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Article
Publication date: 15 January 2018

Phuong Tran Huy and Kiyoshi Takahashi

This study aims to verify the entire process of psychological contract breach (PCB). It investigates organizational variables such as organizational performance, previous employee…

Abstract

Purpose

This study aims to verify the entire process of psychological contract breach (PCB). It investigates organizational variables such as organizational performance, previous employee performance, participative performance appraisal systems and leader power as the antecedents of perceived unfulfilled promises. It then examines whether perceived failure to fulfill contracts leads to the perception of PCB, and the possible moderating impacts of perceived self-fulfillment and individual differences on the relationship.

Design/methodology/approach

The current study uses cross-sectional design. Data have been collected from 364 full-time employees who enrolled in evening MBA courses in Vietnamese universities. Multiple regression and moderation analyses were used.

Findings

Participative performance appraisal, past performance, perception of leader’s power and overall organizational performance influenced perceived failure to fulfill promises, which contributed to contract breach. Furthermore, perceived self-fulfillment, equity sensitivity and self-esteem moderated the relationship between perceived failure to fulfill promises and PCB.

Research limitations/implications

The limitations of the study include a sampling technique which only focuses on MBA students, and cross-sectional research design.

Practical implications

The study confirms the role of individual traits in the PCB development. Vietnamese companies should collect information concerning employees’ personalities to focus on fulfilling promises that matter most to each type of employees.

Originality/value

The study distinguishes between perception of unmet promises and PCB. Furthermore, the moderating impacts of perceived self-fulfillment on the relationship between unmet promises and breach were examined.

Details

Management Research Review, vol. 41 no. 1
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 22 March 2021

Suparak Janjarasjit and Siew H. Chan

The purpose of this study is to examine whether users’ perceived moral affect explains the effect of perceived intensity of emotional distress on responsibility judgment of a…

Abstract

Purpose

The purpose of this study is to examine whether users’ perceived moral affect explains the effect of perceived intensity of emotional distress on responsibility judgment of a perpetrator and company, respectively, in an ill and good intention breach.

Design/methodology/approach

Participants completed a questionnaire containing items measuring their perceived intensity of emotional distress, perceived moral affect and responsibility judgment of a perpetrator and company, respectively.

Findings

The results support the mediating hypothesis on responsibility judgment of a perpetrator regardless of intention. The mediating hypothesis is also supported in an ill intention breach in responsibility judgment of a company. However, the mediating effect is not observed in a good intention breach when users assess a company’s responsibility.

Originality/value

The findings support the notion that users use the consequentialism approach when assessing a perpetrator’s responsibility because they focus on the victims’ emotional distress and discount a perpetrator’s intent, resulting in similar mediating effect of perceived moral affect in an ill and good intention breach. The results also indicate that perceived moral affect increases the negative effect of perceived intensity of emotional distress on responsibility judgment of a company, suggesting that users may exhibit empathetic feelings toward a company and perceive it as a victim of an ill intention breach. The lack of mediating effect in responsibility judgment of a company in a good intention breach may be attributed to the diminished effect of a perpetrator’s feelings of regret, sorrow, guilt and shame for causing emotional distress to the victims.

Details

Information & Computer Security, vol. 29 no. 1
Type: Research Article
ISSN: 2056-4961

Keywords

Article
Publication date: 1 February 2023

Riann Singh

This study takes a unique perspective on the role of psychological contract breach, turnover intentions and off-the-job embeddedness in influencing the behavior of reluctant…

Abstract

Purpose

This study takes a unique perspective on the role of psychological contract breach, turnover intentions and off-the-job embeddedness in influencing the behavior of reluctant stayers. More specifically, reluctant stayers are defined as employees who are high on turnover intentions and off-the-job embeddedness. It proposes that employees who perceive psychological contract breaches are more likely to develop turnover intentions. Such breaches are expected to indirectly spur organizational deviance, with turnover intentions as the mediator. Finally, a moderated-mediation model is proposed where off-the-job embeddedness is expected to moderate the relationship between turnover intentions and organizational deviance.

