White‐collar reactions to job insecurity and the role of the psychological contract: Implications for human resource management

Are insecure employees actually less loyal to their companies, more concerned about their careers, and less willing to go the extra mile at work? Do employees who view job insecurity as a violation of their psychological contract have more severe reactions to being insecure? This article empirically examines these and other commonly held beliefs about the consequences of job insecurity among white‐collar employees. The critical role human resource professionals play in helping organizations to understand the consequences of actions that create job insecurity (i.e., restructuring) and finding ways to minimize negative outcomes is highlighted. © 2000 John Wiley & Sons, Inc.     

Human resource practices as communications and the psychological contract

This article examines the psychological contract and human resource practices as communications relevant to that contract. We argue that employees, at certain times only, systematically analyze their employers' HR practices for meaning vis-ri-vis their psychological contract. Judgments about the adequacy with which their psychological contracts are fulfilled result from such systematic analyses, and these judgments have important effects on employee commitment. Practical implications of our analysis are also discussed.     

Independent and dependent contracting: Meaning and implications

In the context of the changing nature of work and the continuing growth of contingent employment contracts, this article examines the consequences associated with various forms of individually-negotiated, fixed-term contracts. This article first draws a distinction between what can be labeled as independent contracting arrangements, where the workers are autonomous and mobile, and other situations where contractors are more “dependent” on their clients. This investigation then provides an overview of the consequences associated with the employment of “independent” and “dependent” contractors. Based on a review of the existing research literature, the article examines the prescribed and realized benefits of individual contracting from the perspectives of the organization, the permanent employees, and the contractors themselves. Finally, the article concludes with some suggestions for human resource management (HRM) practice as well as areas in need of future research attention.     

The uncertainty challenge of contingent collaboration

Contingent knowledge workers will play an increasingly important role in organisational success as workers transition in and out of project‐based innovation teams with more frequency. Our research finds that collaborators in the contingent, high‐skill workforce face uncertainty challenges to their work that are unique from the independent, contingent professionals more often studied. The article proposes a theoretical framework of uncertainty to guide us in understanding collaborative contingent knowledge workers’ work experience. Interviews with postdoctoral researchers reveal four findings about the influence of these highly uncertain work environments on collaborative contingent knowledge workers – collaboration isolation, frustrated independence, performance anxiety and internalised blame. Perhaps most concerning is that the workers internalise the negative impacts as personal failings instead of recognising them as consequences of a poorly designed work environment. This study argues for the need to manage and mitigate different sources of uncertainty to avoid creating an unnecessary burden on contingent knowledge workers, and to enable a sustainable, contingent knowledge workforce.     

From HRM to psychological contracting - the case of Finnish mobile content producing companies

The paper explores how human resource management (HRM) is currently intended, used and experienced in 10 Finnish companies operating in the field of telecommunications. Our specific focus is on direct and indirect forms of managerial control and the psychological contract. We examine how psychological contracts are created and maintained, and study their relationship with HRM as a means of either direct or indirect control. Our findings indicate that employees are voluntarily assuming the obligation to exercise organizational control as a part of their psychological contract in exchange for the freedom and autonomy that they enjoy. Recruitment emerges as a top employer priority. However, not many other human resource (HR) techniques are used. Rather, carefully selected workers are allowed the autonomy and freedom to define what constitutes their psychological contract, with a duty to control its attractiveness from the employers' point of view.     

心理契约视角下新生代员工敬业度研究

新生代员工作为企业不可忽视的人力资源群体,其敬业程度对企业绩效目标的实现具有重要影响作用。但是,由于新生代员工不同的成长环境和特点,又在一定程度上增加了企业人力资源管理的难度。新生代员工的敬业度受到较多因素的影响,其中心理契约的作用不容忽视。本文基于心理契约和敬业度理论,针对企业新生代员工敬业度现状,结合其心理契约的类型和特点,分析心理契约与敬业度相互作用机制,探讨提升新生代员工敬业度的相关策略。     

