Psychological contract assessment after a major organizational change

Abstract

Enhancing the success of mergers and acquisitions: an organizational culture perspective", Management Decision, Vol. 41 Iss 5 pp. 511-522 http:// dx.If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This study aims to identify specific changes in the content of the psychological contract during mergers and acquisitions (M&As), looking into both the "previous" and the "current" psychological contract. Design/methodology/approach -A total of 255 non-managerial employees who had recently gone through a MorA, participated in the study. They were asked to evaluate both their previous psychological contract (prior to the MorA) and their current psychological contract (after the MorA). Paired t-tests provided support for the propositions stated. Findings -Statistical analysis revealed that employee perceptions of both organizational obligations and contributions change after a MorA. Furthermore, employees with limited coping with changes ability are more likely to consider that their contract has changed after a MorA.Research limitations/implications -The cross-sectional character of this study may have increased common method bias. Still, no other option existed in this organizational setting. Practical implications -These findings suggest that major organizational changes, such as MorA significantly impact on individuals' view of their employment relationship. In fact, employees that feel confident in handling organizational changes are more prone to believe that their psychological contract has replaced by a new, subordinate one. Consequently, it is important that organizational agents shield employees against M&As negative impact by fostering coping with changes ability. Originality/value -The paper offers insights into psychological contracts after a major organizational change.

Organisational commitment in the era of the new psychological contract

“…To summarise, the majority of respondents (58%) indicated that they did not trust their organisation to look after their best interests. This study of merged organisations, confirmed Bellou's (2007) findings that both organisational obligations and contributions changed during mergers and acquisitions.…”

“…Research has repeatedly shown that communication, job security, work-role stability and social support become more valuable during times of change and restructuring (Bellou, 2007), largely to allay the fears of workers. Employees become preoccupied with questions regarding what will happen to the organisation's structure, who they will be reporting to, how communication patterns will change and how restructuring will affect their pay and benefits (Bligh & Carsten, 2005).…”

The role of the psychological contract in knowledge management

“…The psychological contract is concluded when one party decides that it has been made a promise of future payoffs and clearly understands what the promise and contracts of exchange are about (Bellou 2007). The nature of the psychological contract and who its participants are have been analyzed from many perspectives.…”

“…Others still assert that the psychological contract is founded on the norm of reciprocality (Cullinane and Dundon 2006). In all of these cases, in conceptualizing work expectations and responsibilities as well as the ways of handling them, either the employee or the employer follows a mental model or schema of employment relationships (Rousseau 2001, Bellou 2007). The psychological contract, therefore, determines the propensity and opportunities to create and share knowledge, as well as plotting a course of knowledge development.…”

Living on Both Sides of the Fence: A Phenomenological Study of Human Resource Development Professionals as Downsizing Survivors and Strategic Human Resource Development Facilitators

“…What makes the psychological contract difficult to manage is that it is subjective (DelCampo, 2007;King, 2000;Robinson & Rousseau, 1994;Rousseau & WadeBenzoni, 1994), dynamic (DelCampo, 2007;Lester, Kickul, & Bergmann, 2007;Robinson & Rousseau, 1994), and idiosyncratic (Bellou, 2007;DelCampo, 2007). No two employees will share the same psychological contract.…”