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.

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.

Ethical leadership and employee task performance: examining moderated mediation process

2017 ◽  
Vol 55 (7) ◽  
pp. 1506-1520 ◽  
Author(s):  
Qi Yang ◽  
Hua Wei
Keyword(s):  
Task Performance ◽  
Ethical Leadership ◽  
Organizational Identification ◽  
Proactive Personality ◽  
Mediation Process ◽  
Content Type ◽  
Team Members ◽  
Performance Examining ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of ethical leadership on employee task performance, specifically the mechanisms through which ethical leadership impacts employee task performance and the moderating role of employee proactive personality. Social identity, social learning, and self-concordance theory were used to explain the way ethical leadership affects employee task performance, and provided another way to understand this relationship. Design/methodology/approach The authors collected survey-based dyadic data from middle management team members and subordinates in Chinese companies. Multiple regression analysis was used to test the research hypotheses. Findings The empirical findings indicate that ethical leadership positively influences employee task performance. Organizational identification (OID) mediates the relationship between ethical leadership and employee task performance. Furthermore, the relationship between ethical leadership and employee task performance via OID is moderated by employee proactive personality. Originality/value Employee task performance is critical for a firm’s competitive advantage. This paper adds to knowledge about the relationship between ethical leadership and employee task performance and contributes to effective management.

Racial dissimilarity and diversity climate effect organizational identification

2016 ◽  
Vol 35 (5/6) ◽  
pp. 314-327 ◽  
Author(s):  
Brooklyn Cole ◽  
Raymond J. Jones ◽  
Lisa M. Russell
Keyword(s):  
Organizational Identification ◽  
Turnover Intentions ◽  
Ordinary Least Squares ◽  
Important Variable ◽  
Hierarchical Regression ◽  
Diversity Climate ◽  
Climate Effect ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the relationship between psychological diversity climate (PDC) and organizational identification (OID) when influenced by racial dissimilarity between the subordinate and supervisor. Design/methodology/approach Ordinary least squares hierarchical regression analysis was run for hypotheses testing. Findings Three of the four hypothesized relationships were supported. Support was found for the direct relationship between PDC and OID. The moderator race was significant thus also supported. The moderator of dissimilarity was not supported. Finally the three-way interaction with race and dissimilarity was supported. Practical implications OID is an important variable for overall organizational success. OID influences a wealth of organizationally relevant outcomes including turnover intentions. Considering higher turnover exists for minority employees, understanding how diversity climate perceptions vary by employee race and therefore impact OID differently, helps managers when making decisions about various initiatives. Originality/value This study is the first the authors know of to investigate the impact of dissimilarity on the PDC-OID relationship.

Structural empowerment and serving culture as determinants of organizational identification and turnover intention

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Radoslaw Nowak
Keyword(s):  
Organizational Identification ◽  
Turnover Intention ◽  
Structural Equation ◽  
Joint Effect ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Structural Empowerment ◽  
Content Type ◽  
Employee Identification ◽  
The Relationship

Purpose This paper aims to provide an alternative explanation for how organizations could increase levels of organizational identification, in turn reducing employee turnover intention. Specifically, the study empirically tests the joint effect of two types of organizational resources – structural empowerment and serving culture (SE*SC) – on employee identification. Moreover, it investigates the mediating effect of organizational identification on the relationship between the joint effect (SE*SC) and turnover intention. Design/methodology/approach The data were collected in 2018 from employees working in a higher education institution located in the USA. Structural equation modeling was used to test the proposed model. Findings Statistical analysis reveals the positive joint effect (SE*SC) on organizational identification and the mediating effect of identification on the relationship between the joint effect (SE*SC) and turnover intention. Originality/value This study contributes to past research by revealing a new important mechanism. Business organizations could increase levels of employee identification and, in turn, reduce turnover by providing empowering resources that allow employees to successfully complete their jobs. Moreover, the study also contributes to practice by providing some recommendations that managers may implement to improve internal effectiveness in their respective organizations.

scholarly journals Antecedents of organizational identification: implications for employee performance

