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Article
Publication date: 1 June 1997

Mark V. Roehling

The relationship between employees and their employers has been conceptualized as involving a “psychological contract” (PC). The PC construct is assumed by many to have a key role…

10454

Abstract

The relationship between employees and their employers has been conceptualized as involving a “psychological contract” (PC). The PC construct is assumed by many to have a key role to play in understanding organizational behavior, and there has been a proliferation of writing regarding PCs in recent years. The history of the construct, however, has remained under‐reported, and largely undiscussed. This articles seeks to contribute to the evolution of the PC construct by providing a richer, more thorough historical perspective than can be presently found in the PC literature. The origins and early development of the PC construct are traced through a review of books, articles, and unpublished dissertations. Observations regarding historical developments are linked to the current state of the literature, and the implication of these observations for the future direction of the PC literature is briefly discussed.

Details

Journal of Management History, vol. 3 no. 2
Type: Research Article
ISSN: 1355-252X

Keywords

Article
Publication date: 23 January 2009

Upasana Aggarwal and Shivganesh Bhargava

The purpose of this paper is to review and synthesise literature on the role of human resource practices (HRP) in shaping employee psychological contract (PC). Based on this…

12024

Abstract

Purpose

The purpose of this paper is to review and synthesise literature on the role of human resource practices (HRP) in shaping employee psychological contract (PC). Based on this review, a conceptual framework for examining the relationship between HRP and PC and their impact on employee attitudes as well as behaviour has been put forward for further examination.

Design/methodological/approach

An extensive review of the literature, examining the role of HRP in influencing PC of employees, between the periods 1972 to 2007 has been conducted. Adopting the multi‐level approach, the paper discusses the role of individual variable (PC) and organisational variable (HRP) on employee attitudes and behaviours.

Findings

The review brings to fore the following: the role of business and employment relationship strategy on HRP; the relationship between HRP and organisation culture as well as employees attitudes and behaviours; the relationship between HRP on and employee's psychological contract; and the moderating effect of those conceptions on employee attitudes and behaviours relationship.

Practical implications

HRP and PC influence employee attitudes and behaviours as well as have a bearing on organisational effectiveness. Suggestively, as a policy implication, firms need to craft and effectively communicate their HR toolkit based on their employment relationship and business strategies.

Originality/value

The main contribution of this paper is that it synthesises the research examining the impact of HRP on PC. Adopting a meso theory, the paper integrates both organisational and individual level variables and proposes a conceptual model.

Details

Journal of European Industrial Training, vol. 33 no. 1
Type: Research Article
ISSN: 0309-0590

Keywords

Article
Publication date: 7 April 2023

Win Myat Cho and Bonaventura H.W. Hadikusumo

The objectives of this paper are to examine the impact of psychological contract on project performance in private construction projects and to investigate if the positive effect…

Abstract

Purpose

The objectives of this paper are to examine the impact of psychological contract on project performance in private construction projects and to investigate if the positive effect of psychological contract on project performance can be mediated by inter-organisational teamwork.

Design/methodology/approach

Multiple regression analysis and mediation analysis were applied in this study to conduct the proposed hypotheses. Data were collected via questionnaire surveys from the construction professionals working for contractor firms on private construction projects.

Findings

The result of the multiple regression analysis indicated that psychological contract between contractors and owners is significantly related with project performance in construction projects. This study examined five psychological contract components, but the most important element was found as trust which can influence every aspect of project performance. Fairness is another key factor that can improve project performance in terms of budget and quality. Further, the findings of the mediation analysis revealed that inter-organisational teamwork has a mediating effect on the relationship between psychological contract and project performance.

