Psychological Contract Framework Research Articles

Market participation among smallholder farmers in Tanzania: determining the dimensionality and influence of psychological contracts

PurposeSmallholder farmers in Tanzania were investigated in this paper to determine the dimensions and influence of psychological contracts on smallholder farmers' decisions to participate in the market.Design/methodology/approachData were collected through structured questionnaires, of which a cross-sectional design was conducted in central Tanzania, the Dodoma region in which 467 smallholder farmers were surveyed. First, a preliminary Exploratory Factor Analysis (EFA) was conducted by involving psychological contracts and market participation items derived from previous studies. This was followed by the Confirmatory Factor Analysis (CFA) to verify the items obtained in the EFA. The regression analysis was then performed to test the causal effects of psychological contracts on market participation among smallholder farmers.FindingsThe path analysis revealed that transactional, relational, and ideological contracts have a positive and statistically significant impact on the participation of smallholder farmers in the market. Therefore, smallholder farmers have own set of expectations for participating in the marketplace. As a result, smallholder farmers' relationships with market participation decisions can be strengthened.Research limitations/implicationsThis study covered only smallholder farmers. However, future studies can include large-scale farmers, because psychological contracts and market participation difficulties also apply to them. This may increase the generalizability of the findings.Originality/valuePast studies have not extensively covered the psychological contracts in smallholder farming, especially in market participation. Based on prior empirical and theoretical research from other disciplines, the findings of this study contribute to a better understanding of the psychological contract framework and the significance of multiple psychological obligations between smallholder farmers and market management.

The Effect of Psychologic Contract on Job Satisfaction and Intention to Leave: The Case of a Public University

The aim of this study aims to investigate the effect of psychological contract perception on employees' job satisfaction and their intention to leave distinctly from the related literature. In parallel with the context, the researchers have conducted a field study with the participation of 153 research assistants from a public university. SPSS (Statistical Package for Social Sciences) program is used for analysing the obtained data. The data shows that demographic factors of education and academic field of study are effective on the psychological contract perceptions and job satisfaction of the research assistants and their intention to leave. Furthermore, there is a relationship between the aforementioned perceptions and intentions. In the same way, the psychological contract perception is effective on job satisfaction and intention to leave. The findings of this research are significant in terms of guiding managers and institutions to consider the psychological contract framework to increase employee satisfaction and reduce the labour turnover rate.

Procedural Justice in Selection from the Lens of Psychological Contract Theory

Abstract Background and purpose: In recruitment and selection, job applicants do not only base their justice judgment on the actual experience but also compare what happens and what they expect. This study, therefore, investigates applicants’ reaction to procedural justice in recruitment selection through the lens of psychological contract framework. Psychological contract theory highlights the role of expectations, discrepancies between perception and expectation, and perceived contract breach on individual outcomes. Methodology: Two surveys were conducted with job seekers in Vietnam, one before and one after the selection process. Printed questionnaires were administered to job seekers in the first survey, while the second used online survey. Structural Equation Modeling technique was adopted to analyze the data. Results: Data from a sample of 232 job seekers indicated that previous job experience and source of candidates were significantly related to justice expectations. In addition, perceived unmet expectations were found to predict procedural contract breach, which in turn negatively influenced job acceptance intention and recommendation intention. Conclusion: The research highlights the role of unmet justice expectation, the perceived discrepancy between what happened and what was supposed to be, in predicting intention to accept offer and to recommend others. The results suggest that firms should provide updated and official information regarding the selection process to all parties such as internal employees, recruitment agency and job search website to reduce over-expectation.

