Relationship between perceived performance management system (PMS) effectiveness, work engagement and turnover intention: mediation by psychological contract fulfillment

PurposePerformance management systems (PMSs) are critical for organizational success, but research is undecided on their constructive influence and the means through which they impact work engagement and turnover intention. This study aims to fill this gap by surmising psychological contract fulfillment as a mediator in the relationship between PMS effectiveness (PMSE) and employee outcomes.Design/methodology/approachThe study uses a survey research design. Data were collected from 327 working professionals in India. The Statistical Package for Social Science Version 10.0 (SPSS 10.0) and the Analysis of Moments Structure (AMOS) 4.0 were used for data analyses.FindingsThe two-factor construct perceived PMSE was found to explain a larger variance in work engagement and turnover intention than the separate measures for its constituents PMS accuracy (PMSA) and PMS fairness (PMSF). Psychological contract fulfillment and work engagement were found to mediate the relationship between PMSE and turnover intention.Research limitations/implicationsThe study broadens the field of research on PMS in important ways. It demonstrates that the two-factor construct PMSE has a larger influence on employee outcomes in comparison to its constituent individual measures PMSA and PMSF. This is also the first study to suggest that in contrast to PMSF, PMSA explains a higher variance in employee outcomes.Practical implicationsThis study validates the strong relationship between PMSE and key employee outcomes. Besides PMSF, managers can use the findings of this study to focus on the “right things” or accuracy in the PMS context to enhance work engagement and reduce turnover.Social implicationsThe study findings will have value everywhere owing to the diffusion and convergence in the human resource management practices of multinational firms irrespective of their contexts (Ananthram and Nankervis, 2013).Originality/valueEarlier PMS studies have mostly been limited to either its fairness or accuracy and attended unduly to its appraisal element. This study adopts a systems vision of PMS and overcomes earlier drawbacks by investigating the role of both PMSA and PMSF in shaping employee outcomes. This is the first study to empirically confirm that in contrast to PMSF, the PMSA constituent of PMSE explains a higher variance in employee outcomes. The study provides greatly essential pragmatic support to the conjecture that PMSs advance work engagement (Mone and London, 2014; Gruman and Saks, 2011) and lower turnover intention (Kwak and Choi, 2015).

The Relationship Between Transactional Leadership and OCB: A Conditional Analysis of Organizational Justice Perception and Psychological Contract Fulfillment

Understanding the depth of leadership and its effects on organizational outcomes have been a topic of complex nature, attracting scholars, and practitioners alike. This becomes more vital for tourism industry, where extent of competitive rivalry is extremely high as employees are vital in this sector. The current research examines the relationship between transactional leadership and organizational citizenship behavior of employees in tourism-related businesses. Furthermore, this study assumes that psychological contract fulfillment can moderate the relationship between leadership and perception of organizational justice, which can then mediate employees’ citizenship behaviors. Current research takes place in Lebanon, where the industry of tourism is highly important. Empirical evidence yielded from data analysis has shown support for moderating effect of psychological contract fulfillment on leadership and perception of justice linkage. This strengthens the perception of justice within the firm, which further proven to be of significance in terms of mediating transactional leadership and extra-role behaviors of employees. Theoretical development as well as practical implications have merged to aid the literature as well as managerial levels of tourism sector. JEL Classification: D23, M12, Z32

Psychological Contract Fulfillment and Attitude towards Organizational Change: A Mediation and Moderation Analysis of Affective Commitment and Empowering Leadership

Purpose: The underlying factors connecting psychological contract fulfillment (PCF) to attitude towards organizational change (ATOC) have not received much attention in organizational behavior literature. Hence, this study examined the mediating role of affective commitment (AC) and the moderating role of empowering leadership (EL) in the relationship between PCF and ATOC among employees in private organizations. Design/Methodology: This is a quantitative cross-sectional survey. Systematic sampling was utilized for collecting data from employees in private organizations in Delta State, Nigeria, via standardized self-report measures. The sample consisted of 224 employees with a mean age of 28.56 and a standard deviation of 6.41. Regression analysis (Model 1 and 4 of Hayes PROCESS Macro) was used for testing the hypotheses through IBM SPSS version 26. Findings: The results showed that PCF and AC were positive and significant predictors of ATOC. The results also revealed a significant mediating effect of AC and a moderating effect of EL in the relationship between PCF and ATOC. Practical Implications: Human resources management (HRM) in private organizations should promote practices that enhance employees' attachment to the organization. Also, top managerial staff should be encouraged to practice empowering leadership because it promotes positive workplace behaviors. Originality/Value: The present study enhances and brings new critical knowledge regarding the mediating role of AC and the moderating role of EL in the relationship between PCF and ATOC.

