Job Insecurity Frame of mind On Job Performance Job Stress Mindset Essay



The purpose of this research is to determine whether there exists a relationship between an individual's job insecurity attitudes that can lead to a reduction in the job performance using job stress as the mediator.


A questionnaire will be well prepared and used for conducting a survey that shall try to capture the job insecurity attitude, stress levels and the next decrease/ upsurge in the performance levels of a person. This questionnaire will be administered to the targeted IT industry and the result shall be analysed using the relating research tools. These will be the self-administered questionnaires.

Target Group

The goal group for our research is the Indian IT industry. This group considered is 20 - 50 years thus encompassing the different levels in the organisation.

Location of the Research

As the strategy of your research is a self administered survey, our research locations nearly spans the whole of India where the several IT hubs can be found.

Practical Implications

The functional implications of the research would entail the steps that the HR professionals in an organisation should take so that any factors that can cause job insecurity frame of mind are calm and the work performance remains at the perfect level.


The major restriction of this research is the impact of the recent macroeconomic conditions on the heavily review reliant research. Also, the lack of any available materials targeting this issue and the IT industry is an impediment to the exploration.


The IT industry is approaching of age. The need for information systems have been realised and tapped after internationally and India corporates also have awakened to the possibilities that this industry has opened to them. It has also led to the rise of the various IT companies in India specifically Infosys, Accenture, Tata Consultancy Services and many more. However, this has also resulted in several HR issues for the professionals of these company starting from acquiring and retaining the best expertise available majorly during the boom time and energy to the lay offs during the recession times. However the major impact of the growth period and the next drop has been a rise in an employee's panic and stress levels due to job insecurity that the worker experiences.

Being HR managers, the major role is to ensure that the task force that the organisation employs can perform to its optimum level so that the organisation benefits from it. Job insecurity has been referred to as insecurity resulting from danger to one's job continuity. Implied in this meaning is the view that job insecurity is an internal experience of the individual worker that is characterized by uncertainty when confronted with job risks. The intent of this research is to establish the interconnectedness of the aforementioned given parameters i. e. Job Insecurity in relation to Job performance via Job Stress.


Past studies have been done in a variety of sectors for learning the relationship between stress and job performance. A study exhibited strong support for the hypothesis that there surely is an inverse romance between job stress and job performance ( Rubina Kazmi, Shehla Amjad, Delawar Khan). The previous research on the relationship between your job stress and job performance advised that it can be discussed by an inverted-U theory (Muse, 2003). However, recent studies have indicated a poor linear relationship between stress and performance (Muhammad, 2007). Research has also been completed to get the effect of job insecurity on job performance. It proved that insecurity at work plays a part in worsened performance with withdrawal from the work as the extreme consequence (William D. Reisel, Swee-Lim Chia, Cesar M. Maloles, III).

Perceived Job Insecurity

There have been several managerial researches in which Job Insecurity becomes one of the central factors. There were several researches that show that job insecurity has been a part of complicated variety. An employee's way of expressing the fact that he feels insecure about job can be expressed through thoughts and emotions which can also lead to mental and physical effects and coping behaviors.

This can be an implicit patterns in the sense that nothing of the organizations across world can state that there company is free from Job Insecurity. There's been extensive advertising attention upon this phenomenon due to the reason that managers across the globe need to sustain competitive position and financial performance by restructuring and downsizing which leads to several changes in conditions of manpower planning. The doubt among workers exists across all organizations in every the ranks and jobs.

Since last a decade; this trend has intensified and therefore the necessity for clear understanding of ramifications of job insecurity on organizational performance has generated a growing body of research. (William D Reisel, Swee-Lim-Chia, Cesar M. Maloses, III, 2005)

It is also discovered that since previous 10 years organizations across earth have been facing, restructuring, downsizing and merging with almost doubling the characters over the past decade. Experts say that it is scheduled to these results that employees face emotions of insecurity, anxiety and stress which is concerned to the type and the prevalence of these factors in one's job.

Researchers have discovered several factors for example relocation of employees, lack of jobs, position, benefits, and opportunities are normal results of mergers or takeovers. They also recommend that demoralization, suspicion, helplessness, and stress are a reaction to a potential layoff. Other research has outlined insecurity as female end result of layoffs (Susan J. Ashford, Cynthia Lee, Philip Bobko, 1989)

The employee's experiences Job Insecurity which usually is thought as a combination of perceived risk. This perception could be regarding their job; sense of powerlessness to take care of the activities independently in an company.

