IMPACT OF JOB INSECURITY ON EMPLOYEE PERFORMANCE IN AN ORGANIZATION: A CASE STUDY OF POST BANK UGANDA,

ENTEBBE BRANCH

ABSTRACT

The study was carried out at Post Bank, Entebbe branch with the purpose of investigating the effects of job insecurity on employees’ performance in an organization. The research objectives were to identify the causes of job insecurity in an organization, to examine the consequences of job insecurity to employees in an organization and to establish the relationship between job insecurity and employee performance

The literature review was done basing on study objectives and a case study research design was used where both qualitative and quantitative approaches of data collection were adopted on 52 respondents using questionnaires and interview guides. Respondents were selected using stratified random and purposive sampling techniques.

The study found out that the causes of job insecurity in organizations were having inadequate skill, gender effects, the role of individual within the family, individual employee’s tenure on the job, size of firm, sector or industry type, pattern of employment legislation. The study found out the major consequences of job insecurity in organizations are psychological distress, lower self esteem, life dissatisfaction, spoiled marital and family relations, aggression, alcoholism and drug abuse. The study findings found out that job insecurity causes people to lose faith in their future which consequently affect performance, employees also become demotivated when they think they will become unemployed thus low productivity. The study also observed that employees’ productivity becomes low when they feel scared to lose their jobs and qualitative job insecurity reduces job engagement.

The study concluded that in organizations job insecurity has become a common and largely unavoidable phenomenon. Organizations demand their employees to be more energetic, dedicated, and engaged in their work than ever, even though it is increasingly difficult for organizations to promise permanent employment for their employees. The study found out that there is a strong positive relationship between job insecurity and employee performance at Pearson correlation coefficient r= 0.833. This implies that job insecurity affect employee performance by 88.3% and others factors by 11.7%. It was recommended that efforts should be made to by management in organizations to give employees the assurance that their job is secured and that the long-term survival of the organization is ensured. Also a periodic training session that focuses on equipping employees with skills on emotional intelligence should be initiated by the management of organizations.

CHAPTER ONE

INTRODUCTION

1.1. Background to the study

Globally, organizations face competitive environments fostering employment flexibility and triggering employees’ increased perception of job insecurity (Loi et al., 2011). The concept of job insecurity implies uncertainty about the future. It is therefore different from actual dismissal. Employees who are certain that they are going to lose their jobs can prepare for the future, while employees faced with job insecurity do not know what to expect. Thus, the concept of job insecurity has an underlying involuntary nature, producing a discrepancy between what employees wish for (i.e. certainty about the future of their employment) and what they get (i.e. uncertainty about their job future) (Sverke & Hellgren, 2002). Job insecurity puts employees in a situation in which their job future and all financial resources connected to it are uncontrollable and unpredictable (De Witte, 1999).

As posited by Kolawole, Ajani & Adisa (2013) job insecurity is the lack of assurance that an employee has about the continuity of gainful employment for his or her work, which might arise from the terms of the contract of employment, layoffs, or the general economic conditions. Reichter (2013) noted that the negative effect of employee job insecurity can be observed under two perspectives: From an individual perspective, when the health and well-being of employees may be negatively affected, and from an organizational perspective, in which work behaviors and attitudes may be affected negatively. Regardless of either of the perspectives, Chirumbolo (2005) pointed that job insecurity among employees can be detrimental both to the individual and the organization as a whole.

75% of the employees preferred to keep their jobs compared to other factors in their preference list (Towers Watson, 2010). This indicates that job insecurity is as important as the employees’ salary and healthcare (KPMG, 2010). Presently, the most important desire of every employee is to keep their jobs for as long as they wish. In this view, it implies that job insecurity has become the most determinant and key element influencing an employee’s decision on whether to join an organization or not (Towers Watson, 2010). Therefore, the crucial challenge facing the organization is not just to employ and retain workers but to ensure that employees are assured of their jobs for as long as they wish.

In the USA for example, it was reported that national job insecurity depended greatly on the economic and business conditions due to the capitalist system that encourages and promotes entrepreneurship development and minimal government intervention in businesses (Adebayo and Lucky, 2012). Even though, job insecurity in the USA tends to vary as a result of the economic factor, it is still believed that if the economy is good, firms will experience a sales boom and therefore lead to the creation of more jobs and consequently increases national job insecurity.

However, this might not be the cause in certain periods like economic slowdown or recession or economic chaos like that of Nigeria, as economic downturn seems to worsen the economy (Lucky, 2012; Minai and Lucky, 2012). The simple reason is that during this period, companies tend to reduce costs by laying off workers and this therefore decrease job insecurity (Adebayo and Lucky, 2012). In European economies, for example in Britain, job insecurity is found to be very low because many companies believed that it is much cheaper to fire permanent employees since employees are only entitled to a legal minimum of one week’s redundancy pay per year worked (one and a half weeks for workers over 40) (Adebayo and Lucky, 2012). However, in some other European countries many employees have indefinite contracts which, whilst not guaranteeing a job for life, make it very difficult for the employer to terminate an employee’s employment (Adebayo and Lucky, 2012).

The big picture for job insecurity is grim and doubtful due to dominance of some ethnic groups in most organizations (Hassan, 2010; Bumi, 2011). Another extreme is that    employees may decide to leave the organization if they are not the same ethnic group with the leadership of the organization (Towers Watson, 2010). The importance of job insecurity to Uganda employees cannot be underestimated. For instance, in the midst of economic crisis, Uganda employees rank job insecurity as their most important and crucial employment criteria (Towers, 2010).

The recent data provided by the global professional services company Tower Watson indicates that 11% of Uganda employees want to remain in their jobs. Therefore, to ensure effective performance, organizations have resolved to create a friendly environment by focusing on employees’ job insecurity, knowing fully well that employees perform better when they are assured of their jobs and this will be reflected in the overall performance of the organization (Towers, 2010).

Probst (2004) reported that job insecurity can lead to workplace injury and accident, the consequential financial cost of treatment, which can contribute heavily to the overhead cost of the organization. In another attempt to relate these two concepts together, Cheng & Chan (2008) pointed out that two meta-analyses on job insecurity found relations between job insecurity and the aspects of decreased job satisfaction, organizational commitment, trust, performance, job involvement, mental and physical health, which fosters absenteeism and increased turnover intention.

For Chirumbolo (2005) it was empirically discovered that the job insecurity of workers is negatively related to their job performance however, such relationship is moderated by their degree of satisfaction with the job, and level of organizational commitment. More precisely, job insecurity exhibited its negative influence on performance only in conditions of lesser job satisfaction and lesser organizational commitment. On the contrary, when job satisfaction and organizational commitment were sufficiently high, the influence of job insecurity on performance vanished. That is to say, regardless of job insecurity there is no difference in job performance rated by employees if job satisfaction and organizational commitment are high.

In Uganda, job security seems to be very low, according to Adebayo and Lucky (2012). The on-going bank re-capitalization has worsen employment situation as workers can just wake up and found themselves be relieved of their jobs without proper notification process. It is reported that the majority of the banks in the country, in an attempt to restructure their workforce, terminating out some of their staff, many are midway into doing so while the names of those to be affected are presently being compiled, Adebayo and Lucky (2012).This forms of job insecurity mainly arise due to the need by the banks and organizations to increase profit and reduce costs of operations. Even though Ugandans are just becoming aware of job security, they still rank job security as the most critical factor that tends to determine their choice of jobs, Marwick (2010). However, the multiethnic nature of the country seems to play major role in determining the employee’s job security in most organizations.

