Psychological Contracts, Perceived Organizational and Supervisor Support: Investigating the Impact on Intent to Leave Among Hospitality Employees in India

Abstract

This study investigates the effects of perceived organizational support on transactional and relational contracts and how these two types of psychological contracts influence employee intent to leave. Additionally, perceived supervisor support was examined as a predictor of perceived organizational support. Given the high employee turnover rates in the hospitality industry, lack of employee turnover studies in hospitality context, and more importantly, lack of employee turnover studies in countries other than the Western organizational contexts, the current study examines the above relationships with restaurant employees in India. Results showed that perceived supervisor support increased employee perceptions of organizational support, perceived organizational support increased relational psychological contracts but not transactional contracts, and only relational contracts had a significant effect on employees’ intent to leave. Implications of these results and issues for future research are discussed.