Study of Indian bank shows psychological contract breach (PCB) during restructuring has impact on stress

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Psychological Contract ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Job Involvement ◽  
Psychological Contract Breach ◽  
Job Outcomes ◽  
Contract Breach ◽  
Content Type ◽  
Employee Stress ◽  
The Impact

Purpose Restructuring is a common strategy to increase competitiveness, but a lot of the time it is unsuccessful. The author believes this is likely to be because of “psychological contract breach” (PCB), but says the phenomenon has not been studied much. Another factor, he says, is the high level of stress caused by the restructuring. Therefore, the researcher wanted to study the impact of both the psychological contract breach and stress on employee job outcomes during restructuring. Design/methodology/approach Data was collected from bank employees using a questionnaire. A total of 322 completed questionnaires were used in the analysis. There were also 30 interviews with native employees of SBI to find out their opinions of working with bank associate employees. There were 17 questions covering PCB, job stress, job involvement and organizational citizenship behaviour (OCB). Findings The results confirmed Hypothesis 1, Hypothesis 2 and Hypothesis 3. Therefore, the author’s research proved a positive relationship between PCB and employee stress, a significant negative relationship between employee stress and job involvement, and a significant positive relationship between job involvement and OCB. However, analysis rejected three other hypotheses. Although there was a change in stress, job involvement and OCB after the merger, it was not significant. Originality/value The study was a significant contribution to research because few previous studies have dealt with the impact of organizational restructuring on stress and job outcomes in India.

The interplay of psychological contract breach, stress and job outcomes during organizational restructuring

2020 ◽  
Vol 53 (1) ◽  
pp. 15-28
Author(s):  
Thiruchelvi Arunachalam
Keyword(s):  
Organizational Citizenship ◽  
Psychological Contract ◽  
Job Involvement ◽  
Psychological Contract Breach ◽  
Organizational Restructuring ◽  
Job Outcomes ◽  
Contract Breach ◽  
Content Type ◽  
Employee Stress ◽  
The Impact

Purpose This paper aims to study the impact of psychological contract breach and employee stress on job outcomes such as job involvement and organizational citizenship behaviour in the Indian banking sector, with special reference to State Bank of India. Design/methodology/approach A questionnaire survey was administered. Data was collected from employees of a bank, which has undergone a merger. Validity tests were carried out to confirm the accuracy of the measurement variables. Regression analysis was used to test the stated hypotheses. A paired t-test was used to compare the level of job outcomes experienced by the employees before and after the merger. Findings The study has shown that psychological contract breach has an impact on job stress. Results also show that the merger has made a positive impact on the employees. Job involvement and engagement were found to be improved after the merger. Employees were also found to be more committed to the organization and exhibit high organizational citizenship behaviour. Practical implications The organizational restructuring has been long thought to play a crucial role in affecting the job outcomes of employees. This study reconfirms those concepts and provides implications for researchers and managers. Originality/value This study makes a significant theoretical contribution to the literature as this is one of the very few studies to deal with the impact of organizational restructuring on employee stress and job outcomes in the Indian Scenario.

Breach or bridge your career? Understanding the relationship between career plateau and internal employability

2018 ◽  
Vol 47 (5) ◽  
pp. 986-1002 ◽  
Author(s):  
Yi-chun Lin ◽  
Angela Shin-yih Chen ◽  
Yu-ting Lai
Keyword(s):  
Psychological Contract ◽  
Negative Relationship ◽  
Psychological Contract Breach ◽  
Hierarchical Regression ◽  
Contract Breach ◽  
Content Type ◽  
Career Plateau ◽  
Job Content ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to identify the impact of career plateau (hierarchical and job-content plateau) on internal employability, and to investigate psychological contract breach as a moderator on the relationship between career plateau (hierarchical and job-content plateau) and internal employability. Design/methodology/approach Data were collected by distributing paper-based questionnaires to 521 workers in private banking sectors in Taiwan. Hierarchical regression analysis was used to examine the results of the relationships. Findings The results supported the idea that career plateau (hierarchical and job-content plateaus) could be a significant antecedent of internal employability. Psychological contract breach significantly moderated the negative relationship between career plateau (hierarchical and job-content plateau) and internal employability. Specifically, the negative relationship between career plateau and internal employability will be stronger for employees who perceive a higher level of psychological contract breach. Practical implications These findings can help human resource practitioners gain a better understanding of the value of applicable approaches as an influence on a plateaued employee’s perception of internal employability, and to facilitate a positive employer–employee relationship, which could foster both a successful career for an individual and a prosperous performance for the organization that employs them. Originality/value Career plateau have been aroused variety issues in HR practice, but employability and psychological contract breach have barely been discussed with career plateau. This study empirically establishes the correlation between career plateau and internal employability as well as shown that psychological contract breach would decrease the plateaued individual’s willingness to stay in the current organization. Thus, the career plateau may provide organizations with a helpful perspective on one’s career development. Building substantial relationships between employees and employers lead to better human capital for organizations as it deals with rapidly changes in the real world.