Post Bank Uganda is a non-bank credit institution in Uganda. Its activities are supervised by the Bank of Uganda, the country’s central bank and national banking regulator (BoU, 2015). Post Bank Uganda has been in existence since 1926 having started out as a department in the Post Office. In February 1998 Post Bank Uganda Limited was incorporated in accordance with the Communications Act of 1997 to take over the operations of the former Post Office Savings department. Post Bank Uganda was incorporated under the Companies Act in February 1998 as a limited liability company (Mugalu, 2014). Although, studies examining job insecurity and how it affects employee performance seem to be limited and scarce (Adebayo and Lucky, 2012; Ahmad et al., 2004), this therefore suggests that further study is required in this domain (Subramaniam et al., 2011).

In addition to the banking industry, Post Bank has witnessed the laying off or demotion of most qualified employees in order to minimize costs and maximize profits. However, this trend in the banking sector has devastating and long lasting effects on the well-being of affected bank employees. This is coupled with its effects on the organizational commitment and performance of those in the system arising from inability of bank workers to maintain positive attachment to modern work in the absence of security of employment. Thus, the growing interest in the ways in which workers adapt to what is now a normative situation, the jobs offered are only limited or no security thus, the major thrust of this research.

According to Geoffrey (2012); job insecurity has a significant effect on the overall performance of the team as well as on the organization’s performance. He noted that organizations with workers with low job security cause people to lose faith in their future which consequently affect performance. It has been affirmed that the more an employee enjoys higher levels of job security the more he is likely to effectively perform his task which is reflected in the overall performance of the organization. However, in conducting all the procedures to increase profitability, the bank has ignored the impact of such decisions on the socioeconomic livelihood of the employees. Therefore there was need to explore the impact of job insecurity on employee performance on the job as they continue to work for the organization with uncertainty of job continuity.

1.2 Problem Statement

While most previous studies have concentrated on the consequences of job insecurity from the individual and organizational perspective, little effort has been made to extend this concentration to the well being of the overall social environment Reitcher (2013). Despite the considerable theoretical and empirical progress that have been made regarding the health and organizational consequences of this phenomenon, its social and economic consequences on the larger society remains largely unexplored. Hence understanding the detrimental effect of job insecurity in a broader perspective that encompasses the societal, individual and managerial settings would be an interesting area of study thus, the study sought to examine the impact of job insecurity on employee performance in an organization.

1.3 Objectives of the Study

1.3.1 General Objective of the Study

To examine the impact of job insecurity on employee performance in an organization

1.3.2 Specific Objectives

• To identify the causes of job insecurity in an organization
• To examine the consequences of job insecurity to employees in an organization
• To establish the relationship between job insecurity and employee performance

1.4 Research Questions

• What are the causes of job insecurity in Post Bank Uganda, Entebbe branch?
• What are the consequences of job insecurity to employees in Post Bank Uganda, Entebbe branch?
• What is the relationship between job insecurity and employee performance in Post Bank Uganda, Entebbe branch?

1.5 Scope of the study

The scope of the study covered the content scope, geographical and time scope as explained below;

1.6.1 Content scope

The study covered the impact of job insecurity on employee performance in an organization using Post Bank Uganda, Entebbe branch as a case study.

1.6.2 Geographical scope.

The study was carried out at Post Bank Uganda, Entebbe branch which is located in Entebbe town.

1.6.3 Time Scope

The study analysed the period 2012-2016. This is because during this period, there has been high job insecurity in most organizations due to high unemployment rates among the youths.

1.6 Significance of the study

The government will be informed on how to make policies and regulations regarding job insecurity that will help protect employees in organizations.

To policy makers; the study findings will be of great benefit in formulation and implementation of policies related to job insecurity and also will highlight the problems organizations face due to non-performing employees.

The results of the study may also help other researchers who may be interested in doing further research in the same area of study. The findings of the study may also benefit students. The study also adds to the body of knowledge in the similar discipline by bridging gaps in job insecurity.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents a review of the related literature which was analyzed following specific objectives.

2.1 Job insecurity

Job insecurity is concerned with the possibility or probability of an individual keeping his/her job (Adebayo and Lucky, 2012). It deals with the chances of employees keeping their jobs in order not be unemployed (Simon, 2011). Jobs which are not backed by indefinite contract or cannot be guaranteed for reasonable period are deemed to lack job insecurity. It is also seen as the employees free from the fear of being dismissed from his/her present employment or job loss. Some professions and employment activities have greater job insecurity than others. Job insecurity is an employee’s assurance or confidence that they will keep their current job for a longer period as they so wish (businessdictionary.com). It is the assurance from the company or organization that their employees will remain with them for a reasonable period of time without being wrongly dismissed (Adebayo and Lucky, 2012; Simon, 2011).

Quite a number of factors such as employment contract, collective bargaining agreement, labor legislation and personal factors such as education, work experience, job functional area, work industry, work location, etc., play an important role in determining the need for an individual’s services and impacts their personal job insecurity (Adebayo and Lucky, 2012). In another extreme, essential or necessary skills and past experience required by the employers and subject to the current economic condition and business environment could also guarantee individual’s job insecurity (Adebayo and Lucky, 2012).

Generally, certain types of jobs like industry jobs have been perceived to have high job insecurity. Government jobs, educational jobs, healthcare jobs and law enforcement jobs are deemed to be very secure while on the other hand, jobs in the private sector are widely perceived to offer high job insecurity which may also be according to industry, location, occupation and other factors (Adebayo and Lucky, 2012). However, in the final analysis, Adebayo and Lucky (2012) noted that people’s job insecurity eventually depends on whether they are employable or not and if businesses have a need for their skills or not. Although, employment laws can offer some relief against unemployment risk, they only have a marginal contribution to the job insecurity of individuals. The fact remains that, individuals need to have the right skill set to have good job insecurity.

A survey conducted by KPMG (2010) on job insecurity found that more than 75% of participants considered job insecurity their top priority when searching for a job as a result of the uncertain economic environment. While the result also showed that 67% of the participants were likely to work in a public or non-profit organization than a corporate business due to the recession.

Accordingly, the study conducted by the University of Michigan’s Center for the Center for the Education of Women (2010) found that teachers such as professors desire greater job insecurity. The study noted that job insecurity will help them to balance work and their personal lives and reduce their level of stress, adding that freedoms in their jobs are worth sacrificing job insecurity. Similarly, the information provided by the University of Wisconsin-Madison in 2000 on staff job insecurity showed that about 22% of the academic staff only enjoy a high level of job insecurity, more than 40% of experienced staff (employees) with above seven years of service at the university had little job insecurity beyond renewable appointments while only 4% of the academic staff were sure of their job security.

