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.     

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 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.     

Age,work experience,and the psychological contract

The purpose of the current paper is to examine the ways in which age and work experience shape how individuals experience psychological contract breaches. We first introduce the concepts of contract malleability (the degree to which individuals can tolerate deviations from contract expectations) and contract replicability (the degree to which individuals believe that their psychological contracts can be replicated elsewhere). Next, we discuss the variety of reasons why contract malleability and replicability become greater with age and work experience and how contract malleability and replicability may temper negative reactions to psychological contract breaches. We also address the different ways contract malleability and replicability mediate the relationships between age and work experience, on one hand, and exit, voice, loyalty, and neglect behaviors on the other. We consider the moderating effects of age similarity and dissimilarity here as well. The paper concludes with a discussion of the implications for future research designs and for managing older and more experienced workers. Copyright © 2009 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.     

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.     

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 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.     

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.     

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.     

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 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.     

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.     

Violating the psychological contract: Not the exception but the norm

The occurrence and impact of psychological contract violations were studied among graduate management alumni (N = 128) who were surveyed twice, once at graduation (immediately following recruitment) and then two years later. Psychological contracts, reciprocal obligations in employment developed during and after recruitment, were reported by a majority of respondents (54.8 per cent) as having been violated by their employers. The impact of violations are examined using both quantitative and qualitative data. Occurrence of violations correlated positively with turnover and negatively with trust, satisfaction and intentions to remain.     

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.     

Congruence work in stigmatized occupations: A managerial lens on employee fit with dirty work

Although research has established that it is often difficult for individuals engaged in dirty work to adjust to stigma and the attributes giving rise to stigma, little theory or empirical work addresses how managers may help workers adjust to dirty work. Interviews with managers across 18 dirty work occupations—physically tainted (e.g., animal control), socially tainted (e.g., corrections), and morally tainted (e.g., exotic entertainment)—indicate that managers engage in “congruence work”: behaviors, sensemaking, and sensegiving that they perceive as helping individuals adjust and develop a stronger sense of person–environment fit. Specifically, congruence work focuses on 3 phases of managerial practices that correspond to individuals' growing experience in the occupation. First, recruitment/selection involves overcoming individuals' aversion to dirty work by selecting individuals with an affinity for the work and providing a realistic stigma preview. Second, socialization involves helping newcomers adjust to distasteful tasks and to stigma by using targeted divestiture, developing perspective taking, helping newcomers manage external relationships, and utilizing desensitization or immersion. Third, ongoing management roles involve cementing individuals' fit by fostering social validation, protecting workers from dirty work hazards, and negotiating the frontstage/backstage boundary. The practices identified as congruence work highlight the important role that managers can play in facilitating adjustment for both “dirty workers” and presumably their less stigmatized counterparts.     

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.     

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.     

Occupational boundary play: Crafting a sense of identity legitimacy in an emerging occupation

In emerging occupations, individuals are given very little prepackaged identity “content”—for example, occupational values, legitimating ideologies, clear goals, tasks, and/or routines—to help them build their individual-level occupational identities. By contrast, individuals in well-established occupations (e.g., professions) are given ample identity content, and prior identity research has examined identity work processes almost exclusively in the context of such occupations. Consequently, prior theory assumes that identity work is mostly a matter of tailoring prepackaged identity content to fit one's individual-level preferences and objectives. Prior theory is therefore of limited use in emerging occupations, where the key identity problem is not one of tailoring identity content effectively but creating an identity in the first place—more specifically, an identity whose existence feels justified and valid. Thus, in this paper, we ask: how do individuals in emerging occupations construct an internal sense that “who they are” is necessary, desirable, and appropriate (i.e., legitimate) within the broader occupational landscape? On the basis of a grounded theory study of health coaches, we suggest that individuals in such circumstances can craft this sense of “identity legitimacy” via a sensemaking process we call occupational boundary play. This process consists of both “occupational boundary setting” and “occupational boundary blurring,” the former providing for individuals a sense of identity novelty and the latter providing a sense of identity familiarity. Taken together, this subjective experience of both novelty and familiarity provides for individuals the sense that “who they are” is legitimate within the broader occupational landscape.