Employees’ Behavioural Response to Organisational Change: Effect of Psychological Contract and Change Readiness
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O'Donohue, Wayne
Xerri, Matt
Radford, Katrina
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Machado, Carolina
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Abstract
The purpose of this study is to understand the effect of employees’ psychological contract and change readiness on employees’ behavioural responses towards organisational change. This research uses a theoretical framework which links employees’ response to organisational change based on employees’ psychological contract type and level of individual change readiness. Four hypotheses are proposed and tested using a quantitative approach. Data were collected through an online survey that was completed by 117 aged care employees working in residential and community care in Australia. The study results reveal that employees with predominantly relational psychological contracts and high levels of individual change readiness are most likely to respond through Voice when organisational change occurs. On the other hand, employees with predominantly transactional psychological contracts and low levels of individual change readiness are most likely to respond through Neglect when organisational change occurs. As organisations are constantly facing change, it is important for successful change implementation to understand how employees are likely to respond to intended, unintended or unpleasant change. By understanding the link between perceived non-fulfilment of psychological contract and individual’s change readiness level, managers can design and implement change actions which will enhance the likelihood of a positive and constructive response to change necessary for organisational and employee performance.
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Challenges and Trendsin OrganizationalManagement and Industry
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1st
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1
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Organisational behaviour
Biological psychology
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Aditi, J; O'Donohue, W; Xerri, M; Radford, K, Employees’ Behavioural Response to Organisational Change: Effect of Psychological Contract and Change Readiness, Challenges and Trends in Organizational Management and Industry, 2022, 1, 1, pp. 1-17