The impact of a large-scale traumatic event on individual and organizational outcomes: exploring employee and company reactions to September 11, 2001

Abstract

Much of the literature on stress and organizational outcomes has focused on organizational factors and has ignored extraorganizational stressors that lead to perceived stress. However, research in other fields and recent studies in management suggests that acute-extraorganizational stressors, such as traumatic events, may have potentially negative and costly implications for organizations. This study tests a theoretical model of traumatic stress and considers the relationship between strain from an acute-extraorganizational stressor, the terrorist attack on September 11, 2001, and absenteeism. Using a sample of 108 MBA and MPA students, this study suggests that strain caused by an acute-extraorganizational stressor can have important consequences for organizations. Namely, employees who report more strain from a traumatic life event are more likely to be absent from work in the weeks following the event.