Relationship between perceived performance management system (PMS) effectiveness, work engagement and turnover intention: mediation by psychological contract fulfillment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neha Paliwal Sharma ◽  
Tanuja Sharma ◽  
Madhushree Nanda Agarwal
Keyword(s):  
Performance Management ◽  
Work Engagement ◽  
Psychological Contract ◽  
Turnover Intention ◽  
Management Practices ◽  
Employee Outcomes ◽  
Design Data ◽  
Content Type ◽  
Psychological Contract Fulfillment ◽  
The Relationship

PurposePerformance management systems (PMSs) are critical for organizational success, but research is undecided on their constructive influence and the means through which they impact work engagement and turnover intention. This study aims to fill this gap by surmising psychological contract fulfillment as a mediator in the relationship between PMS effectiveness (PMSE) and employee outcomes.Design/methodology/approachThe study uses a survey research design. Data were collected from 327 working professionals in India. The Statistical Package for Social Science Version 10.0 (SPSS 10.0) and the Analysis of Moments Structure (AMOS) 4.0 were used for data analyses.FindingsThe two-factor construct perceived PMSE was found to explain a larger variance in work engagement and turnover intention than the separate measures for its constituents PMS accuracy (PMSA) and PMS fairness (PMSF). Psychological contract fulfillment and work engagement were found to mediate the relationship between PMSE and turnover intention.Research limitations/implicationsThe study broadens the field of research on PMS in important ways. It demonstrates that the two-factor construct PMSE has a larger influence on employee outcomes in comparison to its constituent individual measures PMSA and PMSF. This is also the first study to suggest that in contrast to PMSF, PMSA explains a higher variance in employee outcomes.Practical implicationsThis study validates the strong relationship between PMSE and key employee outcomes. Besides PMSF, managers can use the findings of this study to focus on the “right things” or accuracy in the PMS context to enhance work engagement and reduce turnover.Social implicationsThe study findings will have value everywhere owing to the diffusion and convergence in the human resource management practices of multinational firms irrespective of their contexts (Ananthram and Nankervis, 2013).Originality/valueEarlier PMS studies have mostly been limited to either its fairness or accuracy and attended unduly to its appraisal element. This study adopts a systems vision of PMS and overcomes earlier drawbacks by investigating the role of both PMSA and PMSF in shaping employee outcomes. This is the first study to empirically confirm that in contrast to PMSF, the PMSA constituent of PMSE explains a higher variance in employee outcomes. The study provides greatly essential pragmatic support to the conjecture that PMSs advance work engagement (Mone and London, 2014; Gruman and Saks, 2011) and lower turnover intention (Kwak and Choi, 2015).

scholarly journals Employees’ perceptions of human resource management practices and employee outcomes

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shaoheng Li ◽  
Christopher J. Rees ◽  
Mohamed Branine
Keyword(s):  
Performance Management ◽  
Turnover Intention ◽  
Management Practices ◽  
Employee Commitment ◽  
Employee Attitudes ◽  
Western China ◽  
Employee Outcomes ◽  
Content Type ◽  
Hrm Practices ◽  
The Relationship

PurposeThe purpose of this paper is to examine the relationship between employees’ perceptions of HRM practices and two outcomes, namely, employee commitment and turnover intention (TI), in small- and medium-sized enterprises (SMEs) in mainland China.Design/methodology/approachThis paper adopts a quantitative approach based on a sample of 227 employees working in 24 SMEs in eastern and western China.FindingsEmployees’ perceptions of HRM practices, such as training and development, reward management and performance management, are significant predictors of employee commitment. A negative direct relationship is found between employees’ perceptions about the use of HRM practices and TIs.Research limitations/implicationsAlthough data were collected from two representative provinces of eastern and western China, the size of the sample may limit the generalisability of the findings to the wider region.Practical implicationsThe relationship between employees’ perceptions of HRM practices and employee outcomes in Chinese SMEs provides an effective way for SME owners and HR practitioners to generate desirable employee attitudes and behaviours, which, ultimately contribute to improving organisational performance.Originality/valueThis is an original paper which makes a contribution by helping to address the dearth of studies which have explored aspects of the effectiveness of HRM in SMEs in China. In contrast to the majority of China-focussed studies on this topic, it highlights HRM outcomes at the individual level rather than the organisational level. Further, the study involves SMEs in western China which is an under-explored region.

