Effects of psychological contract breach on attitudes and performance: The moderating role of competitive climate

The performance of hotel employees is an important driver of customer satisfaction, which in turn affects hotels’ financial outcomes. Hotel managers should encourage their staff to deliver quality service and should inspire them to perform their best. This study advances a multilevel model that draws connections among competitive climate, organizational identification (OID), job performance, affective commitment (AC), and psychological contract (PC) breach from a sample of hotel staff. The results indicate that (1) PC breach is negatively related to OID and AC, (2) OID and AC have a significant positive relationship with job performance, and (3) competitive climate at the organizational level moderates the effects of OID and AC on hotel workers’ in-role performance. These results offer valuable implications for managers to produce more efficient hotel human resource management techniques.