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syeda Wajiha Kazmi ◽  
Syeda Tuba Javaid
Keyword(s):  
Employee Engagement ◽  
Organizational Identification ◽  
Employee Performance ◽  
Quality Of Education ◽  
Content Type ◽  
Perceived Supervisor Support ◽  
The University ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the impact of three determinants of organizational identification (OID) on employee performance (EP) in the context of private business institutions. Design/methodology/approach A sample of 175 permanent faculty members from four top universities in Karachi, Pakistan, was interviewed using a five-point Likert scale questionnaire. The data were inserted in SPSS 22 and SmartPLS v 3.2 for performing the analysis. Findings Results of the study showed a significant effect in perceived supervisor support on OID; OID; job satisfaction and EP; and mediating relationship. Conversely, an insignificant effect was observed in workplace incivility. Research limitations/implications It is highly recommended that organizations work on the areas that lead to enhancing their employees’ performance. Also, human resource should create a healthy culture that promotes initiatives, open-door policies and discourages power distance. Lastly, one of the key responsibilities of management is to strengthen their OID because employees are more likely to identify with their supervisors if they invest in the organizations they work for. Practical implications This study will help strengthen the relationship between supervisors and university employees. It will guide the supervisors to acknowledge and appreciate the efforts of their subordinates and develop recreational policies and employee engagement activities. In addition, it will help develop a conducive environment and enhance the quality of education in the university and the society. Originality/value Understanding the determinants of OID on EP in the educational context is very important as it enhances the quality of EP and the overall quality of education of the institution.

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.

The mediating role of relative communicative behavior on the relationship between ethical leadership and organizational identification

2019 ◽  
Vol 41 (1) ◽  
pp. 52-72 ◽  
Author(s):  
Hassan Abu Bakar ◽  
Leah Omillion-Hodges
Keyword(s):  
Ethical Leadership ◽  
Organizational Identification ◽  
Hierarchical Regression ◽  
Communication Behavior ◽  
Content Type ◽  
Communicative Behavior ◽  
Mediating Role ◽  
Dyadic Communication ◽  
Norms And Values ◽  
The Relationship

Purpose The purpose of this paper is to examine the underlying process of a relative leader–member dyadic communication behavior linking association between ethical leadership and organizational identification in Malaysia’s diverse workplace. Design/methodology/approach Based on relational dyadic communication, social comparison and social identity theories, the authors develop a mediation model. The model illustrates the link between the relative leader–member dyadic communication behavior processes, ethical leadership and organizational identification. The model was tested on a sample of 273 group members from 58 groups working in large government link corporations in Malaysia. Findings Results of hierarchical regression analysis provide support for the model. The authors found that ethical leadership was positively related to relative leader–member dyadic communication behavior based on the norms and values of budi context. Budi is a social norm in the Malaysian context that helps employees to know how they should interact with others. Budi is manifested through the use of language and should be used or present in the interactions or conversations with others. Originality/value The relative shared norms and values of budi mediate the relationship between ethical leadership and organizational identification after controlling for the perception of individual leader–member dyadic communication behavior on norms and values of budi.

Impact of transactional, relational and balanced contract on affective commitment

2020 ◽  
Vol 70 (1) ◽  
pp. 131-149
Author(s):  
Nishant Singh ◽  
Harsha Tyagi ◽  
Umesh Bamel
Keyword(s):  
Organizational Behavior ◽  
Psychological Contract ◽  
Design Methodology ◽  
Affective Commitment ◽  
Meaningful Work ◽  
Psychological Contracts ◽  
Content Type ◽  
Manufacturing Organizations ◽  
The Impact ◽  
The Relationship

PurposeThis paper is aimed at examining the impact of three types of psychological contracts such as transactional, relational and balanced contract on affective commitment by keeping meaningful work (MFW) as a mediator in this relationship.Design/methodology/approachThe data of 355 employees was collected from the large heavy Indian manufacturing organizations. The mediation path was analyzed through SPSS macro computational tool, i.e. PROCESS.FindingsThe result suggests that MFW partially mediates the relationship between all three types of psychological contract and affective commitment.Originality/valueThe study adds value to research in organizational behavior and human psychology by providing new insights on employee-employer relationships, MFW, and commitment.

