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"BREACH OF CONTRACT"
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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.
Journal Article
Psychological Contract Breach and Outcomes: A Systematic Review of Reviews
A psychological contract is a set of individual beliefs that a person has about the reciprocal obligations and benefits established in an exchange relationship, such as an employment relationship in an organizational setting. A psychological contract breach is a subjective experience referred to the perception of one of the parties that the other has failed to adequately fulfill its obligations and promises. Breaches have been systematically connected to employees’ attitudes and behaviors that hamper the employment relationship. Despite its apparent clarity, some relevant topics about psychological contract breach, psychological contract fulfillment and the relationships with their consequences still remain unclear. The main objective of this review of reviews is to conduct a review of reviews on psychological contract breaches, considering both systematic reviews and metanalytical papers with the purpose of synthesizing the evidence to date under the psychological contract theory. Using the SPIDER tool, our systematic review of reviews focuses on: (a) Sample; (b) Phenomenon of Interest; (c) Design; (d) Evaluation; and (e) Research type. Finally, only eight systematic reviews and meta-analyses met the inclusion criteria. Of the eight reviews included, seven were meta-analyses while the other was a systematic quantitative review. This study describes the available empirical research on psychological contract breaches and fulfillment and summarizes the meta-analytical evidence on their relationships with attitudinal and behavioral outcomes, as well as the role of potential moderator variables. Due to the methodological caveats of the reviews themselves and of the primary studies they were based on, our conclusions about the impact of psychological contract breaches on outcomes still remain tentative.
Journal Article
Apology, Restitution, and Forgiveness After Psychological Contract Breach
Using forgiveness theory, we investigated the effects of organizational apology and restitution on eliciting forgiveness of a transgressing organization after transactional psychological contract breach. Forgiveness theory proposes that victims are more likely to forgive offenders when victims' positive oifender-oriented emotions replace negative ones. Three prepost laboratory experiments, using vignettes about a broken promise of financial aid, found that while apology-alone and restitution-alone each increased likelihood of forgiving, restitution-alone was the more effective of the two responses. When combined with an apology, restitution boosted the effect of apology-alone. However, restitution was unnecessary if positive emotions replaced negative ones; third-party blame accomplished this negative-to-positive emotion replacement. Consistent with forgiveness theory, oifender-oriented negative-to-positive emotion replacement partially mediated all effects, and negative emotion reductions were strongly correlated with positive emotion gains. We discuss implications for the repair of damaged norms and relationships within an organizational community. These include reparative effects of apology and restitution, dual-process conceptions of violation and repair, repair after psychological contract breach, and emotion replacement models of forgiveness.
Journal Article
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.
Journal Article
Exploring the psychological contract breach of nurses in healthcare: an exploratory study
PurposeRecent advancements in the field of organizational psychology have transformed the employees’ perceptions related to the reactions of the employment relationship. The main aim of the study is to explore the consequences of psychological contracts among the nursing staff and how to provide better patient care and quality service in the health-care system as nurses play a pivotal role in the context of Pakistan. Significantly, this study attempts to bridge the research gap by exploring consequences of psychological contracts. Drawing on the social exchange theory, this study examined the psychological contracts of nurses and their reactions to the perceived violation.Design/methodology/approachThis research adopted a qualitative method and was based on an exploratory approach. Data were collected through in-depth semi-structured interviews from 21 nurses working in public, private and charity hospitals in Karachi, Pakistan. The thematic content analysis is employed for the analysis of data by using NVivo software.FindingsThe study identified the relational and transactional elements related to the psychological contract of nurses who predominantly consisted of supervisor support, autonomy, tangible/intangible rewards and trust. The intrinsic motivation which relates to their devotion to work was found as an additional element to balance their psychological contract. This research also establishes that the psychological contract of nurses is being violated in their work settings.Practical implicationsBy highlighting the importance of psychological contract breach, the findings demonstrate that health-care institutions should take measures to cope with psychological contract breach issues at the workplace.Originality/valueThis study contributes to the body of knowledge by exploring psychological contract breach. Substantially, there are rare studies conducted on psychological contract breach among nurses in developing country context (Pakistan). However, this study adds to the previous studies related to the psychological contract of nurses in the context of Pakistan by using social exchange theories. Finally, this study enables the management of healthcare to balance the psychological contract issues effectively.
