Transactional Psychological Contract Research Articles

The Impact of Employees’ Personality on their Psychological Contract in Fabric Manufacturing Industry of Sri Lanka

Area of the Study This study seeks to the explore impact of employees‟ personality on their psychological contract in fabric manufacturing industry of Sri Lanka. Problem of the Study The research problem of this study is: Does the personality of the employees have an impact on their psychological contract in fabric manufacturing industry of Sri Lanka? Method of the Study The data were collected from a stratified sample of 196 executive employees in selected fabric manufacturing companies of Sri Lanka and used a structured questionnaire consisting 64 questions with 5 points Likert Scale. Data were analyzed through SPSS computer package and it included univariate analysis and bivariate analysis. Findings of the Study The findings of the study are that extroversion, agreeableness, conscientiousness and openness to experience except neuroticism were negatively and strongly correlated with the transactional psychological contract of executives. And extroversion, agreeableness, conscientiousness and openness to experience except neuroticism were positively and strongly correlated with the relational psychological contract of executives. As the multiple regression analysis, 94.1% of the variation in big five factors explained by the transactional psychological contract and 93.6% of the variation in big five factors explained by the relational psychological contract. Conclusion of the Study It is concluded that personality is an important variable to understand the psychological contracts. This study provides support for filling the gap of theoretical and practical understanding of personality and psychological contract in fabric manufacturing industry which is mainly helpful to retain talents within the organization even though there is a huge market competition. Keywords: Personality, Big Five Personality Factors, Psychological Contract

Psychological Contract and Turnover Intention: The Mediating Role of Organizational Commitment

In this paper, the theory of resource conservation is introduced to explore the influence of psychological contract on turnover intention of employees, and the mediating mechanism of organizational commitment is tested. Through the questionnaire survey of employees in high-tech enterprises in Xi’an City, we use the structural equation model for empirical research; the results shows that: 1) the transactional and the relational psychological contract has a significant impact on turnover intention; 2) organizational commitment plays a fully mediating role in the relationship between transactional psychological contract and turnover intention, and plays a partial mediating role in the relationship between relational psychological contract and turnover intention.

Psychological contract and social exchange in family firms

This study tests a social exchange theory model that links firm family members' transactional and relational psychological contract obligations to firm performance. Evidence supports the hypotheses that organisational obligations are antecedents of individual contributions to firm performance in the psychological contract model. When family firms meet the employees' perceived obligations to their employees, the employees meet their perceived obligations to their employers. Participative decision-making and succession planning are of particular importance to maintain transgenerational control and evidence is found to support succession planning as fully mediating the relationship between participative decision-making and firm performance.

Examining the Nature and Effects of Psychological Contract: Case Study of an Indian Organization

This study investigates psychological contract contents and the effects of different types of psychological contracts on the work outcomes of employees in an Indian organization. Analysis of case study interviews and secondary data suggests that employee expectations can be categorized into relational and transactional psychological contracts. The contents of these contracts, while largely similar to those in the West, reflected certain aspects that are unique to the sociocultural context of employment relationships in India. Further, the fulfillment or breach of these psychological contracts led to different effects on work outcomes. Relational psychological contracts affected long‐term affective work outcomes, such as prosocial work behaviors, psychological ownership, and engagement. Transactional psychological contracts had stronger effects on turnover intentions and attitude to work. © 2016 Wiley Periodicals, Inc.

In pursuit of service excellence: Investigating the role of psychological contracts and organizational identification of frontline hotel employees

Research in tourism management is yet to examine the role of psychological contracts in shaping organizational identification and influencing service-oriented behaviors of frontline employees. Drawing upon psychological contract and social identity theories, we propose a theoretical model that links the two types of psychological contracts (relational vs. transactional psychological contracts) with organizational identification and service employees' in-role performance and organizational citizenship behaviors. Data collected from 199 matched frontline employee-coworker-supervisor triads in hotels show that while transactional psychological contracts were directly and negatively associated with supervisor-reported in-role performance and co-worker reported service-oriented citizenship behaviors, the relationship between relational psychological contracts and both types of service-oriented behaviors were positive and partially mediated by organizational identification. Our findings have important implications for tourism operators by highlighting the important role of different types of psychological contracts in the delivery of high quality service.