Service employees’ workplace fun and turnover intention: the influence of psychological capital and work engagement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Tetteh ◽  
Rebecca Dei Mensah ◽  
Christian Narh Opata ◽  
Claudia Nyarko Mensah
Keyword(s):  
Work Engagement ◽  
Turnover Intention ◽  
Psychological Capital ◽  
Frontline Employees ◽  
Design Data ◽  
Cross Sectional ◽  
Content Type ◽  
Service Employees ◽  
Workplace Fun ◽  
The Relationship

Purpose As a way of addressing how best turnover intention among service employees can be reduced through workplace fun, this study aims to examine how psychological capital (PsyCap) and work engagement, respectively, moderates and mediates the relationship between workplace fun and turnover intention in a moderated mediation. Design/methodology/approach Using cross-sectional quantitative design, data were collected by means of questionnaires and convenience sampling. The hypotheses were tested with 482 service employees from the hospitality industry in Ghana using PROCESS macro. Findings The findings depict that work engagement mediates the relationship between workplace fun and turnover intention among service employees. Also, PsyCap moderates the workplace fun–engagement relationship, in addition to the workplace fun–work engagement–turnover intention relationship. Specifically, both relationships are stronger for employees with high PsyCap. Practical implications The authors would like to conclude that as frontline employees are usually subjected to stressful conditions, monotonous working environments and emotional labor, which affect the quitting intention, incorporating fun into the workplace will strategically help frontline employees to be engaged in their work and reduce their intentions to quit. Originality/value With a focus on a developing economy, this work is novel in exploring possible factors that may help increase work engagement and reduce turnover intention among service employees.

“I am OK when you are with me” – Understanding the well-being and innovative behavior in the digitized workspace

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anushree Karani ◽  
Swapnil Abhishek Mehta
Keyword(s):  
Work Engagement ◽  
Psychological Contract ◽  
Well Being ◽  
Innovative Behavior ◽  
Snowball Sampling ◽  
Coworker Support ◽  
Content Type ◽  
Psychological Contract Fulfillment ◽  
Consumer Durable ◽  
The Relationship

PurposeThe study aimed at understanding the relationship between supervisor and coworker support, psychological contract fulfillment, work engagement, well-being (different forms) and innovative behavior in the digitized workspace during the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachData were collected via a structured questionnaire through Google Docs from 239 respondents working in the sales department of the consumer durable industry through snowball sampling.FindingsSupervisor and coworker support was positively contributing to psychological contract fulfillment. Further, psychological contract fulfillment was positively contributing to work engagement. Along with innovative behavior, four forms of well-being, i.e. emotional, psychological, workspace and life were studied as outcome variables. Work engagement positively contributes to innovative behavior and well-being.Research limitations/implicationsThe study examined the relationship between various organizational variables in consumer durable industry. Future work should involve studying the effect in other industries and functional areas.Practical implicationsThe study examined how the supervisor and coworker act as an enabler in fulfilling the psychological contract in the digitized workspace. Organizations also understand the importance of work engagement in maintaining well-being and innovative behavior.Originality/valueThe paper initiates the important debate on well-being and innovative behavior in the digitized workspace for the sales employees of the consumer durable industry.

Examining the role of perceived investment in employees’ development on work-engagement of liquid knowledge workers

2019 ◽  
Vol 12 (2) ◽  
pp. 225-245 ◽  
Author(s):  
Jatinder Kumar Jha ◽  
Jatin Pandey ◽  
Biju Varkkey
Keyword(s):  
Work Engagement ◽  
Psychological Contract ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Management Practices ◽  
Knowledge Workers ◽  
Employee Development ◽  
Moderating Effects ◽  
Content Type ◽  
The Relationship

PurposeThis paper aims to examine the relationship between perceived investments in employees’ development (PIED) on work engagement and the moderating effects of psychological capital on this relationship for liquid knowledge workers, employed in the Indian cutting and polishing of diamond industry (CPD).Design/methodology/approachA questionnaire composed of established scales was administered to 134 liquid knowledge workers. Having established convergent and discriminant validity using structural equation modelling, the model was further analysed using the Process macro to check for direct and moderating effects.FindingsThe research findings suggest that the perceived investment in employee development and psychological contract enhancement (relational and transactional) made by CPD units for liquid knowledge workers positively influenced their work engagement level. The study also finds that relational contract (not transactional contract) positively moderates the relationship between perceived investment in employee development and work engagement.Research limitations/implicationsThis is a cross-sectional single source study; future studies could look at longitudinal and multisource perspective.Practical implicationsThe study presents a “star matrix of engagement” that guides the application of the two strategies of perceived employee development and psychological contract enhancement for liquid knowledge workers. This has implications for design and implementation of human resource management practices and policies for employee management.Originality/valueThe study makes significant contributions to existing literature on antecedents of work engagement of liquid knowledge workers by examining the direct and moderating influences.

