Effects of workplace rumors and organizational formalization during the COVID-19 pandemic: a case study of universities in the Philippines

Purpose This study examines the effects of workplace rumors and organizational formalization on the degree of role ambiguity and emotional exhaustion that university employees in the Philippines are experiencing during the coronavirus disease 2019 (COVID-19) pandemic. The interaction between the two variables is also analyzed. Design/methodology/approach Online survey data were obtained from 522 faculty members and staff at three public universities in the Philippines. The data were analyzed using partial least squares structural equation modeling. Findings The results show that both workplace rumors and organizational formalization are associated positively with role ambiguity and emotional exhaustion, and role ambiguity mediates workplace rumors' effect on emotional exhaustion. Moreover, the moderating effect analysis shows that workplace rumors and organizational formalization interact and intensify the degree of role ambiguity and emotional exhaustion that employees experience. Originality/value This study extends previous research by showing that employees who work in a highly formal structure can be extremely sensitive to workplace rumors during a period of uncertainty.

Automated summary

The study finds that workplace rumors and organizational formalization have a positive impact on employees' role ambiguity and emotional exhaustion, with role ambiguity playing a mediating role in the relationship between workplace rumors and emotional exhaustion. Furthermore, workplace rumors and organizational formalization interact and intensify the level of role ambiguity and emotional exhaustion experienced by employees.