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Article
Publication date: 4 March 2014

Chi-jung Fu and Chin-i Cheng

The paper aims to provide a better understanding of psychological contract (PC) constructed by examining the relationships among unfulfilled expectations, unfulfilled promises…

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Abstract

Purpose

The paper aims to provide a better understanding of psychological contract (PC) constructed by examining the relationships among unfulfilled expectations, unfulfilled promises, and employee behavioral outcomes.

Design/methodology/approach

This study used a cross-sectional survey with data collected at three separate times, each one month apart to reduce the possibility of common method biases. The data were collected from multiple sources of 250 employee-supervisor pairs.

Findings

First, both unfulfilled expectations and promises were related to employees' negative behavioral outcomes. However, unfulfilled promises were likely to trigger stronger negative behavioral outcomes, such as a decrease in loyalty to the organization and job performance, and an increase in complaining and intention to leave the organization. Second, different dimensions of unfulfilled PCs trigger different types of behavioral outcomes. Specifically, unfulfilled transactional contracts were likely to trigger employees' withdrawing behaviors, such as intent to quit and carelessness of job performance. Similarly, unfulfilled relational contracts were likely to influence employees' extra-role behaviors, such as increased grumbling and decreased loyalty.

Originality/value

This study contributes to the PC theory in three ways. First, PCs were discussed in multiple perspectives, employees' expectations and employer's promises, which contained different meanings about employees' behavioral outcomes. Second, the contents of PCs were evaluated in multiple dimensions, transactional contents and relational contents, as they were related to different types of work-related behaviors. Third, this study was conducted in Taiwan to reveal how employees react to unfulfilled PCs in a high-context cultural environment.

Details

International Journal of Organizational Analysis, vol. 22 no. 1
Type: Research Article
ISSN: 1934-8835

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Book part
Publication date: 23 December 2005

Yao-Chun Tsao and Wen-Kuei Chen

The ‘managed stock’ market in Taiwan is neglected by the authorities and general investors. In this paper, we explore the link between financial trait and stock price changes in…

Abstract

The ‘managed stock’ market in Taiwan is neglected by the authorities and general investors. In this paper, we explore the link between financial trait and stock price changes in this special market.

Overall, we analyze and discuss managerial implications for institutional investors, general investors and the authorities as well.

Details

Asia Pacific Financial Markets in Comparative Perspective: Issues and Implications for the 21st Century
Type: Book
ISBN: 978-0-76231-258-0

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