Researchers declare that Job Insecurity in addition has been found to be a happening that is associated with illnesses and reduction in performance. The problems are physical as well as mental and the lowering is performance as well as decrease in occupational safety.

The work related stress reactions have been noticed as an end result of Job Insecurity.

These reactions concern decreases in mental well-being and job satisfaction, as well as higher examples of psychosomatic claims, and physical strains there were several evidences that lead to the final outcome that job insecurity is the cause of harmful potentials. Analysts during several years have conducted Meta examination that areas that Job Insecurity has been more strongly associated with mental health alternatively than physical health benefits (Sverske, 2002) Experts also declare that despite of the fact that there's been an association between job insecurity and staff health. The studies however have been uncertain in terms of strengths of these associations.

One more aspect that still has been uncovered by experts is extensively related to the probability of an association between job insecurity and negative safety outcome in the work framework. The "Job insecurity" has been identified as a contributor to the employees' degree of risk urge for food in the sense how open the worker is to accept risky actions.

Job Stress

Stress can be an inseparable part of today's life. Everyday an individual encounters one or the other difficult situation. The hazards of doubt, unemployment, increasing work-pressure, high prospects at work and different other factors can lead to stress. In fact, contemporary times have been called the "age of anxiousness and stress" (Coleman, 1976).

Selye (1936, 1956) identifies stress as a strong condition in which an individual is met with a chance, constraint, or demand related from what he or she desires and that the outcome is perceived to be both uncertain and important. Organizational stress in individuals is caused due to high performance expectations in the job. If the stress level is not well-managed it may have adverse influence on the performance of the average person. High degrees of unchecked and unmanaged occupational stress not only undermine the quality, productivity and creative imagination of the employees but also employees' health, well-being and morale (Calabrese et al. , 1987; Matteson and Ivancevich, 1987; Frese, 1985). The knowledge of office stress has been at the mercy of a large amount of research and desire for the topic shows no indication of waning (Johnson, 2005). As per American Institute of Stress, a 1999 federal government study indicated that the quantity of folks fearful of dropping their jobs got more than doubled over the past decade. It is very relevant in today's scenario as well; with the growing demands of the job in the IT sector there is certainly more stress to perform better. Some research has been done in the field of IT field about the stress levels experienced by the employees. Aziz (2003) investigated the prevalence of organizational role stress among Indian it and call centre employees, confirming high level of stress. According to a research conducted by (Tarafdar, 2007) the information and communication technology (ICT) related stress is inversely related to production.

Job Performance

Employee performance can be an essential aspect in the success of large firms and smaller businesses. Employees are the core of the company, and their collective frame of mind can greatly influence the direction and aim of any business plan. A significant element in bettering business performance is to improve employee drive and performance.

Job performance of a worker is affected by a whole lot of factors like the organizational performance, supervisor frame of mind, team composition, clearness about the duties and stress at job. Job stressors include role ambiguity, role overload, role discord, and learning resource inadequacy etc. With this study aftereffect of stress on employee's performance has been assessed. Employee's performance is also influenced by the individuals personality characteristics (M. Wright, K. Kacmar, G. C. Mcmahan and K Deleeuw). Complete research has been done by using supervisor's analysis of the worker performance using a 7 point likert range. In the study proposal, the have an impact on of the factors have been neglected and the concentrate of the research is on the impact of stress regardless of the employee's personality qualities.


Organizational scholars have discovered "Job Insecurity" as a particularly important varying for Research. The reason behind this is the existence of four recent phenomena that have led to upsurge in the level of job insecurity across organizations in United States.

The four different phenomena's are:-

The prolonged economic downturn beginning in the middle-1970s led to the highest rates of job damage since the Great Melancholy of the 1930s

An upsurge of mergers and acquisitions because the mid-1960s

Rapidly changing industrial structure-from a mostly manufacturing current economic climate to something economy

The development toward lessening union representation of the workforce

The upsurge in M& A has resulted to job reduction or a decrease in the comforts appreciated by a worker or the expectations of an employee from a job. The speedy change in professional structure has changed perception of majority of employees about the assumption of stability of these employers. The reduction in representation of union or lack of union which includes led to a rise in the numbers of employees that is susceptible to the consequences of unilateral decisions. Furthermore, workers react to job insecure; and their reactions have outcomes for organizational efficiency. (Leonard Greenhalgh and Zehava Rosenblatt, 1984)

However, some researchers are of the view that Immigration and Outsourcing.

