Relationships between psychological contract breach and employee well‐being and career‐related behavior: The role of occupational future time perspective

Relationships between psychological contract breach and employee well‐being and career‐related behavior cannot sufficiently be explained by social exchange and reciprocity theories, yet the alternative mechanisms underlying these associations are currently not well understood. Based on the psychological contract perspective on careers, the goal of this study was to examine indirect effects of psychological contract breach on emotional engagement, emotional exhaustion, and career‐related behavior through two dimensions of occupational future time perspective (i.e., focus on opportunities and focus on limitations). Data came from 405 employees in Australia, who responded to three surveys across 12 months. Results showed that psychological contract breach had indirect effects on emotional engagement and exhaustion through focus on opportunities and focus on limitations, respectively, and on career‐related behavior through focus on opportunities. Another mechanism, psychological contract violation, was only related to employees' organizational deviance. These findings highlight the important role of occupational future time perspective dimensions as employees' evaluations of future career‐related opportunities and limitations. These evaluations may change in response to psychological contract breach and, in turn, might impact on employee well‐being and career‐related behavior.     

Reactions to psychological contract breach: a dual perspective

This study examined reactions to psychological contract breach from two separate perspectives, that is, employee's reactions to perceptions of employer breach and supervisor's reactions to perceptions of employee breach of the psychological contract. In addition to the main effects, we also hypothesized that the benevolence (or kindness) of the supervisor and the traditional values (or respect for authority) of the employee would attenuate the negative effects of psychological contract breach. We tested these hypotheses with a sample of 273 supervisor‐subordinate dyads from the People's Republic of China. The results showed that employer breach correlated negatively with employee outcomes of organizational commitment (OC), organizational citizenship behavior (OCB), and work performance, but this negative relationship was weaker for employees with traditional values. The results also demonstrated that employee breach correlated negatively with responses from the supervisor, in terms of the mentoring provided to the employee and the leader‐member exchange (LMX) quality. However, more benevolent supervisors reacted less negatively in terms of the mentoring than did the less benevolent supervisors. Implications for future research are offered. Copyright © 2007 John Wiley & Sons, Ltd.     

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.     

A multi‐level investigation of psychological contract breach and organizational identification through the lens of perceived organizational membership: Testing a moderated–mediated model

Drawing on the perceived organizational membership theoretical framework and the social identity view of dissonance theory, I examined in this study the dynamics of the relationship between psychological contract breach and organizational identification. I included group‐level transformational and transactional leadership as well as procedural justice in the hypothesized model as key antecedents for organizational membership processes. I further explored the mediating role of psychological contract breach in the relationship between leadership, procedural justice climate, and organizational identification and proposed separateness–connectedness self‐schema as an important moderator of the above mediated relationship. Hierarchical linear modeling results from a sample of 864 employees from 162 work units in 10 Greek organizations indicated that employees' perception of psychological contract breach negatively affected their organizational identification. I also found psychological contract breach to mediate the impact of transformational and transactional leadership on organizational identification. Results further provided support for moderated mediation and showed that the indirect effects of transformational and transactional leadership on identification through psychological contract breach were stronger for employees with a low connectedness self‐schema. Copyright © 2012 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.     

A process perspective on psychological contract change: Making sense of,and repairing,psychological contract breach and violation through employee coping actions

Psychological contracts are dynamic, but few studies explore the processes driving change and how employees influence them. By adopting a process approach with a teleological change lens, and drawing upon the sensemaking and coping literatures, this study positions individuals as active and adaptive agents driving contract change. Employing a mixed methodology, with a four‐wave longitudinal survey (n = 107 graduate newcomers) and qualitative interviews (n = 26 graduate newcomers), the study focuses on unfolding events and develops an “adaptive remediation” process model aimed at unraveling contract dynamics. The model demonstrates how breach or violation events trigger sensemaking, resulting in initially negative employee reactions and a “withdrawal” of perceived contributions, before individuals exercise their agency and enact coping strategies to make sense of, and adapt and respond to, these discrepancies. A process of contract “repair” could then occur if the coping actions (termed “remediation effects”) were effective, with individuals returning to positive exchange perceptions. These actions either directly addressed the breach and repaired both it and the psychological contract (termed “remedies”) or involved cognitive reappraisal of the broader work environment and repaired the contract but not the breach (termed “buffers”). The results highlight the unfolding, processual nature of psychological contracting. Copyright © 2015 John Wiley & Sons, Ltd.     