Am I treated better than my co-worker? A moderated mediation analysis of psychological contract fulfillment, organizational identification, and voice

2018 ◽  
Vol 47 (5) ◽  
pp. 1133-1151 ◽  
Author(s):  
Ghulam Ali Arain ◽  
Sehrish Bukhari ◽  
Imran Hameed ◽  
Delphine M. Lacaze ◽  
Zahara Bukhari
Keyword(s):  
Social Exchange ◽  
Psychological Contract ◽  
Organizational Identification ◽  
Social Exchange Theory ◽  
Exchange Theory ◽  
Content Type ◽  
The Social ◽  
Psychological Contract Fulfillment ◽  
Group Value Model ◽  
Value Model

Purpose The purpose of this paper is to examine the direct and conditional indirect effects of employees’ perception of psychological contract fulfillment on their positive voice, i.e., promotive voice and prohibitive voice, through the integrated framework of the social exchange theory and the group value model. Design/methodology/approach Using a two-source data collection from the employee and supervisor, cross-sectional data were collected from 234 participants working in one of the leading non-profit organizations in Pakistan. After initial data screening, a confirmatory factor analysis was conducted to test for the factorial validity of the employed measures with AMOS. The hypothesized relationships were tested in regression analysis with Statistical Package for the Social Sciences. Findings The results of this study supported the integration of the social exchange theory with the group value model in explaining the direct and indirect positive effects of employees’ perception of psychological contract fulfillment on their promotive and prohibitive voices through the mediation of organizational identification (OID). Furthermore, it was also recorded that the indirect effect was conditional on the employees’ perception of the relative psychological contract fulfillment which significantly moderated the direct relationship between psychological contract fulfillment and OID. However, no such effect was recorded for the moderating effect of power distance orientation between OID and the both voices. Originality/value In addressing the recently published research calls, this study broadens the horizon of existing research on psychological contract and employee positive voice by investigating the mediating and the moderating factors that influence this relationship.

scholarly journals Effect of Gig Workers’ Psychological Contract Fulfillment on Their Task Performance in a Sharing Economy—A Perspective from the Mediation of Organizational Identification and the Moderation of Length of Service

2020 ◽  
Vol 17 (7) ◽  
pp. 2208
Author(s):  
Wenlong Liu ◽  
Changqing He ◽  
Yi Jiang ◽  
Rongrong Ji ◽  
Xuesong Zhai
Keyword(s):  
Task Performance ◽  
Social Exchange ◽  
Psychological Contract ◽  
Organizational Identification ◽  
Work Performance ◽  
Social Exchange Theory ◽  
Sharing Economy ◽  
Length Of Service ◽  
Psychological Contract Fulfillment ◽  
The Relationship

Workers’ isolation may occur in gig employment in the sharing economy, which generates a weak perception of the organization and unpredictable work performance. Drawing on social exchange theory, this paper proposes a framework to explore the effect of psychological contract fulfillment on gig workers’ task performance from the perspective of the mediation of organizational identification and the moderation of the length of service. A total of 223 samples were recruited from Didi (a ride-hailing company in China) drivers. The results show that both transactional and relational psychological contract fulfillment can directly affect gig workers’ task performance and also indirectly affect it via organizational identification. When the length of service for the current company is taken into consideration, transactional contract fulfillment, as the representation of a company’s recognition of gig workers’ effort, has a stronger effect on the organizational identification of gig workers who have been working for the company for less than a year compared with those who have been working for a longer period. The results show no difference in the relationship between relational psychological contract and organizational identification between the two groups. Transactional psychological contract fulfillment exhibits the same significant effect on gig workers’ task performance in both groups. By contrast, relational psychological contract fulfillment has a stronger effect on long-serving Didi drivers than on those who joined the company within the year. These findings generate certain theoretical and practical implications for gig employment management in the sharing economy.

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