Psychological contracts and OCB: The effect of unfulfilled obligations on civic virtue behavior

This study examines the relationship between violation of an employee's psychological contract and civic virtue behavior. A psychological contract is a set of beliefs regarding mutual obligations between employee and employer. One hundred twenty-six MBA alumni were surveyed at the time of hire (T1), and after 18 months (T2) and 30 months (T3) on the job. When employees felt that their employers had failed to fulfil employment obligations at T2, they were less likely to engage in civic virtue behavior at T3. There was evidence that this relationship was partly mediated by trust. These findings have implications for research on OCB and for managers seeking to maintain employee citizenship behavior.     

New hire perceptions of their own and their employer's obligations: A study of psychological contracts

Psychological contracts are individual beliefs in reciprocal obligations between employees and employers. In a sample of 224 graduating MBA students who had recently accepted job offers, beliefs regarding employment obligations were investigated. Two types of obligation were demonstrated empirically: transactional obligations of high pay and career advancement in exchange for hard work and relational obligations exchanging job security for loyalty and a minimum length of stay. These types of obligations are connected with two forms of legal contracts: transactional and relational. Relational contract obligations for employers correlated with employee expected length of stay with the firm. Transactional contract obligations were associated with careerist motive on the part of new recruits. The relationship between these and other motives of new hires was also investigated.     

Effects of application blanks and employment equity on applicant reactions and job pursuit intentions

In the present study, 136 undergraduate commerce students participated in a simulation of the job application process by completing one of two application blanks (discriminatory versus non-discriminatory), that did or did not include a statement about the organization's commitment to employment equity. The results indicated that subjects who completed the application blank without the discriminatory questions had significantly more positive reactions of organization attractiveness, job application success, motivation to pursue employment with the organization, job acceptance intention, fairness of the organization's treatment of its employees, and likelihood of recommending the organization to friends in comparison to subjects who completed the application blank with discriminatory questions. In addition, subjects who believed the organization had an employment equity program were more positive about their motivation to pursue employment with the organization, job acceptance intention, the fairness of the organization's treatment of its employees, and the likelihood of recommending the organization to friends. The research and practical implications of these findings for recruitment and selection are discussed.     

How work ideologies shape the psychological contracts of professional employees: doctors' responses to perceived breach

This study suggests that the psychological contract between a professional and his/her employing organization is shaped by both professional and administrative work ideologies and therefore involves both professional and administrative roles and perceived role obligations. It is also suggested that because of important differences between these two ideologies, a professional employee's response to perceptions that his/her organization is not fulfilling its role obligations will depend on whether the perceived breach involves professional or administrative obligations. Hypotheses based on this general proposition were strongly supported in a sample of medical professionals. Specifically, results suggest that perceived breaches of administrative role obligations are most strongly associated with dissatisfaction, thoughts of quitting, and turnover whereas perceived breaches of professional role obligations are most strongly associated with lower organizational commitment and job performance (productivity and client satisfaction). Implications for theory and research on the dimensionality of the psychological employment contract and on the employment of professionals are considered. Copyright © 2001 John Wiley & Sons, Ltd.     

Outcomes associated with breach and fulfillment of the psychological contract of safety

IntroductionThe study investigated the outcomes associated with breach and fulfillment of the psychological contract of safety.MethodThe psychological contract of safety is defined as the beliefs of individuals about reciprocal employer and employee safety obligations inferred from implicit or explicit promises. When employees perceive that safety obligations promised by the employer have not been met, a breach of the psychological contract occurs, termed employer breach of obligations. The extent to which employees fulfill their safety obligations to the employer is termed employee fulfillment of obligations. Structural equation modeling was used to test a model of safety that investigated the positive and negative outcomes associated with breach and fulfillment of the psychological contract of safety. Participants were 424 health care workers recruited from two hospitals in the State of Victoria, Australia.ResultsFollowing slight modification of the hypothesized model, a good fitting model resulted. Being injured in the workplace was found to lower perceptions of trust in the employer and increase perceptions of employer breach of safety obligations. Trust in the employer significantly influenced perceived employer breach of safety obligations such that lowered trust resulted in higher perceptions of breach. Perceptions of employer breach significantly impacted employee fulfillment of safety obligations with high perceptions of breach resulting in low employee fulfillment of obligations. Trust and perceptions of breach significantly influenced safety attitudes, but not safety behavior. Fulfillment of employee safety obligations significantly impacted safety behavior, but not safety attitudes. Implications of these findings for safety and psychological contract research are explored. A positive emphasis on social exchange relationships in organizations will have positive outcomes for safety climate and safety behavior.     

