The Relationship between Breach of Psychological Contract and Workplace Deviant Behavior
Anwar Hussain · IUP Journal of Organizational Behavior · 2014
The purpose of this study is to understand the effect of breach of psychological contract on workplace deviant behavior of Information Technology (IT) professionals of Pakistan. There is a need for this study as it was seen that the IT industry of Pakistan could not flourish as much as the IT industries of India and other regional countries. One of the major problems regarding IT industry in Pakistan is that there is a lack of organizational commitment. So, this study tried to find out the reasons behind this problem. From the preliminary research, it was found that the two key factors affecting commitment in IT industry are compensation and psychological contract. Breach of psychological contract and workplace deviant behavior were measured with the help of a questionnaire. The statistical analysis was conducted to find out the relationship. The study shows that if there is a breach of psychological contract on the part of the employer, then the employee tends to show negative behavior and attitude. This can result in reduced loyalty, decrease in organizational commitment and organizational citizenship behavior, and it increases workplace deviant behavior. The performance of the employee is affected and hence it affects the overall productivity of the organization. The implications are discussed and a further study is proposed.IntroductionThe world of work is currently undergoing a complete transformation. Organizations are reshaping themselves into totally new forms. Information Technology (IT) is underpinning this transformation by providing the backbone for new organizational structures and new ways of working. The major problem regarding IT industry in Pakistan is that there is a lack of organizational commitment regarding fulfilling the job agreement of employees, which is a hindrance to the progress of this industry. So, this study tried to find out the reasons behind this problem.Psychological contract is a set of a person's individual beliefs regarding the reciprocal obligations and benefits established in an exchange relationship (Rousseau, 1995). Psychological Contract Breach (PCB) may occur if employees perceive that their firm has failed to deliver on what they perceive was promised or vice versa. Employees or employers who perceive a breach are likely to respond negatively. Responses may occur in the form of reduced loyalty commitment and organizational citizenship behavior. Workplace deviance, in group psychology, may be described as the deliberate (or intentional) desire to cause harm to an organization-more specifically-a workplace. PCB is an important aspect that has a negative impact on employee's behavior and attitude. If there is a PCB, the performance of employee is affected. There is less job satisfaction and organizational commitment and the intention to turnover increases. There is a negative relationship of PCB with organizational citizenship behavior and job performance. If an individual is more qualified or has more knowledge, the effect of PCB will be more on the attitude and behavior of that employee.IT Industry of PakistanThe overall consensus of industrial analysts is that Pakistan is one of the countries with a huge untapped potential for IT growth and an attractive investment environment. Recently, Business Monitor International (BMI) ranked Pakistan as a key destination for IT growth. The BMI rankings take into account a number of factors, including industry situation, growth potential, competitive landscape, economic and political risks, etc.Here is a general introduction to some of the IT companies which were included in the study. The products of BIS include eDox, Ecommerce Management System, Activity- Based Database Management System, Pharmacy Information System, Human Machine Interface System and many related services in this sector.Now BIS is offering mega solutions at enterprise level in the form of Software Development, Office Automation, GIS Development, etc. …