This study analyzed the impact of job insecurity on organizational effectiveness at small and medium manufacturing firms. It also studied an empirical analysis of whether employees` trust in manager and their self-efficacy have a moderating effect on ...
This study analyzed the impact of job insecurity on organizational effectiveness at small and medium manufacturing firms. It also studied an empirical analysis of whether employees` trust in manager and their self-efficacy have a moderating effect on the relationship between job insecurity and organizational effectiveness. To test the hypotheses, a survey targeting small and medium manufacturing firms in the Daegu and Gyeongsangbuk-do region was conducted and 238 responses were used in the actual analysis. The analysis results found that a high level of perceived job insecurity tends to decrease job satisfaction, a variable of organizational effectiveness, but it increases turnover intention. In addition, employees` trust in manager had no significant moderating effect on the job insecurity-satisfaction relationship, but employees` self-efficacy had a moderating effect. However, the opposite results were found when it came to the job insecurity-turnover intent relationship, indicating that the organizational and individual characteristics of moderating variables were reflected in the results even under such circumstances as job insecurity. According to the resarch results, it is necessary to be aware of the seriousness of employees` job insecurity in small and medium manufacturing firms, which have played a pivotal role in national economic growth, and create a detailed plan for reducing insecurity and actively implement it.