Originality/value

This paper presents the important role of psychological contract between contractor and owner organizations in construction projects that can affect project performance. The study also highlights the significance of inter-organisational teamwork as a mediator to the relationship between psychological contract and project performance.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 5 January 2010

Sven Svensson and Lars‐Erik Wolvén

The aim of this article is to test the assumption that both management and co‐workers constitute multiple contract constituencies, as advocated for in recent research on…

3176

Abstract

Purpose

The aim of this article is to test the assumption that both management and co‐workers constitute multiple contract constituencies, as advocated for in recent research on psychological contracts. It also aims to test the theory of cognitive schemas as predictors of psychological contract development. Finally, it aims to examine the validity of the relational subscale of psychological contracts.

Design/methodology/approach

Data were collected through three survey studies in different workplaces, areas and settings and were analyzed through Fisher's exact test, principal component analysis and hierarchical regression analysis.

Findings

The results supported the notion of multiple contract constituencies. Partial support was found for the theory of cognitive schemas and their influence on psychological contract development. The study also revealed new sub‐dimensions of the psychological contract, here called “Fellowship” and “Challenge/Development”. These new sub‐dimensions respond differently to predictors that, according to psychological contract theory, are supposed to generate similar effects.

Research limitations/implications

Since the findings of this study call into question some of the earlier research: it would be desirable to study psychological contracts, using a multiple foci approach, with a greater, random, sample.

Practical implications

The results indicate a need to draw further attention to the role of the co‐workers in the integration of agency staff in client companies.

Originality/value

Since no previous study has tested the notion of co‐workers as constituencies of the psychological contract, these empirical results will challenge much previous research on the concept of psychological contracts.

Details

Employee Relations, vol. 32 no. 2
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 24 August 2021

Hafsa Bashir, Bashir Ahmad, Muhammad Waseem Bari and Qurat Ul Ain Khan

Based on signaling and motivation theories, this study investigates the impact of organizational practices on the formation and development of expatriates' psychological contracts

Abstract

Purpose

Based on signaling and motivation theories, this study investigates the impact of organizational practices on the formation and development of expatriates' psychological contracts in three stages. Stage 1: the impact of the selection process on psychological contract formation with the mediating role of perceived organizational justice. Stage 2: the impact of pre-departure training on psychological contract formation with the mediating role of individual absorptive capacity. Stage 3: the impact of perceived organizational support on psychological contract development with the mediating role of expatriates' adjustment.

Design/methodology/approach

By using a purposive sampling technique, the respondents were approached via e-mails and personal visits in three waves, each wave had 45 days gap. After three waves, a total of 402 complete questionnaires were received back. To test the hypotheses, the partial least squares-based structural equation modeling (PLS-SEM) approach was used.

Findings

Stage 1: effective selection process and perceived organizational justice positively support the psychological contract formation. Stage 2: the pre-departure training and individual absorptive capacity have a positive influence on the psychological contract formation of expatriates. Stage 3: the perceived organizational support and psychological contract development have a positive direct association. However, expatriates' adjustment does not mediate the association between perceived organizational support and the psychological contract development of expatriates.

Practical implications

The implications of this study are supportive to the organizations that deal with expatriates. The organizations should adopt practices (i.e. effective selection process, pre-departure training and perceived organizational support) for effective formation of psychological contract formation and development. In addition, perceived organizational justice, individual absorptive capacity and expatriates' adjustment can help out in the formation and development of the psychological contract of expatriates.

Originality/value

This study highlights the role of organizational best practices in the formation and development of the psychological contract of expatriates.

Details

International Journal of Emerging Markets, vol. 18 no. 9
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 6 January 2020

Yolanda Estreder, Thomas Rigotti, Inés Tomás and José Ramos

The purpose of this paper is to examine perceptions of the psychological contract (PC) simultaneously at the individual level (fulfillment of obligations by the organization and PC

1502

Abstract

Purpose

The purpose of this paper is to examine perceptions of the psychological contract (PC) simultaneously at the individual level (fulfillment of obligations by the organization and PC violation) and the organizational level (normative contract), and their relationship with employees’ evaluations of organizational justice. Based on justice and information processing approaches, the hypothesis is that normative contract has an effect on employees’ perceptions of organizational justice, and also moderates the relationship between PC violation and organizational justice.

