This study examined the influence of type of social contract (i.e., transactional vs. relational) on how organizations responded to financial crisis in Turkey. Moreover, it examined the role of social contracts in moderating the relationship between type of response strategies organizations used and justice perceptions of employees. Participants were 132 full-time employees from 85 different business organizations. Results showed that as the social contract tended to be more transactional, there was less focus on cost-cutting strategies in production, marketing, and financial practices (PMF), whereas when the social contract tended to be more relational, there was less focus on cost-cutting strategies in human resource management practices (HRM). Cost-cutting in PMF areas yielded low procedural justice when employees were in organizations that were high rather than low on transactional contracts, whereas cost-cuttingin HRM areas resulted in low distributive justice when employees were in organizations that were high rather than low on relational contracts.
Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental social psychology, vol. 2, (pp. 267-299). New York: Academic Press.
2.
Ali, A. J. (1993). Decision-makingstyle, individualism, and attitudes toward risk of Arab executives. International Studies of Management and Organization, 23, 53-73.
3.
Allen, N. J., & Meyer, J. P. (1996). Affective, continuance, and normative commitment to the organization: An examination of construct validity. Journal of Vocational Behavior, 49, 252-276.
4.
Arbuckle, J. L. (1999). Amos user’s guide, version 4.01. Chicago: SmallWaters Corporation.
5.
Aycan, Z. (in press). Paternalism: Towards conceptual refinement and operationalization. In K. S. Yang, K. K. Hwang, & U. Kim (Eds.), Scientific advances in indigenous psychologies: Empirical, philosophical, and cultural contributions. London: Sage.
6.
Aycan, Z., Kanungo, R. N., Mendonca, M., Yu, K., Deller, J., Stahl, G., et al. (2000). Impact of culture on human resource management practices: A 10-country comparison. Applied Psychology: An International Review, 49(1), 192-221.
7.
Ayman, R., & Chemers, M. M. (1991). The effect of leadership match on subordinate satisfaction in Mexicanorganisations: Some moderating influences of self-monitoring. Applied Psychology: An International Review, 40(3), 299-314.
8.
Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the vision. Organizational Dynamics, 19(3), 19-31.
9.
Beaverstock, J. V., & Doel, M. A. (2001). Unfolding the spatial architecture of the East Asian financial crisis: The organizational response to global investment banks. Geoforum, pp. 15-32.
10.
Bennet, R. W., & Iwao, M. (1963). Paternalism in the Japanese economy. Minneapolis: Earlbaum.
11.
Berman, J. J., Murphy-Berman, V., & Singh, P. (1985). Cross-cultural similarities and differences in perception of fairness. Journal of Cross-Cultural Psychology, 16, 55-67.
12.
Blake, R. R., & Mouton, J. S. (1985). The new managerial grid III. Houston: Gulf.
13.
Brockner, J. (1988). The effects of work layoffs on survivors: Research, theory, and practice. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior (pp. 213-255). Greenwich, CT: JAI.
14.
Brockner, J. (2002). Making sense of procedural fairness: How high procedural fairness can reduce or heighten the influence of outcome favorability. Academy of Management Review, 27(1), 58-76.
15.
Brockner, J., & Greenberg, J. (1990). The impact of layoffs on survivors: An organizational justice perspective. In J. S. Carroll (Ed.), Applied social psychology and organizational settings (pp. 45-75). Hillsdale, NJ: Lawrence Erlbaum.
16.
Brockner, J., Grover, S., Reed, T., DeWitt, R. L., & O’Malley, M. (1987). Survivors’ reactions to layoffs: We get by with a little help for our friends. Administrative Science Quarterly, 32, 526-541.
17.
Brockner, J., Konovsky, M., Cooper-Schneider, R., Folger, R., Martin, C., & Bies, R. (1994). Interactive effects of procedural justice and outcome negativity and survivors of job loss. Academy of Management Journal, 37, 397-409.
18.
Brockner, J., Tyler, T. R., & Cooper-Schneider, R. (1992). The influence of prior commitment to an institution on reactions to perceived fairness: The higher they are, the harder they fall. Administrative Science Quarterly, 37, 241-261.
19.
Brockner, J., & Wiesenfeld, B. M. (1993). Living on the edge (of social and organizational psychology): The effects of job layoffs on those who remain. In J. K. Murnighan (Ed.), Social psychology in organizations: Advances in theory and research (pp. 119-140). Englewood Cliffs, NJ: Prentice Hall.
20.