Managing the Contingent Workforce—Gaining the Advantages, Avoiding the Pitfalls

Part-time employment arrangements constitute a rapidly growing segment of the U.S. labor force. Such employment arrangements offer advantages to both employers and employees. Part-time employees offer employers reduced wage and benefit costs, workforce flexibility, aid for special projects, replacement fill-ins and a chance to preview candidates for full-time employment. Part-time work enables employees to supplement family income, enjoy flexible hours as well as a change in job environment and a chance to substitute for full-time employment when there is no choice. The advantages of contingent employment come at a cost. Employers must comply with laws and give up control over much of the employment relationship in order to avoid co-employment status and to gain the benefits of contingent employment. Employees in contingent work arrangements frequently do not qualify for many of the benefits available to full time employees. Suggestions made for managing contingent workers may reduce some of the problems, but they would also remove some of the advantages.     

人力资源管理柔性视角下工作家庭平衡策略的实践及启示

工作家庭平衡策略体现了人力资源管理的个体柔性。为了帮助员工在工作和家庭之间取得平衡,组织可以采取的平衡策略有柔性的工作时间和柔性的工作场所,柔性策略在不同国家的实践给我国企业带来积极的借鉴意义,我们在实施柔性策略时要注重平衡策略的有效使用及柔性保障问题。     

Externalization of employees: thinking about going somewhere else

Externalization of employment relations was a general trend among businesses in the 1990s. As a consequence we observe an increasing use of temporary workers, outsourcing and insourcing. This paper is concerned with the consequences of externalization of employment relations from the perspective of employees. The paper is based on an in-depth empirical study of a corporate adjustment programme in a large government-owned energy producer in Sweden. The company is trying to stimulate internal mobility by means of training programmes, adjusting its workforce to changes in market demand without lay-offs. I argue that externalization of employment relations is not only a matter of temporary, administrative or geographical distance between employer and employee. Instead a complementary form - externalization of responsibility - is suggested. The results may have consequences for the understanding of human resource policies aiming at employability.     

Why and when organizational culture fosters affective commitment among knowledge workers: the mediating role of perceived psychological contract fulfilment and moderating role of organizational tenure

Drawing on Denison and Mishra (1995)’s framework of organizational culture, this study examines why and when organizational culture is related to knowledge workers’ affective commitment. Data were collected from 640 employees working in three high-technology companies in China. The findings indicate that the relationship between organizational culture and affective commitment is mediated by perceived psychological contract fulfilment. In addition, organizational tenure moderates the relationship between two external dimensions (i.e. adaptability and mission) of organizational culture and perceived psychological contract fulfilment. This study extends the current theoretical framework of organizational culture by demonstrating the underlying mechanism and the boundary condition of the relationship between organizational culture and affective commitment. The findings also provide practical implications for international managers to design appropriate human resource management policies and practices in China.     

Homeworking: negotiating the psychological contract

This article explores the psychological contract of female clerical homeworkers who work from home full‐time and are employed at a local authority. Qualitative interviews were carried out with homeworkers and their supervisors. Temporal flexibility was desired by all the homeworkers in order to achieve a better work–life balance, and was deemed important by women without children as well as those with childcare responsibilities. Our findings highlight that homeworkers were able to negotiate their own idiosyncratic deals with line managers in order to attain their desired levels of temporal flexibility. However, the issue of flexibility remains ambiguous with some supervisory staff being more comfortable with the concept than others, leading to some homeworkers enjoying different levels of temporal flexibility than their co‐workers. Our findings suggest that employees perceive flexibility idiosyncratic deals of co‐workers as fair as long as they achieve their own personal levels of temporal flexibility. The potential implications for organisations are discussed.     

Causes and consequences of psychological contracts among knowledge workers in the high technology and financial services industries

As organizations shift the central focus of their competitive strategy away from value appropriation towards value creation it is to knowledge workers that they will look to provide the innovation to fuel their continued development. The state of the relationship between the knowledge worker and the employer - the psychological contract - will determine whether this source of innovation and creativity is released. In this study, we developed and tested a causal model of the causes and consequences of psychological contract. Over four hundred participants who were knowledge employees drawn from eleven leading edge companies in the high-technology software, manufacturing and financial services sector participated in the study. We found support for the hypothesis that the psychological contract and those organizational processes relating to procedural justice would have a direct effect on two critical organizational outcomes, namely, employee commitment and intention to remain with the organization. We also found support for the hypothesis that psychological contract variables mediated the relationship between organizational processes and employee commitment and intention to stay with the organization.     

