Relationship between Psychological

Contract and Personality:

A Study of Employees of Selected Government
Organisations / PSUs in India

Dissertation Submitted to the

Padmashree Dr. D.Y. Patil University,
Department of Business Management
in partial fulfillment of the requirements for the award of
the Degree of
Master in Philosophy (Business Management)

Submitted by:
MANOJ GOYAL
(Roll No. DYPM Phil 0701006)

Research Guide:
Dr. R. Gopal
Director
Padmashree Dr. D.Y. Patil University,
Department of Business Management
Sector 4, Plot No. 10,
CBD Belapur, Navi Mumbai. 400 614

March 2009
 Relationship between
Psychological Contract and
Personality:
A Study of Employees of Selected
Government Organisations / PSUs in
India
 DECLARATION

I hereby declare that the dissertation “Relationship between

Psychological Contract and Personality: A Study of Employees of Selected
Government Organisations / PSUs in India” submitted for the degree of

Master in Philosophy (Business Management) at Padamshree Dr.

D.Y. Patil University’s Department of Business Management is my
original work and the dissertation has not formed the basis for the
award of any degree, associate ship, fellowship or any other similar
titles.

Place: Mumbai --sd--

Date: 27.03.09
(MANOJ GOYAL)
Signature of the Student
 CERTIFICATE
This is to certify that the dissertation titled “Relationship between
Psychological Contract and Personality: A Study of Employees of
Selected Government Organisations / PSUs in India” is the bona fide
research work carried out by Mr. MANOJ GOYAL, student of Master
in Philosophy (Business Management), at Padamshree Dr. D.Y. Patil
University’s Department of Business Management during the period
2007-2009, in partial fulfillment of the requirements for the award of
the Degree of ‘Master in Philosophy (Business Management)’ and
that the dissertation has not formed the basis for the award
previously of any degree, diploma, associate ship, fellowship or any
other similar title.

Place: Mumbai --sd--

Date:
(Dr. R. Gopal)
Signature of the Guide
 ACKNOWLEDGEMENT

In the first place, I am indebted to the Padamshree Dr. D.Y.

Patil University’s Department of Business Management, which has
accepted me for M. Phil. program and provided an excellent
opportunity to carry out the present research project. I sincerely
thank Dr. R. Gopal, Director, Department of Business Management of
Padamshree Dr. D.Y. Patil University, for having given me his
valuable guidance for the project. Without his guidance, it would
have never been possible for me to complete this project.

I would also like to thank people from various government

organizations, who have helped me in collection of data for this
project, without which this project could have never been completed.

I would be failing in my duty if I do not acknowledge, with a

deep sense of gratitude, the sacrifices made by my wife Tuhina and
son Advyay for allowing and supporting me to spend my free time
on this project work and thus have helped me in completing the
project work successfully.

Place: Mumbai
Date: 27.03.09 --sd--
(MANOJ GOYAL)
Signature of the Student
 CONTENTS

Page
Chapter No. TITLE
No.

EXECUTIVE SUMMARY 1

Chapter - 1 INTRODUCTION 9

Chapter - 2 CONCEPTS AND THEORY 12

Chapter - 3 LITERATURE REVIEW 28

Chapter - 4 OBJECTIVES AND HYPOTHESES 87

Chapter - 5 RESEARCH METHODOLOGY 99

Chapter - 6 DATA ANALYSIS AND HYPOTHESES 114

TESTING

Chapter - 7 CONCLUSION AND LIMITATION 129

APPENDICES:

Appendix - 1 RESEARCH QUESTIONNAIRE 139

Appendix - 2 S.P.S.S. OUTPUTS 150

Appendix - 3 BIBLIOGRAPHY 193

Appendix - 4 COPIES OF SOME LITERATURE/

RESEARCH ARTICLES REVIEWED
 LIST OF TABLES
TABLE TITLE PAGE
No. No.

2.1 The Big Five Personality Domains and their Facets 27

3.1 Old Deal vs. New Deal 55

4.1 Research Hypotheses 98

5.1 List of Organizations Selected for Data Collection 102

5.2 Analysis of sample Collection 104

5.3 Demographic Analysis of Sample 106

5.4 Dimensions of Psychological Contract and their 111

sub-scales

6.1 Score on Various types of Psychological Contracts 117

6.2 Score on Relational Contract of Various Age Groups 118

6.3 Mean Scores of Male and Female Employees on 119

various types of Psychological Contracts

6.4 Correlations between Transactional Contract and 122

Big Five Personality Factors

6.5 Correlations between Relational Contract and Big 124

Five Personality Factors

6.6 Correlations between Balanced Contract and Big 126

Five Personality Factors

6.7 Result of Hypotheses Testing 128

7.1 Summary of Objectives and Outcomes 134

 LIST OF FIGURES
FIGURE TITLE PAGE
No. No.

2.1 Four Types of Psychological Contracts 17

2.2 Assessment of Psychological Contracts 21

3.1 Responses to Violation 34

3.2 Framework of Strategy & PC 35

3.3 Main factors predicting occupational behavior 38

3.4 Newcomer’s Psychological Contract Perceptions 70

3.5 Bi-polar Features of the Psychological Contracts 74

4.1 Model of how HRM policies influence 89

employee’s attitudes & behaviors

5.1 The Model of the Research Process 100

5.2 Demographic Analysis of Sample 107

7.1 Applying Psychological Contract to the 137

Employment Relationship
 EXECUTIVE SUMMARY

Change is a constant in today’s organizations. Changes currently

affecting the workplace include - rise in part time and temporary jobs,
downsizing and de-layering, leanness, ever-changing market and
technology, growing importance of ‘human capital’ and ‘knowledge’ for
business performance and to encompass all these, new models of
organizational structures such as virtual organization.

One effect of these changes is that employees are being

increasingly recognized as the key business drivers. The ability of the
business to add value rests on its employees or ‘human capital’.
Organizations, wishing to extract most of this ‘human capital’ in order to
succeed, have to know what their employees expect from their work. The
psychological contract offers a framework for monitoring employee’s
attitudes and priorities on those dimensions that can be shown to
influence performance. The psychological contract is now becoming an
accepted part of the thinking and lexicon of HR practitioners.

