Psychological Contract in Collaborating Economies: Western World Vs China
Added on 2023-04-21
82 Pages20673 Words342 Views
Professional DevelopmentDesign and CreativityData Science and Big DataPhilosophyStatistics and Probability
|
|
|
Running head: PSYCHOLOGICAL CONTRACT IN COLLABOURATING
ECONOMIES
Psychological Contract in Collaborating Economies; Western World Vs China
Name of the Student
Name of the University
Author note
ECONOMIES
Psychological Contract in Collaborating Economies; Western World Vs China
Name of the Student
Name of the University
Author note
1PSYCHOLOGICAL CONTRACT IN COLLABORATING ECONOMIES
Abstract
From the past ten years the competition between big enterprises is becoming intense
and concentrated, the turnover condition of talent is generating pressure on the survival of
individuals and the companies itself. The management is continuously being challenged to
enhance the enthusiasm between employees to further develop skills and performances. To
meet the expectation of employees and an employer, psychological contract can play a vital
role during the time of change management. The psychological contract between
employers and employee can generate a psychological link, which is informal and
invisible. The current situation of hospitality industry in china can clearly portray how lack
of psychological contract can cause productivity, quality and profitability loss. With this
regards the psychological contract is also embedded with the subjective understanding of
responsibilities and commitments, which can directly impact on the quality and efficiency
of staff to achieve enterprise objective sustainably.
The purpose of this study is to comparatively measure the impact of western
method of psychological contract verses the Chinese oriented psychological contracts on
employee motivation and engagement considering the practical implementation of the
psychological contracts in the Hospitality Industry of China. The study is aimed to further
analysis of relationship of domestic and foreigner employees in terms of fulfilment of
psychological contracts through trust, job satisfaction and turnover. In other words, the
purpose of this study is to examine the fulfilment of current Western and Chinese
psychological contract based practices for both the Chinese and foreigner employees. This
research is focused on the human resource system of hospitality industry in Suzhou, China.
The methodological aim of this research to examine the contributory attributes of
psychological contracts and the interrelation of it with the employee satisfaction,
Abstract
From the past ten years the competition between big enterprises is becoming intense
and concentrated, the turnover condition of talent is generating pressure on the survival of
individuals and the companies itself. The management is continuously being challenged to
enhance the enthusiasm between employees to further develop skills and performances. To
meet the expectation of employees and an employer, psychological contract can play a vital
role during the time of change management. The psychological contract between
employers and employee can generate a psychological link, which is informal and
invisible. The current situation of hospitality industry in china can clearly portray how lack
of psychological contract can cause productivity, quality and profitability loss. With this
regards the psychological contract is also embedded with the subjective understanding of
responsibilities and commitments, which can directly impact on the quality and efficiency
of staff to achieve enterprise objective sustainably.
The purpose of this study is to comparatively measure the impact of western
method of psychological contract verses the Chinese oriented psychological contracts on
employee motivation and engagement considering the practical implementation of the
psychological contracts in the Hospitality Industry of China. The study is aimed to further
analysis of relationship of domestic and foreigner employees in terms of fulfilment of
psychological contracts through trust, job satisfaction and turnover. In other words, the
purpose of this study is to examine the fulfilment of current Western and Chinese
psychological contract based practices for both the Chinese and foreigner employees. This
research is focused on the human resource system of hospitality industry in Suzhou, China.
The methodological aim of this research to examine the contributory attributes of
psychological contracts and the interrelation of it with the employee satisfaction,
2PSYCHOLOGICAL CONTRACT IN COLLABORATING ECONOMIES
performance, engagement commitment and other attributes. This research has adopted a
mixed data collection and analysis method. The secondary data has been collected and
discussed through literature review. The primary data has been collected by interviewing 5
managers and by conducting an online survey over 120 employees of the hospitality
industry. For data analysis process the ANOVA and chi-squared tests will be deployed to
determine the degree of association with the employee’s level of psychological contract
with objective variables. For qualitative data analysis of interview, the thematic analysis
has been used using dedicated software named NVivo.
