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The Effect of Job Insecurity on Organizational Commitment in Impermanent Temporary Employees of an Indonesian Company

Author

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  • Retno DWIYANTI

    (Universitas Muhammadiyah Purwokerto, Indonesia)

  • Sekar KUSUMA ABDILLA

    (Universitas Muhammadiyah Purwokerto, Indonesia)

Abstract

Most companies, either large or small, now employ more impermanent temporary employees, than full-time (permanent) employees. Impermanent temporary employees usually bear the same workload as regular employees or even more. However, in terms of salaries or other facilities, it is completely different for temporary employees, so they tend to feel less comfortable at work. One of the problems that arise from the inconvenience is the lack of commitment of temporary employees to the organization. This study aims to discover the effect of job insecurity on organizational commitment of impermanent temporary employees from Anggrek and Cempaka units in PT Royal Korindah. Purbalingga. Variables used in this research are: ‘job insecurity’ as the independent variable and ‘organizational commitment’ as the dependent variable. This study involves 82 temporary impermanent employees of the units examined. The results of data analysis indicate that there is a effect of job insecurity toward organizational commitment of the temporary employees of Anggrek and Cempaka units in PT Royal Korindah Purbalingga. The results also showed that job insecurity affected to 38.5% of the organizational commitment, whereas other factors influenced organizational commitment in a proportion of 61.5%.

Suggested Citation

  • Retno DWIYANTI & Sekar KUSUMA ABDILLA, 2018. "The Effect of Job Insecurity on Organizational Commitment in Impermanent Temporary Employees of an Indonesian Company," Expert Journal of Business and Management, Sprint Investify, vol. 6(1), pages 40-48.
    • Handle: RePEc:exp:bsness:v:6:y:2018:i:1:p:40-48
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    References listed on IDEAS

    as
    1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    2. Joelson, Lars & Wahlquist, Leif, 1987. "The psychological meaning of job insecurity and job loss: Results of a longitudinal study," Social Science & Medicine, Elsevier, vol. 25(2), pages 179-182, January.
    3. Leonard Greenhalgh & Zehava Rosenblatt, 2010. "Evolution of Research on Job Insecurity," International Studies of Management & Organization, Taylor & Francis Journals, vol. 40(1), pages 6-19, January.
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    More about this item

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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