The psychological contract has been defined as - “….An

individual’s beliefs regarding the terms and conditions of a reciprocal
exchange arrangement between the focal person and another party. A
psychological contract emerges when one party believes that promise of
future return has been made, a contribution has been given and thus, an
obligation has been created to provide future benefits……” (by Rousseau)

1
 This definition lay stress on perception by an individual regarding
employment relationship with his/her employer and is widely accepted by
researchers. Since it is the perception by individual employee which
affects his/ her work behavior, therefore, ‘psychological contracts’ are
subjective and idiosyncratic in nature.

The psychological contract is not an isolated, detached concept. It

is influenced by a whole range of factors – both individual and
organizational. The psychological contract itself also has its effect on a
range of attitudes and behaviors.

A lot of research work has been done on outcome of fulfillment or

violation of psychological contract, which establishes the need to manage
the psychological contract of employees well to rule out the negative
outcomes of breach of psychological contract. However, little research has
been found in the literature to suggest the mechanism of formation of
psychological contract or to probe the factors which influences the
psychological contract of an individual. Personality of an individual is one
of such obvious factors which influence the type of psychological contract
formed by him/her.

There has been growing interest among researchers on the utility of

five factor model (Big five) of personality and there has been lot of
evidences suggesting association between personality and work attitudes
& behaviors. Since the psychological contracts are idiosyncratic and
subjective in nature, they are expected to be influenced by personality of
individuals, along-with other variables. This is exactly the focus of current
study. The current study attempts to find out the effect of personality, and
other demographic variables like age and gender on psychological
contracts of employees.

2
 Post liberalization, the Indian economy has entered into a fast track
orbit of development and a lot of progress has been made in the past one
and the half decade. It has largely been possible due to change in
government’s role from “doer” to “facilitator”. Due to all round economic
development and rise in per capita income, the pressure on public sector
organization to deliver high quality, customer oriented services has
increased. In term of personnel management, this leads to an increased
interest in, among other things, performance management of PSU
employees. Due to the fact that the government organizations are still the
major employer in India; and with changing environment, citizens now
expect government employees to be more responsive and efficient. The
individuals employed in government organization have been focused for
the purpose of current study.

In particular, objectives of the current study are:

1) To investigate about the type of psychological contract held

by the employees of selected government organizations /
PSUs in India.

2) To investigate the pattern of personality (Big Five Factors)

displayed in general by government employees.

3) To investigate the difference in type of psychological

contract held by the male and female employees of
government organizations.

4) To investigate the difference in type of psychological

contract held by persons belonging to different age groups
employed in government organization.

3
 5) To investigate the relationship between the type of
psychological contracts and the personality type of
government employees.

Literature review revealed the growing interest in the concept of

“psychological contract” to analyze the organizational behavior. It is noted
that the work of Ms. Denise M. Rousseau has given a major impetus to
the research on psychological contract.

Most of literature, available in the form of research articles, have

investigated the nature of psychological contract and its effect on the
organizational behavior. The outcome of violation of psychological
contract has been thoroughly researched. However it is noted that very
little research is available on the antecedents of psychological contract:
i.e., about the factors which leads to formation of a particular type of
psychological contract. Among many probable antecedent of
psychological contract, the personality is a major and important one,
especially in view of the fact that the psychological contracts are
subjective and idiosyncratic in nature.

Further it is noted that no work is known having been done on

psychological contract in Indian context.

Keeping in view of above two major factors - viz. the lack of

knowledge about link between personality and psychological contract, and
the absence of research on this topic in Indian context - the present study
has been designed.

For data collection purpose, various government organizations

were selected representing various functions and regions of the country.
The selected office units were of medium size having about 100-125

4
 employees in each unit. Each office unit was sent 25 sets of
questionnaires to be distributed randomly in those office units. In all 425
questionnaires were distributed. Out of these total 173 responses were
received. 24 responses were rejected being incomplete and balance 149
responses were taken as sample for the purpose of analyses.

The questionnaire consisted of following three sections:

1) Covering letter
2) section 1- for general and demographic data
3) section 2- Psychological Contract Inventory (PCI)
4) section 3- Big Five Inventory (BFI)

Data analysis has been done using SPSS-12 computer software

package. Major findings from this study are:

1) The nature of psychological contract held by government

employees is predominantly ‘relational’ in nature.

2) The pattern of personality of government employees

indicates predominant presence of ‘conscientiousness” and
‘agreeableness’ factors.

3) No significant difference was found between male and

female employees with respect to the type of psychological
contract held by them except with respect to transitional
contract.

5
 4) There is no effect of age on the type of psychological
contract of government employees, which is primarily
relational in nature in Indian context.

5) It was found that personality factors have significant

association with type of psychological contract as under:

i) The relational contract was found to be significantly

and positively associated and with Extraversion,
Openness, Agreeableness & Conscientiousness, and
negatively with Neuroticism.

ii) No statistical significant correlation of Transactional

contract was found with personality factors except
Agreeableness, which has negative significant,
although small (r=-.19, p<0.05) correlation.

iii) Positive and significant correlation of ‘Balanced’

contract was found with Openness and
Conscientiousness. ‘Balanced’ Contract was found to
be negatively associated with Neuroticism, although
this correlation is small and non-significant
statistically.

iv) The Transitional contract was found to be positively

and significantly associated with Neuroticism (r=0.2,
p<0.05).

Why an employee joins and stays with the organization, is a

strategic issue for HR managers as well as a major concern for the
individual. The employment deal is becoming more and more

6
individualistic rather than based on collective agreements. This is reflected
in subjective nature of psychological contract of employees. If HR
managers want to be effective in their role, they should take into account
this subjectivity instead of believing the generally agreed upon views on
what is important to employees in general. Therefore, the most enduring
and challenging task for HR managers is how to use inducements in order
to motivate employees to make desired contributions. Employees’
conception of their employment relationships does have a powerful
influence on the contributions made by them to the organizations.
Specifically the employment relationship is influenced by following factors:

• National level laws, regulations, and culture influence the both

hard and soft inducements.
• The total set of inducements available to an organization
constitutes their HRM ‘tool kit’.
• The HRM policies, that organizations select and employ from their
‘tool kit’, have a direct influence on employees’ conceptions of
their employment relationships and subsequently on their
attitudes and behaviors.

Thus the proper understanding of the psychological contract can

help the HR managers to use suitable inducements to maximize the
contributions made by the employees to their organizations.