“I am OK when you are with me” – Understanding the well-being and innovative behavior in the digitized workspace

PurposeThe study aimed at understanding the relationship between supervisor and coworker support, psychological contract fulfillment, work engagement, well-being (different forms) and innovative behavior in the digitized workspace during the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachData were collected via a structured questionnaire through Google Docs from 239 respondents working in the sales department of the consumer durable industry through snowball sampling.FindingsSupervisor and coworker support was positively contributing to psychological contract fulfillment. Further, psychological contract fulfillment was positively contributing to work engagement. Along with innovative behavior, four forms of well-being, i.e. emotional, psychological, workspace and life were studied as outcome variables. Work engagement positively contributes to innovative behavior and well-being.Research limitations/implicationsThe study examined the relationship between various organizational variables in consumer durable industry. Future work should involve studying the effect in other industries and functional areas.Practical implicationsThe study examined how the supervisor and coworker act as an enabler in fulfilling the psychological contract in the digitized workspace. Organizations also understand the importance of work engagement in maintaining well-being and innovative behavior.Originality/valueThe paper initiates the important debate on well-being and innovative behavior in the digitized workspace for the sales employees of the consumer durable industry.

Psychological contract and work outcomes during COVID-19 pandemic

PurposeThe purpose of the current research is to examine the impact of psychological contract fulfillment on work outcomes i.e. organizational commitment and job satisfaction during the COVID-19 pandemic. It also aims to check the mediating role of co-worker support and work engagement on organizational outcomes.Design/methodology/approachThe current study has adopted a quantitative approach and a cross-sectional research design has been used with a snowball sampling technique. Data were collected via a structured questionnaire through Google Docs from 926 respondents working at different capacities in the service sector. The study includes those respondents who are working from home during the COVID-19 pandemic situation. The hypotheses were tested using structural equation modeling (SEM).FindingsResults indicated that psychological contract fulfillment was positively impacting work outcomes i.e. organizational commitment and job satisfaction. Co-worker support and work engagement positively mediated the relationship between psychological contract fulfillment and work outcomes during the COVID-19 pandemic situation. Multi-group analysis proved that there was a difference in opinion regarding the impact of psychological contract fulfillment on organizational commitment and job satisfaction amongst males and females.Originality/valueThe novel contribution of the study is integrating social exchange theory, organization support theory and social information processing theory during the pandemic situation. The results highlighted meticulous empirical evidence, which answers the question as to how the met expectations cause an advantageous effect on the employees as well as the organizations in this COVID-19 pandemic situation.

Relationship between integrated communication effectiveness and employee-based brand equity – mediating role of psychological contract fulfillment

Purpose This study aims to expand the emerging body of literature on employer branding from the current employee perspective. It proposes that effective integrated communication helps an organization fulfill its employer value proposition or employment value proposition (EVP). A firm that fulfills its brand promise in terms of EVP will derive employee-based brand equity (EBBE) benefits. Integrated communication is effective when employees experience coordination and consistency in brand communication. This influences their perception of psychological contract fulfillment (in terms of EVP attributes), which results in positive employee behavior in the form of EBBE benefits. Design/methodology/approach The study draws insights from the signaling theory and psychological contract literature which is based on the social exchange theory. The literature on integrated communication, employer branding and internal branding was reviewed to propose the relationships between the variables of interest. Data was collected using a questionnaire survey on 520 employees from the information technology (IT)-business process management industry in India, which is a customer-oriented industry known for its exemplary employer practices. Findings The findings suggest that integrated communication effectiveness impacts the perceived fulfillment of EVP attributes and EBBE. Again, the fulfillment of the relational value dimension of EVP attributes partially mediates the relationship between integrated communication effectiveness and EBBE. Originality/value This study is one of the first to explore employees’ perception of integrated communication effectiveness and fulfillment in terms of EVP attributes as antecedents to EBBE.