scholarly journals Psychological Contract Breach and Organizational Outcomes: Moderating Effect of Tenure

2019 ◽  
Vol 8 (S1) ◽  
pp. 46-51
Author(s):  
Sabu Varghese ◽  
M. S. Raju

Conventional wisdom tells us that only if the employees are paid enough, they can be made happy consequently productive. However, studies have suggested that the nature of the relations between employer and employee have a vital role to play in employee’s job satisfaction, Likewise, employee’s intention to leave the organization is influenced by both money related factors and relational elements. Studies suggest that the nature of the employer-employee relationship significantly affects the employee perceptions and reactions. Psychological Contract is a model which will help one to understand the employer-employee relationship. The mutual expectations and obligations proportionate to each one’s contribution is a general way to define psychological contract. Research suggests that a breach of this contract can affect the organizational outcomes and employee reactions negatively. This study considers the psychological contract breach from the employees’ perspective. Although studies have been made on the effect of psychological contract breach on several organizational outcomes, little effort has been noticed to be made to study the effect of the commonly identified dimensions – relational contract breach and transactional contract breach- on the employee reactions. While social and emotional factors such as loyalty and support contribute to relational contract, compensation and personal benefits contribute to transactional contracts. This work is noteworthy as it assesses the effect of relational contract breach and transactional contract breach on job satisfaction and employee turnover intention. The study also examines the effect of individual level variable- tenure – on the relationship of RCB and TCB with job satisfaction and turnover intention. Respondents to this study were 228 teachers from the self-financing colleges in the district of Ernakulam, Kerala in India. The results suggest that relational and transactional contract breaches will lead to significant employee reactions- reduces job satisfaction and enhances turnover intention. Tenure moderates the relationship between relational contract breach and turnover intention but not between relational contract breach and job satisfaction. Conversely, tenure moderates the transactional contract breach- turnover intention relationship but not transactional contract breach- job satisfaction.

2019 ◽  
Vol 7 (2) ◽  
pp. 233-244
Author(s):  
Sumaira Rehman ◽  
Shahzad Ali ◽  
Muhammad Sajjad Hussain ◽  
Aamir Zamir Kamboh

Psychological contract Breach (PCB) play a crucial role to shape employee reactions (ERs) Therefore; this study investigated the possessions of Psychological contract Breach on employee’s reactions (organizational behavior regarding citizenship, job satisfaction) under the moderation of organizational trust. Data were collected from 340 employees of the Health sector by using the technique of simple random sampling. Confirmatory factor analysis (CFA) technique has been used to check the validity of the data while structure equation modeling (SEM) technique has been used for test the relationship between variables. Our findings revealed that psychological contract breach had negative and significant relationships with employees’ reactions (organizational citizenship behavior, job satisfaction). Further, organizational trust is also significantly moderated on the relationship between PCB and employees’ reactions (organizational behavior regarding citizenship, job satisfaction).


1970 ◽  
Vol 9 (4) ◽  
pp. 395
Author(s):  
Mojra Dautović ◽  
Zvonimir Galić

In our study we explored generational differences in psychological contract content (PCC) and reactions to psychological contract breach (PCB) among Croatian employees. We collected the data on a sample of 432 participants and compared the PCC between Generation Y (born from 1981 to 1993) and older employees (born between 1946 and 1980). The results showed that the Generation Y employees expected more from their employers regarding career development, work-life balance, and social atmosphere. At the same time, the older generation perceived stronger employer obligations related to organizational policy, and stronger employee obligations related to in-role performance. We also tested the moderating effect of age on the relationship between PCB and job attitudes (job satisfaction, organizational commitment, and turnover intention). The moderating effect was observed only for the relationship between PCB and turnover intention: the younger employees reacted to PCB with a stronger turnover intention than the older employees.


