PRECURSORS AND OUTCOMES OF PSYCHOLOGICAL CONTRACT: A STUDY ON MULTISPECIALITY HOSPITALS OF NORTH INDIA

Abstract

In recent years, work relationships have undergone significant transformations, highlighting its crucial impact on the work environment, employee performance, engagement, and job satisfaction (Kissler, 1994; Parks & Kidder, 1994). This shift is centered around the psychological contract, an implicit understanding of mutual expectations between employees and employers (Rousseau, 1989; Robinson & Rousseau, 1994). Originating from Argyris's 1960 work and gaining momentum after Rousseau's 1989 contribution, this study explores the precursors of the psychological contract, their role in formation, and outcomes like employee engagement and intention to leave. Emphasizing the multidimensional nature of psychological contracts, including both transactional and relational aspects, the study moves into the complexity of these agreements (Rousseau, 1990; Robinson & Rousseau, 1994). Unlike prior research focusing on global assessments of contract breaches, this study considers the possibility of contracts being both over- and under-fulfilled (Feldman & Turnley, 1999). This research seeks to uncover the complex dynamics of psychological contracts by investigating their antecedents and consequences. The study aims to scrutinize the moderating effect of person-organization fit on the outcomes of these contracts, offering valuable insights into the changing landscape of work relationships and their influence on both employee well-being and organizational dynamics. Employing a sophisticated empirical design grounded in structured questionnaires, this research focuses on the dynamics of psychological contracts. The comprehensive two-part questionnaire meticulously captures demographic details and psychological contract-related facets. The population comprises individuals aged eighteen and above, engaged in the healthcare sectors across northern India, specifically in Delhi, Faridabad, Gurugram, Ghaziabad, and Noida. The sampling framework meticulously selects multispecialty hospitals, ensuring a judicious representation of diverse demographics. In pursuit of methodological rigour, the research secured a representative sample size of 1500 participants, strategically distributed with 250 respondents each from Faridabad, Gurugram, Ghaziabad, and Noida, alongside 500 participants from Delhi. This approach considers various factors, including measurement scales, respondent availability, potential errors, and advanced data analysis techniques, aligning with established guidelines articulated by Sekaran and Bougie (2016) and Roscoe. The research thoroughly investigates the multifaceted nature of the psychological contract within the healthcare sector, revealing key insights into its formation and impact on employee engagement and turnover intentions. It reveals the significant correlation between demographic and personality factors, such as age, experience, and self-esteem, and the psychological contract among healthcare professionals. It also emphasizes on the positive relationship between employer attractiveness, developmental and economic value, and the psychological contract, highlighting the strategic importance of organizational initiatives. The study also elucidates the catalytic role of person-organization fit in strengthening the association between the psychological contract and employee engagement, while mediating its impact on turnover intentions. The research holds considerable significance for healthcare managers and decision-makers by highlighting the pivotal role of the psychological contract in shaping outcomes for healthcare workers. The findings signify the positive impact of a robust psychological contract on employee outcomes and overall well-being, providing a foundation for targeted management strategies. Recommendations include specialized programs to enhance understanding of the psychological contract, fostering trust and clear expectations, as well as initiatives to address self-esteem and provide comprehensive employee benefits. Proactive measures, such as regular communication and tailored initiatives, are suggested to manage the psychological contract effectively and reduce turnover intentions within the healthcare workforce. It emphasizes on the subjective nature of the psychological contract, urging organizations to invest in understanding unique drivers within their specific context for tailored strategies. It also provides actionable insights crucial for improving employee well-being, organizational reputation, and the overall effectiveness of the healthcare workforce.