Consequences Of The Psychological Contract For The Employment Relationship: A Large Scale Survey*

The renewed interest in the concept of the psychological contract has come to the fore in attempts to describe, understand and predict the consequences of changes occurring in the employment relationship. Recognizing that the employment relationship includes two parties to the exchange process, we set out to examine the content and state of the psychological contract from both the employee and employer perspective. The two perspectives permit an examination of the mutuality of obligations, which has not received much empirical attention to date. The research methodology consists of two surveys conducted in a large local authority directly responsible and accountable for a range of public services including education, environmental health and social care to the local population. The key findings suggest that the majority of employees have experienced contract breach. This view is also supported by managers, as representatives of the employer, who further indicate that the organization, given its external pressures, is not fulfilling its obligations to employees to the extent that it could. Overall, the results indicate that employees are redressing the balance in the relationship through reducing their commitment and their willingness to engage in organizational citizenship behaviour when they perceive their employer as not having fulfilled its part in the exchange process.     

Employee Rights, Employee Responsibilities and Knowledge Sharing in Intelligent Organization

Much is currently being written about the need to encourage employees to share knowledge in order for companies to maintain a role as an intelligent organization in a technologically sophisticated environment. However, there is little written of the relationship between employee rights to satisfactory employment conditions, employee responsibilities in decision-making, and employee willingness to share their knowledge collaboratively. This paper seeks to redress this gap by discussing the importance of the relationship between employee rights and responsibilities and employee willingness to share knowledge. The reaction of a group of employees (academics) employed in an Intelligent Organization (university) to a reduction in their rights and responsibilities is discussed in order to design a framework of employee rights and responsibilities required for knowledge sharing in intelligent organizations.     

How and when matter: Exploring the interaction effects of high‐performance work systems,employee participation,and human capital on organizational innovation

Existing research on the relationship between high‐performance work systems (HPWS) and organizational innovation has paid insufficient attention to the boundary effects of employee participation and human capital. Bridging the human resource management (HRM) and employment relations literature, this study contributes to the contingency view of HRM and China‐specific research by investigating how human capital and employee participation, direct voice mechanism, and corporate governance participation jointly moderate the relationship between HPWS and organizational innovation. We test our three‐way interaction model using a sample of 108 firms and 1,250 employees in China. The results suggest that HPWS are positively associated with organizational innovation when employees with relatively less human capital are coupled with more direct voice mechanism or less corporate governance participation. In contrast, HPWS are negatively related to organizational innovation when employees possessing greater human capital are coupled with more direct voice mechanism. The theoretical and managerial implications and future research directions are discussed.     

Who is an Employer in the Triangular Employment Relationship? Sorting Through the Definitional Confusion

Employers in the United States are increasingly utilizing staffing firms, employee leasing firms, temporary employment agencies and other third parties to help manage contingent labor in their organizations. The use of such triangular relationships creates complexities in the rights and responsibilities of each party, partially due to the variation in how U.S. employment law defines employers and employees across statutes. We analyze the various definitions of employee and employer across key U.S. employment statutes (e.g., Civil Rights Act of 1964, ADA, FMLA, FLSA), tests used by the courts in their decision making, and IRS regulations and evaluate the impact of these definitions on the use of contingent employees in triangular relationships. We review existing case law relevant to discrimination and non-discrimination statutes and identify key areas of risk and responsibility for both the individuals employed as contingent workers and firms that use contingent labor. Finally, we offer recommendations for strategically managing contingent labor in the current legal context.     

Conceptions of employee responsibilities and rights in the United States and the People's Republic of China

Workplace responsibilities and rights tend to be defined in ways that imply their universal applicability in various cultural contexts. Based on comparisons of the United States and the People's Republic of China, this article investigates the influence of differing cultural characteristics on conceptions of responsibilities and rights. The basic assumptions underlying the conceptions of employee (and employer) responsibilities and rights in the two countries are examined. Evidence drawn from relevant bodies of literature and a close examination of many social or organizational incidents suggest that the concepts of employee (and employer) rights and responsibilities are culture-relative. Based on the findings, the article further offers a set of theoretical propositions, and discusses implications for future comparative research on employee responsibilities and rights.     