Buss, T. F., & Redburn, F. S. (1983). Mass unemployment: Plant closings and community mental health. Beverly Hills: Sage.
21.
Cavanaugh, M. A., & Noe, R. A. (1999). Antecedents and consequences of relational components of the new psychological contract. Journal of Organizational Behavior, 20, 323-340.
22.
Chandler, A. D., Jr. (1962). Strategy and structure: The history of American industrial enterprise. Cambridge, MA.: MIT Press.
23.
Chang, E. (2002). Distributive justice and organizational commitment revisited: Moderation by layoff in the case of Korean employees. Human Resource Management, 41(2), 261-270.
24.
Child, J. (1981). Culture, contingency and capitalism in the cross-national study of organizations. Research in Organizational Behavior, 3, 303-356.
25.
Clark, M. S., & Waddell, B. (1985). Perceptions of exploitation in communal and exchange relationships. Journal of Personal and Social Relationships, 2, 403-418.
26.
Cohen, J., & Cohen, P. (1975). Applied multiple regression/correlation analyses for behavioral sciences. Hillsdale, NJ: Lawrence Erlbaum.
27.
Cohen-Charash, Y., & Spector, P. E. (2001). The role of justice in organizations: A meta-analysis. Organizational Behavior and Human Decision Processes, 86, 278-321.
28.
Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. L. H., & Ng, K. Y. (2001). Justice at the millennium: A meta-analytic review of 25 years of organizational justice research. Journal of Applied Psychology, 86(3), 425-445.
29.
Crampton, S. M., & Wagner, J. A., III. (1994). Percept-percept inflation in microorganizational research: An investigation of prevalence of the bias. Journal of Applied Psychology, 79(1), 67-77.
30.
Cropanzano, R., Byrne, Z. S., Bobocel, R. D., & Rupp, D. E. (2001). Moral virtues, fairness heuristics, social entities, and other denizens of organizational justice. Journal of Vocational Behavior, 58, 164-209.
31.
Cropanzano, R., & Greenberg, J. (1997). Progress in organizational justice: Tunneling through the maze. In C. Cooper & I. Robertson (Eds.), International review of industrial and organizational psychology (pp. 317-372). New York: Wiley.
32.
Cropanzano, R., Prehar, C. A., & Chen, P. Y. (2002). Using social exchange theory to distinguish procedural from interactional justice. Group and Organization Management, 27(3), 324-351.
33.
Crosby, F. (1976). A model of egoistical relative deprivation. Psychological Review, 83, 85-113.
34.
Deal, T. E., & Kennedy, A. A. (1999). The new corporate cultures: Revitalizing the workplace after downsizing, mergers, and reengineering. Reading, MA: Perseus.
35.
Deutsch, M. (1975). Equity, equality and need: What determines which values will be used as the basis of distributive justice?Journal of Social Issues, 31, 137-149.
36.
Dorfman, P. W., & Howell, J. P. (1988). Dimensions of national culture and effective leadership patterns: Hofstede revisited. In R. N. Farmer & E. G. McGoun, (Eds.), Advances in international comparative management, vol. 3 (pp. 127-150). New York: JAI.
37.
Eichengreen, B., Andrew, R., & Wypolosz, C. (1995). Exchange market mayhem: The antecedents and aftermath of speculative attacks. Economic Policy, pp. 249-312.
38.
Eren, E., Bildirici, M. E., & Firat, Ü. (2000). Managerial behavior during the 1998-1999crisis in Turkey (in Turkish). Istanbul: Istanbul Chamber of Industry.
39.
Evans, M. G. (1970). The effects of supervisory behavior on the path-goal relationship. Organizational Behavior and Human Performance, 5, 277-298.
40.
Folger, R. (1987). Distributive and procedural justice in the workplace. Social Justice Research, 1, 143-159.
41.
Folger, R., & Cropanzano, R. (1998). Organizational justice and human resource management. Thousand Oaks, CA: Sage.
42.
Folger, R., & Konovsky, M. A. (1989). Effects of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 32, 115-130.
43.
Freeman, S. J., & Cameron, K. S. (1993). Organizational downsizing: A convergence and reorientation framework. Organizational Science, 4(1), 10-29.
44.
Goodell, G. E. (1985). Paternalism, patronage, and potlatch: The dynamics of giving and being given to. Current Anthropology, 26(2), 247-257.
45.
Gorgopoulos, B. S., Mahoney, G. M., & Jones, N. (1957). A path-goal approach to productivity. Journal of Applied Psychology, 41, 345-353.
46.
