The Effect of Workforce Restructuring on Withdrawal Behavior: The Role of Job Insecurity, Career Plateau and Procedural Justice

Abstract

This study examines the direct effect of workforce restructuring on the withdrawal behavior and mediating effect of perceived job insecurity. Empirically it also explores the moderating effect of career plateau and procedural justice on the above relationship. The study focuses on the mediating role of job insecurity and the moderating role of career plateau in relations to procedural justice, which will concentrate on the relationship between workforce restructuring and withdrawal behavior. For the empirical study, we collected and analyzed 442 survey data from employees of Korean companies. SPSS 24 is used for reliability, correlation and regression analysis. The results of the empirical analysis are as follows. First, perceived job insecurity mediated the relationship between workforce restructuring and withdrawal behavior. Second, content career plateau had a negative moderating effect on the relationship between workforce restructuring and job insecurity. Finally, the moderating effect of procedural justice was not supported. This research extend workforce restructuring and career plateau related studies; by exploring the mediating variable and moderating variable on the relationship between workforce restructuring and the pertaining outcomes. Based on the results, we provide theoretical and practical implications along with future research recommendations.

How is COVID-19 pandemic causing employee withdrawal behavior in the hospitality industry? An empirical investigation

“…With the increase in the employees downsizing in the hotel industry, employees feel stressed either because of the fear of being laid off or unclear job descriptions. In addition to that, restructuring the workforce causes an increase in job insecurity among employees, resulting in employees' withdrawal behavior (Ghaderi et al , 2021; Park et al , 2020). Previous studies have revealed that employees' behaviors and attitudes are affected by job insecurity.…”

Can Hindrance Stressors Change the Nature of Perceived Employability? An Empirical Study in the Hotel Industry

“…If it is not, then highly employable workers can believe they are not adequately paid for their contributions and thus suffer a psychological violation of the contract. This has certain adverse effects, such as decreased loyalty, organizational engagement, job satisfaction, and motivation at work [48]. According to a different study, the connection between perceived employability and optimal functioning (i.e., in-role success and supportive behavior) is much less than the rate of perceived job insecurity [49].…”