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The IUP Journal of Organizational Behavior

Psychological Contract Breach and Job Outcomes: Moderating Role of Educational Qualification

Article Details

Pub. Date	: Jan, 2023
Product Name	: The IUP Journal of Organizational Behavior
Product Type	: Article
Product Code	: IJOB040123
Author Name	: Paresh Lingadkar and K G S Narayanan
Availability	: YES
Subject/Domain	: Arts & Humanities
Download Format	: PDF Format
No. of Pages	: 30

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Abstract

The study examines the moderating role of educational qualifications in Psychological Contract Breach (PCB) and job outcomes. Using One-way ANOVA, the study examines the effect of different levels of educational qualifications on the type of PCB and employee outcomes. The results indicate that there is a significant effect of educational qualifications on the type of PCB and all employee outcomes, except turnover intention. The study also examines the moderating effect of educational qualifications on the relationship between PCB and job outcomes. The results show that educational qualifications moderate the relationship between PCB and turnover intention. Visual inspection of the interaction plot shows that as the educational level increases, the effect of PCB on turnover intentions also increases.

Introduction

Psychological Contracts (PC) consist of the beliefs employees hold about the provisions of the mutual agreement between themselves and their organizations (Rousseau, 1989; and Robinson and Rousseau, 1994). PC is defined as the employees' beliefs regarding mutual obligations between the employee and the organization (Rousseau, 1998; and Conway and Briner, 2009). PC has three aspects: perceived employee obligations, perceived employer obligations, and perceived fulfilment or violation of obligations. Weick et al. (1983) argued that when two parties can predict what each other will do in an interface (based upon both inference and examination of past practices), a contract to continue this behavior into the future emerges and structures their future relationship. Thus, expectations shaped during exchanges regarding the future pattern of reciprocity constitutes a PC. To be specific, PC consists of the commitments that employees