THE EFFECTS OF TRUST CRISIS IN THE PROCESS OF ORGANIZATIONAL DOWNSIZING ON THE DIMENSIONS OF PSYCHOLOGICAL CONTRACT IN INSURANCE INDUSTRY

Abstract

Author(s): Sule TUZLUKAYA Erdem KIRKBESOGLU**

The aim of this study is to test the effect of organizational trust level in organizations in downsizing process on psychological contract level and types in insurance industry. Whereas studies testing the effect of organizational trust on psychological contract are found in organization literature, how these interactions would progress under unexpected conditions is left unanswered. In this context, a questionnaire was conducted on 235 workers who worked in a total ten insurance companies which were in the process of organizational downsizing and which didn’t go through any structural change. Results of the study, taking organizational downsizing into consideration, put forth that contrary to what is determined in organization literature that the organizational trust level doesn’t make the same meaningful effect on psychological contract’s sub-dimensions

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