Gough, J. W. (1963). The social contract. Oxford, UK: Oxford University Press.
47.
Greenberg, J. (1987). Reactions to procedural injustice in payment distributions: Do the means justify the ends?Journal of Applied Psychology, 72, 55-61.
48.
Greenberg, J. (1990). Looking fair vs. being fair: Managing impressions of organizational justice. Research in Organizational Behavior, 12, 111-157.
49.
Greenberg, J. (1993). The social side of fairness: Interpersonal and informational classes of organizational justice. In R. Cropanzano (Ed.), Justice in the workplace: Approaching fairness in human resource management (pp. 79-103). Hillsdale, NJ: Lawrence Erlbaum.
50.
Greenberg, J. (2001). Setting the justice agenda: Seven unanswered questions about “what, why, and how.”Journal of Vocational Behavior, 58, 210-219.
51.
Greenberg, J., & Cropanzano, R. (2001). Advance in organizational justice. Stanford, CA: Stanford University Press.
52.
Grunberg, L., Anderson-Connolly, R., & Greenberg, E. S. (2000). Surviving layoffs: The effects on organizational commitment and job performance. Work and Occupations, 27, 7-31.
53.
Guvenc, B. (1993). Turk kimligi [The Turkish identity]. Ankara: Ministry of Culture Press.
54.
Hamilton, V. (2000). (In)justice in waiting: Russian officers’ organizational commitment and mental distress during downsizing. Journal of Applied Social Psychology, 30(10), 1995-2038.
55.
Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Thousand Oaks, CA: Sage.
56.
Homans, G. (1961). Social behavior: Its elementary forms. New York: Harcourt, Brace & World.
57.
House, R. J. (1971). A path-goal theory of leader effectiveness. Administrative Science Quarterly, 16, 321-338.
58.
House, R. J., Wright, N. S., & Aditya, R. N. (1997). Cross-cultural research on organizational leadership: A critical analysis and a proposed theory. In P. C. Earley & M. Erez (Eds.), New perspectives on international industrial/organizational psychology (pp.535-626). San Francisco: New Lexington Press.
59.
Istanbul Chamber of Commerce (2002). Crisis management in Turkey. Istanbul: Author.
60.
Jackman, M. R. (1994). The velvet glove: Paternalism and conflict in gender, class, and race relations. Berkeley, CA: University of California Press.
61.
Jackson, T. (2002). The management of people across cultures: Valuing people differently. Human Resource Management, 41(4), 455-475.
62.
James, K., Chen, D. L., & Cropanzano, R. (1996). Culture and leadership among Taiwanese and U.S. workers: Do values influence leadership ideals? In M. N. Ruderman, M. W. Hughes-James, & S. E. Jackson (Eds.), Selected research on work team diversity (pp. 9-32). Greensboro, NC: American Psychological Association and Center for Creative Leadership.
63.
Kabanoff, B., Jimmieson, N. L., & Lewis, M. J. (2000). Psychological contracts in Australia: A “fair go” or a not-so-happy transition? In D. M. Rousseau & R. Schalk (Eds.), Psychological contracts in employment (pp. 29-46). Thousand Oaks, CA: Sage.
64.
Kabasakal, H., & Bodur, M. (1998). Leadership, values, and institutions: The case of Turkey (Research papers). Istanbul: Bogaziçi University.
65.
Kabasakal, H., & Bodur, M. (2002). Arabic cluster: A bridge between east and west. Journal of World Business, 37, 40-54.
66.
Kaicheng, Y. (1998). Chinese employees’ perceptions of distributive fairness. In A. M. Francesco & B. A. Gold (Eds.), International organizational behavior. Englewood Cliffs, NJ: Prentice Hall.
67.
Kernan, M. C., & Hanges, P. J. (2002). Survivor reactions to reorganization: Antecedents and consequences of procedural, interpersonal, and informational justice. Journal of Applied Psychology, 87(5), 916-928.
68.
Kim, U. M. (1994). Significance of paternalism and communalism in the occupational welfare system of Korean firms: A national survey. In U. Kim, H. C. Triandis, C. Kagitcibasi, S. Choi, & G. Yoon (Eds.), Individualism and collectivism: Theory, method, and applications (pp. 251-266). London: Sage.
69.
Kongar, E. (1998). 21inci yuzyilda Turkiye [Turkey in 21st century]. Istanbul: Remzi.
70.
Konovsky, M. A., & Brockner, J. (1993). Managing victim and survivor layoff reactions: A procedural justice perspective. In R. Cropanzano (Ed.), Justice in the workplace: Approaching fairness in human resource management (pp.133-153). Hillsdale, NJ: Lawrence Erlbaum.
