The impact of organizational changes on psychological contracts

Charissa Freese · René Schalk · Marcel A. Croon

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Job Satisfaction and Organizational Behavior Higher Education and Employability Organizational Management and Change

Abstract

Purpose The purpose of this study is to add to the existing literature on the impact of organizational changes on psychological contracts by examining the exchange between employer and employee obligations and organizational commitment and intention to turnover in a causal model. Design/methodology/approach Psychological contracts of 450 health care workers were assessed in a three‐wave longitudinal design, covering a one‐year period. The Tilburg Psychological Contract Questionnaire measures perceived obligations with respect to Job Content, Career Development, Social Atmosphere, Organizational Policies and Rewards (perceived organizational obligations) and In‐role and Extra‐role Obligations (perceived employee obligations). Linear structural equation modeling was used to test the changes in psychological contracts and outcome variables over time, and also to investigate the changes in the relationships between the dependent and independent variables over time. Findings The results show that organizational changes negatively affect the fulfilment and violation of perceived organizational obligations. However, perceived employee obligations are not affected. The perceived fulfilment of Organizational Policies and violations of the psychological contract in general are most strongly affected. Originality/value Empirical longitudinal field research on the effects of organizational changes on psychological contracts is virtually non‐existent. This study is a valuable contribution to psychological contract research, because of the longitudinal nature of the study and the linear structural equation models that are used.

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References

1991A three-component conceptualization of organizational commitment 1979The measurement of organizational commitment 2002Affective, Continuance, and Normative Commitment to the Organization: A Meta-analysis of Antecedents, Correlates, and Consequences 1995Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements 1997WHEN EMPLOYEES FEEL BETRAYED: A MODEL OF HOW PSYCHOLOGICAL CONTRACT VIOLATION DEVELOPS 1998Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements.1984Testing the "side-bet theory" of organizational commitment: Some methodological considerations.1998Book Review Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements. By Denise M. Rousseau. Sage, Thousand Oaks, California

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2016Psychological contract violation and turnover intention: do cultural values matter?2013Organizational change and the psychological contract 2017How change information influences attitudes toward change and turnover intention 2015Does a Well-Informed Employee Have a More Positive Attitude Toward Change? The Mediating Role of Psychological Contract Fulfillment, Trust, and Perceived Need for Change

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