From this research it has been found that, the variable Employee Trust on
organisation is noticeably dependent on the Psychological Contracts. Besides, the
coefficient analysis shows that the significance value is lower in Internal Advancement,
Employee Obligation and Employer Obligation attributes. It clearly indicates that the level
of Trust is highly dependent on Internal Advancement, Employee Obligation and Employer
Obligation. The mean value distributive statistics clearly shows that all attributes of
Relational Contract and dependent variables are lower than the value 3, which means
neutral response. Therefore, the mean values shows that employees are not acknowledging
the psychological contract and engagement attributes above the moderate standard. It
clearly indicates that, both psychological contract and employee engagement attributes are
considerably poor.
performance, engagement commitment and other attributes. This research has adopted a
mixed data collection and analysis method. The secondary data has been collected and
discussed through literature review. The primary data has been collected by interviewing 5
managers and by conducting an online survey over 120 employees of the hospitality
industry. For data analysis process the ANOVA and chi-squared tests will be deployed to
determine the degree of association with the employee’s level of psychological contract
with objective variables. For qualitative data analysis of interview, the thematic analysis
has been used using dedicated software named NVivo.
From this research it has been found that, the variable Employee Trust on
organisation is noticeably dependent on the Psychological Contracts. Besides, the
coefficient analysis shows that the significance value is lower in Internal Advancement,
Employee Obligation and Employer Obligation attributes. It clearly indicates that the level
of Trust is highly dependent on Internal Advancement, Employee Obligation and Employer
Obligation. The mean value distributive statistics clearly shows that all attributes of
Relational Contract and dependent variables are lower than the value 3, which means
neutral response. Therefore, the mean values shows that employees are not acknowledging
the psychological contract and engagement attributes above the moderate standard. It
clearly indicates that, both psychological contract and employee engagement attributes are
considerably poor.
3PSYCHOLOGICAL CONTRACT IN COLLABORATING ECONOMIES
Table of Content
Chapter 1: Introduction..............................................................................................................6
1.1 Background......................................................................................................................6
1.2 Problem Statement...........................................................................................................7
1.3 Research purpose.............................................................................................................8
1.4 Research questions...........................................................................................................9
1.5 Research aim and objectives............................................................................................9
1.6 Significance of the research...........................................................................................10
1.7 Structure of the study.....................................................................................................11
Chapter 2: Literature review -..................................................................................................13
2.2 History of the conceptualizing Psychological Contract.................................................13
2.3 Development of Psychological constant........................................................................15
2.4 Major factors in Psychological contracts.......................................................................16
2.5Possible consequences for breach of Psychological contracts........................................20
2.6 Situational analysis of current Psychological Contract practice in China.....................22
2.10 Conclusion....................................................................................................................23
2.9 Literature gap:................................................................................................................24
2.10 Conceptual Framework................................................................................................25
Chapter 3: Methodology..........................................................................................................27
3.1 Introduction....................................................................................................................27
3.2 Research Philosophy and Approach...............................................................................27
Table of Content
Chapter 1: Introduction..............................................................................................................6
1.1 Background......................................................................................................................6
1.2 Problem Statement...........................................................................................................7
1.3 Research purpose.............................................................................................................8
1.4 Research questions...........................................................................................................9
1.5 Research aim and objectives............................................................................................9
1.6 Significance of the research...........................................................................................10
1.7 Structure of the study.....................................................................................................11
Chapter 2: Literature review -..................................................................................................13
2.2 History of the conceptualizing Psychological Contract.................................................13
2.3 Development of Psychological constant........................................................................15
2.4 Major factors in Psychological contracts.......................................................................16
2.5Possible consequences for breach of Psychological contracts........................................20
2.6 Situational analysis of current Psychological Contract practice in China.....................22
2.10 Conclusion....................................................................................................................23
2.9 Literature gap:................................................................................................................24
2.10 Conceptual Framework................................................................................................25
Chapter 3: Methodology..........................................................................................................27
3.1 Introduction....................................................................................................................27
3.2 Research Philosophy and Approach...............................................................................27
4PSYCHOLOGICAL CONTRACT IN COLLABORATING ECONOMIES
3.3 Research Design and Method.........................................................................................28
3.4 Data collection...............................................................................................................30