scholarly journals The impact of economic factors on the relationships between psychological contract breach and work outcomes: a meta-analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thushel Jayaweera ◽  
Matthijs Bal ◽  
Katharina Chudzikowski ◽  
Simon de Jong
Keyword(s):  
Job Performance ◽  
Unemployment Rate ◽  
Psychological Contract ◽  
Inflation Rate ◽  
Meta Analysis ◽  
Psychological Contract Breach ◽  
Contract Breach ◽  
Content Type ◽  
Outcome Relationship ◽  
The Impact

PurposeThe purpose of this paper is to explore the macroeconomic factors that may moderate the psychological contract breach (PCB) and work outcome relationship.Design/methodology/approachThis study conducted a meta-analysis based on data from 134 studies.FindingsThe study revealed that the inflation rate and the unemployment rate of a country moderated the association among employee PCB, job performance and turnover.Research limitations/implicationsThe availability of more detailed macroeconomic data against the PCB and outcome relationship for other countries and studies examining the impact of micro-economic data for PCB and outcome relationship would provide a better understanding of the context.Practical implicationsThe authors believe that the results highlight the importance of the national economy since it impacts individual outcomes following a breach.Social implicationsEmployment policies to capture the impact of macroeconomic circumstances as discussed.Originality/valueOne of the valuable contributions made by this paper is that the authors capture the current accumulative knowledge regarding the breach and performance and breach and turnover relationship. Second, the study examines how the inflation rate and unemployment rate could moderate the association between PCB and job performance and turnover.

Abusive supervisors and employees who cyberloaf

2020 ◽  
Vol 30 (3) ◽  
pp. 789-809 ◽  
Author(s):  
Upasnaa A. Agarwal ◽  
James B. Avey
Keyword(s):  
Psychological Contract ◽  
Abusive Supervision ◽  
Psychological Contract Breach ◽  
Full Time ◽  
Cross Sectional ◽  
Contract Breach ◽  
Content Type ◽  
Mediating Role ◽  
Cross Sectional Design ◽  
The Impact

PurposeThe purpose of this study is to examine the effects of abusive supervision on cyberloafing behavior, to test the mediating role of PsyCap in this relationship and the extent to which these relationships are moderated by psychological contract breach.Design/methodology/approachA total of 394 full-time managers across different Indian organizations served as the sample for this study.FindingsThe results revealed that the abusive supervision and PsyCap are significantly correlated with cyberloafing, the relationship between abusive supervision and cyberloafing is partially mediated by PsyCap and the impact of abusive supervision and PsyCap on cyberloafing is moderated by psychological contract breach such that the effects of abusive supervision and PsyCap on cyberloafing are stronger when employees perceive high psychological contract breach.Research limitations/implicationsA cross-sectional design and use of self-reported questionnaires are a few limitations of this study.Originality/valueThis is one of the first studies examining cyberloafing in response to abusive supervision and one of the few attempts to examine the effects of abusive supervision on individual resources (PsyCap) in response to workplace mistreatment. This study is also the first to examine these phenomena in the Indian context.

Antecedents and consequences of psychological contract breach

2016 ◽  
Vol 31 (8) ◽  
pp. 1312-1326 ◽  
Author(s):  
J.C. Peng ◽  
Jia-Jing Jien ◽  
Julian Lin
Keyword(s):  
Servant Leadership ◽  
Hierarchical Linear Modeling ◽  
Psychological Contract ◽  
Negative Relationship ◽  
Psychological Contract Breach ◽  
Employee Behavior ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Contract Breach ◽  
Content Type

