Psychological contract, career concerns, and retention practices satisfaction of employees: Exploring interaction effects

2020 ◽  
Vol 39 (6) ◽  
pp. 1990-1998
Author(s):  
Alda Deas ◽  
Melinde Coetzee
Keyword(s):  
Psychological Contract ◽  
Interaction Effects ◽  
Career Concerns ◽  
Retention Practices

scholarly journals Exit, voice, loyalty, and neglect reactions to frequency of change, and impact of change

2016 ◽  
Vol 38 (4) ◽  
pp. 536-562 ◽  
Author(s):  
Muhammad Naseer Akhtar ◽  
Matthijs Bal ◽  
Lirong Long
Keyword(s):  
Organizational Change ◽  
Research Design ◽  
Psychological Contract ◽  
Behavioral Responses ◽  
Direct Interaction ◽  
Moderated Mediation ◽  
Interaction Effects ◽  
Mediation Effects ◽  
Content Type ◽  
Employee Behaviors

Purpose – The purpose of this paper is to examine how frequency of change (FC) in organizations and impact of change (IC) influence the employee behaviors, i.e. exit, voice, loyalty, and neglect (EVLN) through psychological contract fulfillment (PCF) as a mediator. The moderating role of successful past changes (SPC) is also assessed with direct and indirect relations of FC, and IC alongside employees’ behaviors. Design/methodology/approach – Hypotheses were tested among a sample of 398 financial services-oriented non-managerial-level employees in Pakistan. Bootstrapped moderated mediation analyses (using PROCESS macro) were conducted to test the main and moderated mediation effects. The authors ran series of confirmatory factor analyses to validate the distinctiveness of variables and their items in this study. Findings – The results largely supported the hypotheses. Findings showed that FC is negatively related to loyalty but positively related to exit, voice, and neglect behaviors via contract fulfillment. IC is also found to have negatively related to loyalty but positively related to exit, voice, and neglect via PCF. SPC was found to moderate the relation between FC, IC, and contract fulfillment, as well as the indirect relationship with exit, voice, and neglect through contract fulfillment and negatively between FC, IC, and loyalty through contract fulfillment. The authors found direct interaction effects of FC via SPC in relation to exit and loyalty and also found direct interaction effects of IC via SPC to exit, voice, and loyalty. Research limitations/implications – The use of cross-sectional research design does not allow conclusions with respect to causality. The most important implication of the study is that employee behaviors following organizational change can best be understood via a psychological contract framework. A future suggestion is to include more organizations based on longitudinal research design with focus on both employee and employer perspective. Practical implications – This study highlights the importance of employees’ behavioral responses and their sensemaking of PCF in a post-organizational change period. Originality/value – This study empirically investigated the effects of FC, and IC on fulfillment of psychological contract and behavioral responses of employees using a sample of non-managerial employees, and provides new insights into employee behaviors following organizational changes.

Leader-member exchanges and psychological contract: testing for interaction effects

2017 ◽  
Vol 36 (7) ◽  
pp. 959-972 ◽  
Author(s):  
Francis Kasekende
Keyword(s):  
Public Service ◽  
Psychological Contract ◽  
Structural Equation ◽  
Methodological Approach ◽  
Interactive Effect ◽  
Interaction Effects ◽  
Equation Model ◽  
Future Research ◽  
Content Type ◽  
The Public

Purpose The purpose of this paper is to examine the interaction effects of leader-member exchange (LMX) dimensions and how they blend to affect psychological contract in the public service in Uganda. Design/methodology/approach The authors employ the structural equation model to test a conditional hypothesis. Findings It is indicated that the magnitude of effect of affect and professional respect on psychological contract is dependent upon perceived contribution, implying that the predictive power of affect and professional respect on psychological contract increases considerably when perceived contribution increases. Research limitations/implications Only a single-research methodological approach was employed. So, future research through interviews could be undertaken to triangulate the results. Furthermore, future research should be undertaken to examine the multiplicative effects studied in this paper across time. Practical implications In order to increase the perceptions of fulfillment of the psychological contract in the public service in Uganda, managers should always endeavor to identify a viable LMX mix that can add value to expectations that employee and employer have of each other. Originality/value This is the first study that focuses on testing the interactive effect of LMX dimensions on psychological contract in Uganda’s public service.