Immigration and abroad outsourcing may lower job security for folks in certain occupations. For example, mobile call center positions in the information technology sector are increasingly being outsourced to India where the same tasks can be crammed at a lower cost.


The IT industry still being in its nascent stage, not much research has been done in this field.

Despite its increasing importance, job insecurity has yet to receive significant attention from organizational researchers. The variable has been included as a facet of job satisfaction in numerous studies; but few scales have been specifically developed to investigate the importance of the build per se (Leonard Greenhalgh and Zehava RosenblatT, 1984).

Also the prevailing strong occurrence of Job Insecurity as a topic of research in a variety of documents done by analysts, scholars and professionals; there however is missing some writers and their papers who can highly exemplify the work Insecurity within IT/ITes and specifically IT/ITes in India.

Most importantly, there's been awareness about job insecurity resulting in job stress and there's been research pertaining to job stress resulting in an impact on the job performance of the employees. However there has been no research that focuses on job insecurity being a leading element in drop in job performance with the linking cause being job stress.


Job Insecurity - Job insecurity according to the study model is the perceived insecurity that the worker undergoes which might be credited to factors like manpower planning, M&A and extraneous factors like downturn and micro and macro economical conditions. The job security is measured for the IT sector employees in India.

Job Stress - Job insecurity frame of mind added with factors like work insert, peer pressure, role ambiguity, role turmoil can lead to employee stress.

Job performance - If an employee struggles to cope with the strain factors then it might lead to drop in job performance which in severe circumstances might push the staff to leave the job. The perceived job performance of the employee also diminishes with a rise in identified job insecurity. This reduction in identified job performance by the worker himself can cause a decrease in the amount of his/her performance eventually.

Years of experience - Years of experience has a significant impact on perceived job insecurity. Job insecurity will not necessarily mean a person's threat towards dropping a job, but could also include conditions where the staff doesn't see certain career development and promotion in proportion to the time spent in the business. This moderator will help to assess employee's identified insecurity based on his total work experience.


Hypothesis appealing - The work insecurity attitude influences the work performance anticipated to job stress.

Null hypothesis - There is no relation between the job insecurity, job performance and job stress.


A self-administered questionnaire will be constructed and given to IT pros. This questionnaire will be a combination of the various scales used to measure the constructs under inspection. Specific scales to evaluate job insecurity, job stress and job performance would be taken from previous research. These scales would be put together into a questionnaire and the survey data would used to investigate the relationship between your research constructs. The study would be floated to employees working in IT industry. To investigate the effect of the moderator the prospective group would be divided into people with work experience significantly less than 5 years and the ones with more than 5 many years of experience. The ratio of lower level employees to the bigger level employees would be approximately 60:40.

Job Insecurity

The scale that is used here involves 5 items. The questions designed were specifically targeted towards perceived risk and worries of organizational change and downsizing. The questioners are developed to ensure that measurements related to perceived hazard have been covered, which runs from typical and stream of discussion of firm in meetings and available house debate to the backward, downward, related or unrelated integration which were conducted in the organization to the steps or the activities taken by the business will lead to liquidity or solvency of organization to the amount of incorrect information or negative promotion. It also includes whether any steps have been used by the firm to reengineer or restructure of the office have been done at the business(Fred Storseth, 2006).

Y1: People may lose their jobs scheduled to downsizing

Y2: Cutbacks are frequently discussed

Y3: Departments have been/may be merged

Y4: It is a risk for company closedown

Y5: Is there rumors regarding changes on a?

