Impact of Psychological Contract Fulfillment on Employee Outcomes: Mediating Role of Affective Commitment

Abstract

This research examine the effect of psychological contract fulfillment on employee outcomes including employee turnover intentions and employee constructive voice behaviors; whereas affective commitment was utilized as a mediator to examine the intensity of its effect on the relationship among psychological contract fulfillment and employee outcomes. The convenience sampling method was used. Data was gathered through onsite administration of a survey from individuals working in banking sector of Pakistan. The Psychological Contract Fulfillment Scale (Conway & Briner, 2002), Affective Commitment Scale (Meyer, Allen, & Smith, 1993), Employee Turnover Intentions Scale (Kuvaas, 2006) and Employee Constructive Voice Behaviors Scale (Van Dyne & Lepine, 1998) were used. The findings depict psychological contract fulfillment had negative relationship with employee’s turnover intention whereas it was positively linked with employee’s constructive voice behaviors. Further results revealed affective commitment significantly mediate relationship between psychological contract fulfillment and employee outcomes such that fulfillment of psychological contract positively contributes towards affective commitment levels among workforce which eventually increases constructive voice behaviors and lower turnover intentions among employees within an organization.

Psychological Contract Fulfillment and Attitude towards Organizational Change: A Mediation and Moderation Analysis of Affective Commitment and Empowering Leadership

“…For instance, the result is in line with the study by Tjahjono et al (2020) that utilized AC as a mediator to examine the roles of perceived organizational support and procedural Justice on job satisfaction. The result also agrees with the study conducted by Shafqat and Mushtaq (2020), which examined AC as a mediating variable on PCF with turnover intention and employee voice behavior. Further analysis showed EL as a positive and significant predictor of ATOC.…”

“…The literature supports the view that AC leads to positive workplace behaviors in the organization, indicating that it has a role as a mediator between PCF and ATOC. For example, AC has positively influenced ATOC and reduced turnover intention (Edosomwan et al, 2020;Shafqat & Mushtaq, 2020;Yukongdi & Shrestha, 2020). AC has also been linked to increased well-being, job satisfaction, and reduced emotional exhaustion (Huyghebaert et al, 2017).…”

“…AC has also been found to mediate the relationship between procedural justices and job performance, perceived organizational support and job performance (Tjahjono et al, 2020), ethical leadership and school effectiveness in a population of teachers (Negis Isik, 2020), authentic leadership, and employee creativity (Ribeiro et al, 2020), transformational leadership and turnover intention; where it impact in the relationship reduced employee turnover intention significantly (Gyensare et al, 2020), transformational leadership and organizational citizenship behavior (Lee et al, 2018), and workplace friendship and turnover intention (Hsu et al, 2020). AC has also been found to mediate the relationship between PCF and turnover intention, such that the relationship decreased when the affective commitment was high (Shafqat & Mushtaq, 2020). Based on the empirical literature reviewed, it is hypothesized that: Hypothesis Three (H3): AC will mediate the relationship between PCF and ATOC.…”

How Employee’s Organizational Citizenship Behaviors Get Affected by Characteristics of the Psychological Contract

“…Furthermore, findings of the study suggest a tendency for the organization's ability to fulfil its promises and obligations in the psychological contract became a core variable to interpret the responses of the employees at the workplace. Thus, if the employing organization honors the psychological contract, we find that the employees are more likely to react with more positive behaviors and attitudes towards their jobs, which shows that the fulfilment of the psychological contract sustains the employment trust and confidence relations between the employee and the organization and enhance the employee identification towards work assignments and his/ her organization, which agrees with findings reached by Shafqat and Mushtaq (2020); Liu (2019) and Sobaih et al (2019).…”

“…It makes them more complex and removed all boundaries. Furthermore, there were several factors that contributed in such changes, such as rise in mergers and acquisitions, globalization with its impacts, layoffs and organizational changes and restructuring; all of these factors brought major changes in the relationship between employer and employees (Shafqat & Mushtaq, 2020). Thus, the psychological contract has appeared as a corner stone in the mentioned relationship (Li, Xu, & Zheng, 2021).…”