Abstract

This study seeks to explore the moderating role of Islamic work ethic and adversity quotient over the relationship between psychological contract breach and various employees’ level outcomes (job satisfaction, employees’ commitment and intention to quit). After the extensive overview of scholarly research, we have come up with a conceptual model that perception of psychological contract breach has negative relationship with job satisfaction, affective commitment and positive relationship with intention to quit. Islamic work ethics and adversity quotient have positive moderating impact upon the perceived psychological contract breach, and various employee level outcomes are further strengthened, if employees lack adversity quotient and low Islamic work ethic.   Key words: Psychological contract breach, Islamic work ethic, adversity quotient.

Highlights

  • Growing tough competition and technological advancement have turned organizational structures and employee-employer relationships (Shore et al, 2004)

  • Literature supports that when psychological contract breach occur from organizations’ side, employees’ perceive low job satisfaction, low organizational commitment and high intention to quit (Raja et al, 2004)

  • Literature is silent on how psychological contract breach and employees’ outcomes relationship is influenced by adversity quotient and Islamic work ethics

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Summary

INTRODUCTION

Growing tough competition and technological advancement have turned organizational structures and employee-employer relationships (Shore et al, 2004). Psychological contract breach literature discussed employee’s work place attitudes and behaviors after recognition of breach Psychological contract breach literature addressed organizational situations for explaining employee-employer (employment) relationship, but individual differences have not been studied at large, to report employees’ response to contract breach. Raja et al (2004) investigated possible effect of individual differences on relation of contract breach and employee work place behaviors. Existing competitive business environment enhanced the significance of human resources It has become more important for a manager to understand individual difference for successful execution of contracts. This study examines the possible contingent effects of adversity quotient and Islamic work ethic on the relationship of contract breach and employee work outcome (employee’s commitment, employee’s satisfaction and intention to leave). To the best of our knowledge, presently, none of the studies has explored such moderating effects of Islamic work ethic and adversity quotient on the relation of contract breach and employee outcome

PSYCHOLOGICAL CONTRACT
Types of psychological contract
Psychological contract breach
Intention to Quit
The role of Islamic work ethic on psychological contract breach
DISCUSSION AND CONCLUSION
Future direction
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