Abstract

This study explored the relationship between psychological contract breach and job insecurity or stress in employees engaged in the restaurant business. To do this, four hypotheses were proposed. First, job insecurity has a significant positive effect on psychological contract breach. Second, job insecurity has a significant positive effect on job stress. Third, psychological contract breach has a significant positive effect on job stress. Fourth, job insecurity has a significant positive effect on job stress via psychological contract breach. Then, eligible respondents (n = 384; 183 men and 201 women) were recruited from a total of five restaurant business companies and then evaluated for a self-administered questionnaire survey. Results showed not only that job insecurity had a significant positive effect on psychological contract breach and job stress but also that psychological contract breach had a significant positive effect on job stress and mediated the interaction between job insecurity and stress. It can therefore be concluded that restaurant business owners should establish rational criteria for compensating job insecurity and stress arising from psychological contract breach in employees engaged in the restaurant business because of an inconsistency between psychological contract breach arising from job insecurity and compensation for work performance of employees engaged in the restaurant business.

Highlights

  • With remarkable changes in the economic environment, such as internationalization and technological advancements in the information and telecommunication industry, there has been a requirement for remodeling the industrial structure and organizational accommodation to surroundings [1]

  • It would be valuable to interpret our results from practical perspectives, as shown below: (1) The job environment of employees engaged in the restaurant business should be appropriately managed and its stability should be assured, for which the corresponding organization should be managed for the stabilization of their working environment; (2) Considerable efforts should be made to stabilize the job environment of employees engaged in the restaurant business; an instability of their working environment serves as a factor causing physiological and psychological stress to them; (3) Rational criteria for rewarding the business performance of employees engaged in the restaurant business

  • Our results indicate that the appropriate management of human resources on an organizational level should be followed by the stabilization and improvement of the working environment of employees engaged in the restaurant business

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Summary

Introduction

With remarkable changes in the economic environment, such as internationalization and technological advancements in the information and telecommunication industry, there has been a requirement for remodeling the industrial structure and organizational accommodation to surroundings [1]. The restaurant business is a type of labor-intensive industry requiring much labor power, and it is characterized by simultaneous production and consumption of a food product. As shown in other types of industry, it is wholly dependent on how qualified human resources can be acquired and managed. This deserves objective assessment [2,3,4,5]. The restaurant business is sensitive to political, economic, and socio-environmental changes. Considering that attitudes and behavioral changes of employees have a direct impact on business performance, the efficient management of human resources should be emphasized [8,9]

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