Design/methodology/approach

Data were collected from 231 employees across the energy sector within the Caribbean nation of Trinidad, using a two-wave research design and a path-analytic approach.

Findings

The findings provide support for the propositions that perceived psychological contract breach predicts turnover intentions and that turnover intentions mediate the contract breach–organizational deviance relationship. Further, the proposition that off-the-job embeddedness moderates the relationship between turnover intentions and organizational deviance was supported by the sample data. Consequently, reluctant stayers (employees with high turnover intentions and high off-the-job embeddedness) responded to perceived psychological contract breach with higher levels of organizational deviance when they were more deeply embedded.

Originality/value

Limited studies have explored the behaviors of reluctant stayers, and hence this study adds to research on this emerging classification of employees. Furthermore, no study has yet explored the role of high turnover intentions and off-the-job embeddedness in creating reluctant stayers.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 11 no. 4
Type: Research Article
ISSN: 2049-3983

Keywords

Article
Publication date: 15 June 2010

Jun Zhao, Kathleen G. Rust, William McKinley and John C. Edwards

The purpose of this paper is to explore the effects of three managerial ideologies on the degree of employment contract breach perceived in connection with a downsizing.

1067

Abstract

Purpose

The purpose of this paper is to explore the effects of three managerial ideologies on the degree of employment contract breach perceived in connection with a downsizing.

Design/methodology/approach

Surveys were used to collect data from southwest China. Multiple regression analyses were conducted to explore the impact of three managerial ideologies on the perceived employment contract breach in connection with downsizing.

Findings

Results suggest that a strong belief in the ideology of market competition reduces an individual's perception that downsizing constitutes a breach of the employment contract between employer and employee. By contrast, a belief in employee worth has the opposite effect, strengthening the believer's perception that downsizing constitutes an employment contract breach. Belief in the third ideology, the ideology of shareholder interest, appears to have no influence on whether respondents perceived downsizing as an employment contract breach.

Practical implications

The results are important for understanding the way employees interpret common business practices like downsizing. Given the accumulation of enough confirmatory results, findings from studies like this paper might be used to inform the practice of management, which might result in a more satisfied and better performing workforce.

Originality/value

This paper contributes to the literatures on organizational downsizing and business ideologies. Specifically, it investigates ideological beliefs and their effects on perceptions of downsizing in a new arena – a country that is not used to the concepts of market competition and shareholder interest, and one that has only experienced large‐scale layoffs in very recent times. The view of the western business concepts such as psychological contract within the context of traditional Chinese philosophies and value systems provides in‐depth understanding of the challenges facing today's transitional economies such as China.

Details

Chinese Management Studies, vol. 4 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 17 October 2016

Irene Tsachouridi and Irene Nikandrou

This study aims to integrate the attribution theory into the traditional social exchange view of the breach-outcome relationship. Perceived disinterested support (PDS), perceived

Abstract

Purpose

This study aims to integrate the attribution theory into the traditional social exchange view of the breach-outcome relationship. Perceived disinterested support (PDS), perceived organizational support (POS) and job satisfaction are included as serial mediators of the relationship between breach and willingness to support the organization.

Design/methodology/approach

Data were collected through a field study in which 579 employees took part.

Findings

The results indicated partial mediation of the examined relationship. More specifically, POS and PDS (through POS) were found to mediate the breach-willingness to support the organization relationship. Job satisfaction contributed weakly to the explanation of the examined relationship.

Research limitations/implications

The cross-sectional nature of the study limits the ability to claim causality.

Practical implications

Managers should be aware of how employees interpret breach in terms of organizational motives. Interpreting breach as a lack of disinterest on the part of the organization can spark social exchange processes leading to lower willingness to support the organization.

Originality/value

The study makes a unique contribution to the literature by being the first to examine PDS as a mediator of the breach-outcome relationship.

