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
Table of Contents 1. Introduction 1 1.1. Prologue 1 1.2. Relevance of the Concept 2 1.3. Past Research on Psychological Contracts 5 1.4. Aims of this Research 7 1.5. Research Perspective 7 1.6. Structure of this Research 11 PART A 2. Definitions and Related Concepts 15 2.1. Introduction 15 2.2. List of Definitions 15 2.3. The Discussion on Definitions 16 2.3.1. Mental Models 16 2.3.2. Exchange Relationships 17 2.3.3. The Currency 18 2.3.4. Mutuality 19 2.4. The Agency Problem 20 2.5. Related Concepts 21 2.5.1. Social, Normative and Implied Contracts 21 2.5.2. Perceived Organisational Support 22 2.5.3. Leader-Member Exchange 22 2.5.4. Employment Relationship and Employee-Organisation Relationship 24 2.5.5. Work Contracts 25 2.6. Definition Used Here 26 3. Dimensions, Processes and Outcomes 29 3.1. Dimensions, Types and Content 29 3.1.1. Introduction 29 3.1.2. Features and Dimensions 29 3.1.3. Content 33 3.1.4. Conclusions 35 3.2. Basic Processes 36 3.2.1. Introduction 36 3.2.2. Formation of the Psychological Contract 36
X Table of Contents 3.2.3. Factors Influencing Formation 38 3.2.4. Psychological Contract Change and Influencing Factors 40 3.2.5. Breach and Violation of the Psychological Contract 41 3.2.6. Factors Influencing Breach and Violation 42 3.2.7. Conclusions 44 3.3. Outcomes 46 3.3.1. Introduction 46 3.3.2. Attitudes 47 3.3.2.1. Commitment 47 3.3.2.2. Job Satisfaction 50 3.3.2.3. Intention to Leave.( 50 3.3.3. Behaviours 51 3.3.3.1. Organisational Citizenship Behaviour (OCB) 51 3.3.3.2. In-Role Performance 53 3.3.4. Moderators.-. 54 3.3.4.1. Trust 54 3.3.4.2. Justice and Fairness 55 3.4. A Positive Psychological Contract 57 4. Theoretical Basis of Psychological Contracts 61 4.1. Introduction 61 4.2. Social Exchange Theory 61 4.2.1. Overview 61 4.2.2. Approaches in Social Exchange Theory 62 4.2.3. Social Exchange vs. Economic Exchange 62 4.2.4. Implications for Psychological Contracts 63 4.2.5. Reciprocity 65 4.2.6. Implications for Psychological Contracts 67 4.2.7. Exploitation and Power.; 68 4.2.8. Implications for Psychological Contracts 69 4.2.9. Conclusions from Social Exchange Theory 70 4.3. Mental Models 71 4.3.1. Introduction 71 4.3.2. Definitions and Properties of Mental Models and Schemata 71 4.3.3. Implications for Psychological Contracts 74 4.3.4. Influence on Behaviour and Attitudes at Work 76 4.3.5. Implications for Psychological Contracts 76 4.3.6. Stability and Change in Mental Models." 77 4.3.7. Implications for Psychological Contracts 79 4.4. The Resource-Based View (RBV) of the Firm 80
Table of Contents XI 4.4.1. Introduction 80 4.4.2. Overview 80 4.4.3. Human Resources as Sources of Sustainable Competitive Advantage 81 4.4.4. Psychological Contracts and Sustainable Competitive Advantage 84 4.4.4.1. The Four Characteristics of a Core Resource 84 4.4.4.2. The Role of Trust and Justice 87 4.4.4.3. An Extended Model of Strategic HRM Components 88 4.4.5. Conclusions from the Resource-Based View of the Firm 89 PART B 5. An Organisational Perspective on Psychological Contracts 93 5.1. Introduction 93 5.2. The Employment Relationship 93 5.2.1. Employment Relationship Intended by Employer 94 5.2.2. Strategic HRM: Employment Relationships and Human Resources 96 5.2.3. Conclusions 99 5.3. Models of Employment Relationships and Psychological Contracts 100 5.3.1. Tsui and Wang (2002) 100 5.3.2. Guest (2004b) 102 5.3.3. A New Model of Employment Relationships and Psychological Contracts. 103 5.3.4. Implementation of the Employment Relationship 104 5.3.5. Conclusions 106 5.4. Managing Psychological Contracts 107 5.4.1. Organisational Representatives 107 5.4.2. Communication Opportunities 110 5.4.3. Communication Channels 112 5.4.4. Balanced Psychological Contracts 113 5.4.5. Recommendations from Employee-Focused Research 115 5.5. Conclusions 116 6. Managing Psychological Contracts through Human Resource Practices 119 6.1. Introduction 119 6.2. Relevant Practices 119 6.3. Functions of Practices 120 6.4. Functions of Specific Practices 123 6.4.1. Realistic Recruitment 123 6.4.2. Employee Survey and Focus Group 124 6.4.3. Suggestion Scheme, Grievance Procedure, Quality Circle 125