3.5 Sampling........................................................................................................................31
3.6 Data analysis..................................................................................................................32
3.7 Instrumentation..............................................................................................................33
3.8 Ethical consideration......................................................................................................33
3.9 Summary........................................................................................................................34
3.10 limitations.....................................................................................................................34
Chapter 4: Results and analysis -.............................................................................................35
4.1 Data collection model....................................................................................................35
4.1 Quantitative analysis of Survey.....................................................................................36
4.2 Thematic Analysis of Interview.....................................................................................58
Chapter 5: Discussion..............................................................................................................60
5.1 Introduction:...................................................................................................................60
5.2 Demographical Discussion.............................................................................................60
5.3 The current situation of psychological contract:............................................................61
5.4 The current situation of the employee satisfaction and relation to turnover:.................64
5.5 The current situation of employee engagement and commitment and relation to
turnover:...............................................................................................................................65
5.6Conclusion:.....................................................................................................................66
Chapter 6: Conclusion and recommendation...........................................................................67
6.1 Conclusion......................................................................................................................67
3.3 Research Design and Method.........................................................................................28
3.4 Data collection...............................................................................................................30
3.5 Sampling........................................................................................................................31
3.6 Data analysis..................................................................................................................32
3.7 Instrumentation..............................................................................................................33
3.8 Ethical consideration......................................................................................................33
3.9 Summary........................................................................................................................34
3.10 limitations.....................................................................................................................34
Chapter 4: Results and analysis -.............................................................................................35
4.1 Data collection model....................................................................................................35
4.1 Quantitative analysis of Survey.....................................................................................36
4.2 Thematic Analysis of Interview.....................................................................................58
Chapter 5: Discussion..............................................................................................................60
5.1 Introduction:...................................................................................................................60
5.2 Demographical Discussion.............................................................................................60
5.3 The current situation of psychological contract:............................................................61
5.4 The current situation of the employee satisfaction and relation to turnover:.................64
5.5 The current situation of employee engagement and commitment and relation to
turnover:...............................................................................................................................65
5.6Conclusion:.....................................................................................................................66
Chapter 6: Conclusion and recommendation...........................................................................67
6.1 Conclusion......................................................................................................................67
5PSYCHOLOGICAL CONTRACT IN COLLABORATING ECONOMIES
6.2 Linking with objectives..................................................................................................69
References:...............................................................................................................................72
6.2 Linking with objectives..................................................................................................69
References:...............................................................................................................................72
6PSYCHOLOGICAL CONTRACT IN COLLABORATING ECONOMIES
Chapter 1: Introduction
1.1 Background
Psychological contracts are the major components of the professional and
operational relationship between an employer and an employee where there are unwritten
mutual expectations for each side. Besides, the psychological contract also refers the
philosophy of operational integration in organizational environment. Psychological contract
is a subject of employment quality such as objectivity, compassion, respect, and trust
(Piyachat, Chanongkorn & Panisa, 2014). Formed by the concept of exchange agreements
Psychological contract can arise large variety of situations, which are not always about the
relationship of employer and employees. It is the most significant foundation of workforce
structure because of its contribution to workplace relationship between employer and
employee, the two major stakeholders of any business. In this situation, it has been clear
that the psychological contract is an as well as implicit agreement that defines strong
bonding and understanding of employee and employers (Rayton, & Yalabik, 2014). A
psychological contract rupture is characterized as a representative's observation that his or
her association has neglected to satisfy at least one commitments related with apparent
common guarantees. Any activity that is conflicting with the worker's faith in an equal
commitment can possibly make an impression of contract rupture according to the
representative. The components of psychological contracts can cause virtuous and vicious
circles in some circumstances. There are many studies that claim that the psychological
contract is a perceived exchange of professional and ethical agreement between two inter-
connected cooperative parties. It has been also suggested by some scholars that
psychological contract is a social exchange relationship as well. Therefore, it can be said
that there are many similarities between psychological contract and social exchange theory.
