Can you get a better deal elsewhere? The effects of psychological contract replicability on organizational commitment over time

Previous research on psychological contracts has focused on whether or not employees feel their employers have fulfilled the promises made to them. Instead, here we examine how perceptions of the external labor market, particularly about whether present psychological contracts could be replicated elsewhere, influence employees’ attachment to their current employers. In a longitudinal study of a diverse employee sample, we found perceptions that psychological contracts could not be replicated elsewhere accounted for a substantial amount of the variance in affective commitment (.38) and normative commitment (.29) and a smaller, but significant, amount of the variance in continuance commitment (.04). We also found significant moderating effects of age, work experience, and career stage on these relationships. The article concludes with implications for psychological contract theory, organizational commitment theory, and management practice.     

Perceptions of employment relations and permanence in the organization: mediating effects of affective commitment in relations of psychological contract and intention to quit

Working conditions in call/contact centers influence employees' perceptions of their relations with the organization and their attitudes to work. Such perceptions can be analyzed through the psychological contract. The association between the relational/transactional orientation of the psychological contract and intention to quit the organization was examined, as well as the mediating role of affective commitment in employment relations. Data were collected from 973 employees in a cross-sectional survey. Analysis confirmed that there was a statistically significant relation between the orientation of the psychological contract and intention to quit, which was positive for transactionally oriented and negative for relationally oriented contracts. A mediating role for affective commitment was also confirmed, and a full mediating effect was reported for both orientations.     

Psychological contract breach,affective commitment to organization and supervisor,and newcomer adjustment: A three-wave moderated mediation model

This study examines the relationship of psychological contract breach to newcomer adjustment outcomes using affective commitments to organizations and supervisors as mediators and also looks at the moderating role of affective commitment to supervisors. Drawing from data collected at three points in time among a sample of newcomers (N = 224), we found that Time 2 affective organizational commitment mediated a positive relationship between Time 1 psychological contract breach and Time 3 turnover intention and emotional exhaustion. Moreover, affective commitment to supervisors interacted with organizational commitment such that the latter was more negatively related to Time 3 outcomes at low levels of commitment to supervisors. Similarly, the indirect relationships of psychological contract breach to Time 3 outcomes were stronger and negative at low levels of commitment to supervisors. Affective commitment's role in the psychological contract breach-outcome relationships during the entry period is discussed.     

Perceived organizational support, organizational commitment and psychological well-being: A longitudinal study

Using longitudinal data (N = 220), we examined the contribution of perceived organizational support and four mindsets of organizational commitment (affective, normative, perceived sacrifice associated with leaving and perceived lack of alternatives) to employee psychological well-being. In order to assess the contribution of support and commitment independently from workplace stressors, we controlled for the effects of role ambiguity, role conflict and role overload. Analyses showed affective organizational commitment to mediate a positive relationship between perceived organizational support and well-being. In addition, perceived organizational support negatively related to perceived lack of employment alternatives which, in turn, was negatively related to well-being. Normative commitment and perceived sacrifice associated with leaving were unrelated to well-being. The implications of these findings are discussed under the lenses of social exchange and conservation of resources theories.     

Psychological Contracts and Their Implications for Job Outcomes: A Social Exchange View

This article explores the relationship between on the 1 hand psychological contract fulfilment and affective commitment and on the other hand, normative commitment and job satisfaction. We hypothesized that the perceived supervisor support (PSS) and the perceived organizational support (POS) mediate the relationship between the fulfilment of the psychological contract, commitment and job satisfaction. The sample consists in 337 soldiers in training. In order to test our model, we used 3 measures of psychological contract fulfilment (economic, socioemotional and developmental), PSS and POS measures as well as attitudes. Results show that the developmental psychological contract is related to affective and normative organizational commitment and job satisfaction whereas socioemotional fulfilment is unrelated to affective commitment. Psychological contract fulfilment has a greater impact on normative commitment than affective commitment. Results show also that only PSS plays a mediating role in psychological contract processes. Several implications emerge from this study. First, in a military context, it is important to strengthen the developmental psychological contract. Second, it is essential for organizations to place greater emphasis on encouraging supervisors to establish healthy working relationships with newcomers.     

