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.     

Valuing diversity: a group‐value approach to understanding the importance of organizational efforts to support diversity

Using Leventhal's rules as well as the group‐value model of procedural justice, we first examined how the negative effects of perceived racial discrimination on procedural justice judgments can be attenuated by perceived organizational efforts to support diversity. Secondly, we examine how these effects ultimately impact affective commitment and organizational citizenship behavior. We found that employees who believe some individuals in the workplace are discriminating against them on the basis of race tend to report lower levels of procedural justice from the organization. However, this negative relationship was attenuated when employees perceived that their organization was making efforts to support diversity. Results suggest that individuals' perceptions of organizational efforts to support diversity can help restore perceptions of procedural justice for employees who experience racial discrimination at work. Improving procedural justice also positively impacts affective commitment and organizational citizenship behavior directed at the organization. Copyright © 2009 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.     

Collectivism as a moderator of responses to organizational justice: implications for leader‐member exchange and ingratiation

Previous research indicates that employee justice perceptions are positively related to leader‐member exchange (LMX). We examined collectivism as a moderator of this relationship. We hypothesized that because maintaining harmonious relationships is important for collectivists, and because protecting their individual identities is not a priority, there is a weaker relationship between interactional and distributive justice perceptions and LMX for individuals high in collectivism. Instead of engaging in behaviors that would lower the quality of their LMX relationships, collectivists are more likely to use soft influence tactics, specifically ingratiation, as a response to perceived unfairness. Thus, we expected a stronger relationship between justice perceptions and ingratiation for those high in collectivism. In a sample of textile‐manufacturing employees in Istanbul, Turkey, we found that interactional justice had a weaker positive relationship with LMX for individuals high in collectivism. In addition, distributive justice had a nonsignificant relationship with LMX for those high in collectivism, whereas there was a positive relationship for those low in collectivism. Finally, for collectivists there was a negative relationship between interactional justice perceptions and frequency of ingratiation, suggesting that collectivists may use more subtle mechanisms when responding to interactional unfairness. Copyright © 2006 John Wiley & Sons, Ltd.     

Effects of leadership consideration and structure on employee perceptions of justice and counterproductive work behavior

In this paper, we examine the effects of leadership consideration and structure on two important organizational behavior outcomes: employee perceptions of organizational justice and counterproductive work behavior (CWB). We examine these effects across two studies using multisource data (employees and supervisors in Study 1; employees and coworkers in Study 2). Results reveal that consideration and structure have distinct effects across distributive, procedural, informational, and interpersonal dimensions of justice. Moreover, results suggest that consideration and structure have multiplicative effects on employee CWB. We find the highest levels of CWB among employees of supervisors who exhibit high structure and low consideration. Interestingly, results also suggest that the effects of structure on CWB may be curvilinear (u‐shaped) such that moderate levels of structure are associated with the lowest levels of CWB. We discuss implications for future consideration and structure research as well as managerial practice. Copyright © 2012 John Wiley & Sons, Ltd.     

The social construction of fairness: social influence and sense making in organizations

This paper explores how the social relationships employees have with peers and managers are associated with perceptions of organizational justice. These relationships are theoretically modelled as the conduits for social comparison, social cues, and social identification, which are sources of sense making about fairness ‘in the eyes of the beholder.’ It is argued that perceptions of procedural and interactional justice are affected by this type of social information processing because: (1) uncertainty exists about organizational procedures; (2) norms of interpersonal treatment vary between organizational cultures; and (3) interpersonal relationships symbolize membership in the organization. A structural equations model of data from workers in a telecommunications company showed that an employee's perceptions of both procedural and interactional fairness were significantly associated with the interactional fairness perceptions of a peer. In addition, employees' social capital, conceived as the number of relationships with managers, was positively associated with perceptions of interactional fairness. In the structural model, both procedural and interactional justice were themselves significant predictors of satisfaction with managerial maintenance of the employment relationship. The discussion highlights the key role which the fairness of interpersonal treatment appears to play in the formation of justice judgements. Copyright © 2001 John Wiley & Sons, Ltd.     

The relationships of distributive justice and compensation system fairness to employee attitudes in international joint ventures

Employee perceptions of the fairness of general corporate systems have thus far not received enough attention in the organizational justice literature. To fill this gap, we examined perceptions of the fairness of the compensation systems of international joint ventures in China. It is argued that perceptions of compensation system fairness are positively related to the three distributive justice dimensions, i.e., performance‐based distributive justice, comparative distributive justice relative to foreign expatriates, and comparative distributive justice relative to local colleagues. Perceptions of compensation system fairness are also hypothesized to mediate the relationships between the three distributive justice dimensions and organizational commitment and turnover intention. A survey of 161 Chinese employees in Sino‐foreign joint ventures found a positive relationship between perceptions of distributive justice and perceptions of compensation system fairness. In particular, compensation system fairness was more strongly associated with performance‐based distributive justice than with the other two distributive justice dimensions based on social comparison. The mediating role of compensation system fairness was strongly supported. Copyright © 2007 John Wiley & Sons, Ltd.     

