Abstract

The increasing use of contract labor has triggered job insecurity resulting in a decline in organizational commitment. It is a challenge for the management of human resources to keep the committed employees by providing good treatments, for example, by giving a sense of justice of the organization. The study aims to analyze whether organizational justice moderates the negative influence of job insecurity on organizational employee commitment. The study involves 30 students of regular2; the data are obtained by filling in a self-rating questionnaire. The data are analyzed by using hierarchical regression model by using SPSS. The results show that job insecurity affects negatively and significantly on organizational employee commitment, while organizational justice affects positively and significantly on organizational employee commitment. Organizational justice has not been proven to moderate the influence of job insecurity on organizational employee commitment.
 
 Keywords: moderation, negative influences, organisasional commitment, insecurity

Highlights

  • Companies in Indonesia have an increasing tendency to use outsourced employment

  • The statistics of respondents' answers are used to know the condition of job insecurity, organizational justice and organizational commitment based on the respondents’ perceptions

  • The results show that organizational justice is a more important factor affecting organizational employee commitment, as indicated by positive and greater regression coef icients than the negative effects of job insecurity

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Summary

Introduction

Companies in Indonesia have an increasing tendency to use outsourced employment (outsourcing). In practice the use of contract labor occurs almost in every type of work, in non-core or supporting jobs and on permanent and core occupations, such as the work of doctors or nurses in hospitals, university. Some employees have the contracts extended system over and over which indicates that their jobs are required by the company on a continuous basis rather than temporary. This is in accordance with the results of research Tjandraningsih et al (2010) that companies extend the contract labor 2.5 times but based on their research they found that the contracts are extended more than 3 times. In Riau Islands there are workers contracted up to 9 times, in West Java up to 15 times and in East Java up to 11 times

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