Age and psychological contract

Affective commitment was found to be an important mediating role in the relationship between
psychological contract variables and turnover intentions. In addition, at different stages of adulthood,
different factors might play a role when considering the intention to leave the organization. Among the
psychological contract variables, job content appeared to be the most significant predictor of
managers turnover intentions, followed by promotion opportunities and salary. Thus, the greater the
extent to which individuals find that their jobs include challenging, comprehensive and diverse works,
the less likely they are to leave their organizations. This effect was partially mediated by affective
commitment, i.e. the more that employees perceive their job as one which includes challenging,
comprehensive and diverse work, the more they are committed to the organization, and in turn, the
less likely they are to leave the organization. This is in line with the study by previous scholars
(Hemdi & Nasurdin, 2006; Walsh & Taylor, 2007) who found that challenging work was an important
factor influencing affective commitment, and in turn turnover intentions. Therefore, in terms of the
psychological contract perceptions, this might mean that the expectations among hotel managers are
rather high, and that a slight violation of this expectation towards the negative side is what makes
them consider leaving the organization. Promotion opportunities and salary were also related to
employees and managers turnover intentions. The more employees and managers agreed to the fact
that their organization offered them promotion opportunities and competitive salaries, the less inclined
they were to consider leaving the organization. The results of these studies (e.g. Hemdi & Nasurdin,
2006; Walsh & Taylor, 2007) also highlighted significant influence of equitable and competitive salary
and availability of promotions for younger managers (age 21 30 years) turnover intentions.
However, these factors play a less significant role for the older respondents. Further, it was shown that
affective commitment is an important variable in explaining the intention to leave (Hemdi & Nasurdin,
2008; Meyer & Allen, 1997; Ten Brink, 2004; Walsh & Taylor 2007). Psychological contract measures
such as job content, promotion, salary, work-family balance, and performance pay were significantly
affecting retention or turnover intentions.

These factors were also found to be directly related to affective commitment, and in turn were also
found to operate as a mediating variable between psychological contract measures and retention. Age
was a significant variable in explaining the intention to leave the organization. The younger the
respondents, the more likely they were to leave the organization. This effect was also partially
mediated by affective commitment: the younger the employees (respondents), the less committed they
were to their organization and the higher were the intentions to leave. In addition, age seems to be a
moderator variable, as in different age groups, different factors are important in explaining the
intention to leave. Job content is the most important explanatory variable for each age group. In the
youngest age group, in which the employees (respondents) had just started their career, promotion
opportunities and salary seem to be important additional factors in explaining the intention to leave.
This is in line with a previous research study carried out by Sparrow, (2000).

Employee Age, Psychological Contract, and Turnover Intentions Apart from the
scarce use of the psychological contract in research studies as a framework in the
hospitality industry to explain employee turnover, not much attention has been paid to
the relation between age and the related phase in the life course and the psychological
contract of employees working in the hospitality industry. For example, in the research

1
study Walsh and Taylor (2007), no distinction is made among the respondents based on
age. Nemiroff and Colarusso (1990) suggest that, during adulthood, the perspectives of
human beings change dynamically as they get older. Different research studies (Gould,
1978; Levinson, 1978) suggest that different stages in adulthood can be distinguished.
Each stage has a core theme as an attractor for the development process. Roughly,
three stages for adulthood can be distinguished (Sparrow, 2000). The early adulthood
stage (2232 years) can be described as the age at which founding a family and building
a career are the main themes. In the middle adulthood stage (3344 years), more
attention is given to family life and the education of children. The value of having a
career decreases, and the importance of work pleasure, social recognition and self-
actualization grows. In the late adulthood stage (4565 years), besides work pleasure,
the balance between autonomy and interdependency becomes more important (Sekaran
& Hall, 1989). Empirical research studies (Hall & Mirvis, 1995; Sparrow, 2000) in different
industries confirmed this categorization of age groups. Also, exploratory research studies
to the psychological contract of managerial employees in the hospitality industry
seemed to support this categorization of age groups for further research (Ramley et al.,
2008). Schalk (2005) indicates that these changing perspectives and needs will lead to a
change in ideas and needs about important obligations of the employer and themselves.
Hence, the psychological contract of employees will change during the life course (Hall &
Mirvis, 1995). The predicting variables for turnover intentions will be different for each
stage of development. Hence, a third research objective can be put forward: the
influence of age on the relationship between the psychological contract and the intention
to leave.
As an intro for analysis

