Content, Cause, and Consequences of Job Insecurity: A Theory-Based Measure and Substantive Test (original) (raw)

1989, Academy of Management Journal

This research assessed the causes and consequences of job insecurity using a new theory-based measure incorporating recent conceptual arguments. We also compared the measure's reliability and construct validity to those of two existing global measures of job insecurity. Results indicated that personal, job, and organizational realities associated with a perceived lack of control are correlated with measured job insecurity. Job insecurity in turn leads to attitudinal reactionsintentions to quit, reduced commitment, and reduced satisfaction. These results generally support the utility of our new measure and provide important directions for future research. Organizations have been downsizing, restructuring, and merging with increasing frequency over the past decade. For employees, these major changes have caused feelings of anxiety, stress, and insecurity concerning the nature and continued existence of their jobs (Jick, 1985; Romzek, 1985; Schweiger & Ivancevich, 1985). Employees may have good reason to feel insecure. For example, Magnet (1984) and Walsh (1988) reported that relocation of employees and loss of jobs, status, benefits, and opportunities are common outcomes of mergers or takeovers. Jacobsen (1988) documented demoralization, suspicion, helplessness, and stress as reactions to a potential layoff. Other research has highlighted insecurity as a primary outcome of layoffs (see Brockner [1988] for a review). In response to these realities, unions have begun bargaining for contract clauses that ensure the long-term security of their members' jobs (Bolt, 1983; Cappelli, 1985; Hoerr, 1983). In turn, employers, who have historically underestimated the importance that employees place on extrinsic job factors such as security (Giles & Field, The authors would like to thank Len Greenhalgh, Michael Gordon, Jim Walsh, and two anonymous reviewers for their comments on an earlier draft of this article. Thanks also to Stephanie Creswell for her help in the data analysis. The Tuck Associates Fund partially supported this research.