Not seeing eye to eye: differences in supervisor and subordinate perceptions of and attributions for psychological contract breach

This study examines supervisor and subordinate perceptions of and attributions for psychological contract breach. The data suggest that supervisor and subordinate perceptions are most likely to differ on the extent to which the organization violated its obligations to provide fair pay, advancement opportunities, and a good employment relationship. In addition, the results indicate that the greater the degree of psychological contract breach reported by subordinates, the less committed they are to the organization and the lower their job performance (as rated by their supervisor). Moreover, when psychological contract breach is perceived, supervisors' and subordinates' attributions regarding the reasons for the breach are likely to differ. Specifically, the findings suggest that subordinates are more likely to attribute breach to the organization's intentional disregard for the commitments that it had made to the employee, while supervisors are more inclined to attribute breach to situations beyond the organization's direct control. Copyright © 2001 John Wiley & Sons, Ltd.     

The role of perceived system knowledge in predicting appraisal reactions,job satisfaction,and organizational commitment

There is a very large research base in Applied Psychology on the importance of affective reactions on organizational functioning. Likewise, performance appraisal has been a heavily researched area within the field. The present field studies attempt to bridge our understanding of these two areas by studying the relationship between performance appraisal process variables and employee affective reactions. In particular, the current studies examine the effects of a relatively new performance appraisal variable, Perceived System Knowledge (Williams and Levy, 1992), on appraisal reactions and job attitudes. In both studies, there was a strong relationship between employees' levels of perceived system knowledge and their appraisal reactions and job attitudes. In Study 1, when controlling for performance rating, PSK was positively related to appraisal reactions, job satisfaction, and organizational commitment. The findings from Study 1 were replicated in the second study which employed a longitudinal design. In addition, Study 2 found a relationship between PSK and fairness perceptions. Implications for these results and suggestions for approaching performance appraisal from an organizational perspective are proposed. © 1998 John Wiley & Sons, Ltd.     

Employee judgments of and behaviors toward corporate social responsibility: A multi‐study investigation of direct,cascading, and moderating effects

Do employee judgments of their organization's corporate social responsibility (CSR) programs relate to CSR‐specific performance and in‐role job performance? Can middle managers influence the formation of such judgments and what factors might moderate such cascading influences? To answer these yet unaddressed questions, we conduct three studies. Study 1 takes an organizational justice perspective and tests our baseline model. Results show that employees' CSR judgments trigger their affective commitment and performance on extra‐role CSR‐specific behaviors; however, extra‐role CSR‐specific performance is unrelated to in‐role job performance. Study 2 replicates Study 1's findings while, in addition, applies a social information processing approach and offers novel insights by demonstrating the cascading effects of managers' CSR judgments on employee CSR judgments. Investments made in CSR programs in order to improve employee judgments and behaviors may be unsuccessful if employees' CSR judgments are based on social information that remains unchanged. In addition to replicating the findings from studies 1 and 2, study 3 draws from middle management involvement and leadership theories to show that leadership styles and managers' involvement in implementing deliberate strategy can strengthen or weaken these cascading effects. This highlights the important role of middle managers as “linking pins” in the CSR strategy implementation process. Copyright © 2014 John Wiley & Sons, Ltd.     

A psychological contract perspective on organizational citizenship behavior

This 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.     

Antecedents and consequences of relational components of the new psychological contract

The literature regarding the new psychological contract suggests that the traditional paternalistic employer–employee relationship in U.S. companies has eroded. We investigated the relationship between relational components of the new psychological contract (personal responsibility for career development, commitment to type of work, and expectations of job insecurity), work experiences (involuntary job loss, organizational change, voluntary job change, and violation of obligations), and work outcomes (job satisfaction, participation in development activities, and intention to remain with the employer). We hypothesized that managerial and professional employees' level of agreement with relational components of the new psychological contract would mediate the relationship between their work experiences and work outcomes. In partial support of the model, we found that level of agreement with relational components of the new psychological contract mediated the relationship between work experiences and intention to remain with the employer and job satisfaction. Contrary to the model, no relationship was found among work experiences, level of agreement with relational components of the new psychological contract, and participation in development activities. Copyright © 1999 John Wiley & Sons, Ltd.     

