The Influence of Job Security, Organizational Support, and

Psychological Contract on Job Satisfaction in Organization X

Maindra Fauziannisa

, Badri Munir Sukoco

and Dewi Retno Suminar

Postgraduate, UniversitasAirlangga, Surabaya, Indonesia

Faculty of Economy, UniversitasAirlangga, Surabaya, Indonesia

Faculty of Psychology, UniversitasAirlangga, Surabaya, Indonesia

Keywords: Job Security, Organizational Support, Psychological Contract, Job Satisfaction

Abstract: This research aimed to find out the influence of job security, organizational support, and psychological

contract on job satisfaction in company named X. This research was conducted on employees of PT. X in the

Surabaya area with the number of research subjects as many as 145 people. The data collection tool in this

research is the questionnaire of Job Security measuring instrument compiled by De Witte (2000),

Organization Support tools compiled by Eisenberger (1986), Psychological Contracts by Rousseau (1989),

and the measurement of job satisfaction composed by Spector (1997). Reliability of the working safety scale

is 0.786, organizational support is 0.896, psychological contract is 0.893, and job satisfaction is 0.947. Data

analysis was performed with techniques with the help of IBM SPSS 20.0 software. The result showed there

is a positive influence of job security on job satisfaction with significance value of 0,000. Positive influence

of organizational support on job satisfaction with significance value is 0,000, and positive influencer of

psychological contract on job satisfaction with significance value is 0,015. This can be interpreted that the

higher job security, organizational support, and psychological contract perceived by individuals, the higher

job satisfaction of the individual.

1 INTRODUCTION

Job satisfaction is a pleasant or unpleasant emotional

state in which employees perceive their work, this is

evident in the attitude that employees show towards

their work (Sulianti 2009). The link between job

satisfaction and performance is also examined by

several researchers from year to year, among others,

Robbins (2003, in Amin 2015) states job satisfaction

refers to the general attitude of employees to the job.

job satisfaction is an important aspect in the

company, employees who have low job satisfaction

cannot achieve psychological maturity in work, and

allow to become frustrated in their work (Sulianti,

2009). In a study conducted by Latorre (2016)

mentioned the factors that can lead to job satisfaction

such as job security, organizational support, and

fulfillment of psychological contract

Job Security in work can be perceived by

employees as a signal that companies pay attention to

their welfare, therefore this can lead to positive

exchanges and improve employment relationships.

The existence of job certainty is generally understood

as an antecedent of job satisfaction and has been

proven by various studies (Buitendach & De Witte,

2005; Hellgren, Sverke, & Isaksson, 1999, in Latorre,

2016).

Organizational support is defined as a form of

employee opinion regarding the extent to which

firms assess contributions and care about employee

welfare based on employee performance and whether

it is in line with the socio-emotional aspects of

employees (Eisenberger, 2002). The existence of

support provided by the organization has a positive

impact, and in the theory of social exchange it is

explained that it can increase the probability of

mutual responses (Latorre, 2016). The form of

support from the company can produce a positive

attitude on the employees to the job that makes

employees feel satisfied.

The next factor that can affect job satisfaction

refers to Latorre's (2016) study is the psychological

contract. The psychological contract illustrates how

the reciprocal emotional societal bond between

Fauziannisa, M., Sukoco, B. and Suminar, D.

The Inﬂuence of Job Security, Organizational Support, and Psychological Contract on Job Satisfaction in Organization X.

DOI: 10.5220/0007538801330136

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 133-136

ISBN: 978-989-758-348-3

133

employee and employer (company) depends on the

firm's promises, the employee's obligations, and the

extent to which the promise is met (Rousseau, 1995).

The high fulfillment of these promises resulted in a

positive response from employees. Conway & Briner

(2005, in Latorre, 2016) mentions that a

psychological contract fulfilled will affect job

satisfaction on employees.

Based on the explanation of the problem, the

authors are interested to conduct research related to

the effect of job security, organizational support, and

psychological contract on employee job satisfaction

in organization X. It is important to see which

independent variables can affect employee work

satisfaction conducted in Surabaya, Indonesia.