Design/methodology/approach

Multilevel modeling was employed with a multinational sample of 5,338 employees nested in 214 companies.

Findings

Findings showed that beyond the positive effect of fulfillment of obligations by the organization, PC violation has a strong negative effect on organizational justice. In addition, normative contract has a positive effect on organizational justice, showing that when shared perceptions of normative contract are higher, then the organizational justice perceptions of employees are also higher. Furthermore, the normative contract moderated the relationship between PC violation and organizational justice, showing that the negative relationship of PC violation with organizational justice was stronger when the normative contract was higher.

Practical implications

Findings suggest that normative contract has effects on organizational justice, and that PC violation had more negative effects on employees’ perceptions of organizational justice perceptions when colleagues’ shared perceptions of fulfillment were higher. This means that social context (shared perceptions in an organization about the PC) has effects on individual perceptions of organizational justice. Companies need to pay attention to detrimental effects on employees who perceive a worse PC than their colleagues do.

Originality/value

The study extends the current research by demonstrating that employee–employer exchanges are not limited to individual level effects because shared perceptions of PC fulfillment (normative contract) also have relevant effects on employees’ perceptions of organizational justice.

Details

Employee Relations: The International Journal, vol. 42 no. 1
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 19 June 2009

Narelle Hess and Denise M. Jepsen

The purpose of this paper is to determine how employees in different generational groups (or cohorts) and different career stages perceive their psychological contracts.

7578

Abstract

Purpose

The purpose of this paper is to determine how employees in different generational groups (or cohorts) and different career stages perceive their psychological contracts.

Design/methodology/approach

A survey of 345 working adults included psychological contract obligations, incentives and importance and the cognitive responses of job satisfaction, affective commitment and intention to leave. Super's “Adult career concerns inventory” measured career stage.

Findings

Small but significant differences between individuals' psychological contract perceptions were based on both career stage and generational cohort: higher levels of balanced obligations and fulfilment were found than either relational or transactional obligations and fulfilment; relational and transactional obligations were significantly higher for Baby Boomers than Generation Xers; a stronger negative relationship was found between transactional fulfilment and intention to leave for Generation Xers than Generation Yers; higher balanced fulfilment had a significantly stronger positive relationship with job satisfaction for exploration compared with other career stages and commitment for exploration compared with maintenance stages.

Research limitations/implications

Cross‐section methodology and difference scores in the female‐dominated sample limits generalisability. The study's key theoretical contribution is the need to further investigate whether the protean career concept is operating within employees' perceptions of their psychological contractual terms.

Originality/value

Despite widespread colloquial use of generational cohort groupings such as Baby Boomer, Generation X and Generation Y, small effect sizes were found. Implications for employers looking to manage employees' psychological contracts include that there are greater similarities than differences between the different career stages and generational cohorts.

Details

Career Development International, vol. 14 no. 3
Type: Research Article
ISSN: 1362-0436

Keywords

Article
Publication date: 31 July 2023

Fazeelath Tabassum and Nitu Ghosh

This paper aims to explore the role of retention strategies and psychological contract (PC) factors in private hospitals.

Abstract

Purpose

This paper aims to explore the role of retention strategies and psychological contract (PC) factors in private hospitals.

Design/methodology/approach

The current study is an empirical research. The study was conducted by receiving responses from a sample size of 190 respondents who participated in the Doctors and Nurses’ survey.

Findings

The study results show the relationship between PC and the retention strategies of employees in hospitals. The research found that employees try to be committed to the hospital due to the image of the hospital and career development opportunities. Creating a sense of commitment among the employees towards their job and organisation, making to feel pride in the job, creating an attitude among the employees, a willingness to advocate the benefits and advantages and satisfaction among the employee towards the job and organisation.

Research limitations/implications

With a population of more than one million employees (Doctors and Nurses) in the Indian health-care sector, the sample needs to be more adequate. However, these limitations present scope for future studies on this topic bearing on the aspiration for generalisation of the findings on the entire population.