Article
Publication date: 12 January 2015

Gordon Fullerton and Shirley Taylor

The purpose of this paper is to explore the theory that dissatisfaction and violation are distinct affective responses to a service wait. It was thought that dissatisfaction was a…

1408

Abstract

Purpose

The purpose of this paper is to explore the theory that dissatisfaction and violation are distinct affective responses to a service wait. It was thought that dissatisfaction was a consequence of a disconfirmation of expectations while violation was a consequence of a breach of a psychological contract.

Design/methodology/approach

The study used the critical incidents method to examine 144 consumption stories where an informant experienced a wait in a service situation.

Findings

It was found that consumers generally felt disappointed or dissatisfied when they experienced a wait when they had expectations about waiting time. When they believed that service provider had made concrete representations (or promises) about the length of time it would take to deliver a service, they felt angry or outraged. These are elements of the overall affective state of violation.

Research limitations/implications

The critical incidents technique is well used in services marketing and rich theory building method of investigation. It has known limitations. In addition to explaining reaction to waits and delays, the application of psychological contract theory might apply to a host of marketing phenomena and the theory explains why some consumers get frustrated and angry while others are merely dissatisfied.

Originality/value

There are two significant contributions of this paper. First, the psychological contract exists in service marketing situations and that the psychological contract is different from consumer expectations about the service encounter. Second, dissatisfaction is distinct from violation as violation is a strong emotional response to breach of the psychological contract in the service encounter.

Details

Journal of Service Theory and Practice, vol. 25 no. 1
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 30 March 2010

P. Matthijs Bal, Dan S. Chiaburu and Paul G.W. Jansen

The aim of this paper is to investigate how social exchanges modify the relationship between psychological contract breach and work performance. It aims to present two concurrent…

11957

Abstract

Purpose

The aim of this paper is to investigate how social exchanges modify the relationship between psychological contract breach and work performance. It aims to present two concurrent hypotheses, based on theoretical interaction effects of social exchanges (conceptualized as social exchange relationships, POS, and trust).

Design/methodology/approach

Data were collected from a sample of 266 employees in a service sector company in the USA. Regression analysis was used to explore the moderating effects of social exchanges on the relationships between psychological contract breach and work performance (operationalized as in‐role behaviors and organizational citizenship behaviors).

Findings

It was found that the negative relationship between psychological contract breach and work performance was moderated by social exchanges, such that the relationship was stronger for employees with high social exchange relationship, perceived organizational support, and trust.

Research limitations/implications

The data were collected cross‐sectionally, and thus causal inferences have to be made with caution. Moreover, the data were collected from a single source. The study shows that the relations between contract breach and outcomes are moderated by the existing relationship between employee and organization.

Practical implications

Although organizations may invest in long‐term relationships with their employees, psychological contract breaches have a profound impact on work performance. Therefore, organizations should diminish perceptions of contract breach; for instance by providing realistic expectations.

Originality/value

The paper provides new theoretical insights on how social exchange can have two distinct effects on the breach‐outcomes relations. It shows that social exchanges moderate the relations between contract breach and work performance.

Details

Journal of Managerial Psychology, vol. 25 no. 3
Type: Research Article
ISSN: 0268-3946

Keywords

Article
Publication date: 24 March 2012

Aaron Cohen

This paper seeks to examine whether individual values are related to perceptions of psychological contracts and psychological contract breach when justice perceptions are taken…

4206

Abstract

Purpose

This paper seeks to examine whether individual values are related to perceptions of psychological contracts and psychological contract breach when justice perceptions are taken into account.

Design/methodology/approach

The study sample comprised staff employees of one of the largest banks in Israel. The sample included 311 employees in the head office of this bank. Data were collected from the employees over a period of about three months.

Findings

The findings show a modest relationship between individual values and perceptions of a relational type of psychological contract. The findings show weaker relationships between the values, perceived transactional‐type contracts, and perceptions of contract breach.

Research limitations/implications

The study relied upon a cross‐sectional design. Such a design consists of a single observation with no control groups, and so cannot be used to draw conclusions about causal relationships between the variables. In addition, the study examined only one professional group in one culture.