According to Adebayo and Lucky (2012), bank recapitalization worsened the situation as workers could just wake up and find themselves relieved of their jobs without proper notification process. It was reported that the majority of the banks in the country, in an attempt to restructure their workforce, were terminating some of their staff, many were midway into doing so while the names of those affected were compiled (Adebayo and Lucky, 2012). For example, Diamond Bank PLC downsized its workforce by 500, First Bank also relieved 500 staff of their jobs while Intercontinental Bank also compiled the list of 200 staff that were terminated in December. At Bank PHB, the staff lived in fear as names of those to leave were compiled and Spring Bank relieved 300 staff their jobs (Adigun, 2009). Thus, they did not have any notification that they were going to be terminated. The majority of them came to work and were surprised to receive termination letters without due process (Adebayo and Lucky, 2012). There are no doubts that all these declining economic activities contributed to low job security in Nigeria. All these put together indicated that there was low job security in Nigeria (Adebayo and Lucky, 2012).

In Malaysia, a different scenario seemed to exist. Even though Malaysians were just becoming aware of job insecurity, they still ranked job security as the most critical factor that tends to determine their choice of jobs (KPMG, 2010). However, the multi-ethnic nature of the country seemed to play major role in determining the employee’s job insecurity in most organizations.

2.2 Organizational performance

A number of authors have pointed out the problems or difficulties in defining/conceptualizing and measuring the concept of performance in general including some of its terms such as organizational performance (Hashim, 2008). Hence, there has been some sort of disagreement among authors, researchers and practitioners with regards to how best to conceptualize/define and measure organizational performance (Hashim, 2008; Lenz, 1980). According to Hashim, 2008; Lucky and Minai, 2011), this problem could be linked to either too many objectives to be achieved, or too many different objectives or lack of clear and concise objectives in organizations. For instance, in a situation where an organization is faced with various stakeholders’ objectives such as those of directors, managers, employees and customers. Generally, organizational performance is designed to measure how well an organization was able to achieve or attain its objectives. According to Lenz (1980), organizational performance is defined as the organizational achievement with regards to some criteria. It is a measurement or indicator for evaluation and assessment of organizations (Lucky, 2011). It reveals the strengths and weaknesses of the organization and what we want to measure. In an organization for example, it helps to ascertain the current situation of an organization, whether the organization is doing well or not. At a point, it reveals the efficiency and effectiveness of an organization and therefore supplies information whether an organization is successful or will fail at a particular point in time (Lucky, 2011). In another dimension, Jermias and Setiawan (2008) and Samson et al. (2012) noted that performance measure provides information for the following; planning, investigating, coordinating, evaluating, supervising, staffing, negotiating, profitability and organization overall performance. These indicators are well related to organizational performance and deeply related to the human resources domain. Chew and Sharma (2005) and Akinyele (2007b) provided performance indicators such as efficiency, internal liquidity, strategic human resources effectiveness, profitability and leverage.

Furthermore, Anthony et al. (2007) fervently warned that organizations should be very careful in selecting a method of assessing performance. They noted that every task should be measured according to its suitability and fit. In other words, this can be further interpreted as, for every task should be in conformity with its performance measurement system. He argued that whatever performance measures an organization uses, it has some sort of impact or effect on the employee’s motivation and performance. This is consistent with Tangen (2005) who argued that any performance measure that is designed for the purpose of measuring performance should be designed in such a way that it would show all the essential factors that are capable of influencing the productivity of the different process that the company posses. Therefore, if the organization decides to select any performance measure without due attention, a situation of noncongruent behaviours is likely to arise in the organization, thus leading to some sort of conflict and demotivation of the employees. Consequently, this would lead to employee’s poor performance. As a result of some the problems which are anticipated and capable of destroying the organization, a new way of measure is therefore suggested. This has to use a mix of performance measures or called it multiple performance measure. This paper opts for multi-dimensional performance measurement of both financial and non-financial measures.

2.3 Relationship between Job insecurity and Employee performance

According to Geoffrey James, job insecurity has a significant effect on the overall performance of the team as well as on the organization’s performance (James, 2012). He noted that organizations with workers with low job security cause people to lose faith in their future which consequently affect performance. He affirmed that the more an employee enjoys high job security the more he is likely to effectively perform his task which is reflected in the overall performance of the organization. For example, in organizations, tasks are normally broken down into jobs which are assigned to each employee. Each of the jobs performed by the employees is assessed through individual performance. This individual performance is part of the overall organizational performance. The employee’s individual performance through his job is directly linked with the overall performance of the organization. Therefore, since their performance is linked to organizational performance, their contributions would be less and ineffective if they feel low job security in the organization.

For instance, low job security is possible in a situation where a particular employees’ ethnic group seems to dominate other ethnic groups in some organizations or industries (Bumi, 2011; Hassan, 2010). In this case, the minority employees in that company would feel low job insecurity and therefore may not be able to perform effectively. For example, a Chinese owned company may be dominated by more Chinese employees other than other ethnic groups (Bumi, 2011; Hassan, 2010) thereby causing fear of losing their jobs to other minority employee ethnic groups in the company and vice versa. Therefore, Malay and Indian employees working in a Chinese company may feel very low job insecurity and thus, contribute very little to the organization while on the other hand, Chinese and Malay working in an Indian company would also feel high job insecurity which would also affect their performance. Based on the different scenarios above, an employee working in a company other than his race may definitely feel high job insecurity and this would affect his/her performance which is reflected in the overall performance of the organization. Based on this, it can be argued that organizations should find a way of balancing between employee job insecurity and the organizational performance as employee job insecurity is a key determinant of organizational performance especially in a multi-ethnic environment.

Despite all these, the most recent study conducted by Subramaniam et al. (2011) on the linkage between human resource practices and organizational performance of small and medium firms (SMEs) in Malaysia provided a different result. Although, job insecurity was considered as a dimensional or sub variable, it was found that job insecurity was not significantly related to organizational performance. However, the study noted that SMEs seem not to consider job insecurity as a viable strategy due to the fact that employees tend to give less attention to job insecurity in searching for a job. From the ongoing, there is no doubt that more literature is required in this domain.

2.4 Causes of Job Insecurity

According to Erlinghagen (2007) the drivers of job insecurity can be classified under two categories: micro or individual factors (education, income, age, gender, family role expectation, size of firm, type of industry), macro factors (legislation, standards, economic environment etc.)

As posited by Erlinghagen (2007) individual resources, which have a positive or negative influence on his/her marketability should influence their perception of their own job insecurity to a considerable degree. This is to indicate that the relevant skills, experience and knowledge about the job as perceived by employees can act as a determinant of feelings of job insecurity. For instance a highly resourceful employee with relevant skills and experience might likely feel less insecure on the job as a result of the beliefs that his is highly employable and has various other alternative employment opportunities. Thus, having inadequate skill set has been identified as a precursor of job insecurity feelings. By corroborating this submission, Nickel and Bell (1995) said that the relatively bad employment situation of older people and unskilled workers should mean that job insecurity among these groups is also greater.

Regarding gender, Gronau (1977) argued that gender effects arising out of still existing role differences, gender-based specialization and the associated statistical discrimination against women on the job might make female to be more vulnerable and therefore have higher feelings of not being secure on the job. The role of individual within the family has also been identified as a relevant driver of job insecurity. In the opinion of Erlinghagen (2007) this can be divided into the degree of individual financial contribution to the family and the availability or non availability of children. For instance, it can be assumed that increases in the financial commitment of an individual to the family would likely have a corresponding positive impact on his/her job insecurity. This assumption can also be extended to the presence or absence of children responsibility by concluding that couples with children responsibility are likely to have more financial commitment and thus, react more to a potential job loss situation of threatening job conditions.

