A Longitudinal Study of the Impact of Organizational Change on Transactional, Relational, and Balanced Psychological Contracts

Abstract

Workplace transitions are thought to result in a fundamental shift in the employment relationship. This study used sensemaking theory to examine when and how organizational change affects employees’ psychological contracts (PCs). The authors suggest that employees interpret organizational change through contextual and cognitive factors related to the change. These factors, in turn, influence whether employees revise their PCs. Results of our longitudinal study suggest that the extent to which contextual and cognitive factors affect employees’ PCs depends on the type of PC. Transactional and balanced PCs were unaffected by the contextual and cognitive factors related to the change, while changes occurred in relational PCs.

Organisational change and the psychological contract at a pharmaceutical company

“…These findings echo the argument of Chaundry et al (2011) who suggest that organisational change results in a revision in the relational psychological contract.…”

Why Do Employees’ Perceptions of their Organization's Change History Matter? The Role of Change Appraisals

“…Major organizational changes often modify employees’ perceptions of and reactions to their employment relationship (Morrison & Robinson, ; Zhao, Wayne, Glibkowski, & Bravo, ). Change not only serves as a trigger for psychological contract evaluation but frequently results in revisions to one's psychological contract (Chaudhry, Coyle‐Shapiro, & Wayne, ). When individuals believe that their organization has failed to adequately maintain the psychological contract, they experience a sense of violation (Robinson & Morrison, ), which involves “disappointment, frustration, and distress stemming from the perceived failure to receive something that is both expected and desired” (Morrison & Robinson, , p. 231).…”

How Adult Attachment Styles Relate to Perceived Psychological Contract Breach and Affective Organizational Commitment

“…These different types of psychological contract dimensions can have differential outcomes for important workplace outcomes when contract breach occurs (Jensen et al 2010;Montes and Irving 2008;Raja et al 2004). Individuals will also vary in the degree they feel they are owed various transactional and relational obligations based on individual and organizational characteristics (Chaundhry et al 2011;Millward and Hopkins 1998).…”