Antecedents and outcomes of employee perceptions of intra‐organizational mobility channels

Employees' beliefs about how promotions are awarded within their organizations can have important consequences. We conducted two studies that focus on perceptions of the criteria used to make promotion decisions. In Study 1, we identified two types of perceived promotion criteria, performance‐based and nonperformance‐based. Then we use justice and social exchange theories to develop a model linking employee perceptions of promotion criteria to performance via their relationships with promotional justice and organizational commitment. In a sample of 305 employee–supervisor pairs, we found that both promotional justice and organizational commitment mediated between perceptions of promotion criteria and supervisor rated in‐role and extra‐role performance, and that having received a promotion in the past predicted attributions that promotions were based relatively more on performance or nonperformance criteria. Study 2 further examined the role of promotions themselves in the formation of perceptions of promotion criteria. Drawing from image and attribution theories, we hypothesized that the relationship between having received a promotion or not and perceptions of promotion criteria depends on ego defensiveness. In a sample of 145 employees, we found that those who scored high on ego defensiveness and who had not been promoted were especially likely to attribute promotion decisions to nonperformance criteria. Copyright © 2012 John Wiley & Sons, Ltd.     

Beyond the mean: Understanding firm‐level consequences of variability in diversity climate perceptions

We develop and test an organizational‐level model of the consequences of diversity climate for company performance. Drawing from affective events theory and the organizational climate literature, we highlight the role of idiosyncrasies in employees' diversity climate perceptions. Specifically, we consider diversity climate strength (i.e., agreement in employees' climate perceptions) as a boundary condition of diversity climate's organizational‐level effects and expect high climate strength to be particularly beneficial in demographically diverse organizations. Moreover, we introduce collective positive affect as an underlying mechanism of diversity climate's conditional effects on company performance. Hypotheses are tested in a study of 82 German small‐and‐medium‐sized companies with 13,695 surveyed employees. Results show a moderated mediation relationship where diversity climate is only positively related to organizational performance (via collective positive affect) at relatively high diversity climate strength. Although this finding holds for both demographically diverse and homogeneous organizations, post hoc analyses provide initial evidence that a strong climate only helps to realize the effects of diversity climate on collective positive affect when members of age‐ and gender‐related demographic subgroups converge in their climate perceptions. Our study contributes to a better understanding of diversity climate as an effective lever for managing diversity.     

A multilevel analysis of procedural justice context

Using a multilevel framework, we hypothesized that both employee perceptions of procedural justice and a work unit level measure of procedural justice context would be associated with employee reports of job satisfaction and organizational commitment. Three hundred and twenty-three employees from 53 branches of a financial services organization were used to test this hypothesis. Hierarchical linear modeling analyses revealed that procedural justice context explained variance in employee job satisfaction beyond that accounted for by individual perceptions of procedural justice. With regard to organizational commitment, this hypothesis was not supported. The results are discussed in connection with contextual aspects of procedural justice. © 1998 John Wiley & Sons, Ltd.     

Multifoci effects of injustice on counterproductive work behaviors and the moderating roles of symbolization and victim sensitivity

Past research suggests that employees, in response to workplace experiences, selectively engage in targeted counterproductive work behaviors (CWBs). Taking a retributive justice and target similarity perspective, we predict that employee perceptions of unfairness from the organization uniquely predict CWB specifically targeted at the organization whereas employee perceptions of supervisory unfairness uniquely predict CWB specifically targeted at the supervisor. We further hypothesized that moral identity‐symbolization would strengthen these target‐similar relationships. Finally, drawing from the sensitivity to mean intentions model, we hypothesized that victim sensitivity would not only strengthen these target‐similar relationships but also lead to cross‐foci effects of multifoci fairness perceptions on targets of CWB. Results from 3 field studies of full‐time employees provided support for most of our hypothesized relationships.     

Person-based reward systems: A theory of organizational reward practices in reform-communist organizations

A type of organizational reward system based on personal power is described and partially tested. The theory, developed from observations of Hungarian organizations, is grounded in theories of procedural justice and learned helplessness. Person-based organizational reward systems are characterized by highly valued rewards combined with personalistic criteria for reward distribution. Such organizational reward systems were hypothesized to lead to employee perceptions of organizational unfairness; negative evaluations of others; anxiety; and perceptions of self, collegial and organizational inefficacy. These hypotheses were supported in tests in a sample of three Hungarian state-owned organizations classified as having person-based systems and five non-person-based organizations (two Hungarian privately-owned companies, one American state-owned and two American privately-owned organizations). In addition, several behavioral effects of person-based reward systems were proposed: they foster bargaining behavior, withholding of information, avoidance of collaborative tasks, ingratiation and noncompliance with rules.     

