Jacqueline A-M. Coyle-Shapiro

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.

Exchange relationships : Examining psychological contracts and perceived organizational support

The authors surveyed 347 public sector employees on 4 measurement occasions to investigate the conceptual distinctiveness of the psychological contract and perceived organizational support (POS) and how they are associated over time. Results support the distinctiveness of the 2 concepts. In terms of their interrelationships over time, by drawing on psychological contract theory the authors found little support for a reciprocal relationship between POS and psychological contract fulfillment. Under an alternative set of hypotheses, by drawing on organizational support theory and by separating psychological contract fulfillment into its 2 components (perceived employer obligations and inducements), the authors found that perceived employer inducements were positively related to POS, which, in turn, was negatively related to perceived employer obligations. The results suggest that POS and the components of psychological contract fulfillment are more important in predicting organizational citizenship behavior than psychological contract fulfillment.

Contingent and Non-Contingent Working in Local Government: Contrasting Psychological Contracts

Given that the contingent worker is likely to be a familiar presence in the public service workplace of the future, this paper explores the consequences of contingent work arrangements on the attitudes and behaviour of employees using the psychological contract as a framework for analysis. Drawing upon survey evidence from a sample of permanent, fixed term and temporary staff employed in a British local authority, our results suggest that contract status plays an important role in how individuals view the exchange relationship with their employer and how they respond to the inducements received from that relationship. Specifically, contingent employees are less committed to the organization and engage in organizational citizenship behaviour (OCB) to a lesser degree than their permanent counterparts. However, contrary to our hypothesis, the relationship between the inducements provided by the employer and OCB is stronger for contingent employees. Such findings have implications for the treatment of contingent and non-contingent employees in the public services.

The psychological contract and individual differences: The role of exchange and creditor ideologies ☆

Abstract The present study examines exchange and creditor ideologies (two dispositional characteristics that are strongly related to exchange relationships) and their moderating effects on the psychological contract. Five hundred public-sector employees were studied over a 3-year period. Respondents’ were surveyed as to their perceptions of what they believed their employer owed them (e.g., job security, training, involvement in decision making, etc.) and the extent to which these “employer obligations” had been met. In addition, we assessed respondents’ perceptions of their own obligations to their employer (e.g., agreeing to work extra hours, volunteering for non-job-related activities, working unpaid hours, etc.) and the extent to which they believed that these “employee obligations” had been fulfilled. The results indicate that creditor ideology related positively to employee perceptions of their obligations to the employer and the extent to which they fulfilled those obligations while exchange ideology related negatively to employee obligations and fulfillment of obligations. Exchange ideology moderated the effects of perceived employer obligations on employee obligations and fulfillment of obligations while creditor ideology moderated the relationship between perceived employer fulfillment of obligations and employee obligations. This article provides preliminary evidence to the benefits of examining the role of individual dispositions in psychological contract research—a previously neglected topic—and discusses the potential implications for the practice of management.

Social Exchange in Work Settings: Content, Process, and Mixed Models

Social exchange theory has provided the dominant basis for understanding exchange relationships in organizational settings. Despite its predominance within the management field, there are a number of unaddressed issues. This special issue seeks to further social exchange research in work settings. We differentiate social from economic exchange and highlight the moderating role of cultural and individual differences in explaining the outcomes associated with social exchange relationships. We introduce the ideas of content, process, and mixed models of exchange to reflect the different emphases given to the amount and type of resources exchanged, the quality of the relationship, and a combination of both. The five papers in this special issue illustrate these models. We discuss the applicability of social exchange theory across cultural contexts and present suggestions for future research.

Employee Participation and Assessment of an Organizational Change Intervention: A Three-Wave Study of Total Quality Management

Amid the debates on total quality management (TQM), empirical investigations of the process of change have been largely neglected. This article examines the process of change involved in implementing TQM and employees’experience of participation, and it evaluates the impact of employee participation in TQM on their commitment to the organization. The research design involved a survey of employees in a U.K. manufacturing setting, with three measurement occasions: 6 months prior to and 9 months and 32 months after the introduction of TQM. The findings suggest that supervisory participative style is positively related to employee participation. The extent of employee participation is positively related to the assessment of the benefits of TQM. Furthermore, how employees assess the beneficial impact of TQM is more important in predicting subsequent participation in TQM than is their initial participation. Finally, no relationship is found between employee participation in TQM and organizational commitment.

The role of individual differences in employee adoption of TQM orientation

While total quality management (TQM) has emphasized organizational-level factors in achieving successful implementation, human capital theory and person-environmental fit models suggest individual difference factors may also be useful. Accordingly, the ability of organizational commitment, trust in colleagues, and higher order need strength to explain variation in TQM adoption, after inclusion of organizational-level factors, is assessed using longitudinal data from a manufacturing setting. These three individual differences collectively explain 7–19% of incremental variation in TQM adoption and are found to be relatively better predictors of TQM adoption than organizational-level factors. The findings support increased consideration of individual differences in order to implement TQM and other forms of organizational change more effectively.

A Longitudinal Study of the Impact of Organizational Change on Transactional, Relational, and Balanced Psychological Contracts

Workplace transitions are thought to result in a fundamental shift in the employment relationship. This study used sensemaking theory to examine when and how organizational change affects employees’ psychological contracts (PCs). The authors suggest that employees interpret organizational change through contextual and cognitive factors related to the change. These factors, in turn, influence whether employees revise their PCs. Results of our longitudinal study suggest that the extent to which contextual and cognitive factors affect employees’ PCs depends on the type of PC. Transactional and balanced PCs were unaffected by the contextual and cognitive factors related to the change, while changes occurred in relational PCs.

Changing Employee Attitudes The Independent Effects of TQM and Profit Sharing on Continuous Improvement Orientation

This research examines the independent effects of two change interventions on employee attitudes. The first studyevaluates the impact of a total qualitymanagement (TQM) intervention, while the second explores the effect of profit sharing on a core outcome of TQM: continuous improvement orientation at the individual level. The research design involved an employee survey with two measurement occasions: 9 and 32 months after the commencement of a TQM intervention (n = 118) and 10 months before and 20 months after the introduction of a profit sharing program (n = 141). The findings of Study1 indicate that participation in a TQM intervention can enhance the development of employees’orientation to continuous improvement, explaining 5% additional variance in the dependent variable. The results of Study2 suggest that perceived fairness of profit sharing and perceived abilityto contribute to the profitabilityof a site are significantly associated with continuous improvement orientation, explaining 6% additional variance. The implications of these findings for organizational change are discussed.

Restructuring the employment relationship in Surrey County Council

This article looks at attempts made by a case study organization, Surrey County Council, to evaluate and restructure the employment relationship in the context of a range of financial, managerial and political pressures for change. The notion of the psychological contract is used to conduct this evaluation and restructuring. A survey eliciting the views of some 6,000 Surrey employees highlights major gaps in terms of what employees expect and receive from their employer as well as discrepencies in what employees feel they owe the employer and actually give. Consideration is given to how the authority has sought to address these concerns through a new deal with employees. The article provides insights into the contingent circumstances leading to changes in the employment relationship, information on the state of the psychological contract in local government and an illustrative case of how one local authority went about addressing employee concerns in the light of major constraints.