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.

scholarly journals Relationship of Psychological Contract and Employees' Job Engagement (An Investigation of the Millennium Generation and the Impacts of Various Generations)

2015 ◽  
Vol 62 ◽  
pp. 16-26
Author(s):  
Behnam Heshmati ◽  
Saied Mohamad Musavi Jed
Keyword(s):  
Psychological Contract ◽  
Psychological Contracts ◽  
Job Engagement ◽  
Descriptive Research ◽  
Psychological Contract Fulfillment ◽  
Strong Relation ◽  
Research Findings ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

The current paper was administered with the aim of examining the relationship between the psychological contract fulfillment and the employees' job engagement at the Islamic Azad University, Sanandaj Branch (Investigation of the millennium generation and the impact of various generations). For this purpose, all the employeesof this university were examined as the statistical universe. This study, methodologically speaking, is a descriptive research of correlation type, of applied nature in terms of goal, and of survey information in terms of collection manner while temporally it is latitude-periodic. To measure the fundamental concepts of the research, the Rousseau Psychological Questionnaire (including 9 questions) and the Wiley and et al's Job Engagement (in 12 questions) were applied. The questionnaires' reliability in form of Cronbach's alpha was calculated as 0/953 for the psychological contract and 0/872 for ye job engagement. The final findings in the SPSS software suggest the existence of a significant relationship between the psychological contract and its dimensions (officials' thoughts, officials' obligations and act upon the promises made by the officials) with the employees' job engagement of the Islamic Azad University, Sanandaj Branch. The results from the research findings indicate that there is a lack of relation between psychological contracts and job engagement and the millennium generation and various generations. In the analysis of the multiple regression results, the variable of officials' obligation among other dimensions of the variable of the psychological contract has the highest level of influence on the employees' job engagement while there is no strong relation between the various generations and the millennium generation with the psychological contract and job engagement.

scholarly journals Psychological Contract Fulfillment on Employees Reactions within the Context of Organizational Justice

2019 ◽  
Vol 2 (3) ◽  
pp. 42-57 ◽  
Author(s):  
Abdul Khaliq ◽  
Kashif Mehmood ◽  
Aamir Zamir Kamboh ◽  
Kainat Durrani ◽  
Muhammad Haidar Zarar ◽  
...  
Keyword(s):  
Longitudinal Study ◽  
Organizational Justice ◽  
Social Exchange ◽  
Psychological Contract ◽  
Positive Relationship ◽  
Exchange Relationships ◽  
Psychological Contract Fulfillment ◽  
Employee Reaction ◽  
The Impact ◽  
Employee Responses

Aim - The objective of the study was to examine the psychological contract expectations by employees and the impact of any deviation from its perceived benefits by the employees of an organization, as they occur within social exchange relationships to account for employee responses.  Methodology - This is an exploratory longitudinal study in which an investigation is made into the changes in employment obligations as perceived by employees based on the level of fulfillment of contract obligations by their employer(s).  Findings - It was deduced that an employer's inability to fulfill its contractual commitments was the foundational cause associated with the decline in cooperation of the employees to fulfill their employment obligations.  Significance - The results of the current study show that there is a significant and positive relationship between Psychological Contract Fulfilment and Employee Reaction. Results presented that there is a significant and positive relationship between Organizational Justice and Employee Reaction. Results presented that there is a significant and positive relationship between Organizational Justice and Psychological Contract Fulfilment.

Fulfilling employees’ psychological contracts: organizational socialization’s role

2017 ◽  
Vol 38 (1) ◽  
pp. 42-55 ◽  
Author(s):  
Jason D. DeBode ◽  
Kevin W. Mossholder ◽  
Alan G. Walker
Keyword(s):  
Psychological Contract ◽  
Psychological Contracts ◽  
Future Research ◽  
Online Data ◽  
Content Type ◽  
New Employees ◽  
Mediating Role ◽  
Psychological Contract Fulfillment ◽  
Person Organization Fit ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of psychological contract fulfillment in the relationship between socialization tactics and attachment-related outcomes (i.e. organizational commitment and person-organization fit). Design/methodology/approach Data were obtained from online data collection services which allowed for a custom sample of new employees (n=326) from a variety of organizations and industries. Findings Psychological contract fulfillment partially mediated the relationship between one socialization tactic (i.e. social) and attachment-related outcomes. Post hoc analyses offered support for a hierarchy of socialization tactics with respect to prediction of organization-relevant outcomes. Research limitations/implications Researchers and practitioners have long believed socialization plays an important role in creating successful new employees. However, researchers have yet to adequately examine the mechanisms facilitating these relationships. This study advances the socialization literature by highlighting one such mechanism – psychological contract fulfillment. Originality/value This study seeks to explore the “black box” of socialization. Specifically, whereas prior work has suggested one tactic (i.e. social) may be more important than others, this is among the few studies exploring a potential hierarchy of socialization tactics. The authors then discuss the implications of this hierarchy for future research.

