Impact of Political Instability on Public Sector Employee Morale in
Bangladesh: Moderating Role of Perceived Organizational Support"
Abstract
Political instability is a persistent challenge in Bangladesh, often leading to uncertainty in
governance, disruption in public service delivery, and demoralization within public institutions.
This study investigates the impact of political instability on the morale of public sector employees
in Bangladesh, with a specific focus on the moderating role of Perceived Organizational Support
(POS). The research draws upon Social Exchange Theory (SET) to explain how supportive
organizational practices can mitigate the adverse psychological effects of political
instability.Using a structured questionnaire, data were collected from 79 managerial-level
employees of the Local Government Engineering Department (LGED) in Cumilla. The study
employed a quantitative research approach and utilized Partial Least Squares Structural Equation
Modeling (PLS-SEM) through SmartPLS software to test nine hypotheses. The analysis examined
relationships between job performance, job satisfaction, job security, trust in leadership, POS, and
employee morale.
1. Introduction
Political stability ranking is Bangladesh 172nd position with an index of -1.15. This indicates that
Bangladesh is mostly affected with political instability (Rahman & Rashid, 2018). Bangladesh is
a developing country. Here, Bangladesh has much scope for improving the economic condition.
But major causes the political instability; political crime; law and order situations; human rights
and good governance Political parties in any country are meant to work toward the social and
economic development of the nation. By doing so, they aim to gain the trust and support of the
general public. Ideally, their policies and political actions should contribute to national progress
and improve the lives of citizens. However, this is not always the case. When political parties
engage in intense rivalry and take extreme positions against one another, political instability begins
to grow. Such instability not only disrupts the political landscape but also negatively affects
various sectors of the country. One of the most impacted areas is the public sector, where instability
can lead to uncertainty, reduced efficiency, and declining employee morale.
Perceived organizational support (POS) is an employee belief that the organization cares for and
values his or her contribution to the success of the organization. Perceived Organizational Support
(POS) refers to employees ‘perception concerning the extent to which the organization values their
contribution and cares about their wellbeing. POS has been found to have important consequences
on employee performance job satisfaction and increase trust on leadership. Organizational support
theory holds that in order to meet socio emotional needs and to assess the benefits of increased
work effort, employees form a general perception concerning the extent to which the organization
values their contributions and cares about their well-being. Such perceived organizational support
(POS) would increase employees ‘felt obligation to help the organization reach its objectives, their
1|Page
,affective commitment to the organization, and their expectation that improved performance would
be rewarded. Behavioral outcomes of POS would include increases in in-role and extra-role
performance and decreases in withdrawal behaviors such as absenteeism and turnover. Research
on perceived organizational support (POS) began with the observation that if managers are
concerned with their employees‘commitment to the organization, employees are focused on the
organization‘s commitment to them. For employees, the organization serves as an important source
of socio-emotional resources, such as respect and caring, and tangible benefits and job security
benefits. Being regarded highly by the organization, it helps to meet employees‘needs for approval,
esteem, and affiliation. Positive valuation by the organization also provides an indication that
increased effort will be noted and rewarded. Employees therefore take an active interest in the
regard with which they are held by their employer. Although there were relatively few studies of
POS until the mid-1990‘s, research on the topic has burgeoned in the last few years. Rhoades and
Eisenberger‘s (2002) meta-analysis covered some 70 POS studies carried out through 1999, and
over 180 studies have been performed since. Employee performance plays a critical role in
organizational Success, high-performing employees contribute to the Achievement of
organizational goals, improve productivity And efficiency, and enhance overall business outcomes
(Arulsamy et al., 2023). Political instability, marked by frequent changes in government, policy
uncertainty, civil unrest, and institutional inefficiencies, continues to pose significant challenges
for public administration systems across many developing and transitional economies. Public
sector employees often operate at the front lines of such instability, facing disrupted workflows,
ambiguous directives, and shifting organizational expectations. These conditions can severely
erode morale, which refers to employees’ overall attitude, motivation, and emotional well-being
at work (Mowday, Steers, & Porter, 1979). Low morale in the public sector not only affects service
delivery but can also lead to high turnover, absenteeism, and inefficiency in governance structures
(Wright & Pandey, 2010).