Fulfill psychological contract promises to manage in-demand employees

2015 ◽  
Vol 44 (5) ◽  
pp. 689-701 ◽  
Author(s):  
John Rodwell ◽  
Julia Ellershaw ◽  
Rebecca Flower
Keyword(s):  
Job Satisfaction ◽  
Psychological Distress ◽  
Psychological Contract ◽  
Organizational Identification ◽  
Equation Modeling ◽  
Employee Outcomes ◽  
Content Type ◽  
Psychological Contract Fulfillment ◽  
The Impact ◽  
Three Components

Purpose – The purpose of this paper is to explore the impact of three components of the psychological contract (i.e. obligations, fulfillment and breach) and the individual characteristic negative affectivity (NA) onto three key outcomes, namely, job satisfaction, organizational identification and psychological distress. Design/methodology/approach – Questionnaires were completed by 222 Australian nurses and midwives from a medium-sized metropolitan Australian hospital. The response rate for the study was 39 percent. Findings – Structural equation modeling revealed that perceptions of psychological contract fulfillment were positively linked to organizational identification and job satisfaction, while psychological contract breach was negatively linked to these outcomes. NA was negatively linked to job satisfaction and positively linked to psychological distress. Psychological contract obligations were not associated with any of the employee outcomes. Research limitations/implications – Psychological contract fulfillment is an important driver of employee satisfaction and organizational identification and the findings highlight the importance of including NA in psychological contract research. The occupation and context, being in-demand employees, appeared to neutralize the impact of one dimension of the psychological contract, employer promises and obligations. Practical implications – Explicitly managing employees’ psychological contracts by focussing on fulfilling realistic promises will enable managers to improve employee outcomes and facilitate employees embracing their organization. Originality/value – This study is one of the first to explore all three components of the psychological contract. These results may assist in the development of strategies to retain in-demand employees such as nurses, particularly highlighting the need to make and fulfill realistic promises.

scholarly journals Transformational leadership and employee outcomes: the mediating role of psychological empowerment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saira Saira ◽  
Sadia Mansoor ◽  
Muhammad Ali
Keyword(s):  
Transformational Leadership ◽  
Organizational Citizenship ◽  
Organizational Citizenship Behavior ◽  
Turnover Intention ◽  
Psychological Empowerment ◽  
Mediating Effect ◽  
Citizenship Behavior ◽  
Employee Outcomes ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this study is to empirically test the mediating effect of psychological empowerment in the relationship between transformational leadership and two employee outcomes: organizational citizenship behavior and turnover intention.Design/methodology/approachThe data were collected from 316 employees working in the textile industry to empirically test the proposed model.FindingsThe findings of this study indicate that psychological empowerment mediates the relationship between transformational leadership and both employee outcomes of organizational citizenship behavior and turnover intention.Research limitations/implicationsThis study suggests that organizations aiming to minimize turnover intention among employees should develop a transformational leadership style at the managerial level to enhance psychological empowerment among employees, which, in turn, will also improve organizational citizenship behavior.Originality/valueThis study proposes and tests the indirect effect of transformational leadership on organizational citizenship behavior and turnover intention via psychological empowerment.

How can financial organizations improve employee loyalty? The effects of ethical leadership, psychological contract fulfillment and organizational identification

2017 ◽  
Vol 38 (5) ◽  
pp. 679-698 ◽  
Author(s):  
Lu-Ming Tseng ◽  
Jui-Yun Wu
Keyword(s):  
Ethical Leadership ◽  
Psychological Contract ◽  
Organizational Identification ◽  
Loyalty Programs ◽  
Employee Loyalty ◽  
Content Type ◽  
Psychological Contract Fulfillment ◽  
Employee Identification ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of ethical leadership on the financial professionals’ loyalty by focusing on the mediating effects of perceived psychological contract fulfillment (PPCF) and organizational identification (OI). Design/methodology/approach A questionnaire survey was used in this research. Findings Financial professionals in Taiwan were recruited for the sample. The results revealed that the professionals’ experiences of ethical leadership positively associated with their loyalty toward their companies. The results further showed that the PPCF and OI significantly mediated the relationship. Originality/value Few studies have examined how ethical leadership could stimulate financial professionals’ loyalty. The findings of this study may provide some implications for those involved in the practice of leadership and employee loyalty programs. On the other hand, the focus of Taiwan is unique and helps improve the generalizability of previous studies on the relationship between ethical leadership and employee identification.