Journal Article
Reputations, Relationships, and Contract Enforcement
When the quality of a good is at the discretion of the seller, how can buyers assure that the seller provides the mutually efficient level of quality? Contracts that provide a bonus to the seller if the quality is acceptable or impose a penalty on the seller if quality is unacceptable can, in theory, provide efficient incentives. But how are such contracts enforced? While the courts can be used, doing so involves high real costs. Informal enforcement, involving a loss of reputation and future access to the market for any party that defaults on a contract, may often be a better alternative. This paper explores the use of both formal and informal enforcement mechanisms, provides a rationale for a variety of observed market mechanisms, and then generates a number of testable hypotheses.
Journal Article
The effects of a psychological brand contract breach on customers' dysfunctional behavior toward a brand
PurposeThis paper introduces the concept of dysfunctional customer behavior toward a brand and argues that when customers perceive that a brand has failed to fulfill its promises, a psychological brand contract breach occurs, which in turn leads to a psychological brand contract violation, which evokes dysfunctional customer behavior toward the brand. In addition, this study investigates whether the impact of a breach of this contract is dependent on brand relationship quality, brand apology and restitution.Design/methodology/approachStudy 1 conducted the online survey and 224 respondents were used for data analysis and the moderating role of brand relationship quality was examined. Study 2 conducted an experiment with 201 participants to test the moderating role of brand apology and restitution.FindingsThis study found the moderating role of brand relationship quality, brand apology and brand restitution on the relationship between a psychological brand contract breach and dysfunctional customer behavior toward a brand (i.e. brand-negative word-of-mouth, brand retaliation and brand boycott), which is mediated by psychological brand contract violation.Originality/valueThis study contributes to the theoretical understanding of dysfunctional customer behavior toward a brand by integrating the literature on brand management with the organizational literature on psychological contracts between organizations and their employees. Furthermore, this study sheds light on the effectiveness of reparative actions by the firm after occurrence of the psychological brand contract breach.
Journal Article
Psychological contract breach and employee engagement: moderation of role of a high-performance work system
This study examines the relationship between psychological contract breach, high-performance work systems, and employee engagement in public sector banks of Larkana, Pakistan. The study proposes that high-performance work systems can moderate the negative impact of psychological contract breach on employee engagement. The study draws upon social exchange theory and self-determination theory to frame the research questions and employs a quantitative methodology to test the hypotheses. The sample consists of 250 employees from public sector banks in Larkana, Pakistan has been taken to analyze the data. To examine the relationship between the latent variables, SPSS and smart PLS modeling have been used. The study finds that psychological contract breach has a significant negative impact on both employee engagement and high-performance work systems, while high-performance work system has a significant positive relationship with employee engagement. Overall, the study concludes that HPWS can lessen the negative effect of psychological contract breach and create a productive workplace that enhances employee engagement. The results support the hypotheses and have theoretical, practical, and methodological implications for HRM practices in public sector banks. The study recommends that organizations prioritize maintaining psychological contracts with employees and implementing HPWS to enhance engagement. Future studies should focus on addressing the study's limitations, such as its cross-sectional design and dependence on self-report measures.
Journal Article
The impact of perceived overqualification on employees' innovation behaviour: role of psychological contract breach, psychological distance and employment relationship atmosphere
PurposeOverqualification is a growing concern for employers in many countries. The practice of mismatching employees and positions inevitably leads to an increase in organizational training and management costs. This study can not only further enrich the theoretical achievements in the field of human resource management, but can also provide a reference for enterprise managers on how to effectively stimulate employees' innovative behaviour.Design/methodology/approach503 questionnaire responses were analysed using SPSS 24.0 and Mplus 8.0.FindingsIt was concluded that, (1) perceived overqualification is negatively related to employees' innovation behaviour (β = −0.32, p < 0.001); (2) psychological contract breach and psychological distance partially mediate the relationship between perceived overqualification and employees' innovation behaviour. Among them, the mediating effect of psychological contract breach was −0.14 (p < 0.01), and that of psychological distance was −0.12 (p < 0.001); the chain-mediating effect of psychological contract breach and psychological distance was −0.09 (p < 0.01); (3) employment relationship atmosphere played a moderating role in the relationship between perceived overqualification and employees' innovation behaviour (β = 0.04, p < 0.01).Originality/valueThis study verifies the negative impact of perceived overqualification on employee innovation behaviour and reveals the mediating role of psychological factors between the two. It also discusses the moderating effect of employment relationship climate on the relationship between perceived overqualification and employees' innovation behaviour.
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