Psychological contract and employee attitudes

PurposeThis paper aims to investigate the Chinese employment relationship under the framework of psychological contracts. The authors explored the effects of firm ownership (in terms of state-owned and private enterprises) and employment type (in terms of permanent and temporary employees) on employee perceptions of psychological contract. In addition, the associations between fulfilled psychological contract and various dimensions of employee attitudes were examined.Design/methodology/approachThe authors adopted a questionnaire as the primary instrument to investigate the impact of firm ownership and employment type on psychological contract perceptions and outcomes. The analysis was based on a Chinese sample of a size of 363 employees.FindingsThe results indicate that state-owned employees overall reported fewer promises (employer under-obligation promised psychological contract), while private employees tended to have more promises (mutual high obligation, employer over-obligation and quasi-spot obligation promise-based psychological contract). Permanent employees reported high fulfillment (employer over-obligation, mutual high obligation and employer under-obligation fulfilled psychological contract). In contrast, temporary employees presented many promises (mutual high obligation promised psychological contract) and low fulfillment (quasi-spot fulfilled psychological contract). In general, firm ownership had weak effects on permanent and temporary employees’ perceptions of promise-based psychological contract, but no significant influence on fulfillment-based psychological contract. Moreover, psychological contract fulfillment was positively related to employees’ fairness perception and job satisfaction, while negatively related to the intention to quit. The authors failed to find comprehensive statistical support for the moderating effects of firm ownership or employment type.Originality/valueThe study contributes to the literature through a number of ways. First, instead of psychological contract breach, the authors use psychological contract fulfillment as a direct measure to examine the relationship between psychological contract and employees’ attitudes. Second, they investigate the effects of firm ownership on employment relationship under the psychological contract framework, enriching the institutional lens of the issue. Third, while majority of psychological contract studies concerning employment type concentrate on either permanent or temporary employees, the authors take both types into account. Fourth, they integrate perspectives of firm ownership and employment type. Finally, the authors perform the study in the Chinese context, which offers extra evidence to the body of psychological contract literature.

Exit, voice, loyalty, and neglect reactions to frequency of change, and impact of change

Purpose– The purpose of this paper is to examine how frequency of change (FC) in organizations and impact of change (IC) influence the employee behaviors, i.e. exit, voice, loyalty, and neglect (EVLN) through psychological contract fulfillment (PCF) as a mediator. The moderating role of successful past changes (SPC) is also assessed with direct and indirect relations of FC, and IC alongside employees’ behaviors.Design/methodology/approach– Hypotheses were tested among a sample of 398 financial services-oriented non-managerial-level employees in Pakistan. Bootstrapped moderated mediation analyses (using PROCESS macro) were conducted to test the main and moderated mediation effects. The authors ran series of confirmatory factor analyses to validate the distinctiveness of variables and their items in this study.Findings– The results largely supported the hypotheses. Findings showed that FC is negatively related to loyalty but positively related to exit, voice, and neglect behaviors via contract fulfillment. IC is also found to have negatively related to loyalty but positively related to exit, voice, and neglect via PCF. SPC was found to moderate the relation between FC, IC, and contract fulfillment, as well as the indirect relationship with exit, voice, and neglect through contract fulfillment and negatively between FC, IC, and loyalty through contract fulfillment. The authors found direct interaction effects of FC via SPC in relation to exit and loyalty and also found direct interaction effects of IC via SPC to exit, voice, and loyalty.Research limitations/implications– The use of cross-sectional research design does not allow conclusions with respect to causality. The most important implication of the study is that employee behaviors following organizational change can best be understood via a psychological contract framework. A future suggestion is to include more organizations based on longitudinal research design with focus on both employee and employer perspective.Practical implications– This study highlights the importance of employees’ behavioral responses and their sensemaking of PCF in a post-organizational change period.Originality/value– This study empirically investigated the effects of FC, and IC on fulfillment of psychological contract and behavioral responses of employees using a sample of non-managerial employees, and provides new insights into employee behaviors following organizational changes.

