Reactions to job insecurity in a declining organization: A longitudinal study

Using Greenhalgh and Rosenblatt's (1984) model as a framework, this study examined antecedents and consequences of perceived job insecurity in a declining organization. Two surveys were administered (21 months apart) to employees at a large automobile manufacturing plant. Tenure was found to be significantly related to perceptions of job security. Perceived job security was found to be negatively related to anxiety and depression and positively related to self-reported health. Both the relationship between tenure and perceived security and between perceived security and psychosomatic complaints seems to be moderated by dependence on the job. In addition to this, it appears that there may be a causal relationship between perceived security and psychosomatic complaints. There is some evidence that perceived job insecurity may lead to psychosomatic problems such as anxiety and depression. Further work in this area is necessary to determine the true nature of this relationship. Suggestions are given as to how both employees and organizations can better deal with threats to job security. Although this study helps to uncover some of the correlates of perceived job insecurity, there is still a great deal unknown about the way in which perceived insecurity develops and influences our health and well-being. Given the current concern and focus on job insecurity in the workplace, job insecurity promises to become a significant topic of research in the near future.