Diversity climate promises in ideological psychological contracts: racial differences in responses to breach and fulfilment

ABSTRACT

Diversity, a major societal force that exerts an important influence on contemporary workplaces, may play a role in shaping present-day workers’ psychological contracts. In two studies, we explored diversity as an ideological commitment in psychological contracts and its impacts on workers and organizations. In Study 1, a three-wave longitudinal study following workers from pre- to post-hire, organizations’ use of diversity recruitment was positively associated with job-seekers’ perceptions that ideological diversity climate promises were made pre-employment. In addition, we found that subsequent perceptions of breaching these promises have negative effects on worker attitudes and behaviours above and beyond the consequences of traditional (i.e., transactional and relational) psychological contract breach. Unexpectedly, fulfilment and breach of ideological diversity climate promises were more weakly related to racial minority than majority group workers’ attitudes and behaviours. In Study 2, using both between- and within-person experimental designs, we largely replicate this counter-intuitive moderating effect and uncover that racial minority versus majority workers’ differential reactions can be explained by their prior experiences with racial discrimination. Our work substantiates that diversity is an important ideological commitment and provides novel insights as to the mechanisms and consequences of ideology for workers’ psychological contracts.     

Psychological contract and organizational citizenship behavior in China: investigating generalizability and instrumentality

This study examined the generalizability of psychological contract forms observed in the West (D. M. Rousseau, 2000) to China. Using 2 independent samples, results confirmed the generalizability of 3 psychological contract forms: transactional, relational, and balanced. This study also examined the nature of relationships of psychological contracts with organizational citizenship behavior (OCB). In particular, this study explored the role of instrumentality as a mediating psychological process. The authors found evidence that instrumentality mediates the relationship of relational and balanced forms with OCB; however, the transactional contract form is directly related to OCB. The authors discuss the implications of these results for the meaning of psychological contracts and OCB in China and raise issues for future research.     

Organizational and occupational commitment in relation to bridge employment and retirement intentions

Understanding the antecedents to retirement and bridge employment is important to older-aged adults who seek ways to smoothly transition to full retirement, and to organizations that benefit from retaining their highly skilled and most experienced workers, especially in occupations for which labor shortages are projected. We tested the effects of affective, continuance, and normative commitment to organizations and to occupations on older-aged pharmacists' (N = 294) intentions to fully retire and to pursue three types of bridge employment. As hypothesized, criteria that were more organizationally focused (e.g., bridge employment in the same organization) were predicted more strongly by organizational, rather than occupational, commitment. For one type of bridge employment that was more occupationally focused—bridge employment in a different field—the hypothesized differential effects were supported, such that it was predicted more strongly by occupational, rather than organizational, commitment. We discuss the implications of our findings for theory, research, and practice.     

Negative Consequences of Felt Violations: The Deeper the Relationship,the Stronger the Reaction

Drawing from past research suggesting that high prior commitment leads to stronger reactions to unfairness in the workplace (Brockner, Tyler, & Cooper‐Schneider, 1992), we predicted that those forming relational as opposed to transactional psychological contracts would exhibit stronger detrimental effects of felt violation on job satisfaction, turnover intentions, and job performance. We also predicted a combined effect of personality and violation on these outcomes. Self‐ and supervisor‐reported data (N= 331 dyads) collected from a variety of organisations supported our predictions. In general, relational contract terms were associated with stronger violation–outcome relationships, and transactional contract terms were associated with weaker relationships. Similarly, four of the Big Five dimensions (extraversion, neuroticism, agreeableness, and openness to experience) moderated the violation–outcome relationships such that it was stronger for higher levels of these traits.     

Psychological Contracts, Organizational and Job Commitment

Increased use of time-limited contracts as the mainstay of employer-employee relations has implications for the psychological character of the exchange relationship. To investigate this, the current study is framed by Rousseau's (1995) psychological contract model (PCM). The psychological contract pertains to beliefs held by individuals about their contractual terms and conditions. The findings yield evidence for Rousseau's distinction between two types of contractual belief (relational and transactional), as well as the explanatory potential of the PCM over and above the concept of organizational commitment. As predicted. temporary workers were more transactional than relational in their contractual orientation. The findings are discussed with reference to a need to develop a theoretical basis for research on organizational involvement.     

Side-bet theory and the three-component model of organizational commitment

We tested Becker’s (1960) side-bet conceptualization of commitment within the context of Meyer and Allen’s (1991) three-component model of organizational commitment. Employees (N=202) from various organizations completed a survey including measures of (a) seven categories of side bets (b) affective, normative, and continuance commitment, and (c) turnover intention. The findings provided strong support for Becker’s theory. All seven side-bet categories correlated significantly with a revised measure of high-sacrifice continuance commitment, and structural equation modeling analyses revealed that the relations between the side bets and turnover intention were fully mediated by commitment. The findings also address issues pertaining to the dimensionality and measurement of continuance commitment, and help to explain relations among the three components of commitment.     