Another micro factor that could have a link to job insecurity by Erlinghagen (2007) is individual employee’s tenure on the job. He reasoned that the longer individuals remain with the same employer, the safer they should be from dismissal, and the less perception of job insecurity they are likely to experience vice versa. Some of the reasons that can be attributed to this are trust developed from a long term relationship (Rosen, 1985). And special legal regulations protecting employees with many years’ tenure (OECD 2005). However, he admitted that such situation depended on the peculiarity of the employee by saying that employees who had changed employers frequently and therefore have shorter job tenures do not necessarily feel any more insecure as a result of their extensive experience in the external labor market which had led them to perceive frequent changes of job as a normal situation that simply had to be managed rather than a threat.

From this, we could infer that the relationship between feeling of insecurity on the job and employment tenure seems to be moderated by the job stability of an individual. However, Contrary to the submission by Erlinghagen (2007), Belot and Ermisch (2006) posited that job insecurity might likely increase with a higher years of experience on the job. This, he attributed to the fact that since long serving employees are normally entitled to higher pay and entitlement, the thought of losing out on such privilege might have a pronounced effect on them than it is for newly recruited employees who had less entitlement.

In addition to the job tenure of employees, another factor that had been identified is size of firm and sector or industry type. Here, it is argued that firms with large size would tend to have enormous material and financial resources which might enable them to withstand any form of environmental pressure such as economic, political and technological shocks and thus, ensure operational stability over time, which would in turn reduce the rate at which employees would tend to think of potential organizational dysfunction and future job loss as a possibility. Similarly, those employees whose firms’ operational activities were seasonal in nature are more likely to have a higher feeling of insecurity on the job (Erlinghagen, 2007).

At the macro level, Erlinghagen (2007) identified two major factors which are the pattern of employment legislation and the scope of the state social protection system. He reasoned that within the labor markets that are characterized by stringent regulations against the retrenchment of workers, such society would tend to have a lower rate of objective job insecurity and hence a lower feeling of future job loss among employees. Similarly, a society that was characterized by high social security and support for citizens was likely to have a lower level of job insecurity in the sense that since the unemployed are usually provided for in such society, the fear of losing a present job, and its associated economic benefits might not be so evident on the employees. Thus, a loose labor law which does not ensure that the right of employees are adequately protected, and poor administration of social benefits would likely result in a higher job insecurity among employees.

2.5 Consequences of Job insecurity

Since an employee’s job insecurity can be liken to a situation that arises when there is a discrepancy between a worker’s expectations regarding his job, and the actual situation regarding the job itself, it could thus be reasonably deduced that job insecurity is a form of occupational stress. As confirmed by Ashford, Lee & Bobko (1989) higher feelings of job insecurity were found to correlate with poorer mental and physical health, psychological distress and burn out (Probst, 2002), worse psychological moods (Burke, 1998), lower self esteem (Kinnunen, Feldt & Mauno, 2003), life dissatisfaction (Lim, 1996), spoiled marital and family relations (Hughes & Galinsky, 1994; Westman, Etzion & Danon, 2001). Similarly, Stoner & Perrewe (2006) identified the symptoms of anxiety and depression as major outcome of this phenomenon. As highlighted by Jones, Kinman, & Payne (2006) job insecurity can lead to self destructive social vices as aggression, alcoholism and substance abuse.

The various health related problems that are associated with job insecurity, are cardiovascular and coronary heart disease (Lee, Colditz, Berkman, & Kawachi, 2004). Atherosclerosis (Hintsanen, 2006), dryness of throat, and overproduction acid gastric (Safaria, Outhman & Wahab (2010), body mass index, excessive sleep (Ferrie, Shipley, Marmot, Stansfeld, & Smith, 1998), and psychological morbidity among white collar workers Ferrie, Shipley, Marmot, Stansfeld, Davey, 1998). Other symptoms are decreased natural cell activity (Morikawa et al., 2005), internal fatigue (Friesen et al., 2008), arrhythmogenesis (Qureshi, 2001), and short menstrual cycle with women (Fenster et al, 1999). It has also been discovered that it significantly correlated with somatization, anxiety, anger/hostility, depression, and inter-personal sensitivity (Kuhnert & Palmer, 1989).

As being noted by Reitcher (2013) job insecurity could lead to increased strain and decreased well-being for an individual. This was complemented by (De Witte et al., 2010) who submitted that both the two facets of job insecurity (both quantitative and qualitative) can lead to serious negative outcomes which can include increased emotional exhaustion, depersonalization, psychological distress, psychosomatic complaints, and decreased personal accomplishment.

Also, the submission by Cooper & Melhuish (1980) confirmed this by pointing that it could result in psychosomatic problems such as headache, fatigue and insomnia, feeling of anxiety and depression while Gazzaniga & Heatherton (2003) also posited that workers’ responses to the stress of job insecurity in the shorter term could be emotional (anxiety, tension, life dissatisfaction), physiological (elevated heart rate, increased catecholamine secretion) and behavioral (drug use, absenteeism, lack of concentration), while in the longer term, they admitted that the accumulation of these responses could result in more permanent and manifest adverse consequences for mental and physical health. Similarly, Cremer, & Siegel, (1990) argued that a direct link exists between job insecurity and the increased occurrence of ischemic heart disease.

According to Brockner, Tyler, and Schneider (1992) and De Witte and Naswall (2003) an insecure workforce could pose problems for firms since insecurity may as well cause employees to identify less with corporate objectives and may impact adversely on motivation and willingness to innovate and hence on their individual productivity. As pointed by Ashford et al. (1989) perception of job insecurity had a direct link with employee’s pronounced turnover intention most especially when many viable opportunities exist outside the firm. Further, Greenhalgh and Rosenblatt (1984) admitted that such situation of increased intent to quit results in a situation, whereby the most productive employee ends up being the first to quit because of their high employability which, in addition to reduced motivation, can also jeopardize a company’s productivity and competitiveness (Sutton, 1983).

Størseth (2007) uncovered that job insecurity was associated with increased risk taking and rule breaking behavior on the job. They found that such association was being mediated by lower job satisfaction and decreased job motivation implying that higher job insecurity would lead to lower job motivation and decreased satisfaction with the job, which would consequently lead to various forms of organizational rebellious behavior.

2.6 Conclusion

This study explored the connection between job insecurity and employee performance. It looked into how employee’s job insecurity contributes to the organizational performance. It was observed that the economic pressure had pushed job insecurity to the top priority list of the employees, making it a significant and crucial factor to be considered by the employees when making decision about the organization they want to work with. The multi-ethnic composition of an organization also can have a strong impact on job insecurity. Despite the inconsistent result of the previous studies, it is argued here that job insecurity has a significant effect on the overall performance of a team as well as on the organizational performance. We further argue that the more an employee enjoys high job security the more he is likely to effectively perform his task which is reflected in the overall performance of the organization. It is hoped that the arguments presented in this paper would be of immense benefit to the owner-managers, practitioners, organizations and researchers. Finally, it is suggested that further investigations on other directions of job insecurity should be done in order to help build this area of research.

