Examining the relationship between the psychological contract and organisational commitment

2015 ◽  
Vol 23 (1) ◽  
pp. 102-122 ◽  
Author(s):  
Fauzia Jabeen ◽  
Mohamed Behery ◽  
Hossam Abu Elanain

Purpose – The aim of this study is to examine the impact of the psychological contract, relational psychological contract and transactional psychological contract on organisational commitment as mediated by transactional leadership in the United Arab Emirates (UAE) context. The paper also explores the contractual status to determine if the theory remains valid, regardless of the fact whether one is employed as a contingent or permanent worker. Design/methodology/approach – This research made a longitudinal study spanning a 24-week time period. Data were collected using a self-administered structured questionnaire prepared in English and Arabic, at three stages representing three visits to the participating companies in the UAE. Pearson’s correlation analysis and multiple regression analysis were used to examine the research hypotheses. Findings – The results show that the psychological contracts (transactional and relational) are positively related to transactional leadership. This study categorizes several consequential relationships between transactional leadership and organisational commitment. It also advocates that transactional leadership has only a fractional mediating role in relation to relational psychological contract, transactional psychological contract and organisational commitment. Practical implications – The findings suggest that practitioners and academics alike should note that the nature of the psychological contract employed will impact upon commitment and retention. Originality/value – This study makes a significant contribution to the body of literature, being the second part of a longitudinal study that aimed at testing the mediating effect of transactional leadership on organisational commitment within the context of the UAE. In the earlier study, the intent was to analyse the role of transformational leadership as a mediator between the psychological contract and organisational commitment. Typically, transformational leadership has been found to partially mediate the above mentioned relationships. In addition, it also advocates that there may be some value in considering the employees’ contractual status with regard to the psychological contract and its impact on organisational commitment.

2019 ◽  
Vol 28 (2) ◽  
pp. 12-14

Purpose The purpose of this study is to examine the impact of JIS on quitting intentions and service recovery performance (SRP) with JE as a mediating factor. Design/methodology/approach Data was gathered from 313 full time FHEs working in four and five star hotels in Iran. Questionnaires on JIS, JE, and quitting intentions were given in three waves to the FHEs over a two-week period and in addition supervisors provided a rating of SRP. Findings The findings support the mediating effect of JE with JIS related to the outcomes indirectly through JE. The greater the level of JIS the lower the JE of FHEs. The greater the level of JE the lower the quitting intentions and the higher the SRP of FHE’s. JE completely mediates the impact of JIS on quitting intentions and SRP. Practical implications Organizations should put steps in to retain key workers through adherence to the psychological contract, reduce the impact of JIS through providing clear information on career opportunities and progression, invest in high quality training to improve SRP and hire a workforce from the local communities to increase off-the job JE Originality/value This paper has contributed to an area where research is scarce with regard to how JIS can be reduced and the structure that links it to employee outcomes.


2016 ◽  
Vol 35 (5) ◽  
pp. 681-705 ◽  
Author(s):  
Ra'ed Masa'deh ◽  
Bader Yousef Obeidat ◽  
Ali Tarhini

Purpose – Knowledge sharing adoption has been considered as a significant practice for organizations. However, there is a modest empirical confirmation to indicate how these organizations value the richness of their knowledge capabilities. The purpose of this paper is to investigate both transformational and transactional leadership styles that influence employees’ knowledge sharing practices, and the impact of the latter on job performance, and then on firm performance. Design/methodology/approach – Data collected from 179 employees at the higher council of youth in Jordan were empirically tested using structural equation modelling. Findings – The findings revealed that both transformational and transactional leadership styles have significant impact on job performance, and the latter on firm performance. Also, it was found that transactional leadership impacted knowledge sharing, whereas transformational leadership did not. Originality/value – This research proposes a new approach to understand knowledge sharing adoption, and outlines some theoretical and managerial implications of the findings.


2018 ◽  
Vol 41 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Taghrid S. Suifan ◽  
Ayman Bahjat Abdallah ◽  
Marwa Al Janini

Purpose The purpose of this paper is to examine the effect of transformational leadership on employees’ creativity in the Jordanian banking sector through the mediating effect of perceived organizational support. Design/methodology/approach The study is based on survey data collected from 369 employees working in Jordanian banks. Validity and reliability analyses were performed, and direct and indirect effects were tested using structural equation modeling. Findings The results indicate that transformational leadership positively affects some dimensions of employees’ creativity and perceived organizational support. However, perceived organizational support is found to not be significantly related to some dimensions of employees’ creativity. Additionally, the mediating effect of perceived organizational support on the relationship between transformational leadership and some dimensions of employees’ creativity is found to not be significant. Originality/value This paper is one of the first to examine the relationship between transformational leadership and employees’ creativity through perceived organizational support, especially in an Arab country and in the banking sector.