Psychological Contract, Reciprocal Preference and Knowledge Sharing Willingness

The paper has undertaken field investigation on 370 knowledge workers in knowledge-based industries which are located in Pearl River Delta region by structured questionnaire, and verifies that the different influence of psychological contract and reciprocal preference on knowledge sharing willingness, and further confirms that the reciprocal preference plays an intermediary in the relationship between psychological contract and knowledge sharing willingness. The result of analysis shows that: 1) Transactional psychological contract has a negative effect on knowledge sharing; 2) Relational psychological contract has a significant positive effect on knowledge sharing; 3) Developmental psychological contract only has a significant negative effect on the explicit knowledge sharing; 4) The reciprocal preference plays an intermediary role in the relationship between transactional psychological contract, relational psychological contract.

Examining the relationship between the psychological contract and organisational commitment

Purpose– The aim of this study is to examine the impact of the psychological contract, relational psychological contract and transactional psychological contract on organisational commitment as mediated by transactional leadership in the United Arab Emirates (UAE) context. The paper also explores the contractual status to determine if the theory remains valid, regardless of the fact whether one is employed as a contingent or permanent worker.Design/methodology/approach– This research made a longitudinal study spanning a 24-week time period. Data were collected using a self-administered structured questionnaire prepared in English and Arabic, at three stages representing three visits to the participating companies in the UAE. Pearson’s correlation analysis and multiple regression analysis were used to examine the research hypotheses.Findings– The results show that the psychological contracts (transactional and relational) are positively related to transactional leadership. This study categorizes several consequential relationships between transactional leadership and organisational commitment. It also advocates that transactional leadership has only a fractional mediating role in relation to relational psychological contract, transactional psychological contract and organisational commitment.Practical implications– The findings suggest that practitioners and academics alike should note that the nature of the psychological contract employed will impact upon commitment and retention.Originality/value– This study makes a significant contribution to the body of literature, being the second part of a longitudinal study that aimed at testing the mediating effect of transactional leadership on organisational commitment within the context of the UAE. In the earlier study, the intent was to analyse the role of transformational leadership as a mediator between the psychological contract and organisational commitment. Typically, transformational leadership has been found to partially mediate the above mentioned relationships. In addition, it also advocates that there may be some value in considering the employees’ contractual status with regard to the psychological contract and its impact on organisational commitment.

Psychological Contracts and Student-Athlete Retention

The purpose of this study was to examine the impact that perceived breaches of psychological contracts have on student-athletes’ affective outcomes. Based on a sample of 258 NCAA Division I student-athletes at a large, Midwestern university, the results reveal that coaches and student-athletes do form transactional and relational psychological contracts. Coaches and student-athletes also form psychological contracts related to training obligations. Breaches of psychological contracts related to training obligations were found to have significantly lower student-athletes’ trust in their coaches and affective commitment to their teams. Breaches were also found to increase student-athletes’ intentions to leave their schools.

REACTIONS OF TEMPORARY EMPLOYEES TO PSYCHOLOGICAL CONTRACT BREACH

ABSTRACT The employment relationship with temporary employees is often poorly managed. Employers assume that these employees have only short term transactional psychological contracts. Adopting a ‘psychological contract perspective’, a qualitative study was conducted to examine the attitudinal and behavioral reactions when the promise of permanent employment to temporary employees was not fulfilled. Results of our qualitative study indicated that temporary employees experienced negative affective reactions (i.e., sadness, depression and betrayal) and adverse behavioral outcomes (i.e., poor performance). The implications of psychological contract breach are discussed. Keywords temporary employees, psychological contract breach, employee status.

Diverse Reactions to Psychological Contract Breach and Fulfillment: A Cross-Cultural Study

Myriad studies have shown that psychological contract breach and fulfillment relate to employees’ job satisfaction. However, these studies primarily utilized samples of Western employees, calling into question the cross-cultural generalizability of their findings. This paper attempts to answer this question, by investigating the relationship between transactional and relational psychological contract breach and fulfillment on the one hand and job satisfaction on the other, in a large sample (N=1743) of employees from a single organization, working in 19 countries. We hypothesize that four cultural values— assertiveness, collectivism, power distance, and uncertainty avoidance—explain differences between these countries in employees’ job satisfaction following breach and fulfillment. Using the expanded approach to psychological contract breach and fulfillment in a multilevel framework, we find that differences in employees’ job satisfaction from these various countries exist, and that assertiveness, power distance and uncertainty avoidance can explain these differences. We conclude that culture plays an important role in shaping employees reactions to the psychological contract.