The development of psychological contract breach and violation: a longitudinal study

This study examines factors affecting employees' perceptions that their psychological contract has been breached by their organization, and factors affecting whether this perception will cause employees to experience feelings of contract violation. Data were obtained from 147 managers just prior to their beginning of new job (time 1) and 18 months later (time 2). It was found that perceived contract breach at time 2 was more likely when organizational performance and self‐reported employee performance were low, the employee had not experienced a formal socialization process, the employee had little interaction with organizational agents prior to hire, the employee had a history of psychological contract breach with former employers, and the employee had many employment alternatives at the time of hire. Furthermore, perceived breach was associated with more intense feelings of violation when employees both attributed the breach to purposeful reneging by the employer and felt unfairly treated in the process. Theoretical and practical implications of these results are discussed. Copyright © 2000 John Wiley & Sons, Ltd.     

The application of the psychological contract to workplace safety

INTRODUCTION: Psychological contracts of safety are conceptualized as the beliefs of individuals about reciprocal safety obligations inferred from implicit or explicit promises. Although the literature on psychological contracts is growing, the existence of psychological contracts in relation to safety has not been established. The research sought to identify psychological contracts in the conversations of employees about safety, by demonstrating reciprocity in relation to employer and employee safety obligations. The identified safety obligations were used to develop a measure of psychological contracts of safety. METHOD: The participants were 131 employees attending safety training sessions in retail and manufacturing organizations. Non-participant observation was used to collect the data during safety training sessions. Content analysis was used to analyze the data. Categories for coding were established through identification of language markers that demonstrated contingencies or other implied obligations. RESULTS: Direct evidence of reciprocity between employer safety obligations and employee safety obligations was found in statements from the participants demonstrating psychological contracts. A comprehensive list of perceived employer and employee safety obligations was compiled and developed into a measure of psychological contracts of safety. A small sample of 33 safety personnel was used to validate the safety obligations. CONCLUSIONS AND IMPACT ON INDUSTRY: Implications of these findings for safety and psychological contract research are discussed.     

A new look at the psychological contract during organizational socialization: The role of newcomers' obligations at entry

Previous studies have demonstrated that the psychological contract is largely shaped during socialization. This study adopts a complementary perspective and analyzes how the psychological contract at the start of employment shapes the subsequent socialization process. Drawing upon social exchange theory, we propose that newcomers with a higher sense of their personal obligations at entry will perceive orientation training as more useful and develop better relationships with their supervisors and peers, which in turn will facilitate their work adjustment. Results of a longitudinal survey on a sample of 144 recruits from a European Army show that newcomers with a higher initial sense of their employee obligations toward their employer report higher perceived training utility, higher leader–member exchange (LMX) with their instructors, and higher team–member exchange (TMX) with their platoon peers. Moreover, perceived training utility and LMX predict the fulfillment of employers' obligations; and training utility predicts the level of newcomers' employee obligations. Finally, training utility, LMX, and TMX predict some of three indicators of newcomers' adjustment, namely, role clarity (training utility and LMX), group integration (TMX), and organizational values understanding (training utility). These results highlight how newcomers' obligations at the start of employment contribute to the social exchange dynamic underlying organizational socialization. Copyright © 2015 John Wiley & Sons, Ltd.     

Stayers versus movers: Social capital and early career imprinting among young professionals

We investigate what interfirm career mobility patterns would emerge if individuals are motivated by the job rewards they obtain as a function of their experience in organizations. We articulate two career strategies that individuals employ to navigate their early careers—commitment to a single employer and “job hopping” between different employers. Each strategy generates social capital (an individual's structure of social relations) but of a different kind. Embeddedness in the same organization over time develops a strong local identity and reputation within the firm. Boundary spanning through experience in different organizations creates opportunities for connecting people and ideas and for knowledge transfer between firms. We posit and present evidence that the choice between these two strategies is conditioned by social experience at the onset of one's career—the length of tenure with the first employer—which sorts individuals into “stayers” and “movers.”     