Management of Gen Y Employees Through Psychological Contract - 'An Exploratory Study in IT/ITES Companies'

<p>Globalization has led to diverse workforce for most of the multinational corporations. Today's workforce is highly diverse based on Gender, Race, Ethnicity, Nationality, Age, Physical capabilities at a surface level and values, attitudes, personality, education and religion at a deeper level.</p><p>Diversity Management means valuing the differences in people. In India, Diversity mostly referred to gender related initiatives in the past. But today companies are moving to include national culture, age, physical ability and sexual orientation. In the context of generational diversity, four generations exist at workplace today namely the Veterans, Baby Boomers, Gen X and Gen Y. Gen Y is born between 1980 and 2000 make up 25% of the world population and nearly half the Indian population. They will soon form the largest employee base for organizations around the globe. However there is lack of substantial academic research on Indian Gen Y. <strong>Purpose</strong>: The study tries to explore and understand the important workplace expectations of Gen Y through the lens of psychological contract. 11 focus group discussions were held with 89 Gen Y employees currently working in IT/ITES companies. It further explores the unique expectations of Gen Y women and Gen Y differently-abled employees which may contribute to the unique elements in their psychological contract. <strong>Research Design/Methodology</strong>: Focus Group Discussions <strong>Exploratory study Findings</strong>: The study revealed that Salary, Career Growth, Opportunities at work, Job Satisfaction and Work Life Balance emerged as the top expectations of Gen Y as a whole. However it was interesting to note that when comparison was made between men, women and differently-abled employees within Gen Y, the expectations were completely different with only challenging work being common to all the three groups. <strong>Research Limitations</strong>: This study is an exploratory study with focus groups and qualitative data. A further large scale cross sectional study needs to be done with quantitative analysis to confirm the important workplace expectations of Gen Y. Study is limited to IT/ITES employees in Bengaluru. Only three specific employee groups under Gen Y namely men, women and differently-abled were explored due to time constraints. Studies in the future can include more employee groups like ex-army employees, employees from rural and urban background, LGBT etc. <strong>Practical Implication</strong>: If IT/ITES organizations want to attract engage and retain young Gen Y employees, they must proactively understand the needs and expectations of these youngsters. It is also critical that specific needs of various employee groups within Gen Y are also understood and met. <strong>Originality</strong>: Until now most organizations have had a reactive approach to managing diversity either as a response to a minority discrimination case or legal compliance. The paper argues for a more proactive approach to managing Generation Y expectations using psychological contract framework which has never been proposed before.</p>

Wage reduction of Portuguese civil servants and their attitudes: the psychological contract perspective

This study is based on the psychological contract theoretical model. It provides an empirical test of the antecedents and consequences of psychological contract violation (PCV) that was caused by the wage reduction of Portuguese civil servants. Data were collected from a sample of 212 employees who worked in public organizations across different sectors. These positions entailed different functions and were subject to different levels of wage reduction. A Structural Equation Model was used to analyze the data. The results show that employees' attributions of this psychological contract breach are related to their perception of PCV. Furthermore, our findings also suggest that civil servants have two distinct psychological contracts and that the PCV of the employing organization also depends on the PCV of the public institution. Moreover, the PCV of the public institution was found to be the mechanism that explains the relationship between the meaning attached to wage reduction and the PCV of the employing organization. Finally, our findings confirm that the PCV of the employing organization mediates the relationships between the PCV of the public institution and the commitment and turnover intentions of civil servants. Therefore, such results highlight the usefulness of the psychological contract framework in explaining civil servants' reactions to wage reduction.

Toward a Psychological Contract Framework of Director Effectiveness: The Role of CEO Expectations

Understanding director effectiveness remains a complex and nuanced undertaking for strategic leadership and governance scholars. Recent scholarship alludes to possible negative consequences of defi...

Psychological contract framework on the linkage between developmental human resource configuration and role behavior

The purpose of this study was to examine the role of psychological contract on the linkage between developmental human resource (HR) configurations and role behavior relationships. Multilevel analysis of dyad data revealed that developmental HR configurations could strengthen employees' organizational behaviors that benefit the organization (OCBO) in general by simultaneously shaping their relational and balanced psychological contracts. Further, developmental HR configurations would also improve employees' organizational behaviors that benefit specific individuals (OCBI) and indirectly contribute to the organization by fostering their relational psychological contracts. These findings have implications for research on HR management and psychological contracts as well as for managers seeking to enhance or maintain a firm's competitive advantages.