Purpose The purpose of this paper is to investigate store-level servant leadership and the procedural justice climate (PJC) as key antecedents for employee-perceived psychological contract breach (PCB) and explores the mediating roles of PCB in the relationships among servant leadership, the PJC and deviant employee behavior. Design/methodology/approach Survey data were collected from 301 employees at 94 stores of a restaurant chain in Taiwan. The model and hypotheses were tested using hierarchical linear modeling. Findings The results support the moderated mediation model, showing that the indirect effects of servant leadership and PJC on deviant employee behavior through PCB were stronger for employees with an external locus of causality attribution than for those with an internal locus. Research limitations/implications The study relied on cross-sectional survey design, therefore the authors cannot infer causality. Practical implications The results will help organizations and managers understand that supervisor servant leadership has suppressive effects on deviant employee behavior through the intermediary mechanism of negative psychological perception (i.e. the perception of a PCB). Originality/value The primary purpose of this study is to examine the influences of store-level servant leadership and the PJC on employee deviance and to examine the mediating role played by PCB. The findings suggest a significantly negative relationship.

Once bitten, twice shy? Past breach and present exchange relationships

2014 ◽  
Vol 29 (8) ◽  
pp. 938-952 ◽  
Author(s):  
Robert Buch ◽  
Bård Kuvaas ◽  
Lynn Shore ◽  
Anders Dysvik
Keyword(s):  
Social Exchange ◽  
Organizational Support ◽  
Psychological Contract ◽  
Negative Relationship ◽  
Psychological Contract Breach ◽  
Economic Exchange ◽  
Exchange Relationship ◽  
Exchange Relationships ◽  
Contract Breach ◽  
Content Type

Purpose – The purpose of this paper is to examine the relationship between previous employer's psychological contract breach and exchange perceptions with the current employer, and seeks to uncover moderating influences of perceived organizational support (POS). Design/methodology/approach – Data were obtained from a cross-lagged sample of 314 employees in Norway. Hierarchical moderated regression analysis was used to test the hypotheses. Findings – The authors found a positive relationship between previous employer's psychological contract breach and economic exchange with the current employer, and a negative relationship between previous employer's psychological breach and social exchange with the current employer. The authors also found that POS from the current employer attenuates the positive association between previous employer's breach and economic exchange with the current employer. Research limitations/implications – The data were cross-lagged, so causal inferences should be made with caution. Practical implications – Managers should be aware that past employment experiences may relate to present employment exchange relationships. In addition, POS from current employer may serve to counterbalance the “carry over” effects of past employment experiences. Social implications – In light of the present global economic climate, increasing POS among employees could decrease the likelihood that they assume that the employment relationship constitutes an economic exchange relationship. Originality/value – This study contributes to a more complete understanding of factors that shape employees’ relationships with their organization. Furthermore, this study suggests a way by which organizations can repair damages incurred by previous employer's psychological contract breach.

Are You Thinking the Same Way?

2016 ◽  
Vol 60 (4) ◽  
pp. 187-198
Author(s):  
Anja Baethge ◽  
Thomas Rigotti
Keyword(s):  
Psychological Contract ◽  
Negative Relationship ◽  
Schema Theory ◽  
Psychological Contract Breach ◽  
Perceived Similarity ◽  
Communication Quality ◽  
Contract Breach ◽  
Positive Effects ◽  
The Impact ◽  
Doctoral Candidates

Abstract. This paper examines the impact of relationship parameters (communication quality and perceived similarity) between doctoral candidates and their supervisors on psychological contract breach, with reference to the theory of Morrison and Robinson (1997) and the schema theory of Rousseau (2001) . A two-wave longitudinal study involving 101 doctoral candidates was conducted, with time points separated by 4 months. Hypotheses were tested using cross-lagged panel analyses. Perceived similarity and communication quality at T1 had no significant main effect on contract breach at T2 (controlled for contract breach at T1). However, the interaction of both variables was found to be significant. If similarity was high, there was a significant negative relationship between communication quality and psychological contract breach. We may conclude that shared mental models are important for the unfolding of the positive effects of communication quality within a doctoral candidate–supervisor relationship.

