Disaster or opportunity? How COVID-19-associated changes in environmental uncertainty and job insecurity relate to organizational identification and performance.

Abstract

The coronavirus disease 2019 (COVID-19) pandemic continues to create tremendous uncertainty in workplaces. Building on a social identity perspective, this study develops and tests a model of how and why COVID-19-associated uncertainty affects employee work outcomes. The model differentiates uncertainty as either internal (job insecurity) or external (perceived environmental uncertainty) to the organization and reveals their different effects on employee organizational identification, which positively affects employee work outcomes (work effort, organizational citizenship behavior, and performance). With a latent change score to model intraindividual changes, we found that increases (or decreases) in job insecurity before versus during the pandemic related to subsequent decreases (or increases) in organizational identification, whereas increases (or decreases) in perceived environmental uncertainty before versus during the pandemic related to subsequent increases (or decreases) in organizational identification; increases (or decreases) in organizational identification then related to increases (or decreases) in positive work outcomes. These findings complement existing theoretical views that uncertainty typically leads to poor performance by inducing anxiety, and that organizational identification suffers during a crisis such as COVID-19. In turn, this research offers practical implications to help organizations avoid discouraging and even encourage greater organizational identification and performance during crises.

Perceived socially responsible HRM, employee organizational identification, and job performance: the moderating effect of perceived organizational response to a global crisis

“…In other words, the effect of organizational identification on job performance is stronger at a low level of perceived organizational response to a crisis than at a high level. This result supports the suggestion of Lian et al. (2022) on the role of the ways in which leaders of organizations respond to a crisis such as the COVID-19 pandemic and organizational identification with employee job performance.…”

“…Therefore, during a global crisis such as the COVID-19 pandemic, organizations could combine socially responsible HRM practices and employees' identification with organizational response to a crisis to promote employees' positive psychology, attitudes, behavior, and job performance, consequently ensuring the organization's sustainable development in the long term. Especially during a crisis, employees' organizational identification and job performance is the key to helping organizations overcome difficult situations ( Lian et al., 2022 ; Vo-Thanh et al., 2020 ). Moreover, the findings of Lian et al.…”

“…Especially during a crisis, employees' organizational identification and job performance is the key to helping organizations overcome difficult situations ( Lian et al., 2022 ; Vo-Thanh et al., 2020 ). Moreover, the findings of Lian et al. (2022) indicated that the COVID-19 pandemic might not degrade organizational identity, but instead, boost it.…”

How and when can job-insecure employees prevent psychological distress against the COVID-19 pandemic? The role of cognitive appraisal and reappraisal

“…The International Labor Organization (ILO) estimated that the level of hours worked around the world is expected to be 4.2% below the prepandemic level in the second quarter of 2022, implying that up to 123 million people worldwide may lose their jobs due to the COVID-19 pandemic. Such prediction is supported by many more bankruptcies, layoffs, and downsizings due to the deteriorating economic circumstances during the pandemic (Blanuša et al, 2021;Chen & Eyoun, 2021;Lian et al, 2022). This indicates that the COVID-19 pandemic causes and exacerbates job insecurity which in turn leads to psychological distress (Gullo et al, 2022;Khudaykulov et al, 2022;Lin et al, 2021).…”

Overcome social anxiety disorder and develop visionary leadership in uncertain environments: The important role of psychological resilience

“…With the ongoing trend of economic globalization, particularly influenced by the global crisis of coronavirus disease 2019 (COVID-19), the current business environment (e.g., domestic market, government policy, and international trade) is highly dynamic and full of uncertainty, which posed an unprecedented risk for organizations. Many had to face unpredictable demand fluctuations, regulatory changes, disrupted supply chains, and business shutdowns ( Chung, 2022 ; Lian et al, 2022 ). However, the risk is always together with chance.…”