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

Abstract

PurposeThis 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/approachOnline 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.FindingsThe 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/valueThis 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.