Experiencing organizational change in Greece: the framework of psychological contract

We examine antecedents and outcomes of psychological contract violation in parallel with perceptions of psychological contract fulfilment in the Greek banking sector. We demonstrated that violation mediated the relation between breach and attitudinal outcomes. Trust in the employer partially mediated the relationship of breach and violation with employee attitudes. Finally, careerism moderated the relationship of perceived breach and organizational commitment. Our results are discussed in light of the major organizational changes occurring in the financial sector, and the consequences of these changes on employees’ attitudes and psychological contract breach and violation, along with research and practical implications.

Employee evaluations of occupational pensions

PurposeThe paper aims to examine the role of an occupational pension in employees' psychological contracts, the degree to which such pensions influence decisions relating to employee recruitment and retention, and attitudes of managerial employees to the recent Employment Equality (Age) Regulations.Design/methodology/approachThirty‐six in‐depth interviews were conducted with managerial employees in order to examine the topics described above.FindingsIt is found that the role of an occupational pension in employees' psychological contracts is related to age, and that they play a much greater role in the psychological contracts of older employees. The provision of an occupational pension was found to be more successful in promoting the retention rather than the recruitment of staff. The managerial employees interviewed were overwhelmingly supportive of the introduction of the recent Employment Equality (Age) Regulations, but some expressed scepticism that they would be implemented faithfully by their organisations.Research limitations/implicationsFurther research is needed to examine the impact of the widespread closure of defined benefit pension schemes on employment decisions. The small sample size used in this research means no claims can be made to external validity.Originality/valueThe original features of the paper are that the authors apply the psychological contract framework in analysing the degree to which employees value their occupational pensions, employees themselves are interviewed rather than their employers in assessing the impact of an occupational pension on recruitment and retention, and the paper provides an early assessment to the recent introduction of age discrimination.

An exploration of small firm psychological contracts

It is argued here that more sophisticated frameworks of analysis than currently exist are required to support deeper understanding of small firm employment relationships. A psychological contract framework is adopted, presenting data on three small firm case studies and contrasting this with existing perspectives on small firm employment relationships. The degree of heterogeneity demonstrated in employment relationships in the small firm sector leads to the argument that a single typology of `small firm' employment relationships is not possible. While small firms may differ in nature to large firms, there is a range of forces in so heterogeneous a sector that go to create employment relationships and a narrow framework, especially one predicated upon notions of size, will not adequately reflect the complexities of the relationships under consideration. A broader, less deterministic, framework such as the psychological contract supports the development of more nuanced understandings of small firm employment relationships.

Building high performance employment relationships in small firms

PurposeThe purpose of the paper is to present research into the employment relationship in small firms and to examine its link to high performance. A psychological contract framework is adopted, it being argued that this supports a more nuanced analysis than existing perspectives on the small firm employment relationship which are limited and do not give sufficient insight into performance issues.Design/methodology/approachThe paper employs a case study approach, carrying out 41 interviews involving both owner managers and employees in three firms. A critical incident technique (CIT) is adopted in the interviews.FindingsThe paper finds that high performance derives from a relational psychological contract and that transactional contracts impact negatively on performance. It is also demonstrated that, contrary to what is implied in much of the existing small firm literature, small firms are capable of building relational contracts.Research limitationsThe research in this paper is drawn from a small‐scale study and is not generalisable. It does, however, provide a basis for a more detailed study of the small firm employment relationship.Practical implicationsThe research in the paper demonstrates the value of building a relational psychological contract in order to drive high performance. It also gives insight into how this can be done in the small firm context and the importance of the owner manager approach to this.Originality/valueThe paper presents more nuanced ways of exploring the small firm employment relationship than already exist and also considers the issue of performance, which is under‐researched in this context.