Examining the link between flexible working arrangement bundles and employee work effort

Empirical evidence regarding the link between flexible working arrangements (FWAs) and work effort is mixed, with the literature showing that some practices are linked to more while others to less work effort. In this study, we argue that this discrepancy may be due to the existence of different types of FWA bundles with potentially distinct effects on work effort. Using Understanding Society, a British national survey, and building on theories related to social exchange, the study examines the link between employee‐centered and employer‐centered FWA bundles, and work effort. This study further tests whether these relationships differ depending on employees' family responsibilities. Based on a sample of 13,834 employees, results show that both employee‐centered and employer‐centered FWA bundles are negatively associated with work effort, and findings for the latter bundle are more pronounced. These negative associations are somewhat stronger for employees with fewer family responsibilities. We infer that employees appear to use employee‐centered FWAs for their intended purpose, that is, to balance life and job demands, while they might perceive employer‐centered FWAs as unfair, resulting in less work effort in an attempt to restore fairness.     

Stress: The legal and organizational implications

Evolving legal trends, as well as court cases in which stress related to employment situations led to liability for the employer, were reviewed and summarized. These results were integrated with those in current empirical stress research in order to identify potential areas of concern for managers. This unified approach was then used to examine some common organizational situations and to suggest practices, policies, and procedures that may be useful in reducing or eliminating the harmful effects of stress on employees. It was concluded that, while employers must be knowledgeable about general stressors likely to affect employee well-being, they must also identify factors unique to their own situations. The responsibility of the manager in analyzing the work situation and responding to the individuals involved is emphasized.     

The influences of new employee development practices upon role stressors and work-related attitudes of temporary employees

Understanding what influences temporary employee attitudes toward their work is becoming an increasingly significant managerial concern in organizations employing temporary workers. In this empirical study, we examine the relationship between new employee development (NED) practices, role stressors and employee work-related attitudes. It was hypothesized that NED practices will be negatively related to the role stressor variables and that the role stressor variables will be related to employee work-related attitudes. It was further hypothesized that role stressors will mediate the relationship between NED practices and temporary employee work-related attitudes. Since temporary employees receive new employment practices at both the client organization and the temporary agency, the relationships were hypothesized to exist for both the client organization and temporary agency. Data were collected from temporary employees (N = 1,261) across the United States. Results indicate that NED practices at the temporary agency and client organization were both negatively related to role ambiguity and role conflict. Role stressors were positively related to intention to quit and negatively related to job satisfaction and organizational commitment in relation to both client organization and temporary agency. Role ambiguity and role conflict partially mediated the relationship between NED practices and temporary employee work-related attitudes for both the client organization and temporary agency. Theoretical and practical implications for managing temporary employees are discussed.     

The challenge of responsibilities: Confronting the revolution in workplace rights in modern organizations

The contemporary world of work is experiencing a revolution in workplace rights thinking and practices. Included among factors related to this are professionalization and technocracy, management orthodoxy, corrupt organizational structures, the moral ineptitude of business education, the increasing size of the working population, worker mobility, worker diversity and the variegated cultural milieu, the growth of highly paid and very powerful workers, favorable solons, and supportive justices. Demands for protection and respect of rights are expressed in a variety of ways ranging from the statutory or economic to the ethical or psychological. Because of the correlative link between rights and responsibilities, organizational researchers and practitioners should be concerned with identifying various responsibilities implied by various employer and employee rights. Of equal importance is the challenge of examining in detail these responsibilities and how the strategies suggested by them can be used to manage specific employee rights in the contemporary workplace.     

