Psychological and formal employment contracts, workplace attitudes and employees' turnover intentions: Causal and boundary inferences in the hotel industry. (June 2022)

• Record Type: Journal Article
• Authors: Manolopoulos, Dimitris; Peitzika, Eirini; Mamakou, Xenia J.; Myloni, Barbara
• Is Part Of: Journal of hospitality and tourism management. Volume 51(2022)
• Page Start: 289
• Page End: 302
• Publication Date: 2022-06
• Subjects: Psychological contract breach -- Formal employment contracts -- Work attitudes -- Turnover intentions -- Luxury hotels -- Hospitality industry; Hospitality industry -- Management -- Periodicals; Tourism -- Management -- Periodicals; Hospitality industry -- Australia -- Management -- Periodicals; Tourism -- Australia -- Management -- Periodicals; Hospitality industry -- Management; Tourism -- Management; Australia; Electronic journals; Periodicals; 338.4791068
• DOI: 10.1016/j.jhtm.2022.03.011
• Languages: English
• ISSNs: 1447-6770

Abstract

Abstract: As labor markets have been fundamentally modified, interest in current employment relationships gains momentum. Our study draws from the psychological contract lines of social exchange theory to synthesize breaches, formal contractual arrangements, employees' extent of organizational commitment, job satisfaction, and turnover interrelations in the luxury hotel segment of the hospitality industry. Results reporting on 254 permanent and temporary employees show substantial direct associations between psychological contract breaches (PCB), work attitudes, and job outcomes. We expand these models to include path and contingency effects. Work attitudes seem to partially mediate the PCB-turnover relationship. Further, formal and psychological contracts interact to predict turnover, while the formal contract type moderates the impact of job satisfaction on employees' leave intentions. Our study has implications for hotel managers, to the effect that job satisfaction seems a more influential predictor than commitment to turnover, in cases where employees experience breaches. Also, hotel employees with different contract types need to be managed in unique ways in order to feel committed and satisfied, and reciprocate with retention.