The difference a manager can make: organizational justice and knowledge worker commitment

The quality of the employment relationship is argued to be central to knowledge workers' commitment, which in turn supports knowledge creation. Given the high levels of discretion enjoyed by knowledge workers, managers' decisions over work distribution, content and resources become more critical for commitment and knowledge creation. However, little research has explored how justice perceptions shape the quality of the employment relationship and the consequences for commitment. Using a sample of 429 R&D workers from across six science and technology-based firms this paper explores the three-way interaction of procedural and interactional justice with the psychological contract to predict knowledge worker commitment. We found that when employees simultaneously perceived high levels of procedural and interactional justice this moderated the relationship between psychological contract breach and knowledge worker commitment. Furthermore, where there was contract breach, positive perceptions of procedural justice moderated the relationship with commitment. However, in the context of contract fulfilment, low perceived levels of interactional justice predicted lower comparative levels of commitment, regardless of the level of procedural justice.

The results suggest that the perceived quality of the relationship between knowledge workers and their manager can make a positive difference in the context of breach of the psychological contract and this in turn can help maintain levels of commitment important for knowledge creation.     

Performance appraisals and job satisfaction

The research in this article is focused on formal performance appraisals (PA), one of the most important human resource management practices in firms. In detail, the study analyzes the effect of PAs on employees’ overall job satisfaction. We are able to differentiate between appraisals that are linked to monetary outcomes, such as bonus payments and promotions, and appraisals that have no monetary consequences. Building on a representative, longitudinal sample of around 10,500 German employees, we apply fixed effects regressions that allow us to more closely estimate the causal effect of appraisals on job satisfaction compared to previous cross-sectional studies. We find a significantly positive effect of PAs on job satisfaction, which is primarily driven by appraisals linked to monetary outcomes. The results demonstrate that PAs linked to monetary outcomes are a powerful HR management tool that is appreciated by employees. Furthermore, we explore the moderating effects of personality traits (Big Five, locus of control) on the relationship between PAs and job satisfaction. The results show that if tangible benefits cannot be provided or are not tied to the assessment procedure, the use of appraisals with no monetary consequences can be detrimental for open-minded and self-determined employees, as appraisals could then potentially raise expectations that are not fulfilled. Theoretical and practical implications of these results are discussed.     

How Do Developmental and Accommodative HRM Enhance Employee Engagement and Commitment? The Role of Psychological Contract and SOC Strategies

In the context of the changing workforce, this study introduced two perspectives on HRM and distinguished universalistic developmental HRM from contingent accommodative HRM. We predicted two separate pathways for the effects on two employee outcomes: work engagement and affective commitment. We expected that developmental HRM would universally relate to employee outcomes by rebalancing the psychological contract between the employee and organization into a less transactional to a more relational contract. We also predicted that accommodative HRM would relate to outcomes only when fulfilling specific needs of employees, associated with their selecting, optimizing, and compensating strategies. Results of a multilevel study among 1058 employees in 17 healthcare units fully supported our expectations regarding the role of the psychological contract. Additionally, we found support for the expected roles of selection and compensation, but not for optimization strategy. This study contributes to the literature by demonstrating that HRM relates to employee outcomes through multiple pathways, which can be either universal or contingent.     

Security in a sea of insecurity: job security and intention to stay among service sector employees in Turkey

This article examines the association between job security and intention to stay for those who are employed in Turkey. There is a high level of unemployment in the country and many workers there are concerned about their job security. Job security refers to the objective dimensions of continuous contract, working full-time hours and paid and unpaid overtime. Job security also refers to the subjective dimension of perceived job security. We surveyed 407 employees in banking and related sectors' call centres, five-star hotel front-line staff and airline cabin crews. Results show that objective dimensions of job security are not associated with intention to stay. However, perceived job security is significantly and positively associated with intention to stay. We recommend that human resource managers focus on the perceived job security aspect of employment to keep valuable employees with the company.     