scholarly journals Authentic leadership and career satisfaction: the meditating role of thriving and conditional effect of psychological contract fulfillment

2020 ◽  
Vol 32 (6) ◽  
pp. 2117-2136
Author(s):  
Wen Chang ◽  
James Busser ◽  
Anyu Liu
Keyword(s):  
Psychological Contract ◽  
Authentic Leadership ◽  
Online Survey ◽  
Career Satisfaction ◽  
Psychological Contracts ◽  
Equation Modeling ◽  
Content Type ◽  
Conditional Effect ◽  
Psychological Contract Fulfillment ◽  
The Impact

Purpose This study aims examine the impact of authentic leadership on the career satisfaction of hospitality employees through the lens of thriving. The two components of thriving, that is, learning and vitality, are tested as mediators, and psychological contract fulfillment is tested as a boundary factor. Design/methodology/approach Data are collected using an online survey through the Qualtrics panel service in the USA. Structural equation modeling and an invariance test are conducted to investigate the framework. Findings The findings show that authentic leadership can determine career satisfaction through the influence of learning and vitality. Moreover, psychological contract fulfillment exerts a conditional effect on this mediation. Practical implications The findings of this study extend the understanding on authentic leadership and its impact under specific conditions. This study offers several meaningful recommendations to hospitality managers on how to influence employees’ career success to maintain sustainable performance. Detailed approaches include establishing practices for regular and authentic leadership development, increasing attention on employee thriving states and addressing employee psychological contracts. Originality/value This study enriches research on authentic leadership and career management in the hospitality industry. Moreover, this study provides meaningful insights by examining the relationships between authentic leadership, thriving, career satisfaction and psychological contracts.

More than grateful: How employee embeddedness explains the link between psychological contract fulfillment and employee extra-role behavior

2018 ◽  
Vol 72 (8) ◽  
pp. 1315-1340 ◽  
Author(s):  
Kohyar Kiazad ◽  
Maria L Kraimer ◽  
Scott E Seibert
Keyword(s):  
Psychological Contract ◽  
Organizational Values ◽  
Citizenship Behaviors ◽  
Role Performance ◽  
Strong Ties ◽  
Role Behavior ◽  
Employee Behaviors ◽  
Psychological Contract Fulfillment ◽  
Employee Responses ◽  
Practical Implications

Scholars typically view employee responses to psychological contract (PC) fulfillment as a form of reciprocity; in exchange for the organization fulfilling its promises, the employee willingly contributes their time and effort toward company goals. In this article, we ask if employee responses are based not on gratitude, but rather on the employee’s desire to maintain the benefits associated with PC fulfillment. Specifically, we argue that PC fulfillment embeds employees in the organization by increasing the costs of leaving (‘sacrifices’), and this in turn motivates their extra-role performance. Furthermore, we expect this effect to be even stronger for employees with strong ties to colleagues or work groups (‘links’) or good fit with job demands or organizational values (‘fit’). Data from 149 employees and their immediate supervisors supported our predictions: PC fulfillment was positively related to organizationally-directed citizenship behaviors and work-role innovation through its positive relation to sacrifices. Furthermore, these indirect effects were stronger for employees with stronger links and better fit. The present findings provide a novel theoretical account of how and when PC fulfillment relates to positive employee behaviors. Theoretical and practical implications for managing employees’ PCs are discussed.

scholarly journals The Effect of Psychological Contracts: Transactional, Relational, Balance on Organizational Citizenship Behaviors University Staff in Indonesia and Malaysia

2021 ◽  
Vol 9 (02) ◽  
pp. 550-554
Author(s):  
Retno Dwiyanti ◽  
Pambudi Rahardjo ◽  
Imam Faisal Hamzah ◽  
Siti Aisyah Binti Panatik
Keyword(s):  
Organizational Citizenship ◽  
Organizational Citizenship Behavior ◽  
Psychological Contract ◽  
Psychological Contracts ◽  
Citizenship Behavior ◽  
University Staff ◽  
Relational Contract ◽  
Organization Citizenship Behavior ◽  
Organizational Functions ◽  
Employee Responses