2 LITERATURE REVIEW

2.1 Job Satisfaction

Job satisfaction is the degree to which the employee,

with the orientation of affection (feeling) or positive

attitude, achieves positive outcomes relating to his or

her work, either in general or a particular personal

aspect (Smith, 1969) In addition, job satisfaction can

be interpreted as individual beliefs over work owned

now includes promotional opportunities,

employment conditions, and opportunities for long-

term careers (Borg & Elizur, 1992). Spector (1997)

argues that the dimensions that make up job

satisfaction are divided into 14 sides, including

appreciation, communication, co-workers, benefits,

working conditions, work environment,

organization, organizational rules and procedures,

wages, employee development, promotional

opportunities, security, and supervision.

2.2 Job Security

Job security is defined as the stability and

continuation of work perceived by individuals

(Probst in Tahira, 2003). Occupational security

according to Borg & Elizur (1992, in Davy 1997) is

defined as the individual's belief in current

employment includes promotional opportunities,

employment conditions, and opportunities for long-

term careers. Work security is essentially a global

construct, this definition allows a person's perception

of job security that can be affected by the continuity

of employment and stability of the job (Tahira, 2003)

2.3 Organizational Support

Organizational support in this study uses perceived

organizational support theory which can be

interpreted as a form of corporate support that is

perceived as a global belief about the extent to which

companies can assess contributions, pay attention to

welfare, hear complaints, pay attention to life to be

achieved and can be trusted to treat employees fairly

Eisenberger, 2001).

2.4 Psychological Contract

The Psychological Contract in Armstrong (2006) is

defined as an unwritten contract regarding the

expectation of the employee and his employer

regarding mutual employment. Sparrow (1999)

defines the Psychological contract as an open

agreement about the expectations between

employees and companies for each other and

receiving in return for employment. Psychological

contracts represent a dynamic and reciprocal

agreement, expectations will increase as commitment

increases over time. A psychological contract is an

unwritten contract that deals with aspects of social

and emotional exchange between workers and

employers (Armstrong, 2006).

2.5 Relationship Between Variables

Job security is an important aspect in employee job

satisfaction, in the study of Nikolau (2002) explained

that employees in America who have a job security

have a higher value of satisfaction compared to

employees who feel unsafe at work. Whereas In

Dixon's research (2007) explained that the support of

the organization that is when the company can meet

the socio-emotional needs of employees such as

emotional support and affiliation can have a positive

impact on organizational commitment, employee

retention, performance, and job satisfaction.

Companies that uphold the importance of

psychological contracts will increase employee trust

in management, increase organizational

commitment, and include high levels of job

satisfaction (Anoraga, 2001 in Fujiasih, 2017).

Summarized in a study by Latorre (2016) that there

is a positive influence on job security, organizational

support, and psychological contracts on individual

job satisfaction.

ICPS 2018 - 2nd International Conference Postgraduate School

134

3 METHOD

This research is quantitative, with regression analysis

techniques, using a simple random sampling

approach, with a total of 145 respondents working in

company X in the Surabaya area. Instrument used is

job satisfaction questionnaire by Spector (1997) as

many as 36 items with reliability of 0.947, work

safety questionnaire by De Witte (2000) as many as

4 items with reliability of 0.786, organizational

support by Eisenberger (1986) as many as 8 items

with reliability of 0.896, and psychological contract

questionnaires by Millward & Hopkins (1998) as

many as 18 items with reliability of 0.893.

Table 1: Regression Table

4 RESULT

Based on the calculation, the effect is obtained with

significance value of 0.000 (<0.05) on job security

variable (X1) on job satisfaction (Y). Based on the

dimension of job security variable, significance value

from Concern dimension is 0.000 and significance

value from certain dimensions is 0.040. With these

results, they can be concluded that the two dimensions

in the job security which certain and concern

dimensions affect the job satisfaction.

