The Role of Positive Psychological Variables in the Cognitive Appraisal of Job Insecurity: A Latent Class Approach*

What the paper says

Extant research on job insecurity has traditionally investigated this construct as a hindrance stressor, based on theoretical developments and meta-analytical results that have shown consistent negative relationships between job insecurity and a host of organizational outcomes. In this chapter, the authors take a person-centered perspective based on the transactional theory of stress and argue that employees can and do appraise job insecurity in different ways which is manifested by qualitatively distinct latent profiles. The authors also argue that certain positive psychological variables (i.e., hope, optimism, self-efficacy, and grit) might influence one’s odds to belong to specific appraisal latent classes. Using a cross-lagged dataset of 322 US-based employees, the authors found evidence of five qualitatively different latent profiles (i.e., employees who viewed job insecurity as: (1) irrelevant, (2) simultaneously moderately challenging and hindering, (3) primarily hindering, (4) both highly challenging and highly hindering, or (5) primarily challenging). Further, the results showed that higher grit was associated with higher odds of belonging to any of the appraisal profiles compared to the high challenge/high hindrance group whereas higher self-efficacy was associated with higher odds of belonging to the irrelevant group compared to any of the appraisal profiles. Hope and optimism, however, did not influence latent class membership. The authors discuss the implications for theory and practice considering seemingly paradoxical findings demonstrating sometimes positive and sometimes negative outcomes of job insecurity, as well as traditional assumptions that employees primarily view job insecurity as either a hindrance or a challenge.