What is exchanged in psychological contracts? Multiple sets of obligations, targeted effort and uncertainty reduction

Abstract

Purpose– The purpose of this paper is to explore the currency underlying the employment relationship of allied health workers by investigating the mechanisms of their psychological contracts.Design/methodology/approach– Path analyses were conducted on the survey responses from Australian allied health professionals (n=112; a 46 per cent response rate).Findings– The analyses revealed that psychological contract promises decreased organizational citizenship behaviours relating to the organization (OCBO), while contract fulfilment increased commitment and reduced psychological distress. Contract breach reduced organizational commitment.Originality/value– The results indicate that obligations may be the primary currency in their psychological contract, with career commitment forming a set of obligations by which employees determine their OCBO, highlighting the nature of the resources exchanged to be targeted to their perceived source, in this case organizational promises begetting discretionary contributions to the organization. Further, fulfilment may reduce uncertainty, which in turn can reduce strain and increase OCBO.