XII Table of Contents 6.4.4. Performance Appraisal 125 6.4.5. Compensation System 126 6.4.6. Manuals and Memos 126 6.5. Conclusions 126 7. Supervisor Psychological Contract Management 131 7.1. Introduction 131 7.2. Relevance of Line Managers 131 7.3. Supervisor Roles 132 7.3.1. Agent and Principal 132 7.3.2. Facilitator, Implementer, Synthesiser and Champion of Alternatives 133 7.4. Supervisor Tasks and Behaviours 134 7.5. Varying Centrality of Supervisors 137 7.6. Influences on Supervisor Behaviour 138 7.7. Interfaces with Human Resources Practices and Human Resource Managers. 140 7.8. Conclusions 141 8. Summary of Literature Review 143 PARTC 9. Aims and Hypotheses of the Empirical Study 151 9.1. Aims of the Empirical Study 151 9.2. Hypotheses of the Empirical Study 152 9.2.1. Introduction 152 9.2.2. Aim 1: A Positive Psychological Contract for Employees 153 9.2.3. Aim 2: Outcomes of Positive Psychological Contracts 156 9.2.4. Aim 3: Obligation Keeping by Employee as Perceived by Supervisor 159 9.2.5. Aim 3: Outcomes of Obligation Keeping by Employee 160 9.2.6. Aim 4: Supervisor Contributions to Positive Psychological Contracts 161 9.2.6.1. Agreement on Organisational Obligations 161 9.2.6.2. Communication Behaviours 163 9.2.6.3. Communication Channels 165 9.2.6.4. Interactional and Procedural Justice 166 9.2.6.5. Information, Explanation and Compensation 168 9.2.6.6. Overview 168 9.2.7. Aim 5: Supervisor Contributions to Obligation Keeping by Employee 171 9.2.7.1. Agreement on Employee Obligations 171 9.2.7.2. Communication Behaviours and Channels 172
Table of Contents XIII 9.2.7.3. Objective Setting 173 9.2.8. Overview 174 10. Method of the Empirical Study 177 10.1. Design 177 10.2. Sample 178 10.3. Procedure 182 10.4. Measures 184 10.4.1. Psychological Contract Variables 184 10.4.2. Outcome Variables 189 10.4.3. Supervisor Variables 190 10.4.4. Control Variables 195 10.5. Data Analysis 196 11. Results 199 11.1. Data Screening and Descriptive Results 199 11.1.1. Missing Values 199 11.1.2. The Content of the Psychological Contract 200 11.1.3. Overview: Means, Standard Deviations and Correlations 205 11.2. Hypothesis Testing 210 11.2.1. Hypothesis 1 210 11.2.2. Hypothesis 2 215 11.2.3. Hypothesis 3 218 11.2.4. Hypothesis 4 220 11.2.5. Hypothesis 5 221 11.2.6. Hypothesis 6 223 11.2.7. Hypothesis 7 224 11.2.8. Hypothesis 8 225 11.2.9. Hypothesis 9 230 11.2.10. Hypothesis 10 233 11.2.11. Hypothesis 11 235 11.2.12. Hypothesis 12 237 11.2.13. Hypothesis 13 239 11.2.14. Hypothesis 14 240 11.2.15. Hypothesis 15 241 11.2.16. Summary 241
XIV Table of Contents 12. Discussion 245 12.1. Modelling Positive Psychological Contracts 245 12.2. The Business Relevance of Psychological Contracts 246 12.3. Modelling Breach of Obligations by Employee 249 12.4. Supervisor Opportunities to Facilitate Positive Psychological Contracts 252 12.4.1. Introduction 252 12.4.2. Agreement on Organisational Obligations : 252 12.4.3. Communication Behaviours 254 12.4.4. Communication Channels 256 12.4.5. Interactional and Procedural Justice 256 12.4.6. Information, Explanation, Compensation 258 12.5. Supervisor Opportunities to Avoid Breach of Obligations by Employees 259 12.5.1. Objective Setting 259 12.5.2. Agreement on Employee Obligations 260 12.6. Supervisor Content Management 261 PARTD 13. Conclusions 265 13.1. Management Implications and Recommendations 265 13.1.1. Challenge 1 266 13.1.2. Challenge 2 269 13.1.3. Challenge 3 270 13.1.4. Challenge 4 274 13.1.5. Determining the Need for Psychological Contract Management 276 13.1.6. Leadership Training 277 13.2. Research Implications 278 13.3. Critical Evaluation 282 13.4. Summary 285 References 289 Appendix 309