2018 ◽  
Vol 22 (4) ◽  
pp. 721-758 ◽  
Author(s):  
Peter Rex Massingham

Purpose Knowledge loss caused by employee exit has become a significant corporate risk. This paper aims to explore how to measure the impact of knowledge loss. The paper is based on empirical evidence from a five-year longitudinal study. Design/methodology/approach This paper is based on a longitudinal change project for a large Australian Research Council Linkage Project grant in the period 2008-2013. The method was a single case study using a critical realism paradigm. The project was a transformational change programme which aimed to help make the partner organization a learning organization to minimize the impact of knowledge loss. The partner organization was a large Australian Government Department, which faced the threat of knowledge loss caused by its ageing workforce. The sample was 118 respondents, mainly engineering and technical workers. A total of 150 respondents were invited to participate in the study which involved an annual survey and attendance at regular training workshops and related activities, with a participation rate of 79 per cent. Findings The results found that knowledge loss has most negative impact in terms of organizational problems including low productivity (morale), strategic misalignment of the workforce (capability gaps), resource cuts (stakeholders unhappy with performance), decreased work quantity and quality (inexperienced employees), work outputs not being used (customers mistrust), longer time to competence (learning cost) and slow task completion (increased search cycle time). The second most significant impact was increased sense of risk associated with work activities and declining capacity to manage the risk. The third main impact was decreased organizational knowledge base: knowledge loss creates knowledge deficit which is unlikely to be filled over time, as shown by the knowledge accounts of surviving employees which remained stable overall. The two remaining measurement constructs – psychological contract and learning organizational capacity – improved, which suggests that the negative impact of knowledge loss may be addressed with appropriate knowledge management. Research limitations/implications The research is based on a single case study in a public sector organization. While the longitudinal nature of the study and the rich data collected offsets this issue, it also presents good opportunities for researchers and practitioners to test the ideas presented in this paper in other industry contexts. The complexity and range of the constructs, concepts and scale items is acknowledged. Tables have been used wherever possible to help the reader access the findings. Practical implications Knowledge loss is perhaps the greatest corporate risk facing organizations today. This paper provides a method to measure the impact of knowledge loss. Managers may use this to assess the significance of the risk and use this as a business case to take action to minimize the impact of knowledge loss. Originality/value Prior research has found knowledge loss has caused decreased psychological contract, lost organizational memory, inefficiency and ineffectiveness and declining capability; however, these concepts are discussed in broad terms only. This paper addresses the need for measurement concepts which helps us understand the nature of the impact of knowledge loss. Five knowledge loss concepts are developed: knowledge resources, psychological contract, learning organization capacity, risk management and organizational problems. The results are based on a large-scale longitudinal study providing empirical evidence of change over a three-year period, situated within the context of a research intervention, i.e. knowledge management programme.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mert Öğretmenoğlu ◽  
Orhan Akova ◽  
Sevinç Göktepe

PurposeAwareness of environmental and environmental ethical behaviours are increasing day by day in the hospitality sector. Concepts are examined more and more from the “green” point of view. This study aims to reveal the impact of green transformational leadership on green creativity and the mediating effects of green organizational citizenship behaviours in the relationship between green transformational leadership and green creativity in the context of hospitality.Design/methodology/approachThis study was designed according to the quantitative approach. Hotel employees in Istanbul, Turkey (N = 201) provided data later analysed in three stages. First, JAMOVI software outputs provided descriptive statistics. Second, confirmatory factor analyses ensured the validity of the research. Third, SmartPLS was used to test the hypotheses of the study.FindingsThe results revealed that green transformational leadership positively affects employees' green creativity and green organizational citizenship behaviours. Moreover, green organizational citizenship behaviours partially mediate the relationship between green transformational leadership and green creativity.Originality/valueTo the best of our knowledge, no research examines the mediating effect of green organizational citizenship behaviours in the relationship between green transformational leadership and green creativity. This research will contribute to the relevant literature by filling this gap. This study is original in its attempt to reveal the nature of green organizational behaviours of hospitality employees. It contributes to the literature on green transformational leadership, green creativity and green organizational citizenship behaviours.