Practical implications

The study has strong practical implications in strengthening the relationships by identifying the factors of PC and influencing the retention strategies of health-care professionals in the hospital.

Originality/value

This research explores the changing dynamics of the Indian health-care sector. Health-care professionals may perceive and react differently to the retention strategies and policies of the HR system in the health-care sector and have more expectations of PC fulfilment that enhance their capability to use professional skills and resources in the realisation of their organisational goals.

Details

Industrial and Commercial Training, vol. 55 no. 4
Type: Research Article
ISSN: 0019-7858

Keywords

Open Access
Article
Publication date: 17 April 2023

Gina Gaio Santos, José Carlos Pinho, Ana Paula Ferreira and Márcia Vieira

Drawing on the conservation of resources (COR) theory, this study aims to assess the moderating effect of the psychological contract (PC) type (relational, transactional and…

1918

Abstract

Purpose

Drawing on the conservation of resources (COR) theory, this study aims to assess the moderating effect of the psychological contract (PC) type (relational, transactional and balanced) on the relationship between psychological contract breach (PCB) and organizational citizenship behaviours (OCBs).

Design/methodology/approach

The authors administered a survey to a sample of 159 nurses working in a large public hospital. To analyse the survey data, the authors used partial least squares with SmartPLS v.3.3, a variance-based structural equation modelling technique that combines principal component analysis, path analysis and regression analysis.

Findings

This study shows that nurses counteract the loss of resources following a PCB by investing more in stronger interpersonal relationships with co-workers and patients as a way to recuperate from resource loss and gain social resources. In addition, the moderating effect of the PC type reinforces the relationship between a PCB and OCB in a way that relational and balanced PC types support OCB-I positively but negatively OCB-O. Furthermore, the transactional PC does not reinforce negatively the link between PCB and OCB-I, and the negative interacting effect on the PCB and OCB-O link is only partially supported.

Research limitations/implications

The study findings are grounded on a cross-sectional research design and a convenience sampling strategy.

Practical implications

The results highlight the relevance of human resources management practices centred on employee involvement and participatory supervision styles for ensuring OCB display at the workplace.

Originality/value

The results add new evidence to COR theory by highlighting the importance of social resources as a mitigator in the relationship between nurses’ PCB and OCB towards co-workers and patients (OCB-I). Hence, the OCB-I display will vary in function of the target and the moderating effect of PC type (relational, balanced or transactional).

Article
Publication date: 23 September 2021

Anushree M. Karani, Revati Chandrashekhar Deshpande and Mitesh Jayswal

This paper aims to explore the content of the psychological contract (PC), i.e. work-family conflict (WFC), family-work conflict (FWC), work overload (WO) and work autonomy (WA…

Abstract

Purpose

This paper aims to explore the content of the psychological contract (PC), i.e. work-family conflict (WFC), family-work conflict (FWC), work overload (WO) and work autonomy (WA) and its impact on well-being (WB), i.e. job satisfaction (JS), family satisfaction (FS), life satisfaction (LS), through the mediation of psychological distress (PD).

Design/methodology/approach

The current study has adopted a quantitative approach and a cross-sectional research design with a snowball sampling technique. The sample size consists of 400 employees from the banking sector. SPSS and AMOS 20v has been used for structural equation modelling to give empirical findings from the responses collected.

Findings

The current study has checked the relationship between PC and WB through the mediation analysis of PD. WA was not affecting the WB of banking employees. The study found that there was partial mediation. It was also proven that the lower the breach of PC lower the PD, and the higher the WB.

Originality/value

The current study has tried to explain the content of PC among the employees of the banking sector and how that is associated with WB. There was limited work from which showcase the WFC, FWC and WO from the view of PC theory, and it affects different WB, i.e. JS, LS and FS.

Details

International Journal of Organizational Analysis, vol. 31 no. 3
Type: Research Article
ISSN: 1934-8835

Keywords

1 – 10 of 866