Organization Citizenship Behavior is an extra-role individual behavior that is discretionary which is not directly recognized by the formal reward system and will jointly encourage organizational functions. Psychological contracts and their fulfillment are linked to employee responses consisting of intra-role and extra-role performance. The purpose of this study was to determine the effect of the transactional contract, relational contract, and balance contract on organizational citizenship behavior. The sample in this study was 313 university staff in Indonesia and universities in Malaysia. Data collection used a psychological contract scale and a scale of organizational citizenship behavior. The result of this study is that there is a significant influence between the relational contract and balance contract on organizational citizenship behavior. Meanwhile, there is no effect of the transactional contract on organizational citizenship behavior.

scholarly journals Human Resources Management Practices, Psychological Contract Fulfillment and Organizational Commitment in Deluxe Hotels in Jeddah, Saudi Arabia

2017 ◽  
Vol 9 (4) ◽  
pp. 94 ◽  
Author(s):  
Mansour A. Al-miman
Keyword(s):  
Saudi Arabia ◽  
Organizational Commitment ◽  
Human Resources ◽  
Psychological Contract ◽  
Management Practices ◽  
Human Resources Management ◽  
Psychological Contracts ◽  
Resources Management ◽  
Hrm Practices ◽  
Psychological Contract Fulfillment

This paper study the relationship of the effectiveness of the human resources management practices of the hotels employees in the western region (Jeddah City) of Saudi Arabia with respect to their Psychological contract fulfilment (PCFul) and Organizational Commitment (OC). Data was collected from 36 hotels. Using the employees' responses, the study indicated that Human Resources practices influenced employees’ perceived Psychological contract fulfilment and their Organizational Commitment, where Human Resources Management (HRM) practices are positively related to Psychological contract fulfilment and OC. The study examined whether employees consider (HRM) practices an important tool while developing psychological contracts, and presented the prospective role of the Human Resources for Developmental Purposes to foster change in the hotel industry in Saudi Arabia.

scholarly journals The Effect of Coaching Practices on Psychological Contract Fulfillment of Student-Athletes

2016 ◽  
Vol 71 (1) ◽  
pp. 21-29 ◽  
Author(s):  
Davar Rezania ◽  
Robert Gurney
Keyword(s):  
Information Sharing ◽  
Least Squares ◽  
Partial Least Squares ◽  
Psychological Contract ◽  
Student Athletes ◽  
Psychological Contracts ◽  
Path Modeling ◽  
Role Behavior ◽  
Psychological Contract Fulfillment ◽  
The Impact

AbstractWe examine the relationships between coaching practices, psychological contract fulfillment and the impact it has on satisfaction and in-role behavior of student-athletes. We surveyed a total of 183 student-athletes in Canada. Utilizing Partial Least Squares path modeling algorithm, the results confirm that the extent of psychological contract fulfillment is positively related to satisfaction and role-behavior. In addition, practices of compensation, information sharing, and security (i.e. ensuring continuation of position on the team) are related to fulfillment of psychological contracts. However, the data does not provide support for the idea that training is related to the fulfillment of psychological contracts. The results suggest that universities can manage students-athletes’ expectations by institutionalizing coaching practices that signal commitments for compensation, information sharing, and provide assurance of position on the team. Such practices have potential to improve the athlete’s performance.

scholarly journals Changes to Newcomers’ Psychological Contract Over Time: The Interactive Effects of the Fulfilment of Employer and Employee Obligations

2019 ◽  
Vol 18 (1) ◽  
pp. 1-13
Author(s):  
Leticia Gomes Maia ◽  
P. Matthijs Bal ◽  
Antônio Virgilio Bittencourt Bastos
Keyword(s):  
Psychological Contract ◽  
Schema Theory ◽  
Psychological Contracts ◽  
Interactive Effects ◽  
Public Organization ◽  
Psychological Contract Fulfillment ◽  
Employee Fulfillment ◽  
Over Time

The goal of this study was to examine changes in newcomers’ psychological contract over time. Based on schema theory and the post-violation model of the psychological contract, we theorized that psychological contract fulfillment is strengthening the psychological contract over time, while changes in the psychological contract are most likely to occur in a situation of low employer and employee fulfillment. In a sample of newcomers in a Brazilian public organization, we tested how the fulfillment of both employer and employee obligations explain the change in the psychological contract. The results support the hypotheses, and we found that the highest level of change in psychological contracts occurred when the fulfilments of the obligations of both parties were low. We discuss the implications for theory on the change in psychological contracts.

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