(babita agarawis) Both researchers and human resource (HR) practitioners

agree that the employment relationship is undergoing fundamental changes
that have implications for the attraction, motivation and retention of talented
employees (Horwitz, Heng, & Quazi, 2003: Roehling, Cavanaugh, Moyhihan &
Boswell, 2000; Turnley & Feldman, 2000) Over the past decades, the economic
environment has been changed dramatically. Due to on-going evolutions
towards international competition and globalization of markets, organizations
are required to be more flexible and to increase their productivity. This has
reduced the job security of employees at all levels in the organization (King,
2000) but at the same time HR managers are pressed to attract and retain
talented employees who have competencies that are critical for organizational
survival (Horwitz et al., 2003; Mitchell, Holtom & Lee, 2001; Roehling et al.,
2000; Steel, Griffeth & Hom, 2002). Often, however, exactly these employees
are difficult to retain due to their tendency to attach more importance to
marking out their own career path than to organizational loyalty; a tendency
which results in increased rates of voluntary turnover (Cappelli, 2001). Within
the HRM literature, retention management has become a popular concept to
examine the portfolio of HR practices put into place by organizations in order
to reduce voluntary turnover rates (e.g. Cappelli, 2001; Mitchell et al., 2001;
Steel et al., 2002). Another concept that has gained interest as a construct
relevant for understanding and managing contemporary employment
relationships is the psychological contract, which refers to employees
subjective interpretations and evaluations of their deal with the organization
(Rousseau, 1996; 2001; Turnley & Feldman, 1998).

2
Researchers in this field argue that in order for retention management to be
effective, the creation of an optimal portfolio of HR practices is not sufficient
and that it is important to manage employees expectations relating to these
practices. Only in this way HR managers can be confident to create a deal that
is mutually understood by both the organization and its employees (Rousseau,
1996).

(Good sample) Rousseau and McClean Parks (1993) noted contracts could be created through
communications at critical junctures in the employment relationship. One of the critical junctures
identified was supervision. Within the service, individuals receive supervision with their line manager on a
monthly basis. This is an opportunity for the manager, as the agent of the organization, to discuss local
policies. Team members indicated that the process of supervision was the ground where an exchange of
obligations took place. Many indicated that their obligations were communicated through their actions, and
the manager and the supervisee discuss actions as part of managerial supervision.
Simply about violations

(2004024)
SORTS OF CONTRACTS
Rousseau (1995) distinguishes between transactional and relational contracts.
Transactional contracts refer to collaborations of limited duration (2 to 3 years most)
with well-specified performance terms. In contrast relational contracts are open-
ended collaborations with only loosely specified performance terms. The ownership
has significant implications for employee attitudes and workplace behavior (see
Table 3)

Although there are significant differences in attitudes and workplace behavior; if

expectations are being fulfilled both categories will produce productive behavior. But
even with the best intentions from both the employer and employee, relations can
break down and the psychological contract can be violated.

VIOLATIONS
Violations or breaches of the psychological contract occur when an employee
perceives that the organisation has failed to fulfill one or more of its obligations
comprising the psychological contract (Rousseau & Parks, 1993).

Causes of violations
Although contracts can be breached in innumerable ways, there are a number
of common forms. Recruiters may over-promise a jobs opportunity for challenge,
growth, or development. At the same time, however, eager job seekers may read
what they want to hear into a promise. Managers, coworkers, or executives who say
one thing and do another can all engender breaches. A common cause of breaches
for many employees involves a change in superiors. When ones boss or mentor is
promoted, terminated or retires, old deals may be abrogated. Similarly, changes in
human resource practices, even with constructive intent can appear to break old
commitments. Then the different contract makers express divergent intentions. A
mission statement can convey that the organization rewards employees based on
merit while the compensation system is based on seniority. Different contract
sources may each convey mutually exclusive promises (Rousseau, 1995).
Framework responses on violations
A framework for understanding situational constraints on employees
responses to breaches of psychological contracts is provided by the exit, voice,
3
loyalty, and neglect (EVLN) typology. This typology was originally developed by
Hirschman (1970). This framework suggests that employees will respond to breaches
of psychological contracts with:
increased exit (leaving the organisation altogether),
increased voice (taking initiative with superiors to improve conditions),
decreased loyalty (decreasing the number of extra-role or organisational
citizenship behaviors they engage in), and
increased neglect (putting in half-hearted effort, more absenteeism and lateness,
less attention to quality).

This framework also suggests that different responses to breaches of

psychological contracts may be more likely to occur in different types of situations
(Turnley & Feldman, 1998). The results of a study that they conducted supported the
idea that breaches of psychological contracts have a pervasive negative effect on
employees exit, voice, loyalty, and neglect behaviors. In general, breaches of
psychological contract were most strongly related to measures of exit and loyalty
and somewhat more weakly (although still statistically significant) to measures of
voice and neglect.
The situational factors moderated the relationship between breaches of
psychological contracts and exit, but did not moderate the relationships between
breaches of psychological contracts and voice, loyalty, or neglect. A possible
explanation of why people do not engage in voice or neglect behavior is that the
situation may not allow them to act out their anger without injuring themselves
further.

