Job insecurity, subjective well-being and job performance: The moderating role of psychological capital

Abstract

The article illuminates one of the central concerns in organizational study; the extent to which job insecurity (JI) affects employees' subjective well-being (SWB) and consequently their job performance (JP) in hospitality industry. Building on the transactional theory stress and coping, the study analyses the buffering role of psychological capital (PsyCap) as a strategy by which employees overcome the negative impact of JI on SWB and JP. Respondents include 250 four and five star hotel employees in Tehran, Iran. The results highlighted the mediating role of SWB, affirming that JI negatively impacts employees' JP via decreasing their SWB. Furthermore, the results show that employees with high level of PsyCap are able to cope with JI. Hotel management teams should make appropriate decisions to minimize or eliminate stressful stimuli, particularly JI in the workplace, which has been found to have severe mental, emotional and behavioural consequences.