Linking job insecurity to negative decision making: The mediating role of job tension

Abstract

Job insecurity has increased markedly in the developed economies of the world (Gray, 2002). The effects of job insecurity on individual employees and on organisational outcomes, however, are controversial. For instance, Greenhalgh and Rosenblatt (1984) point out that job insecurity can result in increased work effort, while Dekker and Schaufeli, (1995) argue that insecurity leads to stress and decreased performance. In this paper, we outline a study examining the indirect impact of job insecurity on decision-making, via job-related tension. Based on a web survey involving 217 participants, we found that job insecurity indirectly increased the adoption of negative decision-making strategies by increasing employees' level of job-related tension. Limitations and implications for theory and managers are also discussed.