Relationships between job characteristics, work engagement, conscientiousness and managers’ turnover intentions

2018 ◽  
Vol 47 (2) ◽  
pp. 353-377 ◽  
Author(s):  
Upasna A. Agarwal ◽  
Vishal Gupta
Keyword(s):  
Work Engagement ◽  
Indirect Effects ◽  
Turnover Intention ◽  
Structural Equation ◽  
Turnover Intentions ◽  
Job Characteristics ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship

Purpose Integrating the job demands-resources theory and the conservation of resources theory, the purpose of this paper is to develop and test a moderated-mediation model examining the relationships between motivating job characteristics, work engagement, conscientiousness and managers’ turnover intentions. Design/methodology/approach Data were collected using a survey questionnaire from 1,302 managers working in eight Indian private sector organizations. Structural equation modeling and hierarchical regression analysis were used to test the hypothesized relationships between the study variables. Findings The study found evidence of the mediating role of work engagement for the relationship between motivating job characteristics and managers’ turnover intentions. Conscientiousness moderated the relationship between work engagement and turnover intention. The total and indirect effects of motivating job characteristics on turnover intention were moderated by conscientiousness. Research limitations/implications The study was cross-sectional, so inferences about causality are limited. Practical implications The findings of this study reaffirm the crucial role of job characteristics in influencing work engagement and turnover intention. By examining work engagement as a mediator for the job characteristics-turnover intention relationship, this study explores the process through which job characteristics are associated with turnover intention. The findings of the moderating influence of contentiousness on the relationship of direct and indirect effects of job characteristics suggests that individual personality can influence social exchanges as well as managerial attitudes and behaviors in multiple ways. Originality/value The study provides an insight into the underlying process through which job characteristics are related to managers’ turnover intentions. To the best of the authors’ knowledge, such a study is the first of its kind.

A moderated mediation model of the relationship between organizational justice and turnover intention

2019 ◽  
Vol 27 (4) ◽  
pp. 1073-1092 ◽  
Author(s):  
Emre Burak Ekmekcioglu ◽  
Enver Aydogan
Keyword(s):  
Organizational Justice ◽  
Psychological Contract ◽  
Turnover Intention ◽  
Mediation Model ◽  
Content Type ◽  
Mediating Role ◽  
Moderated Mediation Model ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this study is to examine the mediating role of organizational identification (OI) on the relationship between organizational justice (OJ) and turnover intention (TI), as well as the moderating role of psychological contract fulfillment (PCF) in those relationships. Design/methodology/approach Data were collected from 339 employees of a financial institution in Turkey. Regression analyses were conducted to investigate a moderated mediation model. Findings This study found that OI was partially mediated the relationship between OJ and TI. The results also indicated that the indirect effect of OJ on TI through OI was moderated by PCF. Research limitations/implications The generalizability of the findings is limited. As this study is cross-sectional, causal inferences cannot be inferred regarding the hypothesized relationships. Practical implications To reduce TI, organizations should ensure the fair allocation of resources and rewards among employees. Moreover, organizations should pay attention to the expectations of employees and the promises made to them in an attempt to fulfill psychological contract obligations. Originality/value This study explores the mediating role of OI in the relationship between OJ and TI. In addition, this research sheds light on the moderating role of PCF in this mediation model.

Encouraging client’s knowledge sharing in enterprise system post-implementation through psychological contract and entrepreneurial orientation

2019 ◽  
Vol 33 (2) ◽  
pp. 689-709
Author(s):  
Zhao Cai ◽  
Hefu Liu ◽  
Qian Huang ◽  
Yue Kang ◽  
Liang Liang
Keyword(s):  
Knowledge Sharing ◽  
Psychological Contract ◽  
Entrepreneurial Orientation ◽  
Enterprise System ◽  
Content Type ◽  
Knowledge Sharing Behavior ◽  
Psychological Contract Fulfillment ◽  
The Relationship ◽  
Sharing Behavior

Purpose The purpose of this paper is to discuss the relationship between psychological contract and knowledge sharing behavior in the enterprise system (ES) post-implementation stage. The fulfillment and obligation of psychological contract are proposed as antecedents of knowledge sharing behavior performed by client firms. Additionally, entrepreneurial orientation (EO) is considered a moderator in the relationship between psychological contract and knowledge sharing. Design/methodology/approach This study adopted the questionnaire survey to collect data from 132 client firms of a focal ES provider in the garment industry of China. Hierarchical regression analysis was used for data analysis. Findings Psychological contract fulfillment is negatively related to knowledge sharing, whereas the positive role of psychological contract obligation is supported. EOstrengthens the role of both psychological contract fulfillment and obligation in shaping knowledge sharing behavior of client firms. Originality/value This study adopts forward- and backward-looking approaches in decision making as a theoretical lens to investigate how to improve client firms’ knowledge sharing behavior through psychological contract. By figuring out the roles of psychological contract and EO in influencing knowledge sharing, this research benefits both vendor and client firms in maintaining sustainable collaboration and continuous improvement of ES projects.

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