Job Stress

Measurement of Stress has been much debated, as to if it ought to be limited by the dimension of stress creating factors in the target conditions or on someone's reaction to them. However, according to North american Institute of Stress, stress is a very customized factor and varies in one person to another in the identical situations for different reasons. It is an individual's perception to the environment. Therefore, the range used for the way of measuring for stress is Perceived Stress Range (PSS) given by Cohen et al. It really is a measure of the amount to which situations in one's life are appraised as difficult (Cohen et al. 1983; Cohen and Williamson 1988). It was argued to give a conceptually better measure of appraised stress by an individual (Cohen 1986). The items were designed to tap how unstable, uncontrollable, and overloaded respondents find their lives. The range also includes a number of direct questions about current degrees of experienced stress. Stress is believed to result from experience overload, experience unpredictability and uncontrollability of occasions (Cohen, 1983). This content of the items is nonspecific and can be used to measure stress in virtually any context, with no inclination to a subgroup. Two items straight dwelling address "stress" or "hassles, " three refer to situations of overload, whereas nine items make reference to uncontrollable, unmanageable, or unpredictable situations. Thus, the PSS targets a more cognitive appraisal of stress and the respondent's identified control and coping potential. The questions in the PSS enquire about feelings and thoughts over the last month. Two variations of the range can be found, one for the brief duration analysis and another over a period. The short length of time one has the questions regarding the last month whereas the overall one over the last two years. For the research purpose the long period version of the PSS can be used.

The items on the level receive below

In the previous two years, how frequently have you been upset because of something that occurred unexpectedly?

In the last two years, how often have you experienced that you were unable to control the considerations in your life?

In the previous 2 yrs, how often have you felt nervous and/or stressed?

In the previous 2 yrs, how frequently have you dealt successfully with annoying life hassles?

In the last two years, how often have you sensed that you were effectively coping with important changes that were occurring in your life?

In the last 2 yrs, how often have you felt assured about your capacity to handle your individual problems?

In the previous two years, how often have you felt that things were going the right path?

In the previous 2 yrs, how often have you found that you could not cope with all the current things you had to do?

In the last 2 yrs, how often have you been able to control irritations in your daily life?

In the previous two years, how frequently have you experienced that you were together with things?

In the previous two years, how frequently have you been angered because of things that took place that were outside of your control?

In the last 2 yrs, how often have you found yourself thinking about things that you have to accomplish?

In the last 2 yrs, how often have you been able to control the way you spend time?

In the previous 2 yrs, how frequently have you felt complications were turning up so high that you could not beat them?

The responses are on a five point level from 0 = Never to 4 = Very Often

PSS scores are obtained by reversing reactions (e. g. , 0 = 4, 1 = 3, 2 = 2, 3 = 1 & 4 = 0) to the four favorably mentioned items (items 4, 5, 7, & 8) and then summing across all range items.

Job Performance

In the research, employee's performance has been measured utilizing a 10 item size developed by Patrick M. Wright, K. Kacmar, G. C. Mcmahan and K Deleeuw. The size steps the response over a 5 point size from Firmly disagree to strongly agree. The range has questions like "My work habits are great", "My supervisor is never disappointed in my own work" and the response would be stuffed by the employee.

Self reporting of performance by a worker has some problem because a worker always has a tendency to article improvement in job performance or no improvement in task performance regardless of actual improvements in job performance (Scott A. Beal, James L. Eubanks). The other solution to assess employee performance would be receiving employee's performance rating in the questionnaire but the evaluations and their individual meanings vary from organizations. If supervisor's view of the employee's performance needs to be taken then the concentrate on group would be constrained and it would be difficult to receive the survey loaded from a worker and his/her supervisor declining which the examination cannot be made. This technique will also make the research process highly complex. In the given context, using self-reporting scale looks like your best option.


The functional implications of the study mainly would be the many Human Tool tools that a director can utilise to be able to prevent a dip in job performance. As the IT industry is a relatively young industry in India and its own demographics are also more towards younger side in comparison to most of the other companies in India. Thus, the industry is growing at a rapid pace and will need an in successful labor force which can help preserve the momentum. Also, being truly a service industry, they have its success reliant on the workforce so it entails, and so a workforce that is focussed and active is exactly what the IT industry truly needs.

It is noticed that post any major macro economical conditions such as recession, depression etc. the perceived job insecurity amidst employees rises and this is the time to implement options to regulate this insecurity.

Also the subsequent employee stress levels should be monitored in order to make use of counsellors and other programs to help them ease their stress.

It also important to keep a check up on the employee's performance levels and in case there is a sudden dip in the performance levels, they should be alerted and provided assistance for the same.


There are several conditions that could work as limitations for the intended purpose of accuracy of the effect.

Recency effect of the sub-prime crisis and its effect on the Indian IT industry. Also the Satyam Fraud Case has influenced the reputation of the Indian IT industry. These factors can be considered a reason behind increased job insecurity attitudes in any way levels in the organisation leading to a timing bias.

As the research is based primarily on the home administered review, it is subject to and reliant on the responses obtained which may be forged.

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