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter presents the research methodology which include; Research design, study population, study area, instruments of data collection, data processing, Study  instruments, sources of data and data  analysis.

3.1 Research design

Thornhill et al (2003) defined a research design as a general plan on how the researcher plans to answer the research question. Specifically, the case study was used. A case study is an empirical enquiry that investigates a contemporary phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident and it relies on multiples sources of evidence (Yin, 1994). Case study research investigates pre-defined phenomena but does not involve explicit control or manipulation of variables: the focus is on in-depth understanding of a phenomenon and its context (Miles & Huberman, 1994). Case studies typically combine data collection techniques such as interviews, observations, questionnaires, and document and text analysis. Eisenhardt (1989) posits that Case study strategy focuses on understanding the dynamics present within a single settings. A case study research design, combined with both quantitative and qualitative methods was used for this study. According to Baron (2011), qualitative research design helps to capture qualitative data, based on qualitative aspects that may not be quantified. It aids in discovering the motives and desires or what people think and how they feel about a given subject or situation. This method involves an unstructured approach to inquiry and allows flexibility in all aspects of the research process. It is more appropriate to explore the nature of a problem, issue or phenomenon without quantifying it. While quantitative research is the systematic empirical investigation of observable phenomena via statistical, mathematical or computational techniques (Mugenda & Mugenda, 2003). According to Silverrman (2001), quantification gives greater confidence in the accuracy of conclusions derived from qualitative data; and it gives the reader a chance to think through the data on their own to cap on the researcher’s findings. The research used this method because it produces information only on the particular cases studied.

3.2 Study Area

The study was carried out at Post Bank Uganda ltd, Entebbe Branch. The firm is located in Entebbe municipality, Wakiso district. The selection of the study area was because of the easy accessibility.

3.3 Study population

Study population is a complete set of individuals, cases or objects with some common observable characteristics. The sample population consisted of 35 employees and 25 customers of Post Bank Uganda ltd. The population included employees from various departments in the bank, customers and other employees holding familiar and unfamiliar titles but are deemed to be suitable stakeholders for generating relevant data to the problem which was under investigation.

3.4 Data type and sources

Data was collected from both primary and secondary sources.

3.4.1 Primary data

Primary data is data observed or collected directly from first-hand experience. Primary data was collected by use of questionnaires and interview guide.

3.4.1 Secondary data

Secondary is data published and collected in the past or other parties. Secondary data was collected from published journals, reports, text books, and company records.

3.5 Sample Size, Selection and Procedure

The sample size consisted of 52 respondents from the study area. It was determined based on the Krejcie and Morgan’s sample size calculation which is the same as using the Krejcie and Morgan’s sample size determination table. The sample size determination Table 3.1 was derived from the sample size calculation which is expressed as the equation below (Krejcie and Morgan, 1970). The Krejcie and Morgan’s sample size calculation was based on p = 0.05 where the probability of committing type I error is less than 5 % orp <0.05.

S=

Where,

s = required sample size.

X²=the table value of chi-square for 1 degree of freedom at the desired confidence level (0.05 = 3.841).

N = the population size.

P = the population proportion (assumed to be 0.50 since this would provide the maximum sample size.

D = the degree of accuracy expressed as proportion (0.05).

Table 3.1: Sample Size Composition

Adapted from Krejcie, R.V & Morgan, D.W (1970)

The study used a sample size of 52 respondents because it was enough to obtain reliable information. In addition, it helped the researcher to finish her study in time.

Simple stratified random sampling was then used to select samples from the population strata. It’s a method in which the population is divided into a number of divisions and a sample is drawn from division and such sample makes us the final sample. This technique was employed since it eases the making of proportionate samples, and therefore meaningful comparisons between homogeneous sub-groups (Zikmund, 2003).

The study also employed purposive sampling technique. Silverrman (2001), purposive sampling involves deliberate selection of particular units of the population for constituting a representative sample. It involves convenience and judgemental sampling. Under judgemental sampling, the researcher chose the sample based on who she thought would be appropriate for the study while convenience sampling rose where the population elements were selected for inclusion in the sample based on the ease of access. The researcher used purposive sampling because it saves time, money and effort. It is flexible and meets multiple needs and interests. It enables researchers to select a sample based on the purpose of the study and knowledge of a population.

3.6 Data collection methods and instruments

3.6.1 Questionnaire method

The researcher used the questioning method whereby she drafted to respondents structured questions. This method was used because some respondents may have no time to sit down and answer during interviews.

A questionnaire was used and this was in form of close ended in nature and this allowed the study respondents to fill the questionnaire in the study field. The questionnaire method of data collection was used because of being cheap and that the method collects responses with minimum errors and high level of confidentiality.

3.6.2 Interview method

An interview is a conversation where questions are asked and answers are given. Interview refers to a one-on-one conversation with one person acting in the role of the interviewer and the other in the role of the interviewee.

An interview guide was drafted with a set of questions that the researcher asked during an interview and this was structured (close ended) in nature. Interview guide was used by the study since the method helps in the collection of more data as it allows the interaction of both the researcher and the respondents.

3.7 Data collection procedure

The study observed all procedures followed in research. Using the letter of introduction obtained from the Research Coordinator, Economics and Statistics, the researcher was introduced to every respondent reached at, fully explaining the purpose of research. After getting their consent, she set a program with the respondents on when the questionnaires was administered and date for the interview sessions was set. The researcher also built the confidence of the respondents by assuring them that their views were confidential and were used only for academic purposes.

3.8 Validity and reliability of research instruments

3.8.1 Validity

Validity can be defined as the degree to which a test measures what it is supposed to measure. There are three basic approaches to the validity of tests and measures as shown by Mason and Bramble (1989). Law &Kelton (1991) suggested that if a questionnaire model is “valid”, then the decision made with the questionnaire model should be similar to those that would be made by physically experiencing with the system. In order to ensure validity the questionnaire was made clear and understandable, the questionnaire was first discussed by the researcher with the supervisor; this included careful choice of words, order and structure of questions. After receiving the questionnaires, manual editing was done, followed by coding. Frequency count of different provisions was done and this gave the number of occurrences and percentages out of total occurrences for different responses. And lastly simple conclusions were drawn from the given percentages and numbers.

3.8.2 Reliability

According to Mugenda et al. (2003), reliability is the degree to which a measure is consistent in producing the same reading or results when measuring the same thing at different times. Reliability is influenced by random error, that is, as random error increases, reliability decreases. The random error is the deviation from the true measurement due to the factors that have not effectively been addressed by the researcher. Mugenda study indicated that the questionnaire has to be well structured to achieve the purpose of the research thereby meeting the test of reliability. The reliability of the research instruments was tested through a pre-test.

3.9 Data analysis

3.9.1 Qualitative Data

Data processing involved editing raw data to detect errors and omissions, classifying data according to common features, and tabulation to summarize and organize it. Data analysis involved the qualitative approach of identifying the major themes arising respondents’ answers; assigning of codes to the themes: classification of the themes under the main theme; and integrating the responses into the report in a more descriptive and analytical manner.