Previous studies have linked political instability to broader organizational consequences such as
corruption, reduced productivity, and weakened institutional trust (Aisen & Veiga, 2013;
Kaufmann, Kraay, & Mastruzzi, 2010). However, the *individual-level psychological impact* of
such instability, particularly on public employees’ morale, remains underexplored. Furthermore,
employees' experiences of political disruption can vary depending on the degree of *organizational
support* they perceive. Perceived Organizational Support (POS) reflects the extent to which
employees believe their organization values their contributions and cares about their well-being
(Eisenberger et al., 1986). In unstable political environments, a high level of POS may serve as a
psychological buffer, helping employees maintain morale despite external turbulence (Rhoades &
Eisenberger, 2002).
However,employee Performance is not solely determined by individual Capabilities and skills
(Ángeles López-Cabarcos et al., 2022). Assessing and managing employee performance is a
crucial Aspect of organizational management (Samwel, 2018). It Involves evaluating and
providing feedback on an employee's Job performance, setting performance expectations and
goals, Identifying areas for improvement, and recognizing Exceptional performance. Effective
assessment and Management of employee performance require a systematic Approach (Nikolić et
al., 2020). This approach typically Includes the following steps:1. Setting clear performance
2|Page
, expectations: It is important to communicate to employees what is expected of them in terms of
their job responsibilities, goals, and objectives(Ángeles López-Cabarcos et al., 2022).Employee
performance is directly related to the achievement of organizational objectives, when employees
perform well and meet or exceed their job responsibilities, goals, and objectives, it directly
contributes to the overall success of the organization(Siddiqui, 2014). Performance management
is essential for organizations to ensure that employees are aligned with the strategic goals and
objectives of the organization (Alqudah et al., 2022). It involves setting performance expectations
that are aligned with organizational objectives, regularly evaluating employee performance against
these expectations, and providing feedback and support to help employees improve performance
(Nikolić et al., 2020). However, innovative activities can significantly enhance employee
performance, by promoting a culture of innovation and providing opportunities for employees to
contribute their ideas and suggestions, organizations can tap into the creative potential of their
workforce(Khan et al., 2022). A workforce that consistently delivers high performance gives the
organization a competitive edge. It enables the company to innovate, adapt to market changes, and
outperform competitors (Rožman et al., 2023). When employees perform well, they are more likely
to be engaged The meta-analysis found clear and consistent relationships of POS with its predicted
antecedents and consequences(Rhoades & Eisenberger, 2002). Given these dynamics, the present
study aims to examine how political instability affects employee morale in the public sector and
investigates the moderating role of Perceived Organizational Support in this relationship. Limited
focus on employee morale in public sector under political instability: Although prior
research has addressed political instability’s effects on economic or institutional
performance, few studies have explicitly examined how it impacts the morale of public sector
employees, particularly in a politically volatile country like Bangladesh
2. Literature review
2.1 Political Instability
Political instability refers to frequent changes in government, civil unrest, and inconsistent policy
environments, which undermine effective governance(Alesina et al., 1996). In the context of
developing countries like Bangladesh, political turmoil often disrupts bureaucratic functioning,
delays administrative decisions, and hampers service delivery(Nugroho et al., 2024) . These
disruptions increase workplace uncertainty, leading to stress and a reduction in work satisfaction
among public employees(Kim et al., 2024) .
2.2 Job Performance
Political instability disrupts the operational efficiency of public organizations in Bangladesh,
leading to lower job performance among employees. Frequent administrative changes, politically
influenced transfers, and unclear job expectations reduce employees’ ability to meet targets or
deliver services effectively (Zafarullah & Khan, 2007). Instability often shifts focus from
performance to survival, with public servants prioritizing political alignment over service delivery
3|Page
Bangladesh: Moderating Role of Perceived Organizational Support"
Abstract
Political instability is a persistent challenge in Bangladesh, often leading to uncertainty in
governance, disruption in public service delivery, and demoralization within public institutions.
