An empirical exploration of psychological contract violation and individual behaviour

2005 ◽  
Vol 20 (2) ◽  
pp. 150-163 ◽  
Author(s):  
Louise Lemire ◽  
Christian Rouillard

PurposeThe purpose of the research is to demonstrate the impact of psychological contract infringement (independent variable) on organizational commitment, exit, voice and neglect (dependent variables) within a Canadian federal public organization located in Quebec, where individual (e.g. age), organizational (e.g. stricter rule enforcement) and situational (e.g., employment alternatives) variables are controlled.Design/methodology/approach – A pre‐tested questionnaire (204 questions) on the psychological contract was distributed to 357 Canadian civil servants in a one site federal department. One hundred and thirty‐two questionnaires were returned and considered usable for research, for a 37 per cent response rate. Bivariate analysis was performed on the various determinants and individual responses to psychological contract violation, including organizational commitment, departure designs and counterproductive behaviors.Findings – Results clearly illustrate the great complexity of the link between organizational variables and individual reactions and shed light, on a higher level, on the need to outgrow arguments that reduce bureaucracy to its mere perverse effects. These results suggest that the managerial challenge is not so much to produce a shift from an environment where the rule of law, standards and regulations prevails to an open and flexible environment where individual autonomy is prized as it is to ensure compliance with normative and regulatory constraints.Originality/value – The research seeks to enrich the knowledge base on the subject area because previous research has dealt almost exclusively with the psychological contract within large private companies.

2019 ◽  
Vol 31 (2) ◽  
pp. 241-261
Author(s):  
Chen Hai-Ming ◽  
Lan Li-Chi ◽  
Chiu Tao-Sheng ◽  
Fang Chen-Ling

Purpose This paper aims to explore the impact of corporate social responsibility and hypocrisy on the relationship among psychological contract violation, trust and perceived betrayal. Design/methodology/approach This study used purposive sampling and selected students in Taiwan as the research participants. The theory of psychological contract violation and consumer awareness process in violation hypocrisy on psychological contract violation were used to investigate the effect of its impact on trust and perceived betrayal. Then, the moderating effect of social responsibility and hypocritical on trust, and the mediating effect of trust between psychological contract violation and perceived betrayal were analyzed. Findings The results indicated that hypocrisy had a significant and negative impact on psychological contract violation toward trust; hypocrisy had a significantly positive impact on psychological contract violation toward perceived betrayal; trust had a significantly negative impact on perceived betrayal; perceived betrayal had a significantly positive impact on both direct and indirect revenges; trust had a mediating effect between hypocrisy toward psychological contract violation and perceived betrayal; and higher hypocrisy would produce a stronger effect through trust on the relationships between hypocrisy toward psychological contract violation and perceived betrayal. Originality/value Perception of consumers would differ whenever there were failures of service recovery occurred; especially, stronger betrayal feeling would be perceived with the companies who emphasized social responsibility and did not carry out what they should do. Research results could be references for companies whom advertising and praising social responsibility.


2019 ◽  
Vol 24 (2) ◽  
pp. 216-234 ◽  
Author(s):  
Sajeet Pradhan ◽  
Aman Srivastava ◽  
Dharmesh K. Mishra

Purpose The purpose of this study is to test the relationship between abusive supervision and employee’s knowledge hiding behaviour among Indian information technology (IT) employees. The paper also strives to theoretically discuss and then seek empirical evidence to the two mediational paths (namely, psychological contract violation and supervisor directed aggression) that explain the focal relationship between abusive supervision and knowledge hiding. Design/methodology/approach To test the proposed hypotheses, the study draws cross-sectional data from Indian IT employees working in various IT firms in India. Data were collected at two time points (T1 and T2) separated by one month to counter the priming effect and neutralize any threat of common method bias. The final sample of 270 valid and complete responses was analysed using SmartPLS 3 to test the hypotheses. Findings Results showed that abusive supervision is positively related to employee’s knowledge hiding behaviours. Also, both psychological contract violation and supervisor directed aggression partially mediates the abusive supervision-knowledge hiding behaviour linkage. Originality/value First, the current study has tested the positive relationship between abusive supervision and knowledge hiding behaviours unlike most of the previous investigations that have focussed on knowledge sharing behaviour (the two are different constructs having different antecedents). Second, the study also empirically investigated the two parallel mediational routes, namely, psychological contract violation and supervisor directed aggression that explains the blame attributed by the beleaguered employee that led to covert retaliatory behaviour, such as knowledge hiding.


