A Theoretical Framework for Organizational Politics During the Economic Downturn

Recent changes in the economy have altered both the internal and external operations of organizations. In response to the economic downturn, organizations have been forced to dramatically change their work practices and processes. Such practices inevitably create concern for employees as resources become more scarce, rewards and processes become more uncertain, and the marketplace becomes more competitive. To avoid these stressful situations and survive within their organizations, workers have to become more flexible and responsive. However, the specific ways in which the economic downturn will affect worker well-being has yet to be determined. In this chapter, we propose an integrative model of the politics– stress relationship and demonstrate the key role played by economic conditions.