This study investigates the impact of political instability on the morale of public sector employees
in Bangladesh, with a specific focus on the moderating role of Perceived Organizational Support
(POS). The research draws upon Social Exchange Theory (SET) to explain how supportive
organizational practices can mitigate the adverse psychological effects of political
instability.Using a structured questionnaire, data were collected from 79 managerial-level
employees of the Local Government Engineering Department (LGED) in Cumilla. The study
employed a quantitative research approach and utilized Partial Least Squares Structural Equation
Modeling (PLS-SEM) through SmartPLS software to test nine hypotheses. The analysis examined
relationships between job performance, job satisfaction, job security, trust in leadership, POS, and
employee morale.
1. Introduction
Political stability ranking is Bangladesh 172nd position with an index of -1.15. This indicates that
Bangladesh is mostly affected with political instability (Rahman & Rashid, 2018). Bangladesh is
a developing country. Here, Bangladesh has much scope for improving the economic condition.
But major causes the political instability; political crime; law and order situations; human rights
and good governance Political parties in any country are meant to work toward the social and
economic development of the nation. By doing so, they aim to gain the trust and support of the
general public. Ideally, their policies and political actions should contribute to national progress
and improve the lives of citizens. However, this is not always the case. When political parties
engage in intense rivalry and take extreme positions against one another, political instability begins
to grow. Such instability not only disrupts the political landscape but also negatively affects
various sectors of the country. One of the most impacted areas is the public sector, where instability
can lead to uncertainty, reduced efficiency, and declining employee morale.
Perceived organizational support (POS) is an employee belief that the organization cares for and
values his or her contribution to the success of the organization. Perceived Organizational Support
(POS) refers to employees ‘perception concerning the extent to which the organization values their
contribution and cares about their wellbeing. POS has been found to have important consequences
on employee performance job satisfaction and increase trust on leadership. Organizational support
theory holds that in order to meet socio emotional needs and to assess the benefits of increased
work effort, employees form a general perception concerning the extent to which the organization
values their contributions and cares about their well-being. Such perceived organizational support
(POS) would increase employees ‘felt obligation to help the organization reach its objectives, their
1|Page
,affective commitment to the organization, and their expectation that improved performance would
be rewarded. Behavioral outcomes of POS would include increases in in-role and extra-role
performance and decreases in withdrawal behaviors such as absenteeism and turnover. Research
on perceived organizational support (POS) began with the observation that if managers are
concerned with their employees‘commitment to the organization, employees are focused on the
organization‘s commitment to them. For employees, the organization serves as an important source
of socio-emotional resources, such as respect and caring, and tangible benefits and job security
benefits. Being regarded highly by the organization, it helps to meet employees‘needs for approval,
esteem, and affiliation. Positive valuation by the organization also provides an indication that
increased effort will be noted and rewarded. Employees therefore take an active interest in the
regard with which they are held by their employer. Although there were relatively few studies of
POS until the mid-1990‘s, research on the topic has burgeoned in the last few years. Rhoades and
Eisenberger‘s (2002) meta-analysis covered some 70 POS studies carried out through 1999, and
over 180 studies have been performed since. Employee performance plays a critical role in
organizational Success, high-performing employees contribute to the Achievement of
organizational goals, improve productivity And efficiency, and enhance overall business outcomes
(Arulsamy et al., 2023). Political instability, marked by frequent changes in government, policy
uncertainty, civil unrest, and institutional inefficiencies, continues to pose significant challenges
for public administration systems across many developing and transitional economies. Public
sector employees often operate at the front lines of such instability, facing disrupted workflows,
ambiguous directives, and shifting organizational expectations. These conditions can severely
erode morale, which refers to employees’ overall attitude, motivation, and emotional well-being
at work (Mowday, Steers, & Porter, 1979). Low morale in the public sector not only affects service
delivery but can also lead to high turnover, absenteeism, and inefficiency in governance structures
(Wright & Pandey, 2010).