2019 ◽  
Vol 15 (4) ◽  
pp. 654-677
Author(s):  
Andrea M. Scheetz ◽  
Timothy J. Fogarty

Purpose Based on exchange theory and the generalized norm of reciprocity, psychological contracts perceived by employees are believed to have dysfunctional consequences for organizations if breached. This paper aims to study the willingness of employees to report fraud, as such is an important aspect of internal control for organizations. Design/methodology/approach A 2 × 2 between-subjects experiment was conducted in which 99 participants with diverse accounting backgrounds were first asked questions about their preconceived beliefs (psychological contract) regarding how reports of unethical conduct would be managed, and their reaction if these beliefs were broken (psychological contract violation). Participants were given a hypothetical situation of fraud and then asked to indicate their likelihood of reporting fraud to a supervisor. Findings The main hypotheses are that employees will be less likely to report fraud when the organization fails to signal the presence of a positive ethical environment or when management reacts weakly to previous reports of unethical activity. The data and findings support these hypotheses. Additional testing also reveals that a psychological contract violation mediates the relationship between the outcome of previous reports and the intention to report fraud. Research limitations/implications As with any experimental study, this study’s results come with limitations. Reading an overly simplistic scenario that omits real world details and providing intention to report is very different from actually reporting fraud in one’s own place of employment. Therefore, reporting intentions may vary from actual reporting behavior. Further, reporting motivation (self-defense, altruism, etc.) and concern over retaliation are not measured. Practical implications Employees have expectations surrounding ethical corporate environments. Psychological contract violations occur as a result of broken expectations and are common in the workforce. In this study, a breakdown in the internal control environment because of a poor ethical culture, caused an even greater breakdown in internal controls because of employees’ decreased reporting intentions. Social implications Psychological contract violations impact employees’ intention to report fraud. These violations need to be understood so that additional measures and safeguards can be instituted when employees are not acting as a fraud defense or detection mechanism. During such times when there is a breakdown in this type of internal control (that is, when employees might be hesitant to report fraud), extra safeguards against fraud, additional procedures to detect fraud, and enhanced employee training encouraging reporting of suspected unethical conduct, become even more important. Originality/value Strong experimental methods provide a rigorous way to evaluate a problem of our day: job insecurity caused by rampant organizational turbulence. The hidden cost is expressed in terms of how less can be expected of employees as a first line of defense against fraud.


2020 ◽  
Vol 41 (4) ◽  
pp. 597-613 ◽  
Author(s):  
Hasan Evrim arici ◽  
Huseyin Arasli ◽  
Nagihan Cakmakoglu Arici

PurposeThis multilevel study investigates the effect of employees' perception of nepotism on tolerance to workplace incivility through the mediating role of psychological contract violation and the moderating role of authentic leadership in organizations.Design/methodology/approachUsing time-lagged data from 547 frontline employees working in four- and five-star hotels, this study's hypotheses were analyzed by conducting hierarchical regression analysis and hierarchical linear modelling.FindingsThe findings indicate that non-family members' perception of nepotism triggered perceived tolerance to the uncivil behavior of family members by the management and that this relationship between nepotism perception and tolerance to workplace incivility was mediated by psychological contract violation. In line with expectations, authentic leadership moderated the effect of nepotism perception on tolerance to workplace incivility.Originality/valueThis study is among the first to examine the effects of nepotism perception on tolerance to workplace incivility by focusing on the mediator role of psychological contract violation at the individual level and the moderator role of authentic leadership at the group level.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anushree Karani ◽  
Payal Trivedi ◽  
Heena Thanki

PurposeThe purpose of the current research is to examine the impact of psychological contract fulfillment on work outcomes i.e. organizational commitment and job satisfaction during the COVID-19 pandemic. It also aims to check the mediating role of co-worker support and work engagement on organizational outcomes.Design/methodology/approachThe current study has adopted a quantitative approach and a cross-sectional research design has been used with a snowball sampling technique. Data were collected via a structured questionnaire through Google Docs from 926 respondents working at different capacities in the service sector. The study includes those respondents who are working from home during the COVID-19 pandemic situation. The hypotheses were tested using structural equation modeling (SEM).FindingsResults indicated that psychological contract fulfillment was positively impacting work outcomes i.e. organizational commitment and job satisfaction. Co-worker support and work engagement positively mediated the relationship between psychological contract fulfillment and work outcomes during the COVID-19 pandemic situation. Multi-group analysis proved that there was a difference in opinion regarding the impact of psychological contract fulfillment on organizational commitment and job satisfaction amongst males and females.Originality/valueThe novel contribution of the study is integrating social exchange theory, organization support theory and social information processing theory during the pandemic situation. The results highlighted meticulous empirical evidence, which answers the question as to how the met expectations cause an advantageous effect on the employees as well as the organizations in this COVID-19 pandemic situation.


