Role of Psychological Contract Violation between Employee Expediency and Exploitative Leadership

Abstract

Previous studies rarely examined the antecedents of employee expediency(EE) with interactive effect of exploitative leadership(EL) with mediating role of psychological contract violation(PCV) in banking sector of developing country like Pakistan. Based on social cognitive theory, this study tried to fill the research gap by investigating the direct relationship between EE and EL and also checked the mediating role of PCV between the relationship of EL and EE. To validate this relationship, 400 employees who were working in different banks of Punjab, Pakistan were investigated through survey questionnaire. The smart PLS 4.0 was used to measure the relationship and test the hypothesis in which structured equation modeling played a vital role in checking the relationship between variables. The results showed that EL directly effect on EE. This study also found that PCV mediates the relationship between EL and EE. This study enhances the literature and body of knowledge in HRM and OB. Finally, this study helps managers to understand the employees, co-operate and support them in order to get good performance from them and to improve the overall performance of organization.