The impact of job insecurity and contract type on attitudes,well‐being and behavioural reports: A psychological contract perspective

Research on the impact of job insecurity for temporary employees has been largely exploratory and atheoretical in nature. This paper addresses this issue by considering the role of job insecurity on job satisfaction, organizational commitment, life satisfaction, and self‐rated performance among permanent employees (N = 396) as compared with temporary ones (N = 148). Hypotheses are formulated using the tradition of transactional versus relational psychological contract types. Psychological contract theory assumes (1) that job insecurity effects are due to a violation of the relational psychological contract, and (2) that permanents as compared with temporaries engage more in relational psychological contracting. As a result, job insecurity is expected to be problematic in terms of outcomes for permanents, but not for temporaries. Results validate the assumptions made in psychological contract theory. Furthermore, job insecurity proved problematic for permanents but not for temporaries when job satisfaction and organizational commitment are concerned. No such differential effects are observed for life satisfaction and self‐rated performance. Implications for future research are discussed.     

Affective and normative commitment to organization, supervisor, and coworkers: Do collectivist values matter?

Employees’ commitment to their organization is increasingly recognized as comprising of different bases (affect-, obligation-, or cost-based) and different foci (e.g., supervisor, coworkers). Two studies investigated affective and normative commitment to the organization, supervisor and coworkers in the Turkish context. The results of Study 1 confirmed that employees differentiate between affect versus obligation-based commitment towards the organization, supervisor and coworkers. Study 2 tested the “cultural hypothesis” which argues for the moderating influence of collectivistic values on the relationship between person (local) commitments and organizational-level (global) outcomes. The results failed to support the cultural hypothesis and showed that commitment to organization was predictive of organizational-level outcomes (e.g., turnover intentions), and commitment to supervisor was predictive of supervisor-related outcomes (e.g., citizenship towards supervisor). These findings suggest that the influence of culture may be less straightforward and may require a more sophisticated measurement of the nature of relationships and organizational characteristics in general.     

Perceived ethical leadership: Its moderating influence on employees’ organisational commitment and organisational citizenship behaviours

This study investigated the extent to which employees’ perception of ethical leadership moderated their organisational commitment and organisational citizenship behaviour. A non-probability purposive sample (N = 839; females = 32%) of employees in a railway organisation in the Democratic Republic of Congo (DRC) participated in the study. They completed the following measures: the Organisational Commitment Scale (OCS), the Organisational Citizenship Behaviour Questionnaire (OCBQ) and the Ethical Leadership Scale (ELS). Stepwise hierarchical regression analysis was utilised to determine the influence of employees’ perceptions of the relationships between their self-reported organisational commitment and organisational citizenship behaviour. The results indicated employee perceptions of the integrity, fairness and honesty aspects of ethical leadership to explain their affective, continuance and normative aspects of organisational commitment and organisational citizenship behaviour. The results also showed that employee perceptions of high ethical leadership influenced their willingness to engage in positive organisational commitment such as psychological attachment, work continuance, normative commitment and also their organisational citizen behaviours such as altruism, conscientiousness, courtesy and civic virtue. By implication, leaders with high ethical conduct have the potential to positively stimulate the commitment of employees towards supporting the organisational values and mission.     

Authentic leadership influences on organisational commitment in a South African state hospital

This study investigated the influence of authentic leadership (AL) on employee organisational commitment (OC) in a South African state hospital. A convenience sample of 222 employees (female = 81%; black = 82%) completed the Authentic Leadership Questionnaire on their perceptions of AL behaviours among their leaders; namely self-awareness, relational transparency, internalised moral perspective, and balanced processing. The employees also completed the Organisational Commitment Questionnaire to self-report on their own OC; namely affective, continuance, and normative commitment. Data were analysed utilising regression analysis to predict employees’ self-reported OC from perceived AL behaviours. Findings suggest AL scores to predict OC scores as well as the OC dimensions of continuance and normative commitment. AL scores did not predict affective commitment. Employees whose leaders apply AL may be able to retain employees through increased OC.     

Adaptation to increased work autonomy: The role of task reflection

Psychological contracts are a powerful concept in research on organizational behaviour. Substantial negative reactions towards perceived breaches to the psychological contract have been reported in many studies. There are sound theoretical arguments for the existence of a point in the continuous perception of contract breach, where sudden changes in attitudes occur in the relationship between breach and outcomes (i.e., thresholds). Using questionnaire data from 592 employees working in more than 30 different organizations across Germany, segmented regression models were tested against curvilinear effects for the relationship between breach of the psychological contract and job satisfaction, affective organizational commitment, intention to quit, violation, and trust. This study provides empirical evidence for threshold models of psychological contract breach. The results imply that prior studies have underestimated the impact of psychological contract breach.     