Different temporary work status, different behaviors in organization

This study examined the contributions of the psychological contract framework to an understanding of the effects of different work statuses on employees’ behavior. We compared temporary firm workers (n=71) with core workers (n=268) and direct-hire temporary workers (n=149) with core workers (n=42) in two different samples. As expected, temporary firm workers consider that they receive fewer socio-emotional inducements from the organization they work for (opportunities for promotion, career development, long-term employment), but direct-hire temporary workers who succeeded in having their contracts extended had a psychological contract in which socio-emotional components predominated. A psychological contract with a predominance of socio-emotional components was important for organizations because it mediated the influence of work status on civic virtue behaviors on the part of temporary firm workers, and directly and positively influenced these behaviors in direct-hired temporary workers (behaviors as assessed by their supervisors). Contrary to the hypothesis, psychological contract had a direct and positive influence on the in-role behavior of direct-hire temporary workers. The implications of the findings for psychological contract research are discussed.

The Employment Relationship in the U.K. Public Sector: A Psychological Contract Perspective

The management of public servants has assumed increasing importance as public-service organizations are confronted with a rise in the demand for high-quality services in the context of limited resources. Much of the research on the treatment of public servants has focused on the notion of public-service motivation and whether the motives of public servants differ from those of private-sector employees. However, an organization's need to harness positive employee attitudes and behaviors as a means of coping with the pressures on public-service delivery encourages a focus on the factors influencing these attitudes and behaviors within the sector. We address this issue by drawing upon a psychological contract framework, which captures employee perceptions of the reciprocal exchange between employer and employee. This study investigates the relationship between the psychological contract and two outcomes: organizational commitment and organizational citizenship behavior using survey responses from 5,709 employees. The results support the underlying proposition that public-sector employees reciprocate the treatment they receive from their employers. Consequently, we argue that the psychological contract framework has some value in enhancing our understanding of public servants' attitudes and behaviors. We discuss the implications of our findings for the management of public servants, and we suggest that future research integrate individual predispositions and situational factors to provide a more comprehensive understanding of public servants' attitudes and behaviors.

A psychological contract perspective on organizational citizenship behavior

AbstractThis study examined the contribution of the psychological contract framework to understanding organizational citizenship behavior (OCB) using survey data gathered at three measurement points over a three‐year period from 480 public sector employees. Separating perceived contract breach into its two components (perceived employer obligations and inducements), the data suggest that perceived employer obligations explained unique variance in three dimensions of citizenship behavior (helping, advocacy and functional participation) beyond that accounted for by perceived employer inducements. Employees' acceptance of the norm of reciprocity moderated the relationship between employer inducements and the dimensions of advocacy and functional participation. Employees' trust in their employer moderated the relationship between perceived employer obligations and the dimensions of advocacy and functional participation. Contrary to the hypothesis, procedural or interactional justice did not moderate the relationship between employer inducements and OCB. The implications of the findings for psychological contract research are discussed. Copyright © 2002 John Wiley & Sons, Ltd.

Exploring reciprocity through the lens of the psychological contract: Employee and employer perspectives

This article explores reciprocity within the exchange relationship between the employee and employer using the psychological contract framework. Specifically, we examine the bi-directionality of the norm of reciprocity. We hypothesize that there will be a positive relationship between perceived employer obligations, fulfilment of obligations, and employee obligations and fulfilment. In addition, we hypothesize that employee fulfilment of obligations will be positively associated with perceived employer obligations. Using a longitudinal survey of 1400 public sector employees and 84 managers, our findings suggest that there is broad agreement between the two parties regarding the norm of reciprocity that governs the relationship. We found that perceived employer obligations at time 1 is positively associated with employees' fulfilment of obligations at time 2 and perceived employer fulfilment of obligations at time 1 is positively related to employee obligations and fulfilment of obligations at time 2. Furthermore, we found that employee fulfilment of obligations at time 1 is positively associated with perceived employer obligations at time 2. Overall, these findings provide initial empirical support for the norm of reciprocity in exchange relationships from both the perspective of employees as well as managers, as employer representatives.