The interactive effects of procedural justice and exchange ideology on supervisor-rated commitment

Matched data collected from 143 employees and their immediate supervisors of a private sector organization indicated that employee perceptions of procedural justice were only related to supervisor-rated affective commitment among employees with a strong exchange ideology. That is, individuals motivated by a fair exchange exhibited fewer affective commitment behaviors when they viewed the environment as unfair than when they perceived it to be fair. Individuals comparatively indifferent to a fair exchange did not alter their affective commitment behaviors regardless of the level of perceived environmental fairness. These results illustrate the importance of considering individual differences in exchange ideology when attempting to alter the work environment for the purpose of increasing commitment. Implications for research and management practice are presented. Copyright © 2001 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.     

The politics of leadership: The relationship between task-people leadership and subordinate influence

The purpose of the present research was to investigate the political nature of leadership by examining the association of the task-people leadership approach with strategies used by subordinates to influence their superiors. Forty-eight faculty members (31 males and 17 females) from a school of higher education completed the T-P Leadership Questionnaire and Profile of Organizational Influence Strategies. Reponses were analyzed using Pearson product-moment correlations. The results indicated that as perceived task-centered leadership increased, employees reported a significantly greater use of bargaining, assertiveness, higher authority, and coalition as strategies to influence their superiors. The relationships were observed only during second influence attempts. Further, it was observed that as the perceived level of people-centered leadership behavior rose, subordinates reported a significantly decreased use of bargaining and higher authority as influence strategies during first influence attempts. The findings are discussed in terms of the reciprocal and political character of managerial- subordinate relationships.     

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.     

Mental models of safety: do managers and employees see eye to eye?

PROBLEM: Disagreements between managers and employees about the causes of accidents and unsafe work behaviors can lead to serious workplace conflicts and distract organizations from the important work of establishing positive safety climate and reducing the incidence of accidents. METHOD AND RESULTS: In this study, the authors examine a model for predicting safe work behaviors and establish the model's consistency across managers and employees in a steel plant setting. Using the model previously described by Brown, Willis, and Prussia (2000), the authors found that when variables influencing safety are considered within a framework of safe work behaviors, managers and employees share a similar mental model. The study then contrasts employees' and managers' specific attributional perceptions. Findings from these more fine-grained analyses suggest the two groups differ in several respects about individual constructs. Most notable were contrasts in attributions based on their perceptions of safety climate. When perceived climate is poor, managers believe employees are responsible and employees believe managers are responsible for workplace safety. However, as perceived safety climate improves, managers and employees converge in their perceptions of who is responsible for safety. IMPACT ON INDUSTRY: It can be concluded from this study that in a highly interdependent work environment, such as a steel mill, where high system reliability is essential and members possess substantial experience working together, managers and employees will share general mental models about the factors that contribute to unsafe behaviors, and, ultimately, to workplace accidents. It is possible that organizations not as tightly coupled as steel mills can use such organizations as benchmarks, seeking ways to create a shared understanding of factors that contribute to a safe work environment. Part of this improvement effort should focus on advancing organizational safety climate. As climate improves, managers and employees are likely to agree more about the causes of safe/unsafe behaviors and workplace accidents, ultimately increasing their ability to work in unison to prevent accidents and to respond appropriately when they do occur. Finally, the survey items included in this study may be useful to organizations wishing to conduct self-assessments.     

Conflict,justice, and inequality: Why perceptions of leader–member exchange differentiation hurt performance in teams

To better understand why leader–member exchange (LMX) differentiation in teams may be detrimental to individual and team performance, we propose that team members' perception of LMX differentiation (PLMXD) is more important than statistical measures of LMX differentiation. Specifically, we hypothesize a multilevel model in which relationship conflict and procedural justice (climate) mediate the relationships of individual and collective PLMXDs with individual and team performance, respectively. Using a sample of 235 individuals in 53 teams, we found that individual PLMXD was negatively related to individual performance through relationship conflict perceptions, controlling for LMX. At the team level, collective PLMXD was negatively related to team performance through procedural justice climate and relationship conflict, controlling for a statistical measure of LMXD. Theoretical implications and directions for future research are explored.     

Why justice matters in compensation decision making

Using agency theory and the stakeholder fairness concept as the conceptual base, this study confirmed three agency theory hypotheses about differential relationships between four sets of pay procedures and evaluations of pay, supervision and the employing organization. Education and seniority related variables were also found to moderate the relationships between procedural justice perceptions and evaluations of supervision and the employing organization. The study used a stratified random sample of 612 occupationally heterogeneous employees of a large County government in South Eastern United States. Results suggest that agency theory provides a parsimonious explanation for why justice matters in compensation decision making.     

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.