The role of the formal employment contract in the range and fulfilment of the psychological contract: Testing a layered model

This study investigates the employment contract (temporary vs. permanent) in relation to psychological contract content and fulfilment. The psychological contract includes employees' perceptions of their obligations and their entitlements. We hypothesize that transactional elements constitute a common core that is shared both by temporary and permanent workers. Relational elements are added to this core to show employees' and employers' loyalty, and their intentions to do more than necessary. These elements are more likely to be perceived by permanent workers as compared to temporary workers. Additionally, we suggest that relational elements are difficult to fulfil. Accordingly, we expect lower levels of perceived fulfilment for permanent workers as compared to temporary workers. Based on exchange theory, we furthermore hypothesize that these perceptions follow a similar pattern in how employees report entitlements (i.e., what they receive from the company) and reports of their own obligations (i.e., what they give in return). Results based on a seven-country sample (N _permanent = 3354; N _temporary = 1980) show that permanent workers as compared to temporary workers perceive more relational entitlements and obligations but a similar level of transactional entitlements and obligations. Thus, these results supported the idea of a layered model. The relationship between contract type and fulfilment of the psychological contract was only partly in line with expectations. Temporary workers reported higher fulfilment of entitlements and transactional obligations, but no difference was found for fulfilment of relational obligations.     

The Mediating Effects of Psychological Contracts on the Relationship Between Human Resource Systems and Role Behaviors: A Multilevel Analysis

Purpose  The purpose of this study was to examine the mediating effect of the psychological contracts on the relationship between human resource (HR) systems and role behavior. Design/Methodology/Approach  Multilevel analyses were conducted on data gathered from 146 knowledge workers and 28 immediate managers in 25 Taiwanese high-tech firms. Findings  Relational psychological contracts mediated the relationship between commitment-based HR systems and in-role behaviors, as well as organizational citizenship behaviors. Transactional psychological contracts did not significantly mediate these relationships. In addition, the results also indicated that commitment-based HR systems related positively to relational psychological contracts and negatively to transactional psychological contracts. Practical Implications  Commitment-based HR systems could elicit a wide range of knowledge workers’ behaviors that are beneficial to the goals of the firms. Furthermore, our findings also provide insight into, how HR systems potentially elicit employees’ role behaviors. Organizations could elicit employees’ in-role behaviors by providing financial and other non-financial, but tangible, inducements and facilitate employees’ extra-role behaviors by providing positive experiences, such as respect, commitment, and support. Originality/Value  The study is one of the primary studies to empirically examine the mediating effect of psychological contracts on HR systems and employee behaviors.

Psychological contract breach,affective commitment to organization and supervisor,and newcomer adjustment: A three-wave moderated mediation model

This study examines the relationship of psychological contract breach to newcomer adjustment outcomes using affective commitments to organizations and supervisors as mediators and also looks at the moderating role of affective commitment to supervisors. Drawing from data collected at three points in time among a sample of newcomers (N = 224), we found that Time 2 affective organizational commitment mediated a positive relationship between Time 1 psychological contract breach and Time 3 turnover intention and emotional exhaustion. Moreover, affective commitment to supervisors interacted with organizational commitment such that the latter was more negatively related to Time 3 outcomes at low levels of commitment to supervisors. Similarly, the indirect relationships of psychological contract breach to Time 3 outcomes were stronger and negative at low levels of commitment to supervisors. Affective commitment's role in the psychological contract breach-outcome relationships during the entry period is discussed.     

Towards a social-cognitive theory of multiple psychological contracts

ABSTRACT

Psychological contracts are typically conceptualized as an employee’s perceived terms of exchange with an employer. However, more and more researchers recognize that defining psychological contracts in such a unitary manner does not adequately reflect the complex nature of modern organizations and work. Most individuals likely maintain numerous work-related exchange relationships that are not necessarily confined within the boundaries of a single organization nor characterized by a traditional employment relationship. Contributing to this emerging body of research, we draw on social exchange and social cognition theories to begin developing a theory of multiple psychological contracts. Towards this end, we generate a series of propositions predicting that the relative likelihood of an individual holding a psychological contract with a particular individual, group, or organization as a counterparty is contingent upon degrees of perceived dependence, accountability and trust. We further predict the dynamic nature of the contents (relational, transactional, balanced or ideological) of these contracts and how it may evolve over time. As a whole, these propositions help explain how an individual’s attitudes and behaviours differ across psychological contracts and the exchange relationships they govern. This work provides an introductory foundation on which a more comprehensive body of future research can be built.