It has been long recognized that in order for employers to get

desired contributions from their employees, they must provide appropriate
inducements. But it has never been easy for organizations to know what
kind of inducement will influence employees to make desired
contributions. The knowledge about “psychological contract” held by
employees will definitely help organizations to tailor their inducements to
employees to extract maximum performance. The knowledge about

7
relationship between personality and psychological contract will help in
selection and placement of employees with desired personality traits that
are more likely to result in desired type of psychological contract
(relational or transactional as per job requirement) to achieve minimal
contract violation and subsequently enhanced performance of the
organization.

The limitation of this study has been its focus only on government
organizations / PSUs. Since the government jobs in India provides lifetime
jobs and well defined career path irrespective of individual performance,
the psychological contract were found to be predominantly ‘relational’ in
nature. This fact has come into way of getting more generalisable relation
between personality and the type of psychological contract. In view of this,
it is recommended to repeat the study including the employees of private
sectors also.

8
 CHAPTER – 1

INTRODUCTION

1.1 This research project attempts to explore the relationship between

individual’s personality traits and the type of psychological contract he or
she forms with his/her employer. The psychological contracts, defined as
mutual obligations, expectations, and promises between employer and
employee as perceived by the employee, have been studied mainly
focusing on desired outcomes like job satisfaction or commitment or the
consequences of breach or violation of psychological contract, particularly
with respect to work behavior by the employees in such circumstances. The
antecedents or the factors responsible for formation of psychological
contract have received comparatively little attention.

1.2 The widely accepted definition of ‘psychological contract’ by Rosseau is as

under:
“An individual’s belief regarding the terms and conditions of a
reciprocal exchange arrangement between the focal person and
another party. A psychological contract emerges when one party
believes that a promise of future returns has been made, or
contribution has been given and thus, an obligation has been created
to provide future benefits.”

1.3 In other words, psychological contracts are an individual’s belief system

regarding reciprocal obligations and are formed by individuals themselves.
A major feature of psychological contract is its idiosyncratic and subjective

9
 nature. Therefore it is an individual level phenomenon and could be affected
by individual difference variables.

1.4 One of the important individual level factors, which is used to differentiate a
individual is his/her personality. The personality refers to all those
fundamental traits or characteristics of the person that endure over time and
that account for consistent pattern of responses to everyday situation.
Personality traits supposedly account for the what, why and how of human
functioning.

1.5 Therefore it is logical to assume that formation of psychological contract by

an employee is influenced by his or her personality. The objective of this
research project is to unveil the relationship between nature of
psychological contract and the personality of a person. Further it is noted
that no research on psychological contract in the Indian context is known to
exist.

1.6 Post liberalization, Indian economy has witnessed all round growth. With
this, the employment opportunities in private sector has increased manifold.
But, however, jobs offered by government organizations (Central, State and
Local Governments, P.S.U.s etc.) still form a major chunk of employment in
India. In the changing environment, citizens now expect the government
employees to be more responsive and efficient. Keeping this in view, it has
been decided to limit the focus of current study to persons employed in
selected government organizations / PSUs.

1.7 Therefore, this study attempts is to explore the relationship between

personality variables and the psychological contracts held by employees of
selected government organizations / PSUs in India.

10
1.8 Without question, the framework of ‘Psychological contract’ has helped
deepening of understanding of how the employment relationship functions
on day-to-day basis and as such provides HR managers useful insight of
this relationship. The present research into employee’s personality and their
psychological contract will help HR professionals to better manage the
employment relationships and keep a healthy HR environment in the
organizations. The knowledge about ‘psychological contract’ held by
employees will help organizations to tailor their incentives according to what
their employees value and expect to keep them motivated and satisfied in
order to extract maximum performance out of them. The knowledge of
linkages between ‘personality’ and ‘psychological contract’ will facilitate in
selection and placement of right kind of people at right place that is more
likely to result in desired type of psychological contract to achieve minimal
violation and breach of contract and subsequent enhanced performance.

11
 CHAPTER – 2

CONCEPTS AND THEORY

2.1 PSYCHOLOGICAL CONTRACT:

2.1.1 The concept of a ‘psychological contract’ was introduced by Argyris in

1960. Over the next few years the new concept got much attention from
various scholars. It received little attention thereafter until the 1990s. The
economic downturn led to the restructuring, downsizing, mergers and
takeovers in many organizations. That was accompanied by changes in
how personnel felt and acted towards their employers. The psychological
contract helped explain those changes and therefore regained attention.

2.1.2 The employment contract is the foundation of organizational

membership and establishes the exchanges of promises and
contributions between two parties: employer and employee. The
employment contract can be visualized from many perspectives – legal,
economic, social, political, organizational, and psychological. However
none of these provide a complete picture. It has been recognized that
‘subjectivity is inherent in all contract’, whether in written or unwritten
form. This concerns the way it is interpreted, understood and enacted on
a daily basis and employees interface with their organization. Argyris
was the first to introduce the term ‘psychological contract’ and defined it
as an unwritten agreement that exists between an individual and the
organization when undertaking terms of employment.

12
2.1.3 A general description of a contract is the belief in mutual obligations
existing between two parties. The essence of contracts is promises
about the future. A starting point in thinking about psychological
contracts is to look at the employment contract and, in particular, the
gaps and vagueness of what is written and agreed in the signing of an
employment contract. Almost all employment contracts can be
considered as incomplete as the employer cannot specify in advance all
the exchanges that the contract might cover. The longer the employment
lasts, the more obvious and inevitable is the incompleteness of the initial
contract. It is not, therefore, realistic to expect completeness in such
agreement. Employees faced with uncertainty fill in the blanks with
interpretations, guesses and estimations and it is these blanks that the
psychological contract fills.