Relationship with job satisfaction, commitment and turnover

More in general, many studies revealed the relationship between breaches,
attitudes and workplace behavior. A meta-analysis between the relationship of
psychological contract breach and organisation bonding, - commitment, turn-over
intentions, job satisfaction and performance revealed that the less an organisation
meets the expectations of its employees, the more significant the consequences
(Wanous, Poland, Premack and Davis, 1992). Schalk et al (1995) concluded that a
poor state of the psychological contract is related to lower commitment to the job
and to the organisation, less identification with the organisation and higher turn-over
intentions. Further Robinson, Kraatz & Rousseau (1994) concluded that the
occurrence of breaches was negatively related to trust, job satisfaction, and
intentions to remain and was positively related with turn-over.
A longitudinal study conducted by Robinson (1996) revealed a negative relationship
between psychological contract breaches and organizational citizinship behaviour,
performance, intentions to stay with the employer and a positive relationship with
turn-over. Inasmuch as psychological contracts are formed on the basis of trust,
breach may lead to strong emotional reactions and feeling of betrayal (Robinson &
Rousseau, 1994). Less severe breaches also have consequences however; such as
higher turnover (Guzzo et al., 1994; Robinson & Rousseau, 1994), lower trust and job
satisfaction (Robinson and Rousseau, 1994), lower commitment to the organization
(Guzzo et al., 1994), and less Organizational Citizenship Behavior (OCB: Robinson
and Morrison, 1995))..

Procedural justice

4
 Psychological contracts are closely related to organisational justice
perceptions, specifically individual assessment of procedural fairness (Cropanzano &
Prehar, 2001). Managers in organisations undergoing change, should, therefore
consider employee perceptions of procedural justice, since these play a role in
employee evaluations of psychological contract breach (Robinson, 1995; Turnley &
Feldman, 1998).
Health
Gacovic and Tetrick (2003) conclude in their study that while increased job
demands are related to employees reporting more emotional exhaustion, when an
organisation lives up to its promises, employees experience less emotional
exhaustion and are more satisfied with their jobs. Therefore, they suggest that
perceptions of organisation failure to fulfil obligations,
or psychological contract breach, may be an important source of emotional
exhaustion and job dissatisfaction.

About communication

(manachang)
A wide range of communications approaches can be effective in influencing employee attitudes but
the CIPDs report on employee attitudes (Guest and Conway 2001) showed that it is those closest to
day-to-day performance and to the job that are most effective. Top-down communication from senior
management is generally seen as the least effective approach to getting key messages across. Mission
statements, which are widely used, are no more than moderately effective. Communication by line
managers is essential to getting across to employees messages that are believed.
Unfortunately, research suggests that a majority of line managers are failing in many of the basic
elements of good management, including providing regular feedback (Guest and Conway 2004). If
line managers are not doing their job, change initiatives will fail. One of the biggest challenges for HR
is to support line managers in their responsibilities for managing and developing their people.

Provide realistic job previews

Since the initial stages of employment have been shown to be highly critical in setting the future
frames of reference for employees, special attention must be paid to how new employees are
introduced into the organization. Wanous(1975) research on the earliest stages of employment has
shown that most new employees tend to go into jobs with inflated expectations. He proposes that
recruits be given a realistic job preview which illustrates both the desirable and undesirable aspects
of the organization, rather than using the traditional approach, which tries to maximize the positive
aspects of the organization to the exclusion of realistic aspects. Research done by Louis (1980) also
suggests that unmet expectations during the initial stages of employment result in a lack of
commitment and increased turnover. In view of the fact that most turnover occurs within the first six
months, more realistic job previews and a concern towards understanding and meeting new
employees expectations could provide a more realistic and positive initial organizational experience
and reduce the cost of early resignations.

