Effects of job insecurity on job satisfaction, organizational commitment and turnover intention

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Date
2010
Authors
Suppayah, Maheswaran
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Abstract
Organizational change initiatives such as downsizing, represents some of the most profound (Gandolfi, 2008) and problematic issues facing modern-day corporations, nonprofit organizations, governmental agencies, and global workforces (Carbery & Garavan, 2005). Corporate restructuring, or simply `restructuring', is a relatively broad concept. Black and Edwards (2000), for instance, define restructuring as a major change in the composition of a firm's assets combined with a major change in its organizational direction and strategy. As a result of that, the perceived job insecurity is receiving increasing recognition as an important determinant of employee work behavior and attitudes. Empirical studies have shown that job insecurity are associated to many adverse reactions of the employees, in terms of reduced job satisfaction (Locke, 1976) and organizational commitment (Meyer & Allen, 1991).Turnover intention has been increasing when there is increase in the sense of insecurity at a job (Tett & Meyer, 1993). In this study, job insecurity has adapted as the fundamental model and extended by introduction other variables. Data was collected with a self-administered questionnaire from 110 respondents. Multiple regression analyses were performed to test the hypotheses posited in this study. The findings indicated that job insecurity has concurred with previous findings when it comes to job satisfaction and organization commitment but it has relatively flourished a new ideology when it came to turnover intentions. The xi findings also found that there is no significance between the total job dimension of job insecurity towards any of the dimensions in job satisfaction, organization commitment or turnover intention. Understanding the difference in result which due to the change in the trend of thinking from the sampled population, it provides better insights to what has transpired as results to organizations who are planning to practice downsizing during the recession.
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Keywords
Business Administration , Job Insecurity , Job Satisfaction
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