Abstract
This study examines employees' perceptions of organizational politics (POP), distributive justice of performance appraisal (PA), and validity of layoff decisions in a work setting where downsizing had recently been implemented: Egyptian hotels. A total of 400 employees filled out self-administrated questionnaires analyzed using structural equation modeling (SEM). Findings suggested that low distributive justice of PA mediated the negative relationship between OP and validity of layoff decisions. A negative direct relationship was found between OP and validity of layoff decisions. This study contributes to the discussion on whether OP has a positive or negative influence in terms of the validity of human resources (HR) decisions. Results offer managerial insights into the risks that HR decision-making processes are exposed to in an environment with high OP and a low distributive justice.