(pc1)
What else can be done?
5
In addition to these human resource implications, a number of activities can be suggested in order to cope with
the changing psychological contract now and in the future. Together, these activities can be seen as a set of
methods and techniques designed to enhance the loyalty and commitment of employees by setting up a system
for establishing and discussing employee expectations early in the employment relationship, checking out
whether the psychological contract is still valid at later stages, and renegotiating the contract if necessary
(Hiltrop, 1995).
Offering challenging work experiences
The challenge of work experience has been shown to be one of the most significant factors in the
development of commitment (Meyer et al., 1989; Steers, 1977). Given this strong influence, efforts
should be made to design tasks and structures which will enable people to feel a sense of
accomplishment, to express and use their talents, and to exercise their own decision-making powers.
By designing jobs to increase the opportunity for challenge and self-development, steps can be taken
to help ensure a high commitment and identification with the organization. Also, involving new
entrants in work that is challenging and that increases their growth and development is important as
individuals begin their socialization in the organization.
Managing the psychological contract
47
Balance professional and organizational relationships
The management of expectations is critical at the later stages of the employment
relationship as well, especially in the light of the finding that people at medium
tenure and position express more commitment to their profession and less to their
organization. Perhaps a way to avoid the declining commitment experienced at that
stage would be to provide various opportunities for professional memberships,
external contacts and affiliations which create a balance between the organizational
needs and professional aspirations (Sheldon, 1971). As Herriot (1992) says, the key
human resource task in the 1990s is to reconcile two sets of expectations: the
organizations need for loyalty and commitment with the employees rights and
needs as individuals and as members of interest groups.
Benefit, Reward and recognize high achievement
Given the pressure to do things better, faster and cheaper, reward systems should
recognize contribution rather than position or status. In addition, since cross functional
projects and assignments are more temporary and less hierarchical,
reward systems should be more dynamic and flexible. Reward and remuneration
packages (salary, incentives, bonuses, benefits) should encourage employees with
the opportunity to serve beyond their job description, gain professional expertise,
and cultivate core competences across functional groupings.
Create or strengthen the firms staffing systems
A companys transition to a new psychological contract brings with it the need to
create or strengthen its HR planning capabilities (Burack and Mathys, 1987). As
Burack and Singh (1995) argue, the effectiveness and scope of the new employment
situation will be directly affected by how well HR planning mechanisms are functioning,
including the thoroughness of pre-employment activities and the care and attention
to detail of induction processes. In short, the new employment contract calls for
comprehensive rethinking of the whole employment process. Exit interviews become
important sources of information to understand the unfulfilled expectations and
unmet needs of outgoing employees. These can serve to validate or question
employment relations actions (Burack and Singh, 1995).
Conclusions
There is no doubt that increasing competition and changing expectations among
employees have prompted a growing disillusionment with the traditional psychological
contract based on lifetime employment and steady promotion from within. Consequently,
companies must develop new ways to increase the loyalty and commitment of
employees. For instance, given the pressure to do things better, faster and cheaper,
reward systems should recognize contribution rather than position or status. Reward
6
strategies may also be used to rebuild commitment for survivors in downsizing
organizations. In addition, considering the shift towards decentralization and
empowerment, it is essential that individuals and groups are given more responsibility
over salary decisions. Furthermore, rewards should be based on continuous performance
and continuous improvement, rather than single events or past achievements.

Systematic training and development (as opposed to sending individuals away

on ad hoc training programmes) will enhance commitment by giving talented
employees the opportunity to develop their skills and to achieve positions of greater
challenge and responsibility. In view of the need for cross-functional teamwork,
individuals need to be trained in the skills needed for working together with other
specialists and functions. Managers need to be trained in counselling and coaching
to exercise leadership and facilitate the relationships between the various functions
and professions within a work group.
These various strategies and techniques are consistent with the HR policies and
practices that successful companies use to achieve competitive advantage through
people (Kravetz, 1988; Pfeffer, 1994). However, I suspect that this link between human
resource management (HRM) and organizational performance exists only if line
managers understand the importance of management practices for achieving
competitive advantage and know what personnel policies and practices are appropriate
to direct employee attitudes and behaviour towards corporate goals. As Beer et al.
(1984) point out, without either a central philosophy or a strategic view of the link
between HRM and the overall capability and performance of the company (which
can be provided only by general managers), managerial behaviour with regard to
people is likely to remain a set of independent activities carried out by individuals,
each guided by their own personal values, opinions and practical experience.
Companies like AT&T and the Royal Bank of Scotland have already begun to reform
all policies and practices that affect the relationship between employees and employer.
For many others, however, establishing a new set of policies and practices that are
in line with business requirements, societal changes and the values and expectations
of employees is more likely to be a matter of revolution than reform.

(Psychological contract gukgjyfrtfk)1.1. The psychological contract

Rousseau (1989, 1995) defined the psychological contract as the employees beliefs concerning
mutual obligations
between the employee and the organization (see for a comprehensive review of the concept,
Conway &
Briner, 2005). When the organization does not fulfill its obligations, employees may experience
psychological
contract breach. Contract breach is defined as the cognitions of an employee that the
organization has failed
to deliver its obligations (Morrison & Robinson, 1997). An affective reaction may follow, including
feelings of
anger and betrayal (i.e. contract violation; Robinson & Morrison, 2000). The current study follows
this distinction
between breach and violation, as made by Morrison and Robinson (1997). Breach refers to the
cognition
that the organization has failed to fulfill its obligations, whereas feelings of violations refer to the
affects
following breach.
1.2. Effects of psychological contracts on job attitudes and job satisfaction
Previous research on psychological contracts has indicated that contract breach has a profound impact
on job attitudes (Conway & Briner, 2005; Zhao et al., 2007). Studying job attitudes is important
because they are predictors of key behaviors as job performance and withdrawal (Harrison, Newman,

