scholarly journals Psychological contract breach and turnover intention: the moderating effects of social status and local ties

2017 ◽  
Vol 36 (2) ◽  
pp. 99-115 ◽  
Author(s):  
Margaret Heffernan ◽  
Eoin Rochford

Abstract The aim of this study is to examine whether social networks reduce the effects of psychological contract breach on an employee’s intention to leave the organisation. This paper focusses on two particular elements of the social network in an organisation: (1) social status and (2) local ties/connectedness. Using a sample of 242 responses from officers in the Irish Defence Forces, the results provide empirical evidence of the impact of psychological contract breach on officer turnover intentions. The results also demonstrate that perceptions of social networks moderate the relationship between psychological contract breach and turnover intentions through social status. Contrary to expectations, strong connectedness with senior officers was also found to be a moderator but not in the direction that was hypothesised. The theoretical and practical implications of these results are discussed.

2013 ◽  
Vol 41 (5) ◽  
pp. 843-859 ◽  
Author(s):  
Pao-Ling Chin ◽  
Min-Li Hung

We examined the relationship between psychological contract breach (PCB) and insurance industry workers' turnover intention. We also explored the moderating effects of adversity quotient (AQ) and gender on that relationship. The results showed that turnover intentions were positively affected by PCB, and AQ significantly moderated that relationship. In contrast, the moderating effect of gender was not found to be significant. To retain employees, the findings of this study should be taken into account when developing training programs. However, future researchers should concentrate on different aspects of AQ that may also be relevant to staff turnover.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thushel Jayaweera ◽  
Matthijs Bal ◽  
Katharina Chudzikowski ◽  
Simon de Jong

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.


2018 ◽  
Vol 47 (5) ◽  
pp. 986-1002 ◽  
Author(s):  
Yi-chun Lin ◽  
Angela Shin-yih Chen ◽  
Yu-ting Lai

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.


2020 ◽  
Vol 30 (3) ◽  
pp. 789-809 ◽  
Author(s):  
Upasnaa A. Agarwal ◽  
James B. Avey

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.


2020 ◽  
Vol 10 (2) ◽  
pp. 160-169
Author(s):  
Havana Sevcan Kurt

The purpose of this research was to examine the role of loyalty where employees perceive the effect on their psychological contract breach of the bank’s intention to leave the call centre operating in Turkey. For this purpose, the literature was examined and a research questionnaire was prepared based on the psychological contract violation (PC), intention to quit and perception of loyalty. This survey was used to collect data of 634 banking call centres operating in Turkey using the sampling method. Statistical Package for the Social Sciences 25 and LISREL 8.7 statistical package programmes were applied in the analysis of the research data. Structural equation modelling was used to test the research hypothesis. In the relationship between (PC) and turnover intention, employee-perceived loyalty has a partial mediating role. This result is considered important for bank managers and human resources specialists who want to improve their success and the quality of the service they offer to their customers. In this study, only the perceptions of the employee were examined. It is also recommended to examine the perceptions of managers working in different sectors.   Keywords: Loyalty, psychological contract violation, turnover intention.


2017 ◽  
Vol 29 (7) ◽  
pp. 1914-1936 ◽  
Author(s):  
Tso-Jen Chen ◽  
Chi-Min Wu

Purpose This study aims to explore the high turnover intention issue in Taiwan’s tourist hotel industry. Due to a lack of empirical research regarding front-line employees’ psychological contract breach perceptions in tourism literature, this study develops an integrated model to examine the causal relationship among transformational leadership behaviors, leader–member exchange (LMX), psychological contract breach and turnover intentions. Design/methodology/approach Data from the 226 frontline employees in Taiwan’s tourist hotel industry were employed to examine the proposed hypotheses by using a series of structural equation modeling analyses. Findings Statistic results revealed that transformational leadership behaviors influence LMX and LMX in turn influences psychological contract breach, which consequently leads to lower turnover intention. Practical implication The results of this study suggest that hospitality organizations should recruit individuals who have the potential to exhibit transformational leadership skills, along with designing leadership training programs for middle- and high-level managers. Originality/value This study provides hospitality organization leaders with the necessary information to formulate a beneficial relationship with their front-line employees, which, in turn, weakens their perception of psychological contract breaches and reduces their willingness to leave the organization.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

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.


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