f job insecurity on attitudes; and (3) variables that moderate the effects of job insecurity.
Job Insecurity can have diverse kinds of effects on employees. These effects can be delineated as follows:
(1) Work Performance. According to Brockner, Grover, Reed, and Dewitt (1994), job insecurity can affect work performance in unexpected ways. Specifically, moderate levels of job insecurity in the face of layoffs can actually lead survivors to increase work effort, particularly when they are the major breadwinners in their households. However, beyond the moderate level, work performance will fall dramatically.
(2) Loyalty and Morale. Richey (1992), in a study of downsizing at the Air Defense Systems Division of General Dynamics Corporation found that downsizing was associated with increased job insecurity. This increase in job insecurity then negatively affected the job performance, morale, and loyalty of the employees who remained.
However, Richey (1992) reported tha
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