Practical implications

The significant relationship between conservation and self‐transcendence values and perceptions of relational‐type contracts suggests that organizations should take this into account when making hiring and human resource (HR) management decisions.

Originality/value

Few studies have examined how individual values relate to the type of psychological contract individuals perceive themselves involved in, or the way they perceive contract breach. Examining individual‐level values helps to elucidate the attitudes and behaviors of employees in the workplace.

Details

Journal of Managerial Psychology, vol. 27 no. 3
Type: Research Article
ISSN: 0268-3946

Keywords

Article
Publication date: 17 August 2010

Mark M. Suazo and William H. Turnley

The purpose of this paper is to examine relations between five individual differences variables (positive affectivity, negative affectivity, reciprocation wariness, equity…

4023

Abstract

Purpose

The purpose of this paper is to examine relations between five individual differences variables (positive affectivity, negative affectivity, reciprocation wariness, equity sensitivity, and Protestant work ethic) and the perception of psychological contract breach (PCB), and whether those relations are mediated by perceived organizational support (POS).

Design/methodology/approach

A survey was administered to 234 professional (i.e. white‐collar) employees in the USA. Regression analyses were conducted to test the proposed relations and mediating hypotheses.

Findings

In line with the hypothesized predictions, the findings indicate that POS fully mediated the relations between four out of the five individual difference variables examined (i.e. positive affectivity, reciprocation wariness, equity sensitivity, Protestant work ethic) and perceived PCB. In addition, POS partially mediated the relation between negative affectivity and perceived PCB.

Research limitations/implications

The use of a cross‐sectional, non‐experimental, design does not allow for conclusions to be drawn regarding causality and it is possible that the reported results may have been influenced by common method variance. Future research should examine additional individual differences and workplace contextual features.

Practical implications

Managers need to realize that some determinants of perceived PCB, and POS for that matter, are likely to be unrelated to organizational actions. Rather, perceived PCB and POS may result, in part, from an employee's individual characteristics.

Originality/value

This is the first study to provide empirical evidence that positive affectivity, negative affectivity, reciprocation wariness, equity sensitivity, and Protestant work ethic may predict the perception of PCB and that POS may mediate these relations.

Details

Journal of Managerial Psychology, vol. 25 no. 6
Type: Research Article
ISSN: 0268-3946

Keywords

Article
Publication date: 18 May 2015

John Rodwell and Andre Gulyas

Allied health professionals are vital for effective healthcare yet there are continuing shortages of these employees. Building on work with other healthcare professionals, the…

Abstract

Purpose

Allied health professionals are vital for effective healthcare yet there are continuing shortages of these employees. Building on work with other healthcare professionals, the purpose of this paper is to investigate the influence of psychological contract (PC) breach and types of organisational justice on variables important to retention among allied health professionals: mental health and organisational commitment. The potential effects of justice on the negative outcomes of breach were examined.

Design/methodology/approach

Multiple regressions analysed data from 113 allied health professionals working in a medium-large Australian healthcare organisation.

Findings

The main negative impacts on respondents’ mental health and commitment were from high PC breach, low procedural and distributive justice and less respectful treatment from organisational representatives. The interaction between procedural justice and breach illustrates that breach may be forgivable if processes are fair. Surprisingly, a betrayal or “aggravated breach effect” may occur after a breach when interpersonal justice is high. Further, negative affectivity was negatively related to respondents’ mental health (affective outcomes) but not commitment (work-related attitude).

Practical implications

Healthcare organisations should ensure the fairness of decisions and avoid breaking promises within their control. If promises cannot reasonably be kept, transparency of processes behind the breach may allow allied health professionals to understand that the organisation did not purposefully fail to fulfil expectations.

Originality/value

This study offers insights into how breach and four types of justice interact to influence employee mental health and work attitudes among allied health professionals.

Details

Journal of Health Organization and Management, vol. 29 no. 3
Type: Research Article
ISSN: 1477-7266

Keywords

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