The impact of organizational changes on psychological contracts

Abstract

PurposeThe purpose of this study is to add to the existing literature on the impact of organizational changes on psychological contracts by examining the exchange between employer and employee obligations and organizational commitment and intention to turnover in a causal model.Design/methodology/approachPsychological contracts of 450 health care workers were assessed in a three‐wave longitudinal design, covering a one‐year period. The Tilburg Psychological Contract Questionnaire measures perceived obligations with respect to Job Content, Career Development, Social Atmosphere, Organizational Policies and Rewards (perceived organizational obligations) and In‐role and Extra‐role Obligations (perceived employee obligations). Linear structural equation modeling was used to test the changes in psychological contracts and outcome variables over time, and also to investigate the changes in the relationships between the dependent and independent variables over time.FindingsThe results show that organizational changes negatively affect the fulfilment and violation of perceived organizational obligations. However, perceived employee obligations are not affected. The perceived fulfilment of Organizational Policies and violations of the psychological contract in general are most strongly affected.Originality/valueEmpirical longitudinal field research on the effects of organizational changes on psychological contracts is virtually non‐existent. This study is a valuable contribution to psychological contract research, because of the longitudinal nature of the study and the linear structural equation models that are used.