Abstract
This study aims at understanding airline industry’s organizational changes conceptualized as psychological contract breach (PCB) among flight attendants, leading to dissatisfaction reflected in this study as counterproductive work behavior (CWB). PCB refers to organization’s inability in fulfilling obligations contained within the psychological contract, while CWB is defined as conducts that are harmful to organization. With 410 respondents, using Structural Equation Model (SEM), the results had shown that CWB increases as the PCB is heightened. This study adds value to the literature in three ways: PCB being tested among flight attendants; CWB being conceptualized using Hirschman’s Model of EVLN with an extension of acquiescent silence; and the application of Affective Events Theory (AET) in supporting the linkage between PCB and CWB in airline context.
Highlights
Airline industry impacted from the evolution of pre to post-deregulation 1978, easing the entrance of lowcost business model, further orchestrated by industry cyclicality, political uncertainties, and operational complexities (Vasikh et al, 2016)
Data analysis were based on 410 usable data which begun with demographic information and descriptive analysis
The findings support the notion of judgement-driven behavior proposed by Affective Events Theory (AET), that negative events lead to feeling of injustice or contract breach, which result in undesired behavior (i.e., counterproductive work behavior (CWB))
Summary
Airline industry impacted from the evolution of pre to post-deregulation 1978, easing the entrance of lowcost business model, further orchestrated by industry cyclicality, political uncertainties, and operational complexities (Vasikh et al, 2016). Malaysia’s full service carrier’s vulnerability is reflected through cancelled flight routes (CNN, 2011), shrunk workforce (The Star Online, 2014), replaced labor union with work council (Malaysia Trade Union Congress, 2015), capital reduction exercise as implied in New Straits Times (2014), cost cutting initiatives introduced in addressing financial struggles worsen by the tragedies of lost MH 370 and MH 17 (The Sun Daily, 2014). These airline events necessitating restructuring and cost cuttings had forced airline to reduce flight attendants’ promised compensation.
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