High Performance Work Practices: Buffer in Times of Job Insecurity

Abstract

Job insecurity has become hot topic because of its adverse effects on employees and organizations. However, role of High Performance Practices has rarely been studied in job insecurity literature and less is known about how it could help employers to reduce negative effects of job insecurity. Blending insights from Social exchange theory and AMO theory, this study aimed to explore how organizations can reduce adverse effects of job insecurity by using High Performance Practices. The study also examined that which aspect among the two different (isolationist perspective or integrationist perspective) operationalized aspects of high performance practices is more effective in reducing negative effects of job insecurity. Self-reported data from 172 Chinese employees was analyzed. The structural equation modeling analysis resulted in favor of our proposed hypotheses. First, work engagement mediated the negative effect of job insecurity on job performance. Second, interactive effect of high performance practices buffered against adverse effect of job insecurity. Third, we concluded that integrationist perspective is more effective than isolationist perspective in reducing negative effects of job insecurity. The findings of this study can be helpful for managers who are interested to increase level of employee’s work engagement particularly who survived during mergers and layoffs.