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Area of Science:

  • Organizational Psychology
  • Human Resource Management

Background:

  • The psychological contract (PC) encompasses mutual promises between employers and employees.
  • PC mutuality, or agreement on these promises, is central to PC theory.
  • Understanding the link between PC mutuality, fulfillment, and outcomes is crucial for effective labor relations.

Purpose of the Study:

  • To test a mediation model examining the relationship between PC mutuality and work-related outcomes.
  • To investigate the mediating role of PC fulfillment in the PC mutuality-outcomes link.
  • To analyze the impact of employer-promised PC mutuality on employee outcomes.

Main Methods:

  • A mediation model was tested using data from 942 employees and their HR managers across 47 organizations in food, education, and sales sectors.
  • The bootstrapping technique, as developed by Hayes (2009), was employed to test the mediation model.
  • Employee affective, attitudinal, and behavioral work-related outcomes were assessed.

Main Results:

  • PC mutuality significantly predicted key work-related outcomes, including job satisfaction, well-being, organizational commitment, and intention to quit.
  • PC mutuality also influenced in-role perceived performance and perceptions of PC violation.
  • PC fulfillment was found to partially mediate the relationship between PC mutuality and these outcomes.

Conclusions:

  • The study supports the hypothesized mediation model, confirming the significant impact of PC mutuality on employee outcomes.
  • PC fulfillment plays a partial mediating role, underscoring the importance of both agreement and delivery of promises.
  • Organizations should prioritize establishing and maintaining PC mutuality to foster positive employee outcomes and enhance workplace relationships.