Supervisor Psychological Contract Management

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1 Maida Petersitzke Supervisor Psychological Contract Management Developing an Integrated Perspective on Managing Employee Perceptions of Obligations With a Foreword by Prof. Dr. Michel E. Domsch GABLER EDITION WISSENSCHAFT

2 Table of Contents 1. Introduction Prologue Relevance of the Concept Past Research on Psychological Contracts Aims of this Research Research Perspective Structure of this Research 11 PART A 2. Definitions and Related Concepts Introduction List of Definitions The Discussion on Definitions Mental Models Exchange Relationships The Currency Mutuality The Agency Problem Related Concepts Social, Normative and Implied Contracts Perceived Organisational Support Leader-Member Exchange Employment Relationship and Employee-Organisation Relationship Work Contracts Definition Used Here Dimensions, Processes and Outcomes Dimensions, Types and Content Introduction Features and Dimensions Content Conclusions Basic Processes Introduction Formation of the Psychological Contract 36

3 X Table of Contents Factors Influencing Formation Psychological Contract Change and Influencing Factors Breach and Violation of the Psychological Contract Factors Influencing Breach and Violation Conclusions Outcomes Introduction Attitudes Commitment Job Satisfaction Intention to Leave.( Behaviours Organisational Citizenship Behaviour (OCB) In-Role Performance Moderators Trust Justice and Fairness A Positive Psychological Contract Theoretical Basis of Psychological Contracts Introduction Social Exchange Theory Overview Approaches in Social Exchange Theory Social Exchange vs. Economic Exchange Implications for Psychological Contracts Reciprocity Implications for Psychological Contracts Exploitation and Power.; Implications for Psychological Contracts Conclusions from Social Exchange Theory Mental Models Introduction Definitions and Properties of Mental Models and Schemata Implications for Psychological Contracts Influence on Behaviour and Attitudes at Work Implications for Psychological Contracts Stability and Change in Mental Models." Implications for Psychological Contracts The Resource-Based View (RBV) of the Firm 80

4 Table of Contents XI Introduction Overview Human Resources as Sources of Sustainable Competitive Advantage Psychological Contracts and Sustainable Competitive Advantage The Four Characteristics of a Core Resource The Role of Trust and Justice An Extended Model of Strategic HRM Components Conclusions from the Resource-Based View of the Firm 89 PART B 5. An Organisational Perspective on Psychological Contracts Introduction The Employment Relationship Employment Relationship Intended by Employer Strategic HRM: Employment Relationships and Human Resources Conclusions Models of Employment Relationships and Psychological Contracts Tsui and Wang (2002) Guest (2004b) A New Model of Employment Relationships and Psychological Contracts Implementation of the Employment Relationship Conclusions Managing Psychological Contracts Organisational Representatives Communication Opportunities Communication Channels Balanced Psychological Contracts Recommendations from Employee-Focused Research Conclusions Managing Psychological Contracts through Human Resource Practices Introduction Relevant Practices Functions of Practices Functions of Specific Practices Realistic Recruitment Employee Survey and Focus Group Suggestion Scheme, Grievance Procedure, Quality Circle 125

5 XII Table of Contents Performance Appraisal Compensation System Manuals and Memos Conclusions Supervisor Psychological Contract Management Introduction Relevance of Line Managers Supervisor Roles Agent and Principal Facilitator, Implementer, Synthesiser and Champion of Alternatives Supervisor Tasks and Behaviours Varying Centrality of Supervisors Influences on Supervisor Behaviour Interfaces with Human Resources Practices and Human Resource Managers Conclusions Summary of Literature Review 143 PARTC 9. Aims and Hypotheses of the Empirical Study Aims of the Empirical Study Hypotheses of the Empirical Study Introduction Aim 1: A Positive Psychological Contract for Employees Aim 2: Outcomes of Positive Psychological Contracts Aim 3: Obligation Keeping by Employee as Perceived by Supervisor Aim 3: Outcomes of Obligation Keeping by Employee Aim 4: Supervisor Contributions to Positive Psychological Contracts Agreement on Organisational Obligations Communication Behaviours Communication Channels Interactional and Procedural Justice Information, Explanation and Compensation Overview Aim 5: Supervisor Contributions to Obligation Keeping by Employee Agreement on Employee Obligations Communication Behaviours and Channels 172

6 Table of Contents XIII Objective Setting Overview Method of the Empirical Study Design Sample Procedure Measures Psychological Contract Variables Outcome Variables Supervisor Variables Control Variables Data Analysis Results Data Screening and Descriptive Results Missing Values The Content of the Psychological Contract Overview: Means, Standard Deviations and Correlations Hypothesis Testing Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Summary 241

7 XIV Table of Contents 12. Discussion Modelling Positive Psychological Contracts The Business Relevance of Psychological Contracts Modelling Breach of Obligations by Employee Supervisor Opportunities to Facilitate Positive Psychological Contracts Introduction Agreement on Organisational Obligations : Communication Behaviours Communication Channels Interactional and Procedural Justice Information, Explanation, Compensation Supervisor Opportunities to Avoid Breach of Obligations by Employees Objective Setting Agreement on Employee Obligations Supervisor Content Management 261 PARTD 13. Conclusions Management Implications and Recommendations Challenge Challenge Challenge Challenge Determining the Need for Psychological Contract Management Leadership Training Research Implications Critical Evaluation Summary 285 References 289 Appendix 309

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