2.1.4 Some more definitions of psychological contract by experts are as under:

- “A set of unwritten reciprocal expectations between an

individual employee and the organization” - (Schein )

- “An implicit contract between an individual and his

organization which specifies what each expect to give and
receive from each other in their relationship” -( Kotter )

- “An individual’s belief regarding the terms and conditions of a

reciprocal exchange arrangement between the focal person
and another party. A psychological contract emerges when
one party believes that promise of future return has been
made, a contribution has been given and thus, an obligation
has been created to provide future benefits” – ( Rousseau )

13
2.1.5 The theoretical roots of the psychological contract can be traced to the
work of Blau and Gouldner. Social exchange has been differentiated
from economic exchange. Social exchange refers to relationships that
entail unspecified future obligations. Social exchange (like economic
exchange) generates an expectation of a future return for contributions
but, unlike economic exchange, the exact nature of that return is not
specified. Economic exchange is based on transactions and is short
term. Social exchange is based on an individual trusting that the other
party to the exchange will fairly discharge their obligations in the long
run. Underlying social exchange is the norm of reciprocity. The norm of
reciprocity implies that when one party benefits another, an obligation is
generated on the recipient to reciprocate and s/he is indebted to the
beneficiary until he or she repays that obligation.

2.1.6 Thus widely accepted definition of psychological contract views it as an

entity existing purely in the perception or eyes of the individual
employee.

2.1.7 Further Rousseau, in her book ‘Psychological Contracts in Organization’

defines contracts as individual beliefs shaped by organization, regarding
the terms of an exchange agreement between individuals and their
organizations. Thus the some aspects of psychological contracts held by
different employees of same department, unit or workgroup may differ
noticeably from each other, while other aspects might be virtually
identical. This definition has been adopted by most scholars.

2.1.8 The psychological contract, as viewed by individual employee, has an

powerful impact on his/her work behaviour. Rosseau argues that we can
predict behaviour from the creation, change, or violation of contracts.
However the prediction of behaviour is a very complex issue, that
requires simultaneous consideration of organizational, social (normative)

14
 and personal (idiosyncratic) variables. The consequences of contract
breach have been heavily researched and the outcomes examined can
be grouped into following three categories:
1. Employee obligations and fulfillment
2. Attitudes, and
3. Behaviour.

It has been found that when an employer failed to deliver on its

obligations to the employees, employees reciprocated by lowering their
obligations to their employer and were less likely to fulfill those
obligations. Therefore empirical evidence exists to support the norm of
reciprocity that underlies the psychological contract.

2.1.9 Another group of empirical research supports the relationship between

contract breach and employee attitude. It has been demonstrated that
contract breach leads to reduction of employee trust in their employer
and may lead the employee to reduce their contribution to the exchange
relationship. When employer breaks the promises or perceived
obligations, trust is undermined and an employee is less likely to invest
in the relationship and maintain that relationship.

2.1.10 Further, the employees who reported higher level of contract breach
were more likely to attempt to leave the organizations, to have neglected
their in-job performance; and would be less likely to represent the
organization favourably to outsiders (be less loyal). A positive
relationship between OCB (organizational citizenship behaviour) and
fulfillment of psychological contract has been found.

2.1.11 Types of Psychological Contract: In the literature of psychological

contracts, two types of contracts have been identified as anchoring
opposite ends of a continuum, namely transactional and relational

15
 contracts. These two types of contractual relationship have been
described as follows:

Transactional:

Short term, monetisable exchanges

Specific economic conditions as primary incentive (wage
rate)

Limited personal involvement in job

Specific time frame

Commitments limited to well specified conditions

Limited flexibility

Use of existing skills

Unambiguous terms

Relational:

Open ended relationship and time frame

Considerable investment by employees (company skills,
career development) and employers (training)

High degree of mutual interdependence and barriers to exit.

Emotional involvement as well as economic exchange

Whole person relations

Dynamic and subject to change

Pervasive conditions (affects personal life)

Subjective and implicitly understood.

2.1.12 However, in employment, arrangement can be transactional, relational or

a hybrid form. Rousseau has proposed a typology characterizing
employment arrangements along the dimension of duration (short term
vs. long term or open ended) and performance-reward contingencies
(highly contingent, low or non-contingent) which is reflected in observed

16
 variation in psychological contracts across people and firms, as shown in
FIGURE - 2.1.

Transactional Transitional / No guarantees

(e.g. Shop assistants hired (e.g. employee experiences
during festive season) during organizational
• Low ambiguity retrenchment or following
• Easy exit / high merger or acquisition)
turnover • Ambiguity /
Short • Low member Uncertainty
Term commitment • High turnover /
• Freedom to enter new termination
Duration contracts • Instability
• Little learning
• Weak integration /
identification
Balanced Relational
(e.g. high involvement team) (e.g. family business members)
• High member • High member
Long commitment commitment
Term • High integration • High affective
/identification commitment
• Ongoing development • High integration
• Mutual support /identification
• Dynamic • Stability

Specified Not Specified

Performance Terms

FIGURE - 2.1: Four Types of Psychological Contracts

2.1.12.1 Transactional Contract: The transactional contract is present when

the employment arrangement is of a short term or limited duration,

17
 primarily focused on exchange of work in lieu of money with a specific
and definite description of duties and responsibilities and limited
involvement in organization. This indicates that the employee is
required to perform only a fixed and defined set of duties and to do
only that much which is asked for by the employer. The employer is
obliged to offer adequate compensation to the employee in exchange
of his duties. The employer may or may not offer any training and
development to the employee. The employee has no obligation to
remain with the organization in the long run and would be committed to
work only for a limited period of time. The employer may not guarantee
future employment beyond the limited period of time agreed upon.

2.1.12.2 Relational Contract: The relational contract results from long-term

employment arrangements based upon mutual trust and loyalty.
Growth in career and remuneration comes mainly from seniority and
other benefits and rewards are only loosely related to work
performance. The employee is obligated to remain in employment with
the organization and do what is required to keep the job going. The
employer also fulfills its obligations by providing stable remuneration,
long-term job security and steady career growth. Employee is obligated
to be loyal to the organization and support the objectives, needs and
interests of the organization. The employee should be a dedicated and
a loyal corporate citizen. The employer fulfills its part of obligations by
ensuring the well being of the employee and their families.

2.1.12.3 Balanced Contract: Balanced psychological contract refers to a

dynamic and open ended employment arrangement pre-conditioned on
business success of the employer organization and the employee’s
opportunities to develop skill sets and opportunities for career growth

18
 based on skills and performance. Both employee and employer
contribute to each other’s development. Rewards to workers are based
upon performance and contributions to the organization’s business
success or competitive advantages, particularly in the face of changing
business environment.