2020 ◽  
Vol 31 (4) ◽  
pp. 647-664
Author(s):  
Po-Chien Chang ◽  
Ting Wu ◽  
Juan Du

Purpose The purpose of this study is to examine the dual effects of the violation of psychological contract on patient’s antisocial behaviour via the mediator of patient trust and the role of doctor-patient communication as a critical contingent variable in the psychological contract violation of patient’s antisocial behaviour relationship. Design/methodology/approach The data were collected from 483 hospitalized patients distributed in Shanxi province, China by using a self-administered survey. Findings The results indicated that psychological contract violation is positively associated with patient antisocial behaviour via patient trust. Moreover, the study found that doctor-patient communication moderates the mediated effects of psychological contract violation on patient’s antisocial behaviour through patient trust; that is, the mediated effect on antisocial behaviour is weaker when both doctor and patients have more communication. Research limitations/implications Due to a cross-sectional design in nature, the causal relationship cannot be developed based on the results. Despite the limitation, the present study provides insights for improving doctor-patient relationship by emphasizing the importance of increasing patient trust and doctor-patient communication. Practical implications To improve the quality of doctor-patient relationship, this study addresses the significance of properly showing understandings and care to regain mutual trust and reducing the likelihood of patient’s antisocial behaviour. Social implications The research findings have implications for both the health system and medical schools in China to reinforce the professional ethics and improve their medical humanities as the main concerns to generate a more sustainable doctor–patient relationship. Originality/value This study includes patient trust as a mediator and doctor-patient communication as a moderator to investigate the moderated mediation relationship among patients and medical professionals. By further examining the doctor-patient relationship, the results may not only help improve the efficient implementation of medical practices but also support the institutes and develop medical professionals for more positive doctor-patient relationships.


2020 ◽  
Vol 42 (6) ◽  
pp. 1291-1308
Author(s):  
Muhammad Umer Azeem ◽  
Sami Ullah Bajwa ◽  
Khuram Shahzad ◽  
Haris Aslam

PurposeThis paper investigates the role of psychological contract violation (PCV) as the antecedent of employee turnover intention. It also explores the role of job dissatisfaction and work disengagement as the sequential underlying mechanism of a positive effect of PCV on employee turnover intention.Design/methodology/approachDrawing on social exchange theory (SET), the authors postulate that PCV triggers negative reciprocity behaviour in employees, which leads to job dissatisfaction and work disengagement, which in turn develop into turnover intentions. The authors tested the research model on time-lagged data from 200 managers working in the banking sector of Pakistan.FindingsThe findings confirmed the hypothesis that employees experiencing PCV raise their turnover intentions because of a feeling of organisational betrayal which makes them dissatisfied and detached from their work.Originality/valueThis research advances the body of knowledge in the area of psychological contracts by identifying the mechanisms through which PCVs translate into employee turnover intentions.


2020 ◽  
Vol 12 (2) ◽  
pp. 630 ◽  
Author(s):  
Hongyan LIU ◽  
Jinglan Yang ◽  
Xiaoxi Chen

Customer citizenship behaviours are important for a sustainable customer-brand relationship, yet little is known about the effect of psychological contract breach on citizenship behaviours. From the perspective of psychological contract theory, this research examined the impact of psychological contract breaches on customer citizenship behaviours through the mediating mechanism of psychological contract violation in the customer-brand relationship. Experiments were used to assess the effect of two types of psychological contract breaches on customer citizenship behaviours. The results show that the negative effect of a relational contract breach differs between the dimensions of citizenship behaviours. A relational contract breach has direct and indirect negative effects on recommendation behaviours and helping behaviours, but it does not affect voice behaviours. A transactional contract breach directly and negatively influences recommendation behaviours, but it has no effect on voice behaviours. A transactional contract breach indirectly increases helping behaviours through psychological contract violation. Psychological contract violation partially mediates the effect of a transactional contract breach on customer recommendation behaviours and fully mediates the effect of a relational contract breach on helping behaviours. These findings generate managerial implications for firms aiming to maintain sustainable customer-brand relationships.


2017 ◽  
Vol 28 (1) ◽  
pp. 103-121 ◽  
Author(s):  
Wen-Hai Chih ◽  
Tao-Sheng Chiu ◽  
Li-Chi Lan ◽  
Wen-Chang Fang

Purpose This study aims to investigate the relationships between consumers’ perceived justice and their behavioral intentions and explores the effects of psychological contract violation on the relationships. Design/methodology/approach This study conducts sampling through the survey to consumers after restaurant dining. This study collected data from 400 respondents and analyzed the data with the structural equation modeling. Findings The results indicate that consumers who experience higher level of distribution justice and procedure justice are more likely to have behavioral intentions. This study also reveals that psychological contract violation is a partial mediator of the above relationships. Consumers will feel less psychological contract violation when they perceive more distribution justice and procedure justice and will not significantly affect them more likely to repurchase intention. Originality/value During restaurant service, if consumers feel distribution or procedure injustice, they are more likely to engage in negative word-of-mouth. However, the lack of significant and positive effect of interaction justice on negative word-of-mouth in this study can be because of other intervening variables, such as intensity. Furthermore, in terms of customer’s repurchase intention, the results indicate significant and positive effects for all three types of justice on repurchase intention.


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