71.
Konovsky, M. A., & Cropanzano, R. (1991). Perceived fairness of employee drug testing as a predictor of employee attitudes and job performance. Journal of Applied Psychology, 76, 698-707.
72.
Konovsky, M. A., Folger, R., & Cropanzano, R. (1987). Relative effects of procedural and distributive justice on employee attitudes. Representative Research in Social Psychology, 17, 15-24.
73.
Kozlowski, S. W. J., Chao, G. T., Smith, E. M., & Hedlund, L. (1993). Organizational downsizing: Strategies, interventions, and research implications. In International review of industrial and organizational psychology (pp. 263-332). New York: Wiley.
74.
Lam, S. S. K., Schaubroeck, J., & Aryee, S. (2002). Relationship between organizational justice and employee work outcomes: A cross-national study. Journal of Organizational Behavior, 23, 1-18.
75.
Lawler, E. E., III. (1981). Pay and organizational effectiveness: A psychological view. New York: McGraw-Hill.
76.
Lawler, E. E., III. (1986). High involvement management. San Francisco: Jossey-Bass.
77.
Lawler, E. E., III. (1992). The ultimate advantage: Creating the high involvement organization. San Francisco: Jossey-Bass.
78.
Lawler, E. E., III. (1996). From the ground up: Six principles for building the new logic corporation. San Francisco: Jossey-Bass.
79.
Lawrence, P. R., & Lorsch, J. W. (1967). Organization and environment-managing differentiation and integration. Homewood, IL: Richard D. Irwin.
80.
Lee, G. (2001). Towards a contingent model of key staff retention: The new psychological contract reconsidered. South African Journal of Business Management, 32(1), 1-10.
81.
Leventhal, G. S. (1980). What should be done with equity theory? New approaches to the study of fairness in social relationships. In K. Gergen, M. Greenberg, & R. Willis (Eds.), Social exchange: Advances in theory and research (pp. 27-55). New York: Plenum.
82.
Lincoln, J., & Kalleberg, A. (1990). Culture, control and commitment. New York: Cambridge University Press.
83.
Mathieu, J. E., & Zajac, D. M. (1990). A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment. Psychological Bulletin, 108, 172-195.
84.
McFarlin, D. B., & Sweeney, P. D. (1992). Distributive and procedural justice as predictors of satisfaction with personal and organizational outcomes. Academy of Management Journal, 35(3), 626-637.
85.
Mikula, G. (1980). On the role of justice in allocation decisions. In G. Mikula (Ed.), Justice and social interaction (pp. 127-166). New York: Springer-Verlag.
86.
Millward, L. J., & Hopkins, L. J. (1998). Psychological contracts, organizational and job commitment. Journal of Applied Social Psychology, 28(16), 1530-1556.
87.
Mishra, A. K., & Spreitzer, G. M. (1998). Explaining how survivors respond to downsizing: The roles of trust, empowerment, justice, and work redesign. Academy of Management Review, 23, 567-588.
88.
Mitroff, I. I., & Alparslan, M. C. (2003, April). Preparing for evil. Harvard Business Review, 81, 109-115.
89.
Morrison, E. W., & Robinson, S. L. (1997). When employees feel betrayed: A model of how psychological contract violation develops. Academy of Management Review, 22(1), 226-256.
90.
Mowday, R. T., Porter, L. W., & Steers, R. M. (1982). Employee-organizational linkages: The psychology of commitment, absenteeism, and turnover. New York: Academic Press.
91.
Mudd, S., Grosse, R., & Mathis, J. (2002). Dealing with financial crises in emerging markets. Thunderbird International Business Review, 44(3), 399-430.
92.
Murphy-Berman, V., Berman, J. J., Singh, P., Pachauri, A., & Kumar, P. (1984). Factors affecting allocation to needy and meritorious recipients: A cross-cultural comparison. Journal of Personality and Social Psychology, 46, 1267-1272.
93.
Nadler, D. A., & Tushman, M. L. (1980). A model for diagnosing organizational behavior. Organizational Dynamics, 9(2), 35-51.
94.
Naumov, A. I., & Puffer, S. M. (2000). Measuring Russian culture using Hofstede’s dimensions. Applied Psychology: An International Review, 49(4), 709-718.
95.
Newman, K. L., & Nollen, S. D. (1996). Culture and congruence: The fit between management practices and national culture. Journal of International Business Studies, 27(4), 753-779.