2.1.12.4 Transitional Contract: Rousseau describes it as “not a psychological

contract form itself, but a cognitive state reflecting the consequences of
organizational change and transitions that are at odds with previously
established employment arrangement.” This is essentially a transition
period between two states of psychological contract. Here the
employee mistrusts the organization’s motives and is unsure of job
security and career development. The organization may also mistrust
the motives of the employee and may withhold important information
from the employee. The employee is uncertain about his future
obligations to the organization. The organization may also deny
ensuring employment guarantee to the employee. If not managed, in
this psychological contract, the employee may continue to receive
ambiguous communication from the organization and become
confused as to whether his contributions would elicit adequate
compensation from the organization. The quality of work life of the
employee could begin to erode.

2.1.13 Rousseau has further subdivided each of above type into conceptually
homogeneous components in developing a ‘Psychological Contract
Inventory (PCI)’ as shown in FIGURE – 2.2 and described below:

Relational
1) Stability: Employee is obligated to remain with the firm and to do
what is required to keep job. Employer is committed to offer stable
wages and continuous employment.

19
 2) Loyalty: Employee is obligated to keep the organization’s interest
above all else and support the firm and be a good organizational
citizen. Employer is committed to well being of its employees and
their families.

Balanced
1) External employability: Employee is obligated to develop
marketable skills whereas the employer is committed for
enhancing employability of its employees for external as well as
internal market.
2) Internal advancement: Career development within an internal
labor market. Employee is obligated to develop skills valued by
current employer. Employer is committed to creating worker
career development opportunities within the firm.
3) Dynamic performance: Employee is obligated to successfully
perform new and more demanding goals, which can vary
frequently in future to help the firm become and remain
competitive. Employer is committed to promote continuous
learning and help employees achieving these varying goals.

Transactional
1) Narrow: Employee is obligated to perform only a fixed or limited
set of duties, for what he or she is paid for. Employer is committed
to offer the worker only limited involvement in the organization,
little or no training or other employee development.
2) Short – term: Employee has no obligation to remain with the firm;
committed to work only for a limited time. Employer offers
employment for only a specific or limited time, is not obligated to
future commitments.

20
 BALANCED

Career Dynamic Career

Development – Performance Development –
External Market Requirements Internal Market

Short - Term Loyalty

Other - Oriented

TRANSACTIONAL RELATIONAL

Security
Narrow

No Trust Erosion
Uncertainty

TRANSITIONAL

FIGURE 2.2: Assessment of Psychological Contract

21
 Transitional
1) Mistrust: Employee thinks that he received inconsistent and mixed
signals from the firm regarding its intentions; and mistrusts the
firm. Employer has withheld important information from employee
and mistrusts its workers.
2) Uncertainty: Employee is uncertain regarding the nature of his or
her own obligations to the firm. Employer measure assesses the
extent that the employee is uncertain regarding the employer’s
future commitments to him or her.
3) Erosion: Employee expects to receive fewer returns from his or
her contributions to the firm compared to the past; anticipates
continuing declines in the future. Employer has instituted changes
that reduce employee wages and benefits’ eroding quality of work
life compared to previous years.

2.1.14 Rousseau Denise M. has developed an instrument named as

“Psychological Contract Inventory (PCI) as a psychometrically sound tool
for assessing the generalisable content of the psychological contract. It
measures the psychological contract in terms of employee’s beliefs
regarding employer’s obligations to the employee and then again in
terms of employee’s obligations to the firm, based upon the conceptual
framework as described above.

2.2 PERSONALITY:
2.2.1 The word ‘personality’ derives from Latin word ‘persona’ which means
‘mask’. The study of personality can be understood as the study of
‘masks’ that people wear. These are the personas that people project
and display, but also include the inner parts of psychological
experience, which we collectively call our ‘self’.

22
2.2.2 No two people are exactly the same – not even identical twins. Some
people are anxious, some are risk-taking; some are phlegmatic, some
highly strung; some are confident, some shy; some are quiet and some
loquacious. The issue of differences is fundamental to the study of
personality.

2.2.3 Personality is not easily defined. Basically ‘personality’ refers to our

attempts to capture or summarize an individual’s ‘essence’. When
psychologists talk of personality, they mean a dynamic concept
describing the growth and development of a person’s whole
psychological system.

2.2.4 Some of the definitions of ‘Personality’ offered by highly influential

personality psychologists are as under:
• Personality is that which predicts what a person will do in given
situation …it is concerned with all the behavior of the individual,
both overt and under the skin. (Raymond Cattell)
• Personality is the more or less stable and enduring organization
of a person’s character, temperament, intellect and physique,
which determines his unique adjustment to his (or her)
environment. (Hans Eysenck)
• Personality is the dynamic organization within the individual of
those psychological systems that determine his unique
adjustments to his environment. (Gordon Allport)

2.2.5 Theses three definitions have five aspects in common:

 First, there is an emphasis on the idea that each person has a
unique personality. Even identical twins, who have exactly the
same genetics make-up, have different personalities – although

23
 they probably also have more in common than unrelated
people.
 Second, there is an assumption that knowledge of a person’s
personality will allow prediction of their future behavior.
 Third, personality deals with whole person in terms of behavior,
thoughts and feelings.
 Fourth, the personality of individual helps them to adjust with
their environment. Some people may adjust well and be
successful in their work and personal lives. Others may adjust
less well and experience mental problems, such as anxiety and
stress, as a result.
 Finally, personality is said to be ‘dynamic’, by which is meant
that whilst stable and enduring it is also subject to change over
life of a person.

2.2.6 For most practical purpose, we can think of personality as sum total of
ways in which an individual reacts to and interacts with others.
‘Personality’ refers to stylistic consistencies in social behavior which
are a reflection of an inner structure and process.

2.2.7 The early work in the structure of personality revolved around attempts
to identify and label enduring characteristics that describe an
individual’s behavior. Those characteristics, when they are exhibited in
a large number of situations, are called ‘personality traits’.

2.2.8 There have been many attempts by psychologists to identify and

measure personality traits, and led to identification of innumerable
traits – some broad band and some narrow band in nature. The work
psychologists have favored broadband traits.

24
2.2.9 The two established trait theories have been that of Hans Eysneck and
Raymond Cattell. However, the most widely used, up-to-date, state of
art theory of personality is that given by Costa & McCrae, known as
Five Factor Model (FFM) or Big-Five. It has proved a robust and
reliable measure and it is in the world of work that OB researchers
have become most interested in the FFM.

