MANAGERIAL USE OF DISMISSAL: ORGANIZATIONAL‐LEVEL DETERMINANTS

Although much variation exists across organizations in the use of dismissal, little is known about the source of this variation. This study examines organizational-level determinants of the willingness of managers to attempt dismissal. Using survey data from HR managers, we measured organizational-level factors likely to be associated with the expected costs and benefits of dismissal. We then examined how these factors affect the willingness of line managers from corresponding organizations to attempt dismissal. As hypothesized, the results indicate that in most cases where threats to just cause were present, informal norms, disciplinary procedure restrictiveness, and appeal system characteristics all affected dismissal. Also, as was expected, where just cause for dismissal could unquestionably be established, dismissal was significantly influenced by informal norms but not by disciplinary procedure restrictiveness or appeal system characteristics. Finally, little consistent support was found for the hypothesized relationships between dismissal and human capital investment, performance pressures, monitoring costs, and labor market conditions.

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