Relationships among service climate, psychological contract, work engagement and service performance

The paper identifies relationships between cabin service directors and flight attendants and service climate, psychological contracts, work engagement, service performance and cue perception ability. We find that relational psychological contracts have a positive influence on work engagement; transactional psychological contracts have a negative influence on work engagement; work engagement has a positive influence on service performance; work engagement mediates the relationship between relational psychological contracts and service performance; service climate has a positive influence on service performance; and cue perception ability moderates the relationship between work engagement and service performance.

Psychological contract and organizational commitment

PurposeThe purpose of this paper is to investigate, within a non‐western context, the impact of the psychological contract, relational psychological contract (RPC) and transactional psychological contract (TPC), on organizational commitment (OC) as mediated by transformational leadership (TL). In addition, the paper also explores contractual status: does the theory fit, whether one is employed on a full or part time basis.Design/methodology/approachThe empirical part of the article is based on self‐administrated questionnaires completed by 433 respondents from across a range of service industries in the UAE.FindingsThe results indicate that both RPC and TPC are positively related to TL. The study did not identify any meaningful relationship between TL and OC. The study also suggests that TL has, at best, only a partial mediating role in relation to the RPC, TPC, and OC. As respondents' contractual status was employed as a control moderator, the paper can also report that part versus full time employment does not influence the outcome regarding the aforementioned relationships.Research limitations/implicationsThe findings suggest that practitioners and academics alike should note that the nature of the psychological contract employed will impact commitment and retention. Also, consistency of approach is very important when one is searching for sustainable employee commitment. The principle limitations associated with this research relate to the self reporting nature of the study: it both negates meaningful triangulation and qualitative interrogation of the results. Further, the industry level, services, and investigation precludes inter industry comparison, and the context, the UAE, may limit the generalizability of the findings.Originality/valueThe paper contributes to the literature by being the first to study the mediation effect of TL on the relationship between RPC, TPC, and OC within a non‐western context. In addition, it also suggests that there may be some value in considering employee contractual status with regard to psychological contract and commitment.

Moderating Role of Well-Being on the Relation between Psychological Contract and Intention to Leave

<p style="text-align: justify;">This study aims to determine the relationship between psychological contract, psychological well-being and the intention to leave. The sample of this study consists of 118 teachers in 10 schools that were selected randomly with clustered sampling methods from the schools in Osmaniye province in the 2015-2016 academic year. Data were analyzed using a hierarchical multiple linear regression method with SPSS 22; a modgraph was used to moderate tests. The results of the moderator tests showed that psychological well-being was a moderator of the relationship between the short-term relations component of the psychological contract and teachers’ intention to leave levels. This study also indicated that transactional psychological contracts (short-term relations) had a negative effect on teachers’ intention to leave levels, and psychological well-being had a positive effect on teachers’ intention to leave levels. In the light of the findings, to create more positive educational environments, it would be beneficial for policy makers and top managers to take psychological constructs into consideration at all stages of management. However, future researchers should focus on the different dimensions of psychological contracts and psychological well-being that may also be related to the intention of teachers to leave.</p>

Once Bitten, Twice Shy? Past Employment Experiences and Current Employee-Organization Relationships

In the present study we develop and test a model that links prior transactional and relational psychological contracts with two distinct forms of employee-organization relationships in a subsequent...

Maintaining Dignity – A case of outsourced paper plant cleaners in Finland

Outsourcing has gained favor since the 1980s, and Finnish paper companies used it as late as 2006, when a group of female cleaners were outsourced from the case plant of this study. This article focuses on the context of outsourcing, characterized by the bargaining power and choices made by the bargaining parties, the responses of the cleaners over time and the potential theoretical explanations of the outcome. The responses, such as disappointment and anger, mental and physical tiredness, sickness absenteeism, and starting to get adjusted, were interpreted in the frameworks of occupational culture, the job characteristics model, old and new craftsmanship, and relational and transactional psychological contracts. The method was a combination of naturalistic inquiry and abduction. The study points out that more than one theoretical framework was needed to gain an understanding of the situation.

