The purposes of this study are (1) to investigate the theoretical implications of various concepts and theories of sociology, political philosophy, organizational behavior, and organization theory in understanding the psychological contract, (2) to f...
The purposes of this study are (1) to investigate the theoretical implications of various concepts and theories of sociology, political philosophy, organizational behavior, and organization theory in understanding the psychological contract, (2) to find out the similarities and differences between psychological contract and other concepts such as organizational commitment, job involvement, and job satisfaction to explain and predict employees' attitude and behavior with special focus on the merits of psychological contract, and (3) to conduct the empirical research in the areas which have been so far neglected.
The empirical research questions for the study are (1) what impacts the violation of psychological contract by organization has on the employees in terms of new psychological contract, job satisfaction, commitment, and intention to leave, (2) whether the predictors such as the level of information-seeking by employees and the functions provided by mentors influence the employees' perceptions of the violation of psychological contract, and (3) whether the impacts of the violation of psychological contract vary according to personal differences of equity sensitivity and self-monitoring.
The study was conducted on an exploratory basis with the sample of M. B. A. students in one of the large universities in Korea. All the data used in this study were collected through questionnaires.
The major findings of the study are as follows.
First, employees were found to perceive employees' obligations less when they felt that their psychological contracts were violated by organization, as hypothesized. Even though statistically insignificant, however, the result showed that employees also perceived employers' obligations less contrary to the hypothesis. This result can be interpreted into two ways. One explanation is that employees might feel that their expectations are too unrealistic, thus leveling them down. The other is that the violation lead to the loss of trust of employees toward organization, resulting in a feeling that it is unnecessary they maintain exchange relationships with their organizations any more.
Second, with regard to various outcome variables such as job satisfaction, commitment, intention to leave, the violation of psychological contract has negative impacts as hypothesized. That is, it appeared that the violation decreased job satisfaction and commitment of employees, and increased intention to leave.
Third, the possibility of equity sensitivity as a moderator between the perceived violation and outcome variables was also found. However, benevolent employees responded more negatively to the violation than entitled employees contrary to the prediction. Explanation for this result is that benevolent employees who are relation-oriented might respond to the violation by lessening their relational obligations to organization.
Fourth, the result revealed that self-monitoring moderated the level of employees' obligations to organization in response to the employer violation of psychological contract. Employees low on self-monitoring tended to decrease their obligations to employer after violation whereas those high on self-monitoring did change them little. In case of employer's obligations, even though statistically insignificant, the result indicated that the same pattern of employees' reaction to violations occured. That is, low self-monitors dropped the perceived level of employer's obligations while high self-monitors did not change them much.
Fifth, even though partially supported, the result indicated that the more actively employees were involved in information-seeking behavior, the less they perceived violation of psychological contract in the expected direction. Sixth, the result indicated that the more employees perceived mentor functions, the less they perceived the employer violaton of psychological contract, as predicted in the hypothesis.
This study has made several contributions for further researches on psychological contract. First, the study provides a theoretical background for the concept of psychological contract by reviewing the related theories and concepts. Secondly, the empirical part of this study expands the scope of previous researches on psychological contract by adding antecedents and moderators to the existing conceptual framework which was merely based on the relationship between violations of psychological contract and outcome variables.
The results of this study provide several practical implications for both employees and employers. Limitations and suggestions for future research are also highlighted.