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.     

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.     

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.     

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.     

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 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.     

Managing employee perceptions of the psychological contract over time: the role of employer social accounts and contract fulfillment

This study proposed and tested relationships pertaining to employee perceptions of psychological contract type over time. Using a longitudinal design, we examined the mediated role that adequacy of social accounts and psychological contract fulfillment play in determining the development of contract perceptions. More specifically, our model posits that perceptions of contract type will influence employee perceptions of the adequacy of social accounts that are offered by the organization and its agents to explain job‐related decisions. These initial perceptions of social accounts at Time 1 were expected to impact perceptions of psychological contract fulfillment at Time 2 (6 months later) and psychological contract fulfillment was proposed to be positively associated with perceptions of a relational psychological contract. Results support the mediating roles of social accounts and psychological contract fulfillment in determining perceptions of contract type over time. Practical implications of these findings and directions for future research are discussed. Copyright © 2006 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.     

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.     

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 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.     

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.     

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.     

Assessing the nature of psychological contracts: a validation of six dimensions

The purpose of this study is to develop a feature‐oriented assessment of psychological contracts, an underdeveloped approach to psychological contracts. Relying on theoretical frameworks in psychological contract research, industrial relations studies, and a cross‐national study on psychological contracts, we identify six dimensions that capture the nature of psychological contracts: tangibility, scope, stability, time frame, exchange symmetry, and contract level. We validate this expanded conceptualization of psychological contracts by developing a nomological network and testing it in a large, representative sample of 1106 employees. The results indicate the significance of formal contract characteristics and HR practices as two antecedents shaping the nature of psychological contracts. In addition, the hypothesized relationships between the three dimensions of time frame, exchange symmetry, and contract level with affective commitment are confirmed as well as the relationships between tangibility, scope and flexibility with personal control. The results further indicate the importance of assessing both employer and employee obligations given the differential effect of the contract makers. Copyright © 2004 John Wiley & Sons, Ltd.     

Managing the career deal: the psychological contract as a framework for understanding career management,organizational commitment and work behavior

This paper reports the findings of a study that investigated the relationship between different kinds of career management activities, the psychological contract, and outcomes of psychological contract fulfillment. The study tested a series of linked hypotheses which propose that individual career management behavior is associated with the experience of organizational career management help, which is related to fulfillment of the psychological contract. Fulfillment of the psychological contract in turn is linked to organizational commitment and is associated with behaviors at work, including absenteeism, turnover, and independent ratings of job performance. The findings provide some support for these proposed links. As a result, the paper makes four contributions to the psychological contract and careers literature: first, it shows that both individual and organizational career management behaviors are linked to psychological contract fulfillment; second, organizational career management help is associated with affective commitment and job performance; third, psychological contract fulfillment plays a key role in mediating the relationship between career management help and such attitudes and behaviors; and fourth, organizational commitment may mediate between psychological contract fulfillment and individual career management behavior aimed at furthering the career outside the organization. Copyright © 2005 John Wiley & Sons, Ltd.     

Critical Success Factors for Behavior-Based Safety: A Study of Twenty Industry-wide Applications

One-on-one interviews and focus-group meetings were held at 20 organizations that had implemented a behavior-based safety (BBS) process in order to find reasons for program success/failures. A total of 31 focus groups gave 629 answers to six different questions. A content analysis of these responses uncovered critical information for understanding what employees are looking for in a BBS program. A perception survey administered to individual employees (n = 701) at these organizations measured a variety of variables identified in prior research to influence success in safety efforts. The survey data showed five variables to be significantly predictive of employee involvement in a BBS process: 1) perceptions that BBS training was effective; 2) trust in management abilities; 3) accountability for BBS through performance appraisals; 4) whether or not one had received education in BBS; and 5) tenure with the organization. Also, employees in organizations mandating employee participation in a BBS process (n=8 companies) reported significantly higher levels of: (a) involvement; (b) trust in management; (c) trust in coworkers; and (d) satisfaction with BBS training than did employees whose process was completely voluntary (n = 12 companies). In addition, employees in mandatory processes reported significantly greater frequency of giving and receiving positive behavior-based feedback.     

Trust as a mediator of the relationship between organizational justice and work outcomes: test of a social exchange model

Data obtained from full‐time employees of a public sector organization in India were used to test a social exchange model of employee work attitudes and behaviors. LISREL results revealed that whereas the three organizational justice dimensions (distributive, procedural and interactional) were related to trust in organization only interactional justice was related to trust in supervisor. The results further revealed that relative to the hypothesized fully mediated model a partially mediated model better fitted the data. Trust in organization partially mediated the relationship between distributive and procedural justice and the work attitudes of job satisfaction, turnover intentions, and organizational commitment but fully mediated the relationship between interactional justice and these work attitudes. In contrast, trust in supervisor fully mediated the relationship between interactional justice and the work behaviors of task performance and the individually‐ and organizationally‐oriented dimensions of citizenship behavior. Copyright © 2002 John Wiley & Sons, Ltd.     

Bridging the gap between green behavioral intentions and employee green behavior: The role of green psychological climate

How do employees' perceptions and interpretations of organizational policies, practices, and procedures affect the enactment of their behavioral intentions? In a daily diary study, we examined the between‐persons relationship of corporate environmental strategy and pro‐environmental or “green” psychological climate; and whether green psychological climate moderates the within‐person relationship of employees' daily green behavioral intentions and their green behavior on the following day. To test our hypotheses, we collected survey data from 74 employees across 10 workdays. Results showed that corporate environmental strategy is positively related to green psychological climate that, in turn, moderates the relationship between green behavioral intentions and next‐day employee green behavior. Specifically, we found the relationship to be positive only when employees perceive a positive green psychological climate. We discuss implications of our findings for future research on employee green behavior and for organizations interested in encouraging employee green behavior. Copyright © 2017 John Wiley & Sons, Ltd.     

Can dissimilarity lead to positive outcomes? The influence of open versus closed minds

Social identity theory and self‐categorization theory have usually been interpreted to suggest that demographic dissimilarity will negatively influence employee outcomes. However, inconsistent with this interpretation, positive and neutral relationships between demographic dissimilarity and employee outcomes have also been documented in some instances for women and minority employees. It is argued here that the influence of demographic dissimilarity on the attitudes of women and minority employees is moderated by their level of dogmatism, which influences whether they view sex‐ and race‐based status hierarchies in organizations as legitimate. Data from a survey shows that the influence of demographic dissimilarity on the organization‐based self‐esteem of employees, their level of trust in their peers and their attraction towards their peers is positive for individuals with higher level of dogmatism and negative for individuals with lower level of dogmatism. Copyright © 2003 John Wiley & Sons, Ltd.