Expectations of organizational mobility,workplace social inclusion,and employee job performance

Two new concepts, employees' Expectations of Organizational Mobility (EOM) and Workplace Social Inclusion (WSI), were developed in part from the burgeoning literature on social capital. Two independent tests of the hypotheses in two different organizations found that the greater employees' EOM, the lower their WSI, which in turn was associated with lower employee job performance ratings. Further, the mediating role of WSI was confirmed. Our findings support the arguments of those who have warned that employees' EOM, and implicitly the human resources philosophy of ‘employability’ that encourages such expectations, is associated with comparatively worse individual job performance via lower levels of employee WSI. The value of these concepts for current employability debates, for the use of subjective supervisory judgments in performance appraisal ratings and for researchers interested in organization‐based communal social capital, is discussed. Copyright © 2004 John Wiley & Sons, Ltd.     

Cognitive processes in procedural justice judgments: The role of ease‐of‐retrieval,uncertainty, and experience

In a field experiment with 517 job applicants, the processes underlying the formation of procedural justice judgments were investigated. It was hypothesized that procedural justice judgments may be based not only on content information (e.g., “What are fair aspects of the selection procedure?”), but also on the felt ease or difficulty with which this content information can be retrieved from memory (ease‐of‐retrieval; e.g., “How easily can I recall fair aspects of the selection procedure?”). Evaluations of the company's online application procedure show that job candidates based procedural justice judgments on content information or on ease‐of‐retrieval, depending on their uncertainty regarding the online application procedure as well as their prior experiences with online applications. Specifically, experienced applicants who felt certain based their judgments on ease‐of‐retrieval, whereas all other applicants based their judgments on content information. Implications for research on the formation of justice judgments as well as practical applications are discussed. Copyright © 2010 John Wiley & Sons, Ltd.     

A test of a multidimensional model of job insecurity: the case of Israeli teachers

The research reported here adopted a multidimensional approach to studying job insecurity, using Israeli teachers as a case in point. Based on two determinants of job insecurity—unionization and kibbutz affiliation—four distinct employment types were identified: unionized city teachers, unionized kibbutz members, unionized kibbutz hirees, and non-unionized personal contract teachers. The a priori job insecurity status of the four employment types matched the subjective reports of these teachers, supporting the external validity of the job insecurity scale used. The study explored the effect of job insecurity on work attitudes. Results indicated that job insecurity had an adverse effect on organizational commitment, perceived performance, perceived organizational support, intention to quit and resistance to change, supporting predictions in related literature. The results of this study have implications on the management of job insecurity in changing environments.     

Does process fairness affect job performance? It only matters if they plan to stay

Incorporating a social exchange perspective, we examined the joint impact of process fairness and turnover intentions on job performance. Results from two independent samples suggest that employee turnover intentions moderate relations between process fairness perceptions and employee job performance. Specifically, the positive effects of the two types of process fairness on performance were stronger for employees who planned to stay with the organization than for those who intended to leave. Copyright © 2012 John Wiley & Sons, Ltd.     

The effects of long-term unemployment on attitudes to employment

This paper is concerned with whether long-term unemployment (6-24 months) affects people's attitudes to employment once they have found a new job. One hundred and forty men aged 25-40 were asked whether they felt various aspects of employment (e.g. job security, pay) are more important to them as a result of being unemployed. The effects of mental well-being when unemployed on attitudes to employment are explored. Unemployment is reported to have made most aspects of employment more important to people. Those whose mental health was worst when unemployed report that job security is most important to them.     

Racial differences in promotion candidate performance and reactions to selection procedures: a field study in a diverse top‐management context

The present study examined African‐American and White promotion candidates' reactions to and performance on selection procedures that were completed within a police department where African Americans occupied the majority of top‐management positions. Reactions (perceived job relatedness and test‐taking motivation) of 187 candidates competing for promotion to the rank of sergeant were assessed after completing a written job knowledge test and a situational interview. Analyses showed that both the African‐American and White candidates judged the situational interview to be more job‐related than the pencil‐and‐paper job knowledge test. In addition, African Americans perceived both selection measures to be more job‐related and reported higher levels of test‐taking motivation than White candidates even though African Americans performed more poorly than White candidates on the paper‐and‐pencil test. These results challenge the contention that lower test‐taking motivation for African‐American candidates is related to racial differences in performance on pencil‐ and‐paper tests. Implications and directions for future research on reactions to selection procedures for promotion in racially diverse employment settings are discussed. Copyright © 2007 John Wiley & Sons, Ltd.