3.9.2 Quantitative Data

Manual editing of questionnaires was done to eliminate errors. After coding, tabulation was done to clearly present various responses and the interpretation. Frequencies and percentages were used to portray statistics used to analyze and interpret the findings of the study. Data analysis was done using; correlation analysis to establish the relationships that exist between the variables. For ease of analysis, procedures within Statistical Package for Social Sciences (SPSS) were used.

3.10 Data Presentation

Presentation of data involved use of tables, pie-charts and graphs that were generated from the questions relevant to the study variables. Interpretation and discussion of the results was done as the researcher explained the strength of the study variables basing on the frequencies and percentages, charts and graphs.

3.11 Ethical Considerations

The researcher collected data upon seeking respondents’ consent after revealing the type of information needed and the purpose to avoid potential concealment of vital information.

The researcher also maintained confidentiality of respondents’ information; and reported the true findings of the study without any bias.

The data used in this study which was not my own was acknowledged.

3.12 Limitations and delimitation of the Study

The researcher faced a problem of some respondents not providing information for the study as information relating to the study variables, however to this, she explained to them that the information was only for academic purposes while making them to understand the study variables and she also did extensive reading of available literature.

Another limitation was the scarcity of recent literature relating to the impact of job insecurity on employee performance due to lack of text books in the library. However, the researcher sourced information from the internet, newspapers and previous reports.

The study was expensive in terms of stationery. However the researcher mobilized funds from her friends and family members for the study to be completed successfully in time with the help of her supervisor.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF STUDY FINDINGS

4.0 Introduction

The study looked at the effect of job insecurity on employee performance. The findings from the study were presented and analyzed orderly based on the formulated study objectives. This was made possible with help of computer packages MS word, SPSS and Excel where by tables, graphs and pie-charts were generated.

The chapter begins by presenting the biographic characteristics of respondents in terms of gender; age, education levels, department, position and period of time spent in the organization. The study there after discusses findings as per the formulated objectives of the study.

4.1 Background information of the respondents

Under the gender distribution of respondents, the study was delighted with both male and female respondents as shown in below;

4.1.1 Gender of Respondents

The study sought to identify the gender of respondents. Responses were obtained from both female and male as presented in figure 4.1 below;

Figure 4.1: Gender of Respondents

Source: Primary Data

According to figure 4.1 above, majority of respondents (63%) were female while 37% were male. This implies that the organization employs both female and male however, more priority is given to female.

4.1.2 Age bracket of Respondents

Respondents were required to indicate their age. Responses were obtained from respondents who were less than 20yrs, 20-24yrs, 25-29yrs, 31-34yrs, 35-39yrs and 40yrs and above as presented in table 4.1 below;

Table 4.1: Age bracket of Respondents

Source: Primary Data

From the table 4.1 above, (17.3%) were below 20, (15.3%) were in the age bracket of 20-24years, 21.2% of the respondents were between 25-29years, 7.7% of the study respondents were between 31-34years, 28.8% of the respondents were in the age bracket of 35-39years and 9.6% of the respondents were 40 years and above. From the study, majority of the respondents were in the age group of 35-39 years. This can be explained by the fact that it’s mainly the adults in this bracket that are employed.

4.1.3 Level of education

Respondents were required to indicate their levels of education. Responses were obtained from respondents as presented in figure 4.2 below;

Figure 4.2: Level of education

Source: Primary Data

From figure 4.2 above, majority of respondents constituting 46.67% were diploma holders, 28.33% of them acquired degree, 25% of the respondents had acquired secondary level and no study respondents had masters. This justifies that the organization employees are highly qualified human resource to fill the positions of the organization, employees who are capable of sustaining human resource management which implies that the selected sample had the capacity to avail the researcher with reliable and appropriate information on the topic under study.

4.1.4 Period spent in the organization

Study respondents were required to state the period spent in the organization. The following results were obtained as presented below;

Figure 4.3: Period of time spent in the organization

Source: Primary Data

From figure 4.3 above, (26.67%) of the respondents revealed they had worked at Post Bank for a period of less than 1year, (71.11%) indicated 1-4years and (2.22%) of the respondents revealed 5years and above. Majority of the respondents had spent 1-4years in this organization. This implies that the organization does not over retain employees.

4.2 Causes of Job insecurity

The study sought to identify the causes of job insecurity at Post Bank. Various responses were obtained and are presented in the table 4.2 below;

Table 4.2: Causes of Job insecurity

Source: Primary Data

Table 4.2 above shows that, (61.5%) of the respondents agree with having inadequate skill as the main cause of job insecurity, (32.7%) strongly agree, while 3.8% of the respondents were not sure, 1.9% of them disagree and no respondents strongly disagree. This implies that majority of the respondents agree. This is because a highly resourceful employee with relevant skills and experience feel less insecure on the job as a result of the beliefs that his is highly employable and has various other alternative employment opportunities. This is in line with Erlinghagen (2007) who argued that individual resources, which have a positive or negative influence on his/her marketability should influence their perception of their own job insecurity to a considerable degree. This indicates that inadequate relevant skills, lack of experience and knowledge about the job as perceived by employees can act as a determinant of feelings of job insecurity. Thus, having inadequate skill set has been identified as a precursor of job insecurity feelings. Related by Nickel and Bell (1995) observed that the relatively poor employment situation of older people and unskilled workers means that job insecurity among these groups is also greater.

Results from the table 4.2 also indicate that (46.2%) of the respondents strongly agree with gender effects arising out from existing role differences as the main cause of job insecurity, (26.9%) agreed, (15.4%) disagreed, (9.6%) of the respondents strongly disagreed and 1.9% of the respondents were not sure. This implies that majority of the respondents agreed. This is true because gender-based specialization and the associated statistical discrimination against women on the job might make female to be more vulnerable and therefore have a higher feelings of not being secure on the job. This agrees with Gronau (1977) who argued that gender effects arising out of still existing role differences, gender-based specialization and the associated statistical discrimination against women on the job might make female to be more vulnerable and therefore have a higher feelings of not being secure on the job.

Findings as presented above indicate that, (36.5%) of the respondents strongly agreed with the role of individual within the family as the main cause of job insecurity, (23.1%) agreed, 5.8% of the respondents were not sure, (21.2%) of them disagreed and (13.5%) strongly disagreed. This implies majority of the respondents were positive. This is because increases in the financial commitment of an individual to the family will likely have a corresponding positive impact on his/her job insecurity. In the opinion of Erlinghagen (2007) this can be divided into the degree of individual financial contribution to the family and the availability or non availability of children. For instance, it can be assumed that increases in the financial commitment of an individual to the family will likely have a corresponding positive impact on his/her job insecurity. This assumption can also be extended to the presence or absence of children responsibility by concluding that couples with children responsibility are likely to have more financial commitment and thus, react more to a potential job loss situation of threatening job conditions.

Results in table 4.2 above also indicate that (25%) of the respondents strongly agreed with individual employee’s tenure on the job as a cause of job insecurity, (21.2%) agreed, (17.3%) were not sure, (15.4%) disagreed and (21.2%) strongly disagreed. This implies that majority of the respondents were positive. This is because the longer individuals remain with the same employer, the safer they should be from dismissal, and the less perception of job insecurity they are likely to experience. This is in agreement with Rosen (1985) who stated that the trust developed from this long term relationship has a direct bearing on the employees’ job security in an organization.

