Effect of Job Instability on Job Performance: Banking Sector of Pakistan

Abstract

The purpose of the study is to identify the key factors that have effect on employee’s job performance. Job instability has emerged as an issue which is creating job stress among employees resultantlly their involvement in the job and job performance is being affected. This study is conducted to understand the causal relationship of job instability and job performance. The study aims to identify the key moderators of job performance in the banking sector of Pakistan. Six hypotheses are tested using AMOS 17.00 by applying the technique of Structural Equation Modeling. The findings showed that all the hypotheses are accepted with significant level. The findings have shown that job performance is affected negatively by job stress and job instability. Increase in job instability and job stress would decrease job performance. Job involvement has shown a significant and positive impact on job performance. The direct and indirect relationship showed that all the three variables are the mediators of job performance. Removing job instability and job stress is impossible but organizations can make efforts to reduce them to the minimum level.