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 36 (02) ◽  
pp. 1-13
Author(s):  
Aneela Sheikh ◽  
Abdul Khaliq Alvi ◽  
Khalil Ur Rehman

This research inspects the relation of psychological contract breach, organizational cynicism and job satisfaction. This is correctional research and date is collected from 274 nurses randomly from public sector hospitals of Lahore Pakistan. Result described that all three hypotheses for direct relationships of psychological contract breach and the organizational cynicism with the job satisfaction and for the relationship of organizational cynicism with psychological contract breach are accepted. Moreover, psychological contract breach partially mediates the relation of +other sectors like the banks, telecom and education sector for validate the results. It is also worthwhile to collect the data from nurses of private sectors where they face lot of hardships and the results of nurses of Govt. and private sector. For generalizing the results data will also collect cities like Islamabad, Faisalabad and Karachi.


2018 ◽  
Vol 10 (3(J)) ◽  
pp. 187-202
Author(s):  
Tjaart van der Westhuizen ◽  
Caren B. Scheepers ◽  
Tumo Kele

The purpose of this study was to investigate the moderating effect of job satisfaction and organisational support on the relationship between psychological contract breach and work engagement. An experimental design involving quantitative research methodology was used, conducting a survey of 1 029 respondents. The relationship between psychological contract breach and work engagement is more complex than previous studies suggest: This research concludes that job satisfaction moderates the relationship between psychological contract breach and work engagement. Organisational support, however, does not have a significant moderating effect on this relationship. It was also limited to South African organisations; comparative studies in other African countries and other emerging markets would be useful. Psychological contract breach has an adverse effect on work engagement. This finding is particularly important for organisations going through economic difficulties with resultant resource losses - that are perceived by employees as a breach of psychological contract. This study suggests that organisations ought to commit their limited resources to increase job satisfaction during periods of change. It will lead to employees having a buffer between this breach and the risk of potentially lower engagement levels. Increased levels of employee job satisfaction would moderate the effect of psychological contract breach on work engagement – thus reducing the probability of poor work engagement. Surprisingly, organisational support did not have a significant moderating effect on the relationship between psychological contract breach and work engagement.


2019 ◽  
Vol 14 (3) ◽  
pp. 273-284 ◽  
Author(s):  
Gonzalo A Bravo ◽  
Doyeon Won ◽  
Weisheng Chiu

This study examined the relationship between psychological contract and three work attitudes, job satisfaction, affective commitment, and turnover intention in a sample of National Collegiate Athletic Association coaches. This study also explored the moderating role of the psychological contract by examining coaches' perceptions of the intentional and unintentional breach. A total of 383 coaches responded to the survey that included items in the transactional and relational psychological contract, job satisfaction, affective commitment, and turnover intention. In addition, the sample was split into two groups, intentional breach and unintentional breach based on their responses to a single question regarding the perceived breach status. Results revealed that the transactional contract had a positive influence on job satisfaction and a negative influence on affective commitment. On the other hand, the relational contract had positive influences on both job satisfaction and affective commitment. Job satisfaction had a positive influence on affective commitment, which negatively led to turnover intention, while affective commitment had no significant influence on turnover intention. A multi-group analysis was conducted to test whether the psychological contract breach moderated the paths in the hypothesized model. The paths from transactional contract to satisfaction and commitment as well as from satisfaction to turnover intention were moderated by the psychological contract breach. The transactional contract–job satisfaction relationship was meaningful for the unintentional breach group, while the transactional contract–affective commitment relationship was stronger with the intentional breach group. The job satisfaction–turnover intention relationship was stronger with the intentional breach group than with the unintentional breach group.


2014 ◽  
Vol 02 (02) ◽  
pp. 01-11
Author(s):  
Zia Ul Islam ◽  

The study is designed to investigate the impact of psychological contract breach on different employee’s outcome, namely, organizational citizenship behavior, effective commitment and Job Satisfaction with the moderation effect of Psychological Capital. Out of 190 self-administered questionnaires distributed among the faculty members of private sector universities located in the Khyber Pakhtunkhwa province of Pakistan, 128 questionnaires were considered for analysis. The results show that there is a negative relationship between Psychological Contract Breach and all employees’ outcomes under study.Psychological Capital is positively related to all employees’ outcome. Psychological Capital moderates only the relationship between psychological contract breach (PCB) and organizational citizenship behavior, and doesn’t moderate the relationship between PCB-Affective Commitment and PCB- Job Satisfaction.


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