Insight into Termination Process in New Zealand: Productivity and Accuracy under the Threat of Job Loss
Due to current pressure of more dynamic and competitive nature of the surrounding environment increasing number of New Zealand employers engage in the termination process against their employees. Although, termination is a common performance management strategy, it has some adverse effects on employees and organisations and can result in unwanted lay-offs. To investigate the effects of the termination process on individuals' performance, 41 female and 39 male university students performed the
... nts performed the UAV visual search task for three 10-minute work sessions in either the productivity/accuracy prioritisation condition, or in the accuracy/productivity condition. Half the participants received fictional appraisal reports during work session breaks followed by dismissal warnings. As hypothesised, participants exposed to threat of job loss experienced more stress than subjects did not face lay-offs. Unexpectedly, this research showed no significant effects of greater stress on productivity and accuracy. An empirical support showed significant effect of prioritisation of these performance factors on individuals' response behaviours. Finally, there were no gender differences in stress or performance. These findings suggest the New Zealand termination process is likely to increase employees' stress, which could lead to a number of negative consequences. Practical and theoretical implications as well as potential limitations and considerations for further research are discussed as part of this research.