2.2.10 Costa and McCrae argue that there are five basic unrelated
dimensions of personality. These Big Five factors are summarized as
under:
 Conscientiousness: a tendency to show self-discipline, act
dutifully, and aim for achievement; planned rather than
spontaneous behavior.
 Agreeableness: a tendency to be compassionate and cooperative
rather than suspicious and antagonistic towards others.
 Neuroticism: a tendency to experience unpleasant emotions
easily, such as anger, anxiety, depression, or vulnerability;
sometimes called emotional instability.
 Openness to Experience: appreciation for art, emotion,
adventure, unusual ideas, imagination, and curiosity.
 Extraversion: energy, positive emotions, surgency, and the
tendency to seek stimulation and the company of others.

The above factors are also referred to as the OCEAN or CANOE models
of personality.

2.2.11 Measurement of Personality: The Big-Five model enjoys considerable

support and has become the most widely used and extensively
researched model of personality. The Big-Five framework is a
hierarchical model of personality with five broad factors, which

25
 represent personality at the broadest level of abstraction. Each bipolar
factor (e.g. Extraversion vs. Introversion) summarizes several more
specific facets, which, in turn, subsumes a large number of even more
specific traits.

2.2.12 Several rating instruments have been developed to measure the Big-
Five dimensions. The most comprehensive instrument has been
developed by Costa & McCrae. Originally they developed a personality
questionnaire to assess just three factors – Neuroticism, Extraversion
and Openness – hence the label NEO-PI. Costa & McCrae later
revised this instrument to include the factors of Agreeableness and
Conscientiousness – and it was called the NEO-PI-R.

2.2.13 NEO-PI-R permits measurement of the Big-Five domains and six

specific facets within each dimension as shown in TABLE - 2.1.

2.2.14 The NEO PI–R is a highly regarded and extensively used personality
inventory and have shown substantial internal consistency, temporal
stability, and convergent and discriminant validity against spouse and
peer ratings.

2.2.15 However, for many research applications, the NEO PI-R is rather
lengthy, and therefore a number of shorter instruments have been
developed and are commonly used. One such established and widely
used instrument is 44 items Big Five Inventory (BFI) developed by
John & Shrivastava (1999). The average alpha reliability of the BFI
scale is reported to be above 0.80; and mean test-retest reliability of
0.85. Validity evidence includes substantial convergent and divergent
relations with other Big Five instruments as well as with peer ratings.

26
TABLE 2.1: THE BIG FIVE PERSONALITY DOMAINS AND THEIR FACETS

Sr. No. Big Five domain Facets

1. Anxiety
1 Neuroticism 2. Angry Hostility
3. Depression
4. Self – Conscious
5. Impulsiveness
6. Vulnerability

1. Warmth
2 Extraversion 2. Gregariousness
3. Assertiveness
4. Activity
5. Excitement Seeking
6. Positive Emotion

1. Fantasy
3 Openness 2. Aesthetics
3. Feelings
4. Actions
5. Ideas
6. Values

1. Trust
4 Agreeableness 2. Straightforwardness
3. Altruism
4. Compliance
5. Modesty
6. Tender mindedness

1. Competence
5 Conscientiousness 2. Order
3. Dutifulness
4. Achievement striving
5. Self-descriptive
6. Deliberation

27
 CHAPTER – 3

LITERATURE REVIEW
In this chapter, few scholarly books, articles and research papers
have been reviewed which are relevant to the current study about
relationship between psychological contract and personality. However it
may be noted, that no book or article could be found on this subject in the
context of Indian organizations. It indicates that the concept of
psychological contract is not very familiar one to the Indian managers,
although it holds a great promise to understand and manage the
employees’ behavior.

BOOK REVIEW

3.1 BOOK: Psychological Contracts in Organization: Understanding

Written and Unwritten Agreements (by Denise M. Rousseau)*

This unique book examines the organizational, social, and

psychological meaning of contracts, written and unwritten in
organizations. Contract, here, refers primarily to employment
contract between employees and organization. The concept of
psychological contract has been widely and deeply researched by
the author and subsequently made popular with professionals. This
book is considered to be the bible on the topic of psychological
contract and addresses a whole range of issues connected with
formation and operation of psychological contracts in the
organizations. This book is organized into eight chapters, each
chapter covering a particular aspect of psychological contract.

* Denise M. Rousseau; Psychological Contracts in Organizations: Understanding Written and unwritten

Agreements; 1995; Sage Publications, California.

28
3.1.1 Chapter-1 addresses the issue of ‘contractual thinking’. Contracts
are voluntary and the ideal contract details expectations of both the
employee and the employer. However, typical contracts are
incomplete due to bounded rationality. The focus of the author is on
contracts in organizational settings particularly that exist between
workers and the organizations. Contracts are stable and enduring
mental models. Following four basic types of contracts are
introduced and discussed:
1) Psychological Contracts: They are individual beliefs,
shaped by the organizations, regarding terms of an
exchange agreement between individuals and their
organizations.
2) Normative Contracts: They are shared psychological
contracts that emerge when members of a social group,
or work unit hold common beliefs.
3) Implied Contracts: There are interpretations that third
parties (e.g. jurists) make regarding contractual terms.
4) Social Contracts: are broad beliefs in obligations
associated with society’s culture.

Further key features of promissory contracts are discussed. These

features are ‘type of promises’, ‘limited frame of reference’, and
‘mutuality and acceptance’. Contracts are created by promises,
reliance, acceptance and a perception of mutuality.

3.1.2 Chapter-2 discusses the process of ‘Contract- making’. This

chapter describes why people keep promises, and how promises
turn in to contracts. Any promise has two sides: the promisor’s and
the promisee’s. Both individual’s interpretations and situational
factors influence how promises are understood and kept. Further
the author has described contracts as mental models. A contract is

29
 a mental model that people use to frame events such as promise,
acceptance, and reliance. Since promises that make up contracts
have no objective meaning, two people in the same setting can
have different psychological contract. The chapter then discusses
how the mental model of a contract is created, and how an
individual’s psychological contract is formed. It has been noted that
a series of organizational and individual processes affect the
creation of a psychological contract. There are external factors like
messages and social cues one receive in the organization and the
internal processes like encoding or interpretation of messages,
individual predispositions like cognitive biases & career motives
and decoding by individual to reflect the judgment people make
regarding the standards of behavior that must be met to fulfill
commitments made by themselves and by the organizations. Thus
people think contractually, interpreting statements and behaviors as
promises and commitments to be relied on. But what they
understand these commitments to be is shaped by both personal
beliefs and social processes.