On-duty and Off-duty: Employee Right to Privacy and Employer’s Right to Control in the Private Sector

The changing legal landscape of the right of the employer to control and monitor employee behavior is examined. Two distinct areas are defined: behavioral monitoring and behavioral restrictions. Relevant statutory laws and the developing common law are discussed. We also examine potential employee reactions to such policies by evaluating the reactions of graduate students to six employer policies including weight restrictions, grooming requirements, use of GPS locators, drug testing, ban on off-duty smoking, and email and internet monitoring. Students responded to these policies by determining the reasonable interest of the employer in the behaviors being monitored or controlled and the manner in which policies were implemented. Their comments suggest that employees may accept some level of monitoring or behavioral restrictions if the employer can make a convincing social account of the need for a policy. Additionally, the policy must be clearly communicated and properly implemented. However, restrictions on off-duty behavior were typically poorly received with the exception of illegal drug use.     

Organizational public value and employee life satisfaction: the mediating roles of work engagement and organizational citizenship behavior

Abstract

Building on Meynhardt’s public value concept, which has been developed to make transparent an organization’s contributions to the common good, we investigate the influence of organizational common good practices in the perceptions of employees (measured as public value) on employees’ work attitudes and life satisfaction. The proposed model is tested on a sample of 1045 Swiss employees taken from the 2015 Swiss Public Value Atlas data-set. Study findings reveal that organizational public value is positively related to employee life satisfaction, and that this relationship is partially mediated by work engagement and organizational citizenship behavior. Further, we show that employee common good orientations strengthen the positive impact of organizational public value on employee work engagement and organizational citizenship behavior. Results also provide evidence that the indirect effects of organizational public value on employee life satisfaction via work engagement and organizational citizenship behavior are stronger at higher employee common good orientation levels.     

When and why employees of non-profits promote their organizations: Determinants of positive staff-word-of-mouth

Employees represent a credible source of information for prospective job applicants of non-profit organizations. However, less is known about when and why staff actively promote their organizations. The authors develop a parsimonious model of determinants of positive staff-word-of-mouth (SWOM) and test this model on the data from a survey of employees of a major Scandinavian missionary organization (Normisjon). The findings show that identification with the organization, organizational climate, and task satisfaction are significant determinants of positive SWOM. The pattern of effects differs for employees with and without formal leadership responsibility. For employees with such responsibilities, organizational identification has a greater effect and organizational climate a weaker effect on SWOM than for employees with no leadership responsibility. Based on the current findings and the broader literature on employer branding and recruitment, the authors offer tentative guidelines for how to increase positive SWOM for nonprofits.     

Serving two organizations: Exploring the employment relationship of contracted employees

Although growth has occurred in contract employment arrangements both in the public and private sectors, scant research has been conducted on the organizations and employees affected by these arrangements.This study examines the employment relationship of long‐term contracted employees using a social exchange framework. Specifically, we examine the effects of employee perceptions of organizational support from contracting and client organizations on their (a) affective commitment to each organization and (b) service‐oriented citizenship behavior. We also examine whether felt obligation toward each organization mediates this relationship. Our sample consists of 99 long‐term contracted employees working for four contracting organizations that provide services to the public on behalf of a municipal government. Results indicate that the antecedents of affective commitment are similar for the client and contracting organization. Employee perceptions of client organizational supportiveness were positively related to felt obligation and commitment to the client organization. Client felt obligation mediated the effects of client perceived organizational support (POS) on the participation dimension of citizenship behavior. Our study provides additional support for the generalizability of social exchange processes to nontraditional employment relationships. Implications for managing long‐term contracted employees are discussed. © 2006 Wiley Periodicals, Inc.     

I pledge thee my troth … contingently: commitment and the contingent work relationship

This paper examines work commitment outside of traditional and ongoing employer–employee relationships. In particular, attention is given to the commitment-related implications associated with the growth of various forms of “contingent” employment contracts. Of specific theoretical and practical concern is the applicability, overlap, and/or relative importance of various commitment foci (e.g., organization, job, occupation, and employment) for workers employed in both traditional arrangements and three illustrative forms of contingent employment. Implications for commitment theory, human resource management practices, and future research needs are discussed.     

