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Cultural influences on employee termination decisions:: Firing the good, average or the old?

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  • Segalla, Michael
  • Jacobs-Belschak, Gabriele
  • Müller, Christiane

Abstract

This paper reports the results of an empirical study of the cultural influences on the choice of who to terminate in a general workforce reduction. The authors report the conclusions reached during the first phase of a large European study on managerial decision-making. Nearly 300 managers participated in this phase, which surveyed 25 firms from the financial sectors of France, German, Italy, Spain, and the United Kingdom. Models built upon classical economic theory and social justice theory are examined. The results of this study indicate that nationality is a good determinant of the choice of whom to dismiss. Some nationalities are more concerned about the social effects of dismissal on the individual and work group. Others are more concerned about the economic benefits or costs to the firm. The authors conclude that human resource programs designed to standardize career management policy across Europe may fail because of intentional and unintentional barriers.

Suggested Citation

  • Segalla, Michael & Jacobs-Belschak, Gabriele & Müller, Christiane, 2001. "Cultural influences on employee termination decisions:: Firing the good, average or the old?," European Management Journal, Elsevier, vol. 19(1), pages 58-72, February.
    • Handle: RePEc:eee:eurman:v:19:y:2001:i:1:p:58-72
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    Cited by:

    1. O. Zeynep Akşin, 2007. "On valuing appreciating human assets in services," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(2), pages 221-235, March.
    2. Robert Tucker Omberg, 2020. "Alternatives to Paying Efficiency Wages: Why No PEOPLEFAX?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 35(Summer 20), pages 77-88.
    3. Bénédicte Reynaud & Arnaud Degorre, 2007. "Workforce reduction and firm performance: a comparison between French publicly-listed and non-listed companies, 1994-2000," PSE Working Papers halshs-00588011, HAL.
    4. Agnihotri, Arpita & Bhattacharya, Saurabh, 2015. "Determinants of export intensity in emerging markets: An upper echelon perspective," Journal of World Business, Elsevier, vol. 50(4), pages 687-695.

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