3.1.3 Chapter-3 describes the contract makers. An organization may

have many “contract makers”. Two types of ‘contract makers’ are
identified by author: Principals and Agents. Principals are
individuals or organizations making contracts for themselves,
whereas Agents are individuals acting for another. Contracting can
take place between any of the combination of two types of contract
makers. Following basic features of principal / agent role in
contracting have been noted:

1) Agent-created contracts tend to involve distortion of

principal’s intent.

30
 2) Use of employee-agents reduces the scope of the
contract, including levels of involvement and
commitment. Employee-principals have greater
flexibility than agents regarding the kinds of contracts
they can create.
3) Use of agents can create confusion in terms of whether
the agent is contracting for him- or herself or for the
organization.

Contract makers can also be identified as Primary & Secondary.

Primary contract maker are people – like managers, mentors,
coworkers, top management, recruiters etc; whereas secondary
contract makers include structural signals. Structural signals are
organizational processes and procedures that convey future intent
in the name of the organization (e.g. hand books, mission
statement, HR manual etc.). Finally, ‘the employee’ is noted as
other critical contract maker in employment relationship. Both as
newcomer and as a veteran, employee create contracts. Individual
employees are actively involved in information gathering and
communicating. These behaviors shape the specificity and focus of
the contracts that evolve.

3.1.5 Chapter-4 looks into the ‘Contemporary Contracts.’ Pervasive

organizational and workforce changes have disrupted any number
of contracts at several levels. To provide a basis for understanding
contemporary contracts, this chapter explores the patterns in which
contract terms are typically arranged. Although contracts can take
an infinite number of forms, certain types of contract forms tend to
cluster together. Each organization and each worker has his or her
own idiosyncratic ways of expressing contract terms; these terms
tend to fit into certain general categories – referred to as

31
 transactional and relational. These terms can be thought of as
being at two ends of a contractual continuum. Transactional terms
denote a fair day’s work for a fair day’s pay – focusing on short-
term and monetisable exchanges. Relational contracts focuses on
open-ended relationships involving considerable investments by
both employees and organizations. Further to describe
contemporary contracts, author has used a 2x2 model. Time frame
and performance requirements have emerged as important
contemporary contract features. When these two contract features
are arranged in a 2x2 matrix, four types of contracts emerge as
under:

1) Transactional Contract – of limited duration with well-

specified performance terms.
2) Transitional or “no guarantees” condition – essentially a
breakdown in contracts, reflecting the absence of
commitments regarding future employment as well as little
or no explicit performance demands or contingent
incentives.
3) Relational Contracts – open-ended membership but with
incomplete or ambiguous performance requirements
attached to continued membership
4) Balanced Contracts – open-ended and relationship-
oriented employment with well-specified performance
terms subject to change over time.

The implications of emergence of new contemporary contract forms

have also been discussed in this chapter.

3.1.6 Chapter-5 discusses the violation of the contract. The basic facts of
contract violation, detailed in this chapter are: 1)Contract violation is

32
common place, 2)Violated contracts lead to adverse reactions by
the injured party and 3)Failure to fulfill a contract need not be fatal
to the relationship. Strictly speaking, contract violation is a failure to
comply with terms of a contract. The violation can take place in
following three forms:-
1) Inadvertent violation occurs due to divergent interpretations
made in good faith.
2) Disruption to contract occurs when there is an inability to
fulfill contract although both parties are willing to keep the
contract.
3) Reneging or breach of contract occurs when one side,
otherwise capable of performing the contract, refuses to do
so.

Author has noted that under following circumstances, there is

increased likelihood of contract violation:
1) There is a history of conflict and low trust in the relationship.
2) Social distance exists between the parties such that one
does not understand the perspective of the other.
3) An external pattern of violations exists (e.g. an era of
business retrenchment).
4) Incentives to breach contracts are very high or perpetrators
perceive themselves to have no alternatives (e.g.
organizational crises)
5) One party places little value in the relationship (e.g.
alternative parties are relatively available and there are few
sunk costs).

When a contract is violated, the response to violation can

take many forms. The response to violation can be induced by both

33
 personal predispositions and situational factors. The type of
responses can be shown in Figure- 3.1:

Constructive Destructive

Active Voice Neglect/ Destruction

Passive Loyalty/ Silence Exit

FIG -3.1: Responses to Violation

Here exit refers to voluntary termination of relationship; voice refers

to action taken by victim to remedy the violation. Silence is a form
of non-response and neglect is a complex form of response which
entails passive negligence or active destruction. Further it has been
noted that a contract’s fulfillment is more a matter of degree.
Contract violation erodes trust and undermines the employment
relationship yielding lower employee contributions and lower
employer investments.

3.1.7 Chapter-6 discusses ‘Changing the Contract‘. Author notes that, in

a sense, contracts are designed to accomplish two often impossible
tasks: predicting the future and forestalling change. Predictability is
a major motivation in contract making. The irony is that contracts
sometimes need to change so as to be kept. Contract change
ranges from subtle, imperceptible shifts in understanding to
traumatic upheavals, and affect both the work experience of
individuals and the dynamics of work group. Contract change can
occur in following way:

34
 i) Internal – Changes that develop in the contract. Parties
themselves modify their understanding of the contract,
known as “contract drift”.
ii) External – External factors also do change the contracts. It
can take two forms: evolutionary accommodation or
revolutionary transformations.

Author has further noted that with the possible exception of one-
shot transaction, all contracts are subject to change.

3.1.8 Chapter-7 discusses ‘Business Strategy and Contracts’. This

chapter describes how contract in contemporary organizations are
linked to business and human resource (HR) strategies. In
executing business strategies, certain HR practices tend to be used
together. The link between strategy and contracts has been
expanded to include the impact of HR practices on relation with
customers. The framework proposed is shown in following figure:-

Organizational
strategy
Interpretation

Human
Resource Psychological
Interpretation
Practices Contract

FIG 3.2: Framework of Strategy & PC

35
 Author has concluded that ‘relational’ contract agreements are
likely in the more stable sectors of the economy, but ‘balanced’
contracts (with their specific performance requirements) are likely
where in-depth, technical, and customer/product knowledge is
required to remain competitive. Transactional agreements serve the
interests of entrepreneurs and those organizations in volatile
industries such as entertainment or sports.