Results in table 4.2 above reveal that (40.4%) of the respondents strongly agreed with size of firm as a cause of job insecurity, (1.9%) agreed, 26.9% of respondents were not sure, (19.2%) of the respondents disagreed and another (11.5%) of the respondents strongly disagreed. This implies that majority of the respondents were positive. This is because firms with large sizes would tend to have enormous material and financial resources which might enable them to withstand any form of environmental pressure such as economic, political and technological shocks and thus, ensure operationally stability over time, which in turn reduce the rate at which employees tend to think of potential organizational dysfunction and future job loss as a possibility. This is supported by Erlinghagen (2007) that employees whose firm’s operational activities are seasonal in nature are more likely to have a higher feeling of insecurity on the job.

The results in Table 4.2 above shows that (69.2%) strongly agrees with pattern of employment legislation as a cause of job insecurity, (17.3%) agreed, no respondents were not sure, (13.5%) disagreed and no respondents strongly disagreed. This implies that majority of the respondents agreed with the statement. This is because a loose labor law which does not ensure that the right of employees are adequately protected, and poor administration of social benefits are likely to create in a higher job insecurity among employees.

4.3 Consequences of job insecurity

The study sought to identify the consequences of job insecurity. Results were obtained and are presented below;

Table 4.3: Consequences of job insecurity

Source: Primary Data

According to table above, majority of the study respondents (51.9%) agreed that psychological distress and (26.9%) strongly agreed as compared to (11.5%) of the respondents who strongly disagreed and (9.6%) disagreed. This implies that Psychological distress is one of the major consequences of job insecurity as shown by (78.8%) of the respondents).

Majority of respondents (34.5%) agreed that lower self esteem, followed by (25%) of the respondents who strongly disagreed, (19.2%) disagreed while (13.5%) of the study respondents strongly agreed and only (3.8%) of the respondents were not sure implying that most employees in organizations feel lower self esteem.

Most respondents (57.6%) agreed that life dissatisfaction followed by (21.2%) who strongly agreed and a significant percentage (21.2%) were not sure. However, no respondents opposed implying that Life dissatisfaction as another consequence of job insecurity to employees in organizations.

Furthermore, findings in table above indicate that most respondents (82.7%) agreed spoiled marital and family relations, (15.4%) agreed and only (1.9%) disagreed while no respondents were not sure or strongly disagreed. This implies that as a result of job insecurity, employees get problems in their families due to circumstances of depression for example and others,

Majority of respondents (71.2%) of the respondents strongly agreed aggression and (17.3%) of them agreed as compared to (5.8%) of the respondents who disagree and (1.9%) of them strongly agreed while (3.8%) of the respondents were not sure. Since the majority were positive implies that job insecurity causes people to be aggressive due to the stress it creates.

Fewer respondents (7.7%) strongly disagreed with alcoholism and (26.9%) of them disagreed compared to those who concurred (36.5%) strongly agreed and (21.2%) of them agreed while only (7.7%) were not sure implying that alcoholism is another major consequence of job insecurity as (57.7%) agreed.

Finally from the table 4.3 above, majority (94.2%) of the respondents strongly agreed that drug abuse is another consequence of job insecurity and only (5.8%) of the study respondents agreed. However, no respondent strongly disagreed, disagreed or were not sure implying that in most cases, people start taking alcohol when start feeling that they are going to loose their jobs anytime as (100%) agreed.

The above findings concur with Ashford, Lee & Bobko (1989) who affirmed that higher feelings of job insecurity were found to correlate with poorer mental and physical health, psychological distress and burn out (Probst, 2002), worse psychological moods (Burke, 1998), lower self esteem (Kinnunen, Feldt & Mauno, 2003), life dissatisfaction (Lim, 1996), spoiled marital and family relations (Hughes & Galinsky, 1994; Westman, Etzion & Danon, 2001). Similarly, Stoner & Perrewe (2006) identified the symptoms of anxiety and depression as major outcome of this phenomenon. As highlighted by Jones, Kinman, & Payne (2006) job insecurity can lead to self destructive social vices as aggression, alcoholism and substance abuse.

4.4 Relationship between job insecurity and employee performance

The third objective of the study was to establish the relationship between job insecurity and employee performance. Various responses were obtained and are presented as follows;

Table 4.4: Relationship between job insecurity and employee performance

Source: Primary Data

From Table above, findings show that most respondents (53.8%) strongly agreed that job insecurity cause people to lose faith in their future which consequently affect performance, (21.2%) of them agreed compared to (17.3%) who strongly disagreed and (7.7%) disagree while only no respondents were not sure. Majority (75%) agreed implying that job insecurity is related to employee performance.

Majority (59.6%) of the respondents strongly agreed with employees become demotivated when they think they will become unemployed thus low productivity, (23.1%) of them agreed while (7.7%) of the respondents disagreed, (5.8%) of them strongly disagreed and only (1.9%) were not sure. Since majority (82.7%) agreed implies that in most cases, job insecurity leads to low productivity since it demotivates employees.

From results, (78.8%) strongly agreed that employees’ productivity becomes low when they feel scared to lose their jobs and (9.6%) agreed as compared to (3.8%) of the respondents who disagreed and (1.9%) of them strongly disagreed and only (5.8%) of the respondents were not sure. Most responses (88.4%) of the respondents were positive implies that in most cases, when employees are scared to loose their jobs, their morale towards working reduces. Employees start misbehaving by coming late for work for example which leads to low productivity.

Fewer respondents (7.7%) strongly disagreed that qualitative job insecurity reduces job engagement and (26.9%) of them disagreed compared to those who concurred (36.5%) strongly agreed and (21.2%) of them agreed while only (7.7%) were not sure implying that feeling where employees feel they are able to keep their jobs or might become unemployed leads to low productivity as (57.7%) agreed. This is because qualitative job insecurity causes the perception of psychological contract breach.

From the table 4.6 above, majority (94.2%) of the respondents strongly agreed that an employee’s contributions will be less and ineffective if they feel low job security in the organization and only (5.8%) of the study respondents agreed. However, no respondent strongly disagreed, disagreed or were not sure implying that in most cases, ineffectiveness in employees is caused by the existence of job insecurity as (100%) agreed.

According to table above, majority of the study respondents (51.9%) agreed that long serving employees are likely to be more productive and (26.9%) strongly agreed as compared to (11.5%) of the respondents who strongly disagreed and (9.6%) disagreed. This implies that long serving employees are more productive since they feel engaged in their job as shown by (78.8%) of the respondents).

Majority of respondents (34.5%) agreed that the job insecurity can lead to self destruction thus, low productivity, followed by (25%) of the respondents who strongly disagreed, (19.2%) disagreed while (13.5%) of the study respondents strongly agreed and only (3.8%) of the respondents were not sure implying that self destruction can be caused by job insecurity in organizations.

Most respondents (57.6%) agreed that job insecurity has a direct link with employee’s turnover intentions which may result in low performance followed by (21.2%) who strongly agreed and a significant percentage (21.2%) were not sure. However, no respondents opposed implying that employees who feel insecure in their jobs are most likely to quit their jobs.