Previous studies have linked political instability to broader organizational consequences such as
corruption, reduced productivity, and weakened institutional trust (Aisen & Veiga, 2013;
Kaufmann, Kraay, & Mastruzzi, 2010). However, the *individual-level psychological impact* of
such instability, particularly on public employees’ morale, remains underexplored. Furthermore,
employees' experiences of political disruption can vary depending on the degree of *organizational
support* they perceive. Perceived Organizational Support (POS) reflects the extent to which
employees believe their organization values their contributions and cares about their well-being
(Eisenberger et al., 1986). In unstable political environments, a high level of POS may serve as a
psychological buffer, helping employees maintain morale despite external turbulence (Rhoades &
Eisenberger, 2002).
However,employee Performance is not solely determined by individual Capabilities and skills
(Ángeles López-Cabarcos et al., 2022). Assessing and managing employee performance is a
crucial Aspect of organizational management (Samwel, 2018). It Involves evaluating and
providing feedback on an employee's Job performance, setting performance expectations and
goals, Identifying areas for improvement, and recognizing Exceptional performance. Effective
assessment and Management of employee performance require a systematic Approach (Nikolić et
al., 2020). This approach typically Includes the following steps:1. Setting clear performance
2|Page
, expectations: It is important to communicate to employees what is expected of them in terms of
their job responsibilities, goals, and objectives(Ángeles López-Cabarcos et al., 2022).Employee
performance is directly related to the achievement of organizational objectives, when employees
perform well and meet or exceed their job responsibilities, goals, and objectives, it directly
contributes to the overall success of the organization(Siddiqui, 2014). Performance management
is essential for organizations to ensure that employees are aligned with the strategic goals and
objectives of the organization (Alqudah et al., 2022). It involves setting performance expectations
that are aligned with organizational objectives, regularly evaluating employee performance against
these expectations, and providing feedback and support to help employees improve performance
(Nikolić et al., 2020). However, innovative activities can significantly enhance employee
performance, by promoting a culture of innovation and providing opportunities for employees to
contribute their ideas and suggestions, organizations can tap into the creative potential of their
workforce(Khan et al., 2022). A workforce that consistently delivers high performance gives the
organization a competitive edge. It enables the company to innovate, adapt to market changes, and
outperform competitors (Rožman et al., 2023). When employees perform well, they are more likely
to be engaged The meta-analysis found clear and consistent relationships of POS with its predicted
antecedents and consequences(Rhoades & Eisenberger, 2002). Given these dynamics, the present
study aims to examine how political instability affects employee morale in the public sector and
investigates the moderating role of Perceived Organizational Support in this relationship. Limited
focus on employee morale in public sector under political instability: Although prior
research has addressed political instability’s effects on economic or institutional
performance, few studies have explicitly examined how it impacts the morale of public sector
employees, particularly in a politically volatile country like Bangladesh
2. Literature review
2.1 Political Instability
Political instability refers to frequent changes in government, civil unrest, and inconsistent policy
environments, which undermine effective governance(Alesina et al., 1996). In the context of
developing countries like Bangladesh, political turmoil often disrupts bureaucratic functioning,
delays administrative decisions, and hampers service delivery(Nugroho et al., 2024) . These
disruptions increase workplace uncertainty, leading to stress and a reduction in work satisfaction
among public employees(Kim et al., 2024) .
2.2 Job Performance
Political instability disrupts the operational efficiency of public organizations in Bangladesh,
leading to lower job performance among employees. Frequent administrative changes, politically
influenced transfers, and unclear job expectations reduce employees’ ability to meet targets or
deliver services effectively (Zafarullah & Khan, 2007). Instability often shifts focus from
performance to survival, with public servants prioritizing political alignment over service delivery
3|Page