The reason behind this is the cost-benefit aspect of this relationships. It can be said that the
Chapter 1: Introduction
1.1 Background
Psychological contracts are the major components of the professional and
operational relationship between an employer and an employee where there are unwritten
mutual expectations for each side. Besides, the psychological contract also refers the
philosophy of operational integration in organizational environment. Psychological contract
is a subject of employment quality such as objectivity, compassion, respect, and trust
(Piyachat, Chanongkorn & Panisa, 2014). Formed by the concept of exchange agreements
Psychological contract can arise large variety of situations, which are not always about the
relationship of employer and employees. It is the most significant foundation of workforce
structure because of its contribution to workplace relationship between employer and
employee, the two major stakeholders of any business. In this situation, it has been clear
that the psychological contract is an as well as implicit agreement that defines strong
bonding and understanding of employee and employers (Rayton, & Yalabik, 2014). A
psychological contract rupture is characterized as a representative's observation that his or
her association has neglected to satisfy at least one commitments related with apparent
common guarantees. Any activity that is conflicting with the worker's faith in an equal
commitment can possibly make an impression of contract rupture according to the
representative. The components of psychological contracts can cause virtuous and vicious
circles in some circumstances. There are many studies that claim that the psychological
contract is a perceived exchange of professional and ethical agreement between two inter-
connected cooperative parties. It has been also suggested by some scholars that
psychological contract is a social exchange relationship as well. Therefore, it can be said
that there are many similarities between psychological contract and social exchange theory.
The reason behind this is the cost-benefit aspect of this relationships. It can be said that the
7PSYCHOLOGICAL CONTRACT IN COLLABORATING ECONOMIES
implicit nature of the psychological contract pursues some self-explainable consensus.
These consensus in psychological contracts are "promissory, implicit, reciprocal,
perceptual, and based on expectations.
The formation of psychological contracts is a process whereby employees and
employees develop and refine one another's mental maps. The contracting process begins
before the work itself and develops over the entire course of the employment according to
the outline of phases of psychological contract formation. The psychological contract
grows and is strengthened over time as the relationship between people is growing. The
psychological contract is, however, only effective if it is voluntarily agreed to. It is also
helpful to show what incentives the employees can expect for their jobs. Since the
competition between big enterprises is becoming intense and concentrated, the turnover
condition of talent is generating pressure on the survival of individuals and the companies
itself. The management is continuously being challenged to enhance the enthusiasm
between employees to further develop skills and performances. To meet the expectation of
employees and an employer, psychological contract plays a vital role during the time of
change management. This contract generates a psychological link, which is the root of
“informal and invisible” contract between enterprise and employees, although it has
differences between legal contracts in formal terms, but it generates a significant role in
company’s behaviour and attitude of staff (Piyachat, Chanongkorn & Panisa, 2014). The
psychological contract is also embedded with the subjective understanding of
responsibilities and commitments, which can directly impact on the quality and efficiency
of staff to achieve enterprise objective sustainably. Psychological contract creates platforms
for higher trust between employees and enterprise to maintain long term staff productivity
by supporting mutually agreed objectives.
implicit nature of the psychological contract pursues some self-explainable consensus.
These consensus in psychological contracts are "promissory, implicit, reciprocal,
perceptual, and based on expectations.
The formation of psychological contracts is a process whereby employees and
employees develop and refine one another's mental maps. The contracting process begins
before the work itself and develops over the entire course of the employment according to
the outline of phases of psychological contract formation. The psychological contract
grows and is strengthened over time as the relationship between people is growing. The
psychological contract is, however, only effective if it is voluntarily agreed to. It is also
helpful to show what incentives the employees can expect for their jobs. Since the
competition between big enterprises is becoming intense and concentrated, the turnover
condition of talent is generating pressure on the survival of individuals and the companies
itself. The management is continuously being challenged to enhance the enthusiasm
between employees to further develop skills and performances. To meet the expectation of
employees and an employer, psychological contract plays a vital role during the time of
change management. This contract generates a psychological link, which is the root of
“informal and invisible” contract between enterprise and employees, although it has
differences between legal contracts in formal terms, but it generates a significant role in
company’s behaviour and attitude of staff (Piyachat, Chanongkorn & Panisa, 2014). The
psychological contract is also embedded with the subjective understanding of
responsibilities and commitments, which can directly impact on the quality and efficiency
of staff to achieve enterprise objective sustainably. Psychological contract creates platforms
for higher trust between employees and enterprise to maintain long term staff productivity
by supporting mutually agreed objectives.
End of preview
Want to access all the pages? Upload your documents or become a member.