Objectives: This study examines employer’s behavior that causes job insecurity in their employees and analyzes employee’s reactionsin case of job insecurity that arouse because of breach of psychological contract.
Methods/Statistical analysis: The data for the study is collected through structured questionnaire from two specific private sector companies of Lucknow region in India which are Education and Pharmaceuticals. Pearson’s Chi-square test is applied to know the association between employer’s behaviour and employee’s reaction in case of breach of psychological contract that leads to job insecurity.
Findings: The result of chi-square analysis shows that thereexists an association between employer’s behaviour and employee’s started feeling job insecurity after breach of psychological contract. The p-value is less than 0.05 which means that statistically these variables are associated with each other. Result of the study clearly shows that employer’s behaviour lead to breach of psychological and that ultimately defamed their employment relationship.
Application/Improvements: Study shows that if employer doesn’t shows concern for their employees it creates job insecurity within them and becomes reason for switchover intentions so in order to maintain long term employment relation psychological contract should be fulfilled.