An Exploration of How the Employee–Organization Relationship Affects the Linkage Between Perception of Developmental Human Resource Practices and Employee Outcomes*

abstract The purpose of the present study was to examine whether and how the quality of the employee–organization relationship (EOR) influences the relationship between employee perception of developmental human resource (HR) practices and employee outcomes. Analyses of 593 employees representing 64 local savings banks in Norway showed that four indicators of the EOR (perceived organizational support, affective organizational commitment, and procedural and interactional justice) moderated the relationship between perception of developmental HR practices and individual work performance. A strong and direct negative relationship was found between perception of developmental HR practices and turnover intention, but perceived procedural and interactional justice moderated this linkage. No support was found for a mediating role of the EOR indicators in the relationship between perception of developmental HR practices and employee outcomes. Implications and directions for future research are discussed.     

Regulating employment relations through workplace learning: a study of small employers

Using data from two employer samples, the article develops our understanding of small business employee skill formation and development processes in three main ways. First, it focuses on learning (what employees do) rather than on providing training (what employers do), as it is employee learning which influences individual and organisational performance. Second, it challenges the dominant focus on external training by presenting data on employer enablement of workplace employee learning and their motives for this. The diversity of workplace learning practices and their importance in smaller businesses are highlighted. Third, it situates workplace learning processes firmly within the context of the employment relationship, one in which employers and employees pursue distinctive interests in enabling/participating in learning.     

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.     

Theorizing the relationship between discretionary employee benefits and individual performance

The literature on compensation has devoted little attention to the relationship between discretionary employee benefits and individual performance, perhaps because benefits are allocated equally to large groups of employees, are not tied to individual performance, and are viewed as entitlements. Discretionary benefits include all the benefits an employer provides to employees voluntarily (i.e., not legally required). Employees can use internet search tools to make comparisons between focal and referent firms of their expenditures on discretionary benefits, which can symbolize employer support for employee well-being or invoke perceptions of equity. In our paper, we provide a novel insight into the relationship between discretionary benefits and employee individual performance through a theoretical lens that combines insights from organizational support theory and equity theory shaped by perceptions of social and economic exchange relationships. In our conceptual model we develop theoretical logic that explains that perceived discretionary benefits, moderated by benefits satisfaction and mediated by perceived organizational support and perceived equity, are linked to individual performance. The paper concludes with a discussion of the theoretical implications and directions for future research.     

Task Conflict and Employee Creativity: The Critical Roles of Learning Orientation and Goal Congruence

We add to human resource literature by investigating how the contribution of task conflict to employee creativity depends on employees’ learning orientation and their goal congruence with organizational peers. We postulate a positive relationship between task conflict and employee creativity and predict that this relationship is augmented by learning orientation but attenuated by goal congruence. We also argue that the mitigating effect of goal congruence is more salient among employees who exhibit a low learning orientation. Our results, captured from employees and their supervisors in a large, Mexican‐based organization, confirm these hypotheses. The findings have important implications for human resource managers who seek to foster creativity among employees. © 2015 Wiley Periodicals, Inc.     

The impact of socially responsible human resource management on employees' organizational citizenship behaviour: the mediating role of organizational identification

Based on insights from social exchange and social identity theories, this paper examines the influence of three dimensions of socially responsible human resource management (SR-HRM), namely legal compliance HRM, employee-oriented HRM and general CSR facilitation HRM, on employees' organizational citizenship behaviour (OCB). Structural equation modelling of dyadic data collected from Chinese employees and their direct supervisors in three phases revealed that whilst organizational identification fully mediated the relationship between employee-oriented HRM and employee OCB, general CSR facilitation HRM had a direct effect on employee OCB. In contrast, legal compliance HRM neither influenced employee OCB directly, nor indirectly through organizational identification. The findings highlight the important but complex role played by SR-HRM in eliciting positive employee work outcomes, and contribute to our knowledge of the mechanisms underlying this relationship.