In the variable of organization support (X2), it

influenced on job satisfaction (Y) with significance of

0.000 (<0.05). Based on the calculation of the

dimensions, which is supervisor support dimension

and fairness dimension, the dimension that affects job

satisfaction is supervisor support dimension with

significance value of 0.000.

While psychological contract variable (X3)

influenced on job satisfaction (Y) with significance

0.015 (<0.05). Based on the calculation of the

dimensions, which is relational contract dimension and

transactional contract, the dimension that affects job

satisfaction is the relational dimension with a

significance value of 0.000.

5 DISCUSSION

The results of this study support previous research by

Latorre (2016) that there is a positive influence on job

security, organizational support, and psychological

contracts on individual job satisfaction.

In line with previous research on the effect of job

security on job satisfaction by Utama (2015) that

employees who feel safe in work tend to have high job

satisfaction. The more the individual feels that his job

is safe, the higher the job satisfaction is generated.

Therefore, the influence given by Job Security variable

to Job Satisfaction variable is positive influence, where

the dimension of Job Security that influences the high

Job Satisfaction is the dimension of the low level of

anxiety (concern dimension) and confidence in the

company (certain dimension) both have a positive

influence on satisfaction individual work.

Furthermore, the positive influence of

organizational support to job satisfaction, where the

supervisor support dimension have a greater influence

on job satisfaction. So it can be illustrated that the

higher the organization's support is perceived by the

Model 0 Model 1 Model 2 Model 3 Model 4 Model 5

Gender

-.181 -.027 -.181 -.104 -.181 -1.174

.036

Age

-.002 -.024 -.002 .056 -.002 -1.721

.984

Employee Status

.075 .082 .075 .043 .075 .435

.384

Years of Working

.115 .100 .115 .059 .115 1.708

.211

Concern

.641

.000

Certain

.139

.040

Supevisor Support

.577

.000

Fairness

.085

.414

Transactional Contract

.581

.562

Relational Contract

9.091

.000

0.068 0.563 0.068 0.472 0.068 0.515

Delta R2

0.068 0.495 0.068 0.404 0.068 0.447

Delta F

2.555 78.138 2.555 52.847 2.555 63.469

.000 .000 .000 .000 .000 .015

JOB SATISFACTION

Job Security

POS

PsychoContract

Sig.

The Inﬂuence of Job Security, Organizational Support, and Psychological Contract on Job Satisfaction in Organization X

135

employee, the higher the job satisfaction the individual

feels. The results of this study are in line with previous

research by Baliarti (2014) that to the positive and

significant relationship between organizational

support and job satisfaction.

The result of the analysis dimensions of

organizational support variables in this study is

different from the previous research which explains

that employees are motivated to improve the work if

the working relationship is built on a fair social

exchange (Blau 1964). While in this study fairness

does not affect employees Job Satisfaction.

Furthermore, there is a positive influence of

psychological contract on individual job satisfaction,

so it can be illustrated that the higher psychological

contracts are fulfilled by the company, the higher job

satisfaction will be. The positive influence of

psychological contract on job satisfaction is in line

with previous research by Anoraga (2001) that

employees who work in companies that uphold the

importance of psychological contracts will be able to

increase the level of job satisfaction in their

employees.

In psychological contract there are two dimensions

studied namely transactional dimension and relational

dimension, In this research which have positive

influence to job satisfaction is relational contract while

transactional contract does not affect to job

satisfaction. Along with previous study by Raja, Johns,

Ntalianis (2004, in Sukoco 2018) that individuals with

relational contracts, tend to have higher job

satisfaction and have stronger commitment to the

company.

6 CONCLUSION

There is a positive influence between job security,

organizational support, and psychological contracts on

job satisfaction in organization X employees. In the job

security variable, the dimensions that affect job

satisfaction are low levels of anxiety and confidence.

While in the organizational support variable, the

dimension that affects job satisfaction is the supervisor

support, while the dimension of fairness does not affect

job satisfaction. Furthermore, in the psychological

contract dimension, the dimension that affects job

satisfaction is the relational contract dimension,

whereas the transactional contract does not affect

employees job satisfaction.

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