Is There a Right Way to Lay Off Employees in Times of Crisis?: The Role of Organizational Justice in the Case of Airbnb
Abstract
:1. Introduction
2. Airbnb and Tourism and Services Sector
3. Literature Review and Hypotheses Development
3.1. Organizational Justice and Layoffs
3.2. Hypotheses Development
4. Method
4.1. Empirical Method
4.2. Data and Variables
5. Results
5.1. Mean Difference between Survivors and Victims
5.2. The Impacts of Organizational Justice on Employees’ Psychological States and Attitudes
6. Discussions
7. Conclusions and Implications
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Category/Question | Mean | SD | Cronbach’s Alpha |
---|---|---|---|
Job Satisfaction | 0.95 | ||
I enjoy my job. | 3.6 | 1.1 | - |
I am satisfied with my job. | 3.4 | 1.1 | - |
I am happy with my job. | 3.4 | 1.1 | - |
Trust | 0.89 | ||
I believe my current employer has high integrity. | 3.5 | 1.0 | - |
I can expect my current employer to treat me in a consistent and predictable fashion. | 3.4 | 1.0 | - |
I believe my current employer is not always honest and truthful. | 2.2 | 1.2 | - |
In general, I believe my current employer’s motives and intentions are good. | 3.8 | 1.0 | - |
I do not think my current employer treats me fairly. | 2.0 | 1.0 | - |
My current employer is open and up-front with me. | 3.4 | 1.0 | - |
I am not sure I fully trust my current employer. | 2.2 | 1.1 | - |
Cynicism | 0.90 | ||
I believe that my company says one thing and does another. | 2.4 | 1.1 | - |
My company’s policies, goals, and practices seem to have little in common. | 2.1 | 1.0 | - |
When my company says it’s going to do something, I wonder if it will really happen. | 2.6 | 1.2 | - |
My company expects one thing of its employees, but rewards another. | 2.5 | 1.3 | - |
I see little similarity between what my company says it will do and what it actually does. | 2.3 | 1.1 | - |
Emotional Exhaustion | 0.92 | ||
I feel used up at the end of a workday. | 3.1 | 1.1 | - |
I feel fatigued when I get up in the morning and have to face another day on the job. | 2.7 | 1.2 | - |
Working with people all day is a real strain on me | 2.1 | 1.1 | - |
I feel burned out from my work. | 2.7 | 1.3 | - |
I feel frustrated by my job. | 2.5 | 1.3 | - |
I feel I am working too hard on my job. | 2.6 | 1.2 | - |
I feel like I am ‘at the end of my rope.’ | 2.2 | 1.3 | - |
Distributive Justice | 0.95 | ||
Do those outcomes reflect the effort you have put into your work? | 2.5 | 1.2 | - |
Are those outcomes appropriate for the work you have completed? | 2.5 | 1.2 | - |
Do those outcomes reflect what you have contributed to your work? | 2.5 | 1.3 | - |
Are those outcomes justified, given your performance? | 2.4 | 1.3 | - |
Procedural Justice | 0.82 | ||
I was able to express my views during the layoff procedures. | 2.2 | 1.3 | - |
I was able to influence the decisions arrived at by the procedures. | 1.4 | 0.8 | - |
The layoff procedures were applied consistently | 2.7 | 1.3 | - |
The procedures were free of bias. | 2.5 | 1.2 | - |
The procedures were based on accurate information. | 2.6 | 1.2 | - |
I was able to appeal the decisions arrived at by the procedures. | 1.5 | 1.0 | - |
The procedure upheld ethical and moral standards. | 2.9 | 1.3 | - |
