitations and future research directions.