7
& Roth, 2006). When organizations break psychological contracts, employees trust in their
organization is harmed. Furthermore, organizational failure to deliver its obligations is also associated
with a decrease of job satisfaction and commitment to the organization. Zhao et al. (2007), in their
recent meta-analysis on the relations between psychological contract breach and outcomes, employed
affective events theory to explain the relations between psychological contracts and attitudes and
behaviors. According to affective events theory, a negative event at the workplace causes negative
emotional reactions, such as anger or frustration (Morrison & Robinson, 1997; Weiss & Cropanzano,
1996). These emotions color the cognitive evaluations of ones job, in such a way that experience of
negative emotions will cause more negative job attitudes (Thoresen, Kaplan, Barsky, Warren, & de
Chermont, 2003). Previous research has confirmed this link between negative emotions and job
attitudes by showing that negative emotions are related to decreases in trust (Dunn & Schweitzer,
2005), job satisfaction (Judge & Ilies, 2004), and commitment (Thoresen et al., 2003). On the other
hand, positive emotions will color evaluations of the job in a positive way, such that people experience
higher trust, satisfaction, and commitment. Zhao et al. (2007) argue that in particular psychological
contract breach is perceived as such a negative event. Thus, contract breach leads to affective
reactions, which in turn contribute to the establishment of job attitudes. However, it is not always clear
why and how employees come to perceive something as a negative event.
According to social exchange theory, people engage in interactions with other people because
they are motivated
by the expectations of receiving inducements in return from the other party (Blau, 1964;
Gouldner,
1960). Social exchange involves series of interactions (such as incentives from the employer and
contributions
from the employee) between two parties (Cropanzano & Mitchell, 2005). Each party acts
according to the
norm that the other party will reciprocate such actions, creating mutual obligations over time. If
one party
does not reciprocate, an imbalance is created between the contributions of the two parties
(Cropanzano &
Mitchell, 2005). If employees perceive that their employer has not reciprocated their
contributions, they will
respond with emotional reactions such as anger and frustration, in line with affective events
theory. Furthermore,
they may restore the balance in social exchanges by lowering their trust, job satisfaction, and
commitment
(Taylor & Tekleab, 2004). According to Taylor and Tekleab (2004), social exchanges and reciprocity
play a critical role in the psychological contract because mutual obligations, as social exchanges,
form a psychological
contract. Shore and Barksdale (1998) found that imbalances between employee and employer
obligations
resulted in a lower affective commitment than in a balanced situation, especially when it involved
mutually high obligations.
Not receiving anything in return for contributions to the organization will therefore be perceived
as a negative
event. Subsequently, and in accordance with affective events theory (Blau, 1964; Taylor &
Tekleab,
2004), contract breach as an imbalance in social exchange will affect job attitudes. As a result,
employees
respond to contract breach by lowering their trust, job satisfaction, and commitment to the
organization.
To explain why older workers react differently to contract breach than younger workers, we
employ relevant
insights of previous lifespan psychological theories (e.g. Carstensen et al., 1999, 2003; Kanfer &
Ackerman,
2004).
1.3. The moderating role of age between contract breach and job attitudes
8
Although dispositional differences were mentioned as moderators in affective events theory, until now
they have been scarcely tested empirically. Moreover, there are no studies that focused on how the
relations between psychological contracts and job attitudes change over the lifespan (Guest, 2004;
Schalk, 2004). According to lifespan theory, aging is generally associated with both gains and losses
(Baltes & Baltes, 1990; Kanfer & Ackerman, 2004). When people grow older health and biological
abilities decrease, whereas knowledge and experience will generally increase. Moreover, previous
research has shown that as people grow older, their future time perspective decrease and the feeling
that time is running out becomes more salient (Lang & Carstensen, 2002). A number of age-related
mechanisms that are of influence on the relations between psychological contracts and job attitudes is
addressed.
According to Carstensen et al. (1999), the perception of approaching retirement may be characterized
by an effort of making experiences more positive. Younger workers may be less concerned with how
their employment relationship ends, since they may have opportunities to work in other organizations,
than older workers who tend to have fewer options for job transfer (Hedge, Borman, & Lammlein,
2006). Moreover, a perception of older workers, that their current employer will be their last, makes
them feel more positive about the employer (Carstensen et al., 1999, 2003). Longitudinal research
supports this idea of emotional selectivity by finding that older people report less negative affectivity
than younger people, whereas positive affectivity remains stable across the lifespan (Charles,
Reynolds, & Gatz, 2001). Moreover, there is accumulating evidence that older people become better in
regulating their emotions after negative events than younger people (Carstensen et al., 2003;
Lockenhoff & Carstensen, 2004). For this is that older and more experienced workers have relatively
more stable psychological contracts (Rousseau, 2001). Psychological contracts form mental models, or
abstractions of complex concepts such as employment relationships, to help understand and make
sense of the world employees live in (Rousseau, 2001). Over time, employees develop an increasingly
stable psychological contract, which is more resistant to change than those of younger and more
inexperienced workers. Changes in the employment situation, such as contract breaches, may have a
more intense impact on young people given their less stable mental models of their psychological
contract than older workers (Rousseau, 2001).
Finally, older workers may have different types of psychological contracts than younger workers
(Anderson & Schalk, 1998; Schalk, 2004). As a consequence of environmental and personal changes,
psychological contracts will develop and change over time (De Vos, Buyens, & Schalk, 2003). Young
people often enter the workforce with high expectations, but after time they adapt their expectations
according to reality (De Vos et al., 2003; Thomas & Anderson, 1998). Older workers may have more
realistic expectations about what to receive than younger workers (Thomas & Anderson, 1998).
Therefore, a psychological contract breach may be less harmful to older workers than to younger
workers.
In sum, according to social exchange theory, organizational failure to reciprocate employee
contributions
may be perceived as a negative event (Cropanzano & Mitchell, 2005). Affective events theory
shows that negative events at the workplace are related to decreases in trust, job satisfaction,
and commitment (Zhao et al.,
2007). Finally, lifespan psychology explains that older workers are more focused on positive
experiences, have
better emotion regulation, and have more realistic expectations than younger workers
(Carstensen et al.,
1999). Therefore, older workers may react less intense to psychological contract breach than
younger workers.
It is expected that contract breach will be related negatively to trust, job satisfaction, and
commitment. This
expectation is based on findings of a recent meta-analysis of Zhao et al. (2007). Moreover, it is
expected that
older peoples attitudes will be less affected by contract breaches than younger people. More
specifically, in this
9
study we will address the following hypotheses:

(Workplace_ factors_ psychological)

Workplace factors

Increased job satisfaction leads to increased retention rates (Ross 2001; Larsen 2000). Moss and
Rowles (1997) found that a participative management style improved job satisfaction.
Employee participation is defined as a process of employee involvement designed to
provide employees with the opportunity to influence and where appropriate, take part
in decision making on matters which affect them. Participation improves
involvement in the change process, creating a feeling of its my baby. Participation
may add meaning to work and permit the employees to identify with it. Cotton (1998)
reported that participation in work decision is associated with enhanced job
satisfaction. Ichniowski, Kochan and Levine (1996) found that decentralization and
participation management are related to a number of other innovative work
practices. They therefore logically precede the social- psychological variables that
describe the experience of working in a particular place and are indicative of the
relationship between participation in decision making, sense of involvement in the
organization, and the sense of autonomy and control.

Role efficacy and participation are factors important for both quality of patient care

and retention of staff as both these categories are at the organizational level of analysis
and

neither set of variables is reducible to the behavior of individuals. When empowerment

increases

self-efficacy, then organizational commitment, autonomy, job satisfaction and

perceptions of

participative management result. When people feel that their roles are central to the

organization, their role efficacy is likely to be high. If they feel that their roles are
peripheral,

i.e, not very important, their potential effectiveness will be low.

Objectives and Hypotheses
Based on the above review , the present study investigated the effects of certain
hospital workplace factors on the psychological contract fulfillment and turnover
intentions of
medical professionals in the private healthcare sector in India. It was
hypothesized that:
(a) Perceived levels of workplace factors such participation, perceived
organizational support

10
and role efficacy would be higher among doctors as compared to the nursing
staff in the
private healthcare sector.
(b) Workplace factors would be positively related with perceived fulfillment of the
psychological contract in the private healthcare sector.
(c) The workplace variables would be negatively related with turnover intentions
of medical
professionals in the private healthcare sector.