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 psychological contracts of violation victims: A post‐violation model

Organizations may fail to keep their commitments to their employees, at times leading to psychological contract violation. Although many victims of violation remain with their employer despite such adverse experiences, little research exists on their responses in the aftermath of violation. This paper develops a post‐violation model to explain systematically how violation victims respond to and cope with violation and the effects this process has on their subsequent psychological contract. Central to post‐violation are the victims' beliefs regarding the likelihood of violation resolution and the factors affecting it. The model specifies how the victim engages in a self‐regulation process that results in an array of potential psychological contract outcomes. Possible outcomes include reactivation of the original pre‐violation contract, the formation of a new contract that may be more or less attractive than the original, or a state of dissolution wherein the victim fails to form a functional psychological contract with the employer. The research and practical implications of this model are discussed. Copyright © 2015 John Wiley & Sons, Ltd.     

Psychological ownership and feelings of possession: three field studies predicting employee attitudes and organizational citizenship behavior

An increasing number of scholars and practitioners have emphasized the importance of ‘feelings of ownership’ for the organization (even when employees are not legal owners). In this exploratory study, we examine the relationships of psychological ownership with work attitudes and work behaviors. We start by developing hypotheses based on the psychology of possession and psychological ownership literatures. We then test these hypotheses with data from three field samples, using responses from over 800 employees, as well as manager and peer observations of employee behavior. Results demonstrate positive links between psychological ownership for the organization and employee attitudes (organizational commitment, job satisfaction, organization‐based self‐esteem), and work behavior (performance and organizational citizenship). More important, psychological ownership increased explained variance in organization‐based self‐esteem and organizational citizenship behavior (both peer and supervisor observations of citizenship), over and above the effects of job satisfaction and organizational commitment. Contrary to prior theoretical work on psychological ownership, results, however, fail to show an incremental value of psychological ownership in predicting employee performance. Copyright © 2004 John Wiley & Sons, Ltd.     

The more I want,the less I have left to give: The moderating role of psychological entitlement on the relationship between psychological contract violation,depressive mood states,and citizenship behavior

Research has emphasized the negative effects of organizations' broken promises and failed obligations on employee attitudes and behaviors. However, not all employees respond in the same manner. This paper integrates research on psychological contracts and psychological entitlement to examine how individuals with exceedingly high demands and expectations react to a perceived letdown by the organization. Drawing on conservation of resources theory, we argue that a psychological contract violation is associated with employee depressive mood states, which, in turn, influence the amount of citizenship behavior displayed. We further posit that psychological entitlement moderates the link between contract violation and depressive mood states. Using Hayes' PROCESS macro to assess a moderated mediation model, findings from a multi‐source field study support our predictions. This research contributes to the work on psychological contracts and psychological entitlement on multiple fronts. Suggestions for future research and practical implications for managers are discussed. Copyright © 2016 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.     

Sleeping with a broken promise: The moderating role of generativity concerns in the relationship between psychological contract breach and insomnia among older workers

This paper examines the relationship between psychological contract breach and insomnia among older workers (aged 40 years and up). Drawing upon the conservation of resources theory, we conceptualize breach as a stressful event characterized by a perceived threat, failure to gain, or actual loss of valued resources, which increases psychological distress and insomnia. Moreover, we hypothesized that older workers' generativity concerns would act as a personal resource that would buffer the negative impact of breach. We tested our proposed model in 2 studies (Study 1 = 123; Study 2 = 168) of employee–spouse dyads. Results revealed that psychological distress mediated the relationship between psychological contract breach and insomnia. These mediated relationships were significant for those with low, but not for those with high levels of generativity concerns. These effects remained significant even after controlling for perceived organizational support (i.e., a social exchange mechanism). Theoretical and practical implications are discussed.     

An appraisal perspective of justice,structure, and job control as antecedents of psychological distress

Through the application of cognitive appraisal theory, this study unifies the emergent themes of studying justice in relation to organizational context, as well as justice in relation to employee feelings of psychological distress. A sample of 677 employees from 72 organizations was used to test hypotheses related to justice, job control, mechanistic structure, and employee feelings of anxiety and depression. We found procedural justice, within a primary appraisal role, to be a highly effective tool for minimizing psychological distress. In combination with both distributive justice as well as a mechanistic structure, procedural justice can help to minimize feelings of anxiety and depression, but in different manners for each variable. Further, a strong influence of job control upon both procedural justice and, ultimately, depression and anxiety highlighted its role as a perceived means for avoiding or minimizing the harm of a potential stressor. Copyright © 2007 John Wiley & Sons, Ltd.     

