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.     

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.     

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.     

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.     

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 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.     

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.     

Social support and managerial affective responses to job stress

This research examines the moderating or buffering effects of two social support variables—support from the work group and from the supervisor—on the relationships of role conflict and ambiguity to intrinsic job satisfaction, job involvement and job anxiety. Data were collected from a sample of 89 middle-lower managerial personnel in a large, heavy equipment manufacturing firm in the Midwest. The moderated regression technique was used in data analysis. Significant interactions were obtained between the role variables and both social support variables. The results were in the predicted direction for positive work outcomes (i.e. job satisfaction and involvement) and contrary to prediction for negative work outcome (i.e. job anxiety). Implications of the findings for future research, the management of stress and leadership behaviour are discussed.     

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.     

Using a psychological contract of safety to predict safety climate on construction sites

Introduction: The fact that safety climate impacts safety behavior and delivers better safety outcomes is well established in construction. However, the way workers safety perception is inclined and developed is still unclear. Method: In this research, the influence of supervisors' developing safety climate and its impact on workers' safety behavior and their conceptualization of safety is explored through the lens of the ‘Psychological Contract’ (PC). More specifically, it is argued that ‘Psychological Contract of Safety’ (PCS) is a vital factor in explaining how workers attach meaning to a supervisor behavior. Extant research suggests: (a) safety climate is based on the perception of workers regarding safety; and (b) PCS is based on perceived mutual obligations between workers and supervisors. As a result, this research argues that if PCS or mutual obligations between workers and supervisors are fulfilled, then safety climate of the workers will be positively influenced. A model is presented depicting PCS as an alternative intervention in understanding how safety climate could be influenced and predicted by the level of fulfillment of mutual safety obligations. Using Structural Equation Modeling (SEM) the model of the PCS is validated with data collected from a mega-construction project in Australia. Results: The results suggest that to have a positive and strong safety climate, top-level managers must ensure that mutual safety obligations between supervisor and workers are fulfilled. This enables the PCS to be introduced as a new ‘predictor’ of safety climate. Practical applications: The novel outcome of the research could be considered as a management intervention to modify supervisors' behavior to produce better safety outcomes.     

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.     

The psychological contract and the transition from full to part‐time police work

The cognitive‐perceptual conceptualisation of the psychological contract has dominated research in this field. In this paper, it is argued that locating the psychological contract at the level of the individual‐organisational relationship can offer rich insights into psychological contract dynamics. Using qualitative interview data from a research study exploring how managers and part‐timers deal with the transition from full to part‐time police work in the UK, it is argued that a multi‐perspective conceptualisation of the sources of the psychological contract is critical for understanding processes that lead to non‐mutuality of understandings. Specifically, it is argued that the institutional and organisational context, embedded in the actions of third parties and in management practices, can undermine the extent to which the manager and the employee can reach agreement about mutual obligations. The theoretical and policy implications of this position are developed. Copyright © 2006 John Wiley & Sons, Ltd.     

Fairness and implied contract obligations in job terminations: The role of contributions,promises, and performance

Using the methodology of policy capturing, this research identifies the role that performance, time on the job, commitment of long-term employment and employability play in judgment of termination fairness and employer obligations. Previous research (Rousseau and Anton, 1988) found that seniority and past commitments of long-term employment contributed significantly to judgments of termination fairness and obligation. The present study considered these variables along with performance (past, present and future potential) using 116 participants in human resource management courses. Results indicated that present performance, time on the job, and commitments affect judgments regarding termination fairness and obligation. Past and future performance, however, had no impact on these judgments. Implications of the findings for understanding employer and employee obligations are discussed.     

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.     

Business ideologies and perceived breach of contract during downsizing: the role of the ideology of employee self‐reliance

This paper represents an initial effort to explore the empirical relationship between business ideologies and perceptions of organizational downsizing. The results of four studies, two conducted in the US and one each in Singapore and Korea, suggest that respondents' belief in the ideology of employee self‐reliance reduces the degree to which they perceive layoffs as a breach of the psychological contract. This finding appears to generalize to respondents' perceptions of their own layoffs and also to respondents' perceptions of layoffs happening to others. We spell out the implications of these results for the evolving theory of the ideological foundations of perceptions of downsizing. Copyright © 2003 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.