Interpersonal Justice | 0.94 | ||
The company treated me in a polite manner. | 3.9 | 1.1 | - |
The company treated me with dignity. | 3.8 | 1.1 | - |
The company treated me with respect. | 3.8 | 1.2 | - |
The company refrained from improper remarks or comments. | 4.0 | 1.1 | - |
Informational Justice | 0.89 | ||
My leader was candid when communicating with me. | 3.6 | 1.1 | - |
My leader explained the decision-making procedures thoroughly. | 3.0 | 1.4 | - |
My leader’s explanations regarding procedures were reasonable. | 3.0 | 1.3 | - |
My leader communicated details in a timely manner. | 3.4 | 1.2 | - |
My leader tailored communications to meet my individual needs. | 3.1 | 1.4 | - |
Variable | Category | Survivors | Victims | Total |
---|---|---|---|---|
Gender | Female | 29 | 35 | 64 |
Male | 23 | 30 | 53 | |
Marital Status | Unmarried | 32 | 44 | 76 |
Married | 20 | 21 | 41 | |
Age | 20–24 | 2 | 2 | |
25–29 | 20 | 17 | 37 | |
30–34 | 15 | 29 | 44 | |
35–39 | 7 | 6 | 13 | |
40–45 | 10 | 7 | 17 | |
45 and above | 4 | 4 | ||
Job Functions | Communications | 5 | 1 | 6 |
Customer Support | 16 | 17 | 33 | |
Engineering | 1 | 8 | 9 | |
Human Resources | 1 | 5 | 6 | |
Marketing | 1 | 6 | 7 | |
Operations | 5 | 4 | 9 | |
Public Policy | 15 | 7 | 22 | |
Sales | 4 | 15 | 19 | |
Trust and Safety | 4 | 2 | 6 | |
Level of Education | Juris Doctor | 1 | 1 | |
Ph.D. | 1 | 1 | ||
Master’s Degree | 12 | 17 | 29 | |
Bachelor’s Degree | 34 | 43 | 77 | |
Associate Degree | 1 | 1 | ||
Vocational-Hotel Management | 1 | 1 | ||
High School Diploma | 5 | 2 | 7 | |
Years of service at Airbnb | Less than 1 | 1 | 16 | 17 |
1–2 | 7 | 17 | 24 | |
2–4 | 20 | 13 | 33 | |
4–6 | 14 | 15 | 29 | |
More than 6 | 10 | 4 | 14 | |
Years of service in the industry | Less than 1 | 12 | 12 | |
1–2 | 6 | 12 | 18 | |
2–4 | 17 | 13 | 30 | |
4–6 | 12 | 10 | 22 | |
6–8 | 12 | 10 | 22 | |
More than 8 years | 5 | 8 | 13 | |
Annual Income | USD 100,000–150,000 | 5 | 9 | 14 |
USD 150,000–200,000 | 5 | 5 | 10 | |
USD 200,000–250,000 | 3 | 1 | 4 | |
USD 30,000–50,000 | 5 | 11 | 16 | |
USD 50,000–100,000 | 17 | 17 | 34 | |
<USD 30,000 | 1 | 1 | ||
(blank) | 17 | 21 | 38 |
Variables | Mean | S.D. | 1. | 2. | 3. | 4. | 5. | 6. | 7. | 8. | |
---|---|---|---|---|---|---|---|---|---|---|---|
1. | Job satisfaction | 3.46 | 1.07 | 1.00 | |||||||
2. | Trust | 1.10 | 0.82 | 0.45 | 1.00 | ||||||
3. | Cynicism | 2.39 | 0.97 | −0.39 | −0.71 | 1.00 | |||||
4. | Emotional exhaustion | 2.55 | 0.99 | −0.57 | −0.55 | 0.57 | 1.00 | ||||
5. | Distributive justice | 2.44 | 1.18 | 0.06 | 0.13 | −0.01 | −0.10 | 1.00 | |||
6. | Procedural justice | 2.25 | 0.81 | 0.21 | 0.38 | −0.38 | −0.26 | 0.38 | 1.00 | ||
7. | Interactional justice | 3.86 | 1.03 | 0.22 | 0.55 | −0.45 | −0.32 | 0.08 | 0.49 | 1.00 | |
8. | Informational justice | 3.22 | 1.06 | 0.37 | 0.53 | −0.42 | −0.31 | 0.25 | 0.54 | 0.44 | 1.00 |
Variables | Survivors (N = 52) | Victims (N = 65) | Difference | ||
---|---|---|---|---|---|
Mean | S.D. | Mean | S.D. | ||
Dependent variables | |||||
Job satisfaction | 3.571 | 1.030 | 3.369 | 1.093 | 0.201 |
Trust | 1.198 | 0.668 | 1.018 | 0.915 | 0.180 |
Cynicism | 2.496 | 0.792 | 2.308 | 1.083 | 0.188 |
Emotional exhaustion | 2.434 | 0.916 | 2.637 | 1.037 | −0.203 |
Organizational Justice | |||||