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.     

The development and validation of a psychological contract of safety scale

Introduction

This paper builds on previous research by the author and describes the development and validation of a new measure of the psychological contract of safety. The psychological contract of safety is defined as the beliefs of individuals about reciprocal safety obligations inferred from implicit and explicit promises.

Method

A psychological contract is established when an individual believes that perceived employer and employee safety obligations are contingent on each other. A pilot test of the measure is first undertaken with participants from three different occupations: nurses, construction workers, and meat processing workers (N = 99). Item analysis is used to refine the measure and provide initial validation of the scale. A larger validation study is then conducted with a participant sample of health care workers (N = 424) to further refine the measure and to determine the psychometric properties of the scale.

Results

Item and correlational analyses produced the final employer and employee obligations scales, consisting of 21 and 17 items, respectively. Factor analyses identified two underlying dimensions in each scale comparable to that previously established in the organizational literature. These transactional and relational-type obligations provided construct validity of the scale. Internal consistency ratings using Cronbach's alpha found the components of the psychological contract of safety measure to be reliable.

Impact on Industry

The refined and validated psychological contract of safety measure will allow investigation of the positive and negative outcomes associated with fulfilment and breach of the psychological contract of safety in future research.     

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.     

Safety climate dimensions,leader–member exchange,and organizational support as predictors of upward safety communication in a sample of rail industry workers

The freedom employees feel to communicate safety concerns with their supervisors, termed upward safety communication, has been shown to be related to adverse safety events (Hofmann and Morgeson, 1999). Research to date has demonstrated that good supervisor–employee relationships (leader–member exchange), a sense that the organization values an employee (perceived organizational support) and safety climate (including perceived management attitudes toward safety, job demands interfering with safety, and pressure from coworkers to behave safely) all contribute to employees’ comfort in bringing up safety issues with their supervisors. However, little is known about which specific dimensions of safety climate are most predictive of upward safety communication. Using a sample of 548 railway workers, we found that when all factors were considered simultaneously using dominance analysis, the dominant factor predicting upward safety communication was perceived management attitudes toward safety, followed by job demands interfering with safety and then leader–member exchange. Implications for research and practice 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.     

Management commitment to safety as organizational support: relationships with non-safety outcomes in wood manufacturing employees

INTRODUCTION: Employee perceptions of management commitment to safety are known to influence important safety-related outcomes. However, little work has been conducted to explore non-safety-related outcomes resulting from a commitment to safety. METHOD: Employee-level outcomes critical to the effective functioning of an organization, including attitudes such as job satisfaction and commitment to the organization, were included on surveys given to 641 hourly production employees at three wood products manufacturing facilities. Participants' were asked about perceptions of management commitment to safety and job-related variables such as perceived dangerousness of their position, organizational commitment, and withdrawal behaviors. Supervisors also rated the performance of each of their hourly subordinates. RESULTS: Results suggest that employee outcomes differ based on perceptions of management's commitment to safety. Specifically, management commitment to safety was positively related to job satisfaction, organizational commitment, and job-related performance. We also found a negative relationship between commitment to safety and employee withdrawal behaviors. CONCLUSIONS: Our results suggest that increasing employee perceptions of management's personal concern for employee well-being through a dedication to safety will result in positive outcomes beyond improved safety performance. These results also imply that there is a type of social exchange between employees and management that may affect employees similarly to perceived organizational support. IMPACT ON INDUSTRY: Results further reinforce the value of a commitment to safety by a firm's management. Organizations with a strong commitment to safety may enjoy not only a reduction in safety-related events but also increases in desirable employee attitudes and behaviors.     

Reciprocation wary employees discount psychological contract fulfillment

The present study examined the moderating role of reciprocation wariness in the association of employees' psychological contract fulfillment with psychosomatic strain and voluntary turnover, as mediated by perceived organizational support. To study these relationships longitudinally, 169 graduating college seniors were surveyed upon job acceptance and again 3 weeks, 3 months, 6 months, and 18 months following the start of employment. The findings showed that psychological contract fulfillment was positively related to perceived organizational support. However, this positive relationship was eliminated by reciprocation wariness, and this influence was carried over to psychosomatic strain and voluntary turnover. Thus, it appears that reciprocation wariness leads employees to discount psychological contract fulfillment as an indication of the organization's valuation and caring. Copyright © 2015 John Wiley & Sons, Ltd.