Psychological contract fulfillment

A further means of analyzing the growing levels of
dissatisfaction among healthcare workers with their experience of work is via the
concept of the
psychological contract. The psychological contract has been defined by
Rousseau and others
as the individual employees subjective perceptions of the mutual obligations
between employer
and employee. The psychological contract thus fills the perceptual gaps in the
employment
relationship and shapes day-to-day employee behavior in ways that cannot
necessarily be
discerned from a written contract. A violation of the psychological contract may
elicit negative
attitudinal consequences, including feelings of dissatisfaction, resentment, anger
and mistrust. In
turn, these emotions may produce a range of negative work behaviors ranging
from lower
commitment and reduced effort to higher absenteeism, sabotage and exit. A
violation occurs
when the employee experiences a discrepancy between the actual fulfillment of
obligations by
the organization and what it has previously promised to do (Anderson & Schalk
1998).
The paper made particular reference to the concept of the psychological
contract or
individual employees subjective perceptions of their expectations at work. It is
suggested that
healthcare professionals may perceive that their psychological contract has been
violated as a
result of the shift to running hospitals as businesses by the private sector and
resultant increases
in patient throughput. Such developments suggest that hospital administrators
need to focus on
both extrinsic motivators in the form of increased pay and conditions to attract
and retain
healthcare professionals and on intrinsic rewards (Cameron & Pierce 1997).
Naude and Van
Niekerk (2004) argue that support is developed when positive relationships are
built. This means
11
that mutual respect, trust and integrity need to be created and maintained.
These are the
important factors to maintain relational psychological contract because relational
psychological
provide affective bonding between employee and organization. Employees with
relational
contract are more motivated and devoted for their organization. It should be
noted that specific
factors such as work pressure, supervisor support , poor cohesion, and autonomy
may affect
withdrawal behaviors (turnover and absenteeism).

12
 nd
2 day
(Psycho. Pdf, Annette Sharpe The psychological contract in a changing work
environment
Annette Sharpe, September 11th 2001 )
Intro for literature.
Additional is on the hard copy material about unilateral approach.

'The psychological contract is the employee's perception of the mutual obligations existing
with their employer'. Rousseau, 1990: 391)

This definition sets the borders around the psychological contract as only the employee's
perception about them mutual obligations. Researchers appear to agree that studying the
concept from the organizations perspective is problematic and runs the risk of
anthropomorphizing. Who or what, for example, represents the organization? As Schalk
and Freese (1993) point out, 'an organization can hardly be considered as a uniform set of
expectations, rather it is a multiple collective of diverse and differing expectations held by a
whole set of actors'. Thus the collection of reliable and valid data representing the
organizations side of the psychological contract is difficult and the majority of studies
focus on only the employees perception.

'An employee weighs his or her obligations towards the organization against the obligations
of the organization towards them as an employee and adjusts behavior on the basis of
critical outcomes' (Anderson and Schalk, 1998: 640).

For example, if employees perceive that the organization treats them fairly, respects their
efforts and rewards them justly, they will feel obligated to reciprocate by working hard and
avoiding harming the organization. Guest et al (1996), suggest that the strength of the
psychological contract is dependent on how the individual believes the organization is fair
in fulfilling its perceived obligations above and beyond the formal written contract of
employment. This in turn determines commitment to the organization, motivation, job
satisfaction and the extent to which they feel secure in their job (Guest, 1996; Makin &
Cooper, 1995; Rousseau, 1994, 1996). In other words, promises made by the organization
followed by employee effort lead to expectations of payment or organizational fulfillment of
obligations. When fulfilled according to expectations it leads to positive attitudes and a high
level of commitment.

13
 (Psychological_contracts_pdf, Barling, J. & Cooper, C. (2008).
Handbook of Organizational Behavior, Sage.)

Consequences of Contract Breach and Violation

A dominant emphasis of current research has focused on the consequences of perceived contract
breach on employees feelings, attitudes and behavior. This topic has attracted considerable
research attention and, consistent with Rousseaus (1989) definition, this has been investigated
from the employee perspective when employees perceive that the organization has failed to
fulfill its obligations. Employees experience contract breach quite frequently (Conway & Briner,
2002; Lester, Robinson & Rousseau, 1994). Coupled with its role in explaining the consequences
of the psychological contract, it is not surprising that it has received considerable attention (see
Robinson & Brown, 2004 for a review).
Researchers used psychological contract breach and violation interchangeably until Morrison and
Robinson (1997) distinguished between the two in terms of cognition and emotion. Contract
breach captures a cognitive awareness that one or more obligations have not been fulfilled and
contract violation captures the emotional experience that arises from the recognition that a
breach has occurred (Morrison & Robinson, 1997). Contract violation would include emotional
distress, feelings of betrayal, anger and wrongful harm that result from the individuals
perception that although they have kept their promises to another party, the other party has
broken their promises to the individual. Therefore, one can recognize a breach has occurred yet
at the same time not experience feelings of violation. In empirical research, the overwhelming
emphasis has been directed to examining the consequences of perceived contract breach while
the consequences of violation are under researched.
Empirical evidence suggests that contract breach leads to reduced psychological well-being
(Conway & Briner, 2002), increased intentions to leave the organization (Tekleab & Taylor,
2003; Turnley & Feldman, 1999), reduced job satisfaction (Tekleab & Taylor, 2003), trust in the
organization (Robinson, 1996), organizational commitment (Coyle-Shapiro & Kessler, 2000;
Lester, Turnley,
15
Bloodgood & Bolino, 2002), lower employee obligations to the organization (Coyle-Shapiro &
Kessler, 2002; Robinson, Kraatz & Rousseau, 1994), and more cynical attitudes toward the
organization (Johnson & OLeary-Kelly, 2003). In terms of behavior, contract breach negatively
affects in-role performance and extra-role behaviors (Lester et al., 2002; Robinson & Morrison,
1995).