Influence of Psychological Contract Violation on Organizational Commitment and Intention to Leave

The purpose of this study is to investigate the influence of two dimensions of psychological contract violation (transactional and relational) on three dimensions of organizational commitment (affective, normative and continuance commitment) and intention to leave on employees of the retail sector in India. Data were gathered from 80 executives, selected randomly, working in different retail chains in south Delhi (NCR). Correlation and regression analyses were employed to analyze the data. The results revealed that transactional psychological contract violation predicts continuance commitment whereas, the relational psychological contract violation predicts affective as well as continuance commitment significantly. Intention to leave was predicted by both the dimensions of psychological contract violation. The findings imply that retail industry needs to manage employees' perceived expectations properly, especially employee's relational contractual obligations, otherwise, perception of its violation can jeopardize employee's affective commitment, and this may affect their job performance. The findings also imply that management needs to take care of employees' expectations; otherwise, an organization should be ready to lose some of their performing employees.

Influence of Psychological Contract Violation on Organizational Commitment and Intention to Leave

The purpose of this study is to investigate the influence of two dimensions of psychological contract violation (transactional and relational) on three dimensions of organizational commitment (affective, normative and continuance commitment) and intention to leave on employees of the retail sector in India. Data were gathered from 80 executives, selected randomly, working in different retail chains in south Delhi (NCR). Correlation and regression analyses were employed to analyze the data. The results revealed that transactional psychological contract violation predicts continuance commitment whereas, the relational psychological contract violation predicts affective as well as continuance commitment significantly. Intention to leave was predicted by both the dimensions of psychological contract violation. The findings imply that retail industry needs to manage employees' perceived expectations properly, especially employee's relational contractual obligations, otherwise, perception of its violation can jeopardize employee's affective commitment, and this may affect their job performance. The findings also imply that management needs to take care of employees' expectations; otherwise, an organization should be ready to lose some of their performing employees.

Antecedents and consequences of idiosyncratic deals: A frame of resource exchange

This study examines the antecedents and consequences of both timing and content of idiosyncratic deals (i-deals) for attracting and retaining valuable employees. A resource exchange frame theorizes the influence pattern of personal individualism value, social skill, and perceived insider status on i-deals timing. Individualism and social skill are expected to relate to both ex ante and ex post i-deals; perceived insider status is anticipated to relate only to ex post i-deals. The frame also suggests that i-deals’ content and personal development relate primarily to relational and balanced psychological contracts; the other ex post i-deals, flexibility and workload reduction relate to transactional psychological contracts. The frame was tested with data collected from 289 Chinese employees in the telecommunication industry.

Psychological Contracts as a Mediator Between Machiavellianism and Employee Citizenship and Deviant Behaviors

Results from four studies in multiple contexts drawing on different data sources provide full support for the proposition that Machiavellian employees prefer forming transactional psychological contracts (schemas of their employee–employer relationship that are economic in nature) and that such contracts mediate the relationship between Machiavellianism and supervisor-rated (a) organizational citizenship behaviors and (b) deviant behaviors, respectively. The authors’ research contributes to scholars’ understanding of the theoretical underpinnings of the relationship between Machiavellianism and contextual performance as well as to the psychological contracts literature by demonstrating that Machiavellianism influences contextual performance because it affects the manner in which employees construe their employment relationships.

Psychological Contracts and Organizational Identification: The Mediating Effect of Perceived Organizational Support

Understanding the processes through which employees incorporate the organization’s identity into their own identity is critical to building positive employer-employee relationships. We draw primarily on organizational support theory to advance the argument that psychological contract breach is negatively related to organizational identification and positively related to organizational disidentification because it makes employees believe that their organizations do not value their contributions or care about their well-being (reduces perceived organizational support). Results from two studies generally provide support for our hypotheses: in Study 1, perceived organizational support fully mediated the relationship between psychological contract breach and organizational identification. In Study 2, Time 2 perceived organizational support fully mediated the relationship between Time 1 relational psychological contract breach (e.g., promises related to training, development, job security) and organizational identification, but not the relationship between transactional psychological contract breach (e.g., promises related to pay and work hours) and organizational identification. Time 2 perceived organizational support partially mediated the relationship between relational psychological contract breach and organizational disidentification, but not the relationship between transactional psychological contract breach and organizational disidentification. We conclude that organizations should be concerned with this erosion of the positive employer-employee relationship (organizational identification) and fostering of a negative employer-employee relationship (disidentification).