Strategic human resources management is irrelevant when it comes to highly skilled professionals in the Canadian new economy

The goal of this paper is to explain the commitment behaviour of highly skilled professionals in Canadian business-to-business (B2B) technology services companies that do not have a formal and explicit managerial commitment strategy and to emphasize the need to take the organizational context into consideration when developing a theory that seeks to account for differences in employee's organizational commitment. Our contribution is to reappraise the relevance of the traditional organizational commitment definition in this organizational context, a new organizational form. We demonstrate that in the companies which are different from the traditional bureaucratic organizational forms and which employ highly qualified professionals, the employment relationship is based on a psychological contract that is not accounted for in the strategic HRM theory.

Indeed, the basic principles of strategic HRM dictate that an organization's most valuable asset is its employees; it is therefore incumbent on management to do whatever is necessary to retain its workforce, readily described as a key resource, and to use human resources management (HRM) practices as tools to elicit commitment. In a study of highly skilled workers in Canadian business-to-business (B2B) technology services companies belonging to the so-called ‘new economy’, we observed that although the competitive advantage enjoyed by these companies depends to a large degree on the creativity and innovativeness of their workforce, these companies barely have any official HRM policies, and the HR department plays a very unobtrusive role. Yet, no one could say that the employees in these firms are not committed – on the contrary! This situation has several implications in terms of career for these professionals, in terms of HR practices for the employers.

Nevertheless, until now, existing theoretical models of organizational commitment have shown little interest in highly skilled workers in general and even less in new economy professionals.     

Organizational Surveillance of Computer-Mediated Workplace Communication: Employee Privacy Concerns and Responses

Email, social media, and other types of computer-mediated workplace communication tools can enhance flexibility in how employees perform their jobs, expand networking opportunities, increase profits, cut costs, and enable collaboration among diverse groups across the globe. Despite their advantages, these technology tools can also cause security breaches, financial loss, employee distraction, and lawsuits. To prevent such damaging consequences, many companies monitor their employees’ computer-mediated workplace communication. However, this surveillance is often met with resistance from employees as it taps into concerns over workers’ privacy rights, due process, and fairness. We examine these employee concerns through an empirical study of full-time working adults’ beliefs about their computer-mediated workplace communication privacy and their evaluations of organizational justice, trust in upper management, and commitment to the organization. Our results suggest that employees who perceive less computer-mediated workplace communication privacy tend to view their organization’s policies as less fair, trust upper management less, and demonstrate less commitment to their organizations. Furthermore, results indicate that procedural justice mediated the relationship between privacy and organizational commitment and moderated the relationship between privacy and organizational trust.     

An examination of the use of high‐investment human resource systems for core and support employees

In this study, we examine two competing perspectives regarding the relative use of high‐investment human resource (HIHR) systems for core and support employees within establishments. Using data from 420 establishments, we compare a universal perspective suggesting that the level of HIHR exposure core employees receive is always greater than the level of exposure for sup‐port employees, with a contingency perspective suggesting that the relative level of exposure for these employee groups is contingent on strategy, HR philosophy, or industry.The results did not provide support for the universal prediction that core employees always receive higher levels of exposure to HIHR systems than support employees within the same establishment. Moreover, while strategy and HR philosophy were positively related to the level of HIHR system use across establishments, they did not influence the relative level of exposure to HIHR systems for core and support employees. Interestingly, however, industry did exert a unique impact such that core em‐ployees received significantly greater exposure to HIHR systems than sup‐port employees in nonmanufacturing firms.There were no significant differ‐ences in exposure for these two groups in manufacturing industries. Implications of the findings are discussed. © 2007 Wiley Periodicals, Inc.     

The complexity of managing human resources in Peru

This article describes how the politics of human resources have changed in Peru, and how this change played an important role in the reforms that occurred throughout the 1990s. Throughout the article, we examine how the size and the type of organization influence the generation of human resource management. For example, some medium-sized businesses have successfully integrated their human resource management with its central competencies, experiencing positive economic and financial business results. Other companies chose to circumvent human resource management issues by outsourcing or using contract workers, relegating the role of human resources to a peripheral role. Transnational organizations bring many methods and selection processes, promotions, evaluations, training and salary determination. The article ends with a comparative analysis between the formal and informal sector of the national economy with respect to human resources practices.