The researcher went ahead to examine the strength of the relationship using Pearson’s correlation coefficient.

Table 4.5: Relationship between job insecurity and employee performance

From the table above, findings indicated that there is a strong positive relationship between job insecurity and employee performance at Pearson correlation coefficient r= 0.833. This implies that job insecurity affect employee performance by 88.3% and others factors by 11.7%. The above findings are in line with Subramaniam et al. (2011) whose study found out that job insecurity is significantly related to employee performance. However, the study noted that organizations seem not to consider job insecurity as a viable strategy due to the fact that employees tend to give less attention to job insecurity in searching for a job.

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

The data was analyzed using description and percentages. This chapter therefore presents the summary of findings in sub-chapters on the basis of the specific objectives set to achieve as analyzed in chapter four, the conclusion, and recommendations.

5.1 Summary of findings

5.1.1 Causes of job insecurity

From findings of the study, it was observed that having inadequate skill is one of the causes of job insecurity in an organization as agreed upon by 100% of the respondents. This implied that resourceful employee with relevant skills and experience feels less insecure on the job as a result of the beliefs that his is highly employable and has various other alternative employment opportunities.

Findings from the study indicated that as (88.9%) of the respondents agreed with gender effects arising out from existing role differences as another cause of job insecurity. This implied that discrimination against a particular gender type on the job might makes one to be more vulnerable and therefore have higher feelings of not being secure on the job.

The study findings found out that the role of individual within the family has also been identified as a relevant driver of job insecurity as 85% of the respondents strongly agreed and agreed with the statement.

The study findings also linked job insecurity to individual or employee’s tenure on the job. The longer individuals remain with the same employer, the safer they would be from dismissal, and the less perception of job insecurity they are likely to experience vice versa.

The findings also indicated that size of firm and sector or industry type would cause job insecurity in the organization. This was agreed upon by 95.6% of the respondents. It is argued that firms with large sizes tend to have enormous material and financial resources which enable them withstand any form of environmental pressure such as economic, political and technological shocks. This in turn reduces the rate at which employees tend to think of potential organizational dysfunction and future job loss as a possibility.

5.1.2 Consequences of job insecurity

The study findings indicated that the major consequences of job insecurity are; psychological distress, lower self esteem, life dissatisfaction, spoiled marital and family relations, aggression, alcoholism and drug abuse. These consequences in most cases are affected by the employees, however in the long run the organization also starts feeling them as employees will reduce their productivity because an insecure workforce can pose problems for firms since insecurity may well cause employees to identify less with corporate objectives and may impact adversely on motivation and willingness to innovate and hence on their individual productivity.

5.1.3 Relationship between job insecurity and employee performance

The study findings found out that job insecurity causes people to lose faith in their future which consequently affect performance, employees also become demotivated when they think they will become unemployed thus low productivity. The study also observed that employees’ productivity becomes low when they feel scared to lose their jobs and qualitative job insecurity reduces job engagement. Also an employee’s contributions will be less and ineffective if they feel low job security in the organization and can lead to self destruction thus, low productivity. Job insecurity has a direct link with employee’s turnover intentions which may result in low performance and long serving employees are likely to be more productive.

Therefore, the employee’s individual performance through his job is directly linked with the overall performance of the organization and it seems their performance is linked to organizational performance, their contributions to will be less and ineffective if they feel low job security in the organization.

5.2 Conclusion

The study concludes that;

Job insecurity has become a common and largely unavoidable organizational phenomenon. In an organization, job insecurity is caused by having inadequate skill, gender effects, the role of individual within the family, individual employee’s tenure on the job, size of firm, sector or industry type, pattern of employment legislation. The major forms of job insecurity in organizations are cognitive probability for job loss, affective component of job insecurity, qualitative job insecurity and quantitative job insecurity.

In today’s rapidly changing business world, organizations demand their employees to be more energetic, dedicated, and engaged in their work than ever, even though it is increasingly difficult for organizations to promise permanent employment for their employees. To deal with this management need to provide accurate information on how to improve job performance, enhancing communication, training employees on how to cope with the stress, participation and union membership.

The study found out that there is a strong positive relationship between job insecurity and employee performance at Pearson correlation coefficient r= 0.833. This implies that job insecurity affect employee performance by 88.3% and others factors by 11.7%.

5.3 Recommendations

Based on the findings from the study;

Efforts should be made to by management in organizations to give employees the assurance that their job is secured and that the long-term survival of the organization is ensured.

A periodic training session that focuses on equipping employees with skills on emotional intelligence should be initiated by the management of organizations.

The management of organizations must focus on improving the level of social support for employees in the workplace.

Human resources policies should be based on careful forecasting, planning, auditing and implementing. By doing this, it assumed that the actual number of required staff, within the limit of resources of the organization will be employed by the organization at different points thereby eliminating or reducing the incidence of arbitrary layoff.

Institutional policies such as labor law that legislate against undue dismissal of employees and a social security system that emphasizes benefit packages for unemployed individuals should be employed in reducing or eliminating the incidence of this workplace phenomenon.

The formulation of relevant labor laws that increases perception of job certainty for employees seems to equally be an option

5.4 Areas for further studies

The study recommends that the following areas need more research:

• The relationship between job security and employee loyalty in the organization
• The effect of Job insecurity on the employees attitude in an organization
• The effect of job security on employee retention in an organization.
• The relationship between job security and employees job satisfaction in an organization.

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APPENDICES

APPENDIX I: QUESTIONNAIRE FOR RESPONDENTS

I am Adong Janet, a final year student pursuing a Bachelor’s Degree of Arts in Economics of Kyambogo University. I am carrying out a study on “the impact of job insecurity on employee performance in an organization”. A case study of Post Bank, Entebbe Branch.

You have been selected as one of the respondents for the study and you are requested to spare some time to answer questions in the questionnaire, try to be as frank and honest as possible. Information given will be treated with utmost confidentiality. Thank you in advance.

Chapter A: Background information      

(Tick the most appropriate)

Chapter B: Causes of job insecurity

5. Please tick the best option by using Strongly Disagree (SD), Disagree (D), Not Sure (NS), Agree (A), and Strongly Agree (SA).

Other (specify) …………………………………………………………………………………

………..……………………………………………………………………………………………………………………………………………………………………………………………..

Chapter C: Consequences of job insecurity

6. Please tick the best option by using Strongly Disagree (SD), Disagree (D), Not Sure (NS), Agree (A), and Strongly Agree (SA).

Other (specify) …………………………………………………………………………………

………..…………………………………………………………………………………………

Chapter D: Relationship between job insecurity and employee performance

7. Please tick the best option by using Strongly Disagree (SD), Disagree (D), Not Sure (NS), Agree (A), and Strong1ly Agree (SA).

Other (specify) …………………………………………….………..……………………………………………………………………………………………………………………………………………

Thank you for your time

APPENDIX II: INTERVIEW GUIDE

• What are the causes of job insecurity in an organization?
• What are the consequences of job insecurity in an organization?
• Do you have a permanent contract with this company/organization?
• Are you working full-time or part-time?
• If temporary, how many hours do you work per week?
• What relationship does job insecurity have on employee performance?

Thank you