Breaches of past promises, current job alternatives, and promises of future idiosyncratic deals: Three-way interaction effects on organizational commitment

2012 ◽  
Vol 65 (11) ◽  
pp. 1463-1486 ◽  
Author(s):  
Thomas WH Ng ◽  
Daniel C Feldman
Keyword(s):  
Organizational Commitment ◽  
Interaction Effect ◽  
Psychological Contract ◽  
Negative Relationship ◽  
Interaction Effects ◽  
Affective Organizational Commitment ◽  
Idiosyncratic Deals ◽  
The Future ◽  
One Year

This article examines the three-way interaction effect of breaches of past promises, current job alternatives, and promises of future idiosyncratic deals on affective organizational commitment. Specifically, we posit that the negative relationship between breaches of past promises and affective organizational commitment is strongest when employees are promised idiosyncratic deals in the future and when they perceive that few job alternatives are currently available elsewhere. Data collected from 196 managers at two points in time over a one-year period support the proposed three-way interaction effect. This article highlights the importance of differentiating fulfillment of past contract obligations from promises of future idiosyncratic deals in further research on psychological contract breaches.

scholarly journals The role of career concerns and workplace friendship in the job embeddedness–retention practices satisfaction link

2018 ◽  
Vol 44 ◽  
Author(s):  
Ingrid L. Potgieter ◽  
Melinde Coetzee ◽  
Nadia Ferreira
Keyword(s):  
Career Development ◽  
Boundary Conditions ◽  
Research Design ◽  
Job Embeddedness ◽  
Theory And Practice ◽  
Career Concerns ◽  
Workplace Friendship ◽  
Retention Practices ◽  
Retention Theory

Orientation: The demand for retaining top talent in the highly competitive and turbulent working environment has made retention research relevant and important. A central question in retention research revolves around the psychological factors that drive employees to remain at an organisation. Research purpose: This research explores the mediating and conditional (moderating) processes underlying the link between employees’ job embeddedness and satisfaction with organisational retention practices. Motivation for the study: Several research studies are available with regard to the association between job embeddedness and retention practices. However, there seems to be a paucity of information available on the psychological process of workplace friendship underlying the job embeddedness–retention practices satisfaction link, as well as the boundary conditions of this process as set by employees’ career concerns. Research design, approach and method: The study followed a cross-sectional, quantitative research design. Data were collected from a convenience sample of (N= 200) permanently employed staff members within a South African higher education institution. Moderated-mediation analysis was performed to achieve the research objective. Main findings: The findings indicated career concerns as important boundary conditions for the psychological (mediating) process of workplace friendship in the job embeddedness–retention practices satisfaction link. Practical/managerial implications: Enhancing work conditions and practices to support the evolving career development needs and concerns of valuable employees may be key to maintaining person–environment correspondence and retaining them. Contribution or value-add: The findings extend retention theory by adding new insights into under what circumstances employees’ job embeddedness positively influences their satisfaction with organisational retention practices. The study provides new evidence of the important role of employees’ career development needs in retention theory and practice.

Psychological Contract Fulfillment and Employee Responses to Pay System Change

2017 ◽  
Vol 16 (4) ◽  
pp. 172-185 ◽  
Author(s):  
Christine J. Syrek ◽  
Conny H. Antoni
Keyword(s):  
Transformational Leadership ◽  
Psychological Contract ◽  
Pay For Performance ◽  
Psychological Contracts ◽  
Change Processes ◽  
Affective Organizational Commitment ◽  
Before And After ◽  
Psychological Contract Fulfillment ◽  
Pay System ◽  
Employee Responses

Abstract. The implementation of a new pay system is a balancing act that produces uncertainty and draws employees’ attention to the fulfillment of exchange agreements. Transformational leadership may be essential during these change processes. Based on psychological contract theory, we expected that transformational leadership impacts job satisfaction and affective organizational commitment through the fulfillment of relational psychological contracts, while the fulfillment of transactional psychological contracts may be crucial for employees’ pay and bonus satisfaction. We assessed 143 employees nested within 34 teams before and after (24 months) a pay for performance (pfp) system was introduced. Our results supported the mediation hypotheses considering job and pay satisfaction, but not considering commitment. Unexpectedly, the effect on bonus satisfaction was mediated via relational psychological contracts.

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