3.1.9 The final chapter of the book outlines the ‘Trends in the New Social
Contract’. Lots of changes are taking place in modern time. Shifts in
broad social understandings regarding employment contracts come
about because of a critical mass of individual and organizational
changes. This chapter deals with the implications of contract
changes for the future, particularly the shifts contract change
introduces in how people and their societies interpret such
concepts as promises, commitments, employment, career, and
organizations. It also discusses the social context or ecology of
contracts, forces for and against the continuation of employment
contracts, and changing standards for fairness. Author has
concluded the chapter with following words, which very aptly
describes the essence of whole book:-

“What we need to do now is to use the concept of contract

more realistically. To do so, we must further develop and
apply a behavioral understanding of contracts. Much of the
difficulty in understanding how contracts operate in everyday
work settings has come from exaggerating the apparently
objective features of contracts and undervaluing how
contract parties actually think and behave. Contracts, we

36
 have seen, are rich in assumptions as well as facts,
uncertainty as well as predictability. Balancing these makes
it possible for organizations and persons to operate more
effectively. Contracts are a way for both groups to know and
create the future.”

3.2 BOOK: Personality at Work: The Role of Individual Differences

in the Workplace (by Adrian Furnham)*

3.2.1 This is a well written, comprehensive and scholarly book. In this

book, thoughts about individual differences have been collected,
ordered and criticized as applied to the work setting. It is noted that,
despite overall similarities, all human beings are unique. They differ
in intelligence, personality and special abilities, as well as physical
appearance. They also differ, as a consequence, in their ability to
do satisfactory work in any of the many jobs, professions and
callings. The focus of the book concerns the role of individual
differences in predicting, and determining, behavior at work.

3.2.2 Chapter-1 deals with various models of personality at work. It has

introduced to following six approaches to personality at work:
• Classic Personality Theory.
• Classic Occupational Psychology/ Organizational Behavior.
• Work Specific Individual Difference Measure.
• Concept of ‘Fit’ and ‘Misfit’ at work.

* Furnham Adrian; Personality at Work – the role of individual differences in the workplace; 1995, Routledge,
London.

37
 • Longitudinal studies of people at work, and
• Biographical or Case-History Research

A research model has also been proposed by the author as shown in

following Fig 3.3, showing some of the main factors predicting
occupational behavior.

Ability Motivation

Personality Occupational
Traits Behavior

Demographic Intelligence
factors

FIG-3.3:
3.2.3 Some deals
Chapter-2 of the with
mainissue
factors
of predicting
Personalityoccupational behavior
testing in the work place.
Personality tests have been used fairly extensively in management
over many years. However, there remains considerable skepticism
in applied circles as to the usefulness of personality tests. This
chapter has presented a comprehensive review of the early, as well
as more recent, literature on personality test correlates of
occupational behavior.

3.2.4 In Chapter-3, author has explored the linkage between personality

and vocational choice of individuals. Two theoretical concepts were
explored: person-job fit and expectancy theory. One way of
exploring the usefulness of personality variables is to examine their

38
 predictive and discriminating validity with specific groups. Also the
relationships of personality with academic performance and
learning styles were explored which have clear implications for
vocational guidance.

3.2.5 Chapter-4 covers the interesting topic of personality and work

motivation. Author has noted that despite the number of theories
concerning work motivation, there is little research on individual
difference in this area and suggested one area of research using
the locus of control concept which does seem both highly relevant
and very promising.

3.2.6 Chapter-5 discusses the relationship between personality and

productivity. There are practical limitations, as measurement of
productivity and various performance measures across different
occupations may not be strictly comparable. Therefore, it is noted
that, the issue of personality correlates of productivity is fraught
with experimental problems, mainly because of problems in the
measurement of productivity. Further this chapter has concentrated
on the psychology of the entrepreneurs.

3.2.7 Chapter-6 on ‘Personality and Work Satisfaction’ attempts to review

the existing literature on personality determinants of job
satisfaction. A large number of individual difference factors have
been shown to relate to job satisfaction either directly or in
interaction with other variables. These include genetic factors,
traits, needs, values, perception of equity and attributional style.
Various theories tend to focus on different individual difference
factors and it could be argued that some are the result of others.

39
3.2.8 Chapter-7 concentrates on non-personality factors, such as Ability,
Biography and Demographical variables, which have been shown
to be predictive of job success. It is noted that only about ten
percent of the variance appears to be accounted for by ability. A
second, rapidly growing area of research and interest is that of bio-
data. But this method is both a-theoretical and job specific. Finally,
there is increasing evidence of significant sex differences at work.
Author has noted that the gender is important, along with
personality, in understanding behavior at work.

3.2.9 Chapter- 8 discusses Personality and Work Related Problems like

absenteeism, accidents, illness and stress. Personality plays a
minor or negligible role in absenteeism, which is influenced by other
powerful organizational factors. However, personality does play a
significant role in accident-proneness. There are good theoretical
reasons and substantial literature to suggest that extraversion and
neuroticism are closely tied to accidents of all kinds. Finally it is
noted that there exist some theories/ models that link personality-
determined social behavior with endocrinal and immunological
changes that relate directly to stress, and hence illness.

3.2.10 Chapter-9 on ‘Personality, Leisure, Sport, Unemployment and

Retirement’ focuses on the effect of personality on ‘after-work’
behavior both in the sense of at the end of the working day/week,
and at the end of the working life. A number of observations
emerged from literature -1) the lack of good research studies in this
area, 2) general neglect of personality variables and, 3) problems in
the measurement of the variables.

3.2.11 Chapter-10 discusses ‘Implication for Selection Training and

Reward Structure’. The fact that individual differences in personality

40
 beliefs and abilities relate specifically to occupational success has
obvious and immediate implications. The first is to select people for
certain jobs who have desired traits that are correlated with
success. But it may not be possible because of historical; legal or
other limitations. The next best thing to do is to train people
selectively to reach certain standards. Finally, it is suggested, that
the way in which people are rewarded/ compensated at work, too
should take into account the values and preferences of the
employees.

3.2.12 Chapter-11 concludes the book. Author has noted that there is,
indeed, considerable evidence that personality factors are