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Nikolaou, I.& Tomprou, M. (2007). Dynamics of the psychological contract; The role of selection practices and individual characteristics in the Greek banking sector. 13th European Conference of Work & ...

Nikolaou, I.& Tomprou, M. (2007). Dynamics of the psychological contract; The role of selection practices and individual characteristics in the Greek banking sector. 13th European Conference of Work & Organisational Psychology, Stockholm, Sweden.

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Psychological Contract & Selection Presentation Transcript

  • 1. Dynamics of the psychological contract: The role of selection practices and individual characteristics in the Greek banking sector Ioannis Nikolaou & Maria Tomprou Department of Management Science & Technology Athens University of Economics & Business, Greece
  • 2. Psychological contract defined
    • Examined as a conceptual schema:
      • “ the beliefs, based upon promises expressed or implied, regarding an exchange agreement between an individual and, in organizations, the employing firm and its agents” (Rousseau, 2004, p. 120)
      • An inherently subjective perception or as an
    • An explanatory framework indicating the transition from old to new deal (Arnold, 1996; Guest, 2004)
  • 3. A framework for applying the psychological contract (Guest, 2004) Guest, D. E. (2004). The psychology of the employment relationship: An analysis based on the psychological contract. Applied Psychology-an International Review, 53 , 541-555.
  • 4. Aims of the study:
    • To explore the role of selection processes on the form and breach/violation of the psychological contract.
    • To explore the role of individual characteristics (tenure, number of subordinates) as well as personal experiences and motives, such as history of perceived breach and careerism to the form and breach/violation of the psychological contract and
    • To explore the role of employees’ attitudes (trust, job satisfaction and commitment) on employees’ PC breach and violation in the Greek banking sector
  • 5. The Greek Banking Sector
    • The most dynamic part of Greek Economy
    • Experiencing radical changes since the mid-90s
      • Mergers, acquisitions, expansion in Balkans
      • Foreign banks entering the Greek market before and after Olympics 2004
      • Public banks functioning with private sector standards
  • 6. Hypotheses
    • “ Objective” selection methods, such as psychometric tests, assessment centres and work samples, as opposed to interviews, application blanks and references, will be negatively related to PC breach and violation
    • The selection interview and the use of realistic job preview is related to the formation of relational PC
    • Careerism is related to the formation of transactional PC
    • Tenure and history of perceived breach are related to breach and violation
    • Trust, job satisfaction and organizational commitment are negatively related to breach/violation and positively to the formation of relational PC
  • 7. Method - Measures
    • 236 participants from various banks and banking positions
    • Measures:
      • Psychological Contract Inventory ( Rousseau, 2001)
        • Types of PC: relational (.79), transactional (.54), balanced (.94), transitional (.93); overall job satisfaction
      • Careerism (Robinson & Rousseau, 1994) (.65)
      • Trust ( Gabarro & Athos , 1976 ; Robinson & Rousseau , 1994) (.70)
      • History of perceived breach (Robinson & Morrison, 2000) (.73)
      • Breach (.78) and violation (.96) of PC (Robinson, 2000)
      • Organizational commitment (Jones, 1986) (.72)
      • Measures of selection (e.g. selection methods, realistic job preview [.72]), tenure, number of subordinates
  • 8. Inter-correlation matrix (N=236)
  • 9. The role of selection processes 1/3
    • Usage of methods:
      • Application blanks: 61%
      • Personal Interview: 66.5%
      • References: 25%
      • Personality tests: 28.8%
      • Ability tests: 46.2%
      • Assessment centres: 17%
      • Work samples: 7.2%
    • Application blanks
      • Not related to PC type, breach and violation
    • Personal Interview
      • Related to transitional PC type and breach
      • Those attending interview score lower in transitional PC and breach.
      • Not related to relational PC, as expected.
  • 10. The role of selection processes 2/3
    • References
      • Not related to PC type, breach and violation
    • Personality tests
      • Related to balanced PC type and breach.
      • Those completing personality tests score higher in balanced PC and lower in breach.
    • Ability tests
      • Related to relational PC, balanced PC, transitional PC, breach and violation.
      • Those completing ability tests score higher in relational and balanced PC and lower in transitional PC, breach and violation.
  • 11. The role of selection processes 3/3
    • Work samples
      • Not related to PC type, breach and violation
    • Assessment centres
      • Related to balanced PC and breach.
      • Those participating in AC score higher in balanced PC and lower in transitional PC, breach and violation.
    • RJP
      • Related to the formation of relational (r: .40), balanced (r: .39) and transitional PC (r:. -.34)
  • 12. The role of individual characteristics
    • Careerism is not related to any type of PC
    • Tenure is related to transitional PC (r: .26) and breach (r: .20) and violation of PC (r: .21)
    • Number of subordinates is related to history of perceived breach (r: -.19) and breach (r: -.13)
    • History of perceived breach is related to breach (r: .20). Not related to violation, as expected.
  • 13. The role of employees’ attitudes 1/2
    • Trust, job satisfaction and organizational commitment are negatively related to breach and violation and positively to the formation of relational PC (r: >.40, p<.01)
  • 14. The role of employees’ attitudes 2/2 .52*** .33*** -.34*** -.24*** -.21** Transitional .31*** -.27*** -.06 -.08 β Breach Violation Trust Org. Commitment Job satisfaction .36*** .27*** .12 .03 β -.03 .04 .07 Transactional -.05 .11 .15 Relational .39*** .31*** .22*** Adj. R 2 -.15 .32*** .22* Balanced β β β Predictors
  • 15. Hypotheses Review
    • “ Objective” selection methods, such as psychometric tests, assessment centres and work samples, as opposed to interviews, application blanks and references, will be negatively related to PC breach and violation  PARTIALLY SUPPORTED
    • The selection interview and the use of realistic job preview is related to the formation of relational PC  PARTIALLY SUPPORTED
    • Careerism is related to the formation of transactional PC  NOT SUPPORTED
    • History of perceived breach is related to breach and violation  PARTIALLY SUPPORTED
    • Trust, job satisfaction and organizational commitment are negatively related to breach/violation and positively to the formation of relational PC  SUPPORTED
  • 16. Conclusions
    • RJP is significant for the formation of a positive PC
    • Selection methods did not differentiate between the various forms of contracting
    • Tenure and history of perceived breach are related to PC breach
    • The type of PC (especially transitional and balanced) is especially important in defining employees’ attitudes.
  • 17. Implications-Limitations
    • Research : Further research is needed on the PC contract in non-US and non-West European countries
    • Practise : Individual characteristics and the selection processes play a significant role on employees’ type of PC, especially newly-recruits.
    • Cross-sectional samples & common method variance effects
    • Low reliability of transactional scale of PCI
  • 18. Thank you for your attention
    • For more information please contact:
    Ioannis Nikolaou (inikol@aueb.gr) Department of Management Science & Technology Athens University of Economics & Business, Greece