The psychological contract in employment: empirical evidence from an economy in transition | |
| Author | Do Xuan Truong |
| Call Number | AIT Diss. no.SM-08-03 |
| Subject(s) | Contracts--Phychological aspects Employment--Phychological aspects Contracts--Phychological aspects Employment--Phychological aspects |
| Note | A dissertation submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. SM-08-03 |
| Abstract | The psychological contract has ha d a renewed focus for theoretical and empirical research in recent years although the concept originated 40 years ago. It is an effective way to describe, understand and predict the consequences of changes regarding the employee relationship. Although the concept of the psychological contract is universal, most studies about it have been undertaken in Western contexts. This study investigates the psychological contract in employment in Vietnam. The boom in the private sector, the restructuring of state-owned enterprises, the increasing participation of foreign companies and their investment in a more dynamic economy should all have brought substantial changes in the employment environment and in the relationship between employees and employers. In addition, the distinct historical and cultural characteristics of Vietnam should have had an important imp act on the psychological dimension of the employment relationship and HR practices. By exploring the psychological contract in employment, this study is expected to provide insights into the employment relationship during the process of economic transition taking place in Vietnam. Data for this study came from 220 pairs of university students taking a second degree and their corresponding HR managers. The students represent the employees’ side while their HR managers represent the employers’. This study found that the psychological contract had a four-factor structure, namely: compensation, the job, opportunity and security. The presumed mismatch in perceptions of employees and employers about contract obligations was confirmed. Compared with employers, employees perceived a significantly lower level of employers' obligations and a significantly lower level of contract fulfilment. Regarding organisational communication, information adequacy was found to have had a significantly impact on contract mismatch. Communication climate and communication methods did not have a significant relationship with contract mismatch. No evidence was found to support the positive relationship between the degree of mismatch in employees’ and employers’ perceptions of employers’ obligations, and contract fulfilment as perceived by employees. Finally, contract fulfilment was significantly and positively related to job satisfaction and organisational commitment. Organizations requiring a committed workforce should make efforts to fulfil their obligations to employees. This study provides a number of practical implications. Companies need to communicate their contract obligations and fulfilment effectively to their employees in order to reduce the mismatch in perceptions of employees and employers regarding contract obligations and fulfilment. To provide employees with sufficient information is a good way to do so. Companies can use HRM policies and practices to improve their psychological contracts with employees. Companies also need to pay attention to the cultural dimensions and to the psychological contract during organisational change s. Organizations should explicitly discuss this with their employees to clarify the terms and conditions of the employment relationship in cross culture contexts and when organizations go through drastic changes. |
| Year | 2008 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. SM-08-03 |
| Type | Dissertation |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Swierczek, Fredric William ;Swierczek, Fredric William ; |
| Examination Committee(s) | Sununta Siengthai ;Afzulpurka, Nitin; |
| Scholarship Donor(s) | Government of Switzerland; |
| Degree | Thesis (Ph. D.) - Asian Institute of Technology, 2008 |