Knowledge-hiding behaviors and employees’ silence: mediating role of psychological contract breach

2020 ◽  
Vol 24 (9) ◽  
pp. 2171-2194 ◽  
Author(s):  
Muhammad Waseem Bari ◽  
Misbah Ghaffar ◽  
Bashir Ahmad
Keyword(s):  
Psychological Contract ◽  
Equation Modeling ◽  
Psychological Contract Breach ◽  
Time Lags ◽  
Contract Breach ◽  
Content Type ◽  
Knowledge Hiding ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the relationship between knowledge-hiding behaviors (evasive hiding, playing dumb and rationalized hiding) and employees’ silence (defensive silence, relational silence and ineffectual silence). Besides, this paper investigates the relation mediated by psychological contract breach. Design/methodology/approach The data were collected with three-time lags (40 days each) through a structured questionnaire from 389 employees of registered software houses in Pakistan. The structural equation modeling (partial least squares) approach is used for data analysis. Findings The findings of this study confirm that knowledge-hiding behaviors have a significant and positive relationship with employees’ silence, and psychological contract breach significantly mediates the relationship between knowledge-hiding behaviors and employees’ silence. Practical implications The implications of this study are very supportive to the knowledge-intensive organizations, i.e. software houses. The management should increase the knowledge sharing and trust culture among employees to discourage the knowledge-hiding behaviors among employees. Moreover, supervisors should develop trust among employees, motivate them to avoid knowledge hiding and encourage the employees to raise their voices against their problems in a formal way. Originality/value The present study highlights the impact of different dimensions of knowledge hiding on employees’ silence and the role of psychological contract breach as a mediator in this scenario.

Psychological contract breach and teachers' organizational commitment: mediating roles of job embeddedness and leader-member exchange

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Veronica Serwaa Amoah ◽  
Francis Annor ◽  
Maxwell Asumeng
Keyword(s):  
Organizational Commitment ◽  
Psychological Contract ◽  
Job Embeddedness ◽  
Psychological Contract Breach ◽  
Leader Member Exchange ◽  
Normative Commitment ◽  
Contract Breach ◽  
Continuance Commitment ◽  
Content Type ◽  
Member Exchange

PurposeThe study examined the relationship between psychological contract breach and organizational commitment and whether leader-member exchange and job embeddedness mediate this relationship.Design/methodology/approachThe study adopted a quantitative approach and is based on a sample of 298 teachers in basic schools in Accra, Ghana. Participants completed surveys with standardized measures on psychological contract breach, job embeddedness, leader-member exchange and organizational commitment. Hypothesized relationships were tested using structural equation modeling in AMOS 21.0.FindingsPsychological contract breach had a direct negative relationship with affective and normative commitment but had no significant direct relationship with continuance commitment. Psychological contract breach was indirectly related to affective and normative commitment through both job embeddedness and leader-member exchange, and indirectly related to continuance commitment through only job embeddedness.Practical implicationsFindings from the study suggest that employers' failure to fulfill their obligations to employees has significant potential cost to the organization, and underscore the need for managers, particularly in educational institutions, to institute measures to eliminate or minimize the occurrence of psychological contract breach.Originality/valueThe study contributes to research examining antecedents of organizational commitment as well as the mechanisms linking psychological contract breach to organizational commitment in the educational context.

Incongruent influences: joint effects on the job attitudes of employees with psychological contract breach in the MENA region

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naveen Jain ◽  
Danilo Le Sante ◽  
Chockalingam Viswesvaran ◽  
Rakesh Belwal
Keyword(s):  
Psychological Contract ◽  
Corporate Reputation ◽  
Ecological Validity ◽  
Job Attitudes ◽  
Psychological Contract Breach ◽  
Negative Effects ◽  
Mena Region ◽  
Contract Breach ◽  
Content Type ◽  
Multiple Variables

Purpose The psychological contract breach (PCB) literature has documented the negative effects of PCB on employee job attitudes and the variables that moderate (accentuate or mitigate) this relationship. Given that multiple variables together influence a subordinate’s PCB – job attitudes relationship, this paper aims to investigate a three-way interaction between corporate reputation, supervisor’s and subordinate’s PCBs on the job attitudes of the latter. Design/methodology/approach The authors collected a dyadic sample of 227 employees and their 79 supervisors from some of the well-known companies in Oman. The authors used SPSS (version 25) to examine the three-way interaction of focal employee PCB, supervisor PCB and corporate reputation on employee job attitudes. Findings The results indicated that depending on the perception of corporate reputation, the extent of the supervisor’s PCB perception has a differential influence on the employee PCB – job attitudes relationship. Originality/value By investigating the joint (sometimes conflicting) influences of multiple moderators which enhances the ecological validity, this paper makes an original and important contribution to the PCB literature.

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