Distributive justice | 2.817 | 0.958 | 2.135 | 1.252 | 0.683 ** |
Procedural justice | 2.286 | 0.905 | 2.220 | 0.732 | 0.066 |
Interactional justice | 3.750 | 0.988 | 3.950 | 1.063 | −0.200 |
Informational justice | 3.419 | 1.011 | 3.074 | 1.089 | 0.345 * |
Control variables | |||||
Age | 3.154 | 1.195 | 3.123 | 1.193 | 0.031 |
Male | 0.462 | 0.503 | 0.462 | 0.502 | 0.000 |
Educational level | 1.288 | 0.498 | 1.262 | 0.477 | 0.027 |
Marital status | 0.615 | 0.491 | 0.692 | 0.465 | −0.077 |
Years in hospitality | 3.827 | 1.184 | 3.308 | 1.676 | 0.519 * |
Years at Airbnb | 3.462 | 0.999 | 2.584 | 1.249 | 0.877 ** |
Dependent Variable: Job Satisfaction | Dependent Variable: Trust | |||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
Total | Survivors | Victims | Total | Survivors | Victims | |
Distributive justice | −0.006 | −0.152 | 0.070 | 0.018 | 0.063 | 0.022 |
(0.099) | (0.128) | (0.122) | (0.047) | (0.102) | (0.057) | |
Procedural justice | −0.004 | 0.029 | −0.272 | 0.026 | 0.036 | −0.048 |
(0.160) | (0.110) | (0.335) | (0.106) | (0.081) | (0.252) | |
Interactional justice | 0.127 | 0.081 | 0.344 ** | 0.370 ** | 0.371 ** | 0.377 ** |
(0.105) | (0.170) | (0.119) | (0.076) | (0.083) | (0.126) | |
Informational justice | 0.343 ** | 0.586 ** | 0.092 | 0.222 ** | 0.172 | 0.241 ** |
(0.087) | (0.183) | (0.136) | (0.064) | (0.115) | (0.090) | |
N | 117 | 52 | 65 | 117 | 52 | 65 |
R2 | 0.208 | 0.393 | 0.204 | 0.456 | 0.443 | 0.487 |
Dependent Variable: Cynicism | Dependent Variable: Emotional Exhaustion | |||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
Total | Survivors | Victims | Total | Survivors | Victims | |
Distributive justice | 0.067 | 0.192 | −0.024 | −0.017 | 0.162 | −0.075 |
(0.101) | (0.137) | (0.100) | (0.122) | (0.146) | (0.165) | |
Procedural justice | −0.202 | −0.311 ** | 0.056 | −0.129 | −0.086 | 0.120 |
(0.176) | (0.100) | (0.309) | (0.174) | (0.140) | (0.347) | |
Interactional justice | −0.263 * | −0.187 | −0.291 | −0.267 ** | −0.346 ** | −0.261 |
(0.138) | (0.172) | (0.186) | (0.094) | (0.116) | (0.176) | |
Informational justice | −0.210 ** | −0.070 | −0.284 * | −0.129 | −0.236 | −0.118 |
(0.092) | (0.166) | (0.135) | (0.088) | (0.145) | (0.164) | |
N | 117 | 52 | 65 | 117 | 52 | 65 |
R2 | 0.311 | 0.355 | 0.392 | 0.177 | 0.404 | 0.157 |
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Lee, S.; Hong, S.; Lee, B.G. Is There a Right Way to Lay Off Employees in Times of Crisis?: The Role of Organizational Justice in the Case of Airbnb. Sustainability 2023, 15, 4690. https://doi.org/10.3390/su15054690
Lee S, Hong S, Lee BG. Is There a Right Way to Lay Off Employees in Times of Crisis?: The Role of Organizational Justice in the Case of Airbnb. Sustainability. 2023; 15(5):4690. https://doi.org/10.3390/su15054690
Chicago/Turabian StyleLee, Sanghyun, Sounman Hong, and Bong Gyou Lee. 2023. "Is There a Right Way to Lay Off Employees in Times of Crisis?: The Role of Organizational Justice in the Case of Airbnb" Sustainability 15, no. 5: 4690. https://doi.org/10.3390/su15054690
APA StyleLee, S., Hong, S., & Lee, B. G. (2023). Is There a Right Way to Lay Off Employees in Times of Crisis?: The Role of Organizational Justice in the Case of Airbnb. Sustainability, 15(5), 4690. https://doi.org/10.3390/su15054690