96.
Northouse, P. G. (1997). Leadership: Theory and research. Thousand Oaks, CA: Sage.
97.
O’Reilly, B. (1994). The new deal: What companies and employees owe one another. Fortune International, 13, 28-33.
98.
Ornatowski, G. K. (1998). The end of Japanese-style human resource management?Sloan Management Review, 39(3), 73-84.
99.
Osland, J. S., Franco, S., & Osland, A. (1999). Organizational implications of Latin American culture: Lessons for the expatriate manager. Journal of Management Inquiry, 8(2), 219-234.
100.
Ostroff, C., & Kozlowski, S. W. (1992). Organizational socialization as a learning process: The role of information acquisition. Personnel Psychology, 45(4), 849-874.
101.
Padavic, I., & Earnest, W. R. (1994). Paternalism as a component of managerial strategy. Social Science Journal, 31(4), 389-356.
102.
Palma, G. (1998). Three and a half cycles of “mania, panic, and (asymmetric) crash”: East Asia and Latin America compared. Cambridge Journal of Economics, 22(6), 789-808.
103.
Pasa, S. F., Kabasakal, H., & Bodur, M. (2001). Society, organizations, and leadership in Turkey. Applied Psychology: An International Review, 50(4), 559-589.
104.
Pearson, C. M., & Mitroff, I. I. (1993). From crisis prone to crisis prepared: A framework for crisis management. Academy of Management Executive, 7, 48-59.
105.
Pye, L. W. (1985). Asian Power and Politics: The Cultural Dimensions of Authority. Cambridge, MA.: Belknap, Harvard University Press.
106.
Redding, S. G., & Hsiao, M. (1990). An empirical study of overseas Chinese managerial ideology. International Journal of Psychology, 25, 629-641.
107.
Rousseau, D. M. (1995). Psychological contracts in organizations: Understanding written and unwritten agreements. Thousand Oaks, CA: Sage.
108.
Rousseau, D. M., & Parks, J. M. (1993). The contracts of individuals and organizations. In L. L. Cummings & B. Staw (Eds.), Research in organizational behavior, 15, (pp. 1-43). Greenwich, CT: JAI.
109.
Rousseau, D. M., & Wade-Benzoni, K. A. (1994). Linking strategy and human resource practices: How employee and customer contracts are created. Human Resource Management, 33, 463-489.
110.
Sagie, A., & Koslowsky, M. (2000). Participation and empowerment in organizations. London: Sage.
111.
Scandura, T. A., & Williams, E. A. (2000). Research methodology in management: Current practices, trends, and implications for future research. Academy of Management Journal, 43(6), 1248-1264.
112.
Snow, C. C., Miles, R. E., & Coleman, H. J., Jr. (1992, Winter). Managing 21st century network organizations. Organizational Dynamics, 20, 5-19.
113.
Stayer, R. (1990, November-December). How I learned to let my workers lead. Harvard Business Review, pp. 66-83.
114.
Stroh, L. K., & Reilly, A. H. (1997). The interaction of implied contracts and organizational turbulence with managers’ base pay. Journal of Applied Business Research, 13(3), 1-16.
115.
Sunoo, B. P. (1999). Relying on faith to rebuild a business. Workforce, 78(3), 54-59.
116.
Tata, J. (2000). Influence of role and gender on the use of distributive versus procedural justice principles. Journal of Psychology, 134(3), 261-268.
117.
Thibaut, J., & Walker, L. (1975). Procedural justice: A psychological analysis. Hillsdale, NJ: Lawrence Erlbaum.
118.
Vandenberg, R., Richardson, H. A., & Eastman, L. (1999, September). The impact of high involvement work processes on organizational effectiveness. Group and Organization Management, 24, 300-339.
119.
Veit, C. T., & Ware, J. E. (1983). The structure of psychological distress and well-being in general populations. Journal of Consulting & Clinical Psychology, 51(5), 730-742.
120.
Viswesvaran, C. (2001). Assessment of individual job performance: A review of the past century and a look ahead. In N. Anderson, D. S. Ones, H. Kepir-Sinangil, & C. Viswesvaran (Eds.), Handbook of industrial, work and organizational psychology (Vol. 1, pp. 110-127). London: Sage.
121.
Viswesvaran, C., & Ones, D. (2002). Examining the construct of organizational justice: A meta-analytic evaluation of relations with work attitudes and behaviors. Journal of Business Ethics, 38, 193-203.
122.
Vroom, V. H. (1969). Work and motivation. New York: Wiley.