2020 ◽  
Vol 39 (4) ◽  
pp. 475-498
Author(s):  
Murat Kasımoğlu ◽  
Djihane Ammari

PurposeThe study compares the impact of four components of transformational leadership (TL), namely, idealized influence (II), inspirational motivation, intellectual stimulation (IS), and individualized consideration (IC) on employee creativity (EC) at the workplace between Turkey and Algeria, taking into account the mediating effect of employee's creative role identity (CRI).Design/methodology/approachData were collected from 688 managers working for conglomerate companies in both countries and the analysis was performed using a two-stage structural equation modeling (SEM) for model and hypothesis testing.FindingsThe findings highlighted that managers from both countries have divergent stances toward TL’s impact on EC; Algerian managers recognized the impact relationship between CRI and EC. Meanwhile, Turkish managers believed in the efficiency of every component independently.Research limitations/implicationsWhen generalizing the research results, a debate might arise in regards to both the data collection instrument and the data being collected from two companies only. Therefore, upcoming research might opt for using further data collection methods and expand the data collection sources to cover larger targets.Practical implicationsThe study's findings help in assisting managers and decision-makers in both countries into strategically adjusting their managerial approaches accordingly and appropriately stimulating EC at the workplace.Social implicationsThe findings provided insights into elevating and strengthening a mere formal leader–member relationship to a personally satisfying and mutually beneficial social bond.Originality/valueThroughout literature, the light was shed on the fundamental, yet, infrequently discussed link between TL components and employee CRI. The comparative nature and findings of our study could be considered building blocks for further academic research about leadership in both countries.


2015 ◽  
Vol 18 (3) ◽  
pp. 325-337 ◽  
Author(s):  
Tebogo Gilbert Sethibe ◽  
Renier Steyn

This paper is an attempt to consolidate the published scientific knowledge about the impact of leadership styles on the relationship between innovation and organisational performance. Concepts, statements and conceptual frameworks were used as structure to analyse the body of scientific knowledge. After consulting 31 major research databases using the systematic literature review methodology, only seven journals articles that examined the link between leadership, innovation and organisational performance were identified. The synthesis of the journal articles revealed (a) that consensus exists among researchers as far as the relevant concepts are concerned; (b) that most agree on the definition of leadership and innovation but that a uniform understanding of what constitutes organisational performance is lacking; and (c) that conceptual models are too simplistic and do not consider mediator variables or multiple financial criteria measures. The findings further reveal that innovation is significantly and positively related to superior organisational performance, and that, although transformational leadership style is significantly and positively related to innovation, transactional leadership style is more appropriate when the aim is to instil a culture of innovation. Transformational leadership style, by contrast, is mostly associated with organisational performance. In addition, the findings further reveal that none of the studies investigate the mediating effect of the nature of innovation (incremental and radical) on the relationship between leadership and organisational performance, and that none of the studies use the objective measures of financial performance such as ROA, ROE, price/earnings (P/E) and Tobin’s Q calculated from annual financial reports. 


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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
M. Nazmul Islam ◽  
Fumitaka Furuoka ◽  
Aida Idris

PurposeThe research aims to investigate the impact of transformational leadership on employee championing behavior and to determine the mediating effect of work engagement in the context of organizational change.Design/methodology/approachThis is a quantitative approach, which is based on cross-sectional data. In total, 300 available cases are processed through structural equation modeling in order to infer the results.FindingsThe results indicate that transformational leadership is significantly related to championing behavior during organizational change. Moreover, work engagement fully mediates the relationship between transformational leadership and championing behavior in the context of organizational change.Practical implicationsManagers should emphasize the practice of the transformational leadership approach, as well as should stress the antecedents of work engagement in order to foster the employee championing behavior in the context of organizational change.Originality/valueThe research contributes to the change management and human resource management literature by providing a plausible explanation of the mediating role of work engagement in connecting transformational leadership and employee championing behavior in the context of organizational change.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sylvia Nabila Azwa Ambad ◽  
Khairiah Mazdiah Kalimin ◽  
Dayang Haryani Diana Ag Damit ◽  
Jasmine Vivienne Andrew

PurposeThe purpose of this research is to identify the effect of transformational leadership and transactional leadership on task performance, as well as the mediating role of psychological empowerment.Design/methodology/approachA questionnaire survey was sent to 177 academic staff in a Public University in Malaysia. The data were analysed using SmartPLS 3.2.9.FindingsThe results show that only psychological empowerment is positively associated with task performance. Unexpectedly, transformational leadership and transactional leadership have no direct effect on task performance. However, there is an indirect positive relationship between leadership styles and task performance, whereby this relationship is mediated by psychological empowerment. Furthermore, both leadership styles positively influenced psychological empowerment.Research limitations/implicationsThis study was conducted among academicians from Public Universities in Malaysia using two types of leadership styles. Therefore, it is recommended for future study to include academician from private universities and also to consider more leadership styles dimensions. The finding of this study shows that R2 was 35.3% for psychological empowerment; according to Cohen (1988), this percentage indicates substantial predictive accuracy in explaining psychological empowerment. Nevertheless, it would be interesting to explore other factors.Practical implicationsEmpowered employees were highly responsible, put extra work effort and creative in doing their jobs, which tends to increase their performance at work. It is also found that psychological empowerment has the highest and largest effect, contributing to task performance (f2 = 0.389).Originality/valueThe inconsistencies of the previous studies' results provide evidence and opportunities for this study to review by including the mediating variable of leadership styles and task performance relationship.


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