14
 Relationships between work
(work envir)
environments, psychological
environments and psychological
well-being
R. B. Briner, Vol. 50, 2000
Department of Organizational Psychology, Birkbeck College, University of
London, London, UK
THE MEANING OF WORK ENVIRONMENTS
The work environment can be thought of, simply, as the environment in which people work. As
such, it is a very broad category that encompasses the physical setting (e.g. heat, equipment),
characteristics of the job itself (e.g. workload, task complexity), broader organizational features
(e.g. culture, history) and even aspects of the extra organizational setting (e.g. local labour
market conditions, industry sector, and work-home relationships). However, not all aspects of the
work environment are equally important or indeed relevant when considering the psychological
environment and how this environment affects worker well-being will be discussed later. For the
purposes of this discussion therefore focus will only be on those aspects of the work environment
which, according to a number of theoretical positions, seem to be most important and relevant
for psychological well-being. The following describes some of the main psychological
characteristics in the work environment which may be relevant to psychological well-being. The
ways in which these characteristics have been thought to affect well-being will be discussed in
the next section.
The physical setting
To what extent can the physical setting have direct effects on the psychological environment?
The impact may be less direct and less marked than some of the other features of work
environments that will be described later, but, nonetheless, they can be significant in particular
kinds of work. Three kinds of influence will be considered here. First, aspects of work such as
heat, noise, and lighting have been shown to affect a number of psychological processes in both
direct and indirect ways. Noise, for example, may impair the cognitive performance of certain
kinds of tasks. Second, the physical setting impacts on the level and nature of social interaction
between co-workers. The design of open plan offices, for example and other aspects of the
physical lay-out may determine the kinds of interactions that can take place. Third, the physical
environment may offer more or less physical safety. Concerns about accidents or injury are likely
to have some effect on psychological well-being.
Job characteristics
There have been numerous attempts to identify the key psychological features or characteristics
of jobs. Characteristics that are thought to be important for well-being include qualitative and
quantitative workload, the control or discretion workers have over the way they perform tasks,
the level of task repetitiveness, and role ambiguity. The way in which jobs are designed, and the
way they are designed in relation to technologies, is thought to be a major determinant of job
characteristics. The work environment therefore creates these job characteristics through the way
in which jobs are designed and organized and is thought to be one of the most important sets of
influences on psychological well-being.
Broader organizational features
15
Jobs take place and workers work in a much broader
organizational context in which the features may be
relevant to well-being. Two will be discussed briefly.
First, the structure of the organization. Structure includes
the number of levels in the hierarchy and the way in which
workers are deployed, such as teams, and the coordination
between different parts of the organization
may all play a role in constructing the psychological
environment. The second feature is the organizational
culture, which refers to the norms of behaviour and
accepted ways of doing things. Culture may help to shape
many aspects of the psychological environment including
social support, working hours, and the acceptability of
bullying or oppressive behaviours.
Extra-organizational factors
It has become increasingly recognized that in order to
understand how work affects well-being, it is also
necessary to understand how various situations outside
work play a role in this relationship. These factors can be
considered on three levels. First, on an individual level, it
is clear that what is happening to a worker outside work
can have a significant influence on their well-being in
relation to work.8 For example, a worker who is
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R.B. Briner: Work and psychological environment 301
experiencing difficulties with relationships outside work,
which are causing them considerable distress, may find
dealing with problems at work more challenging than
usual. The second level is the local community level
where features such as local unemployment levels,
transport, housing and healthcare provision may all play
a role. It may be the case, for example, that in conditions
of particularly high unemployment, working conditions,
which may more usually be regarded as harmful and
intolerable, become more acceptable given the scarcity of
jobs. Last, the national economic climate may also be
significant in influencing work and well-being relationships.
Working in an industry sector that is particularly
threatened, for example, is likely to increase feelings of
job insecurity.
There are, therefore, numerous ways in which the
work environment creates and contains psychological
environments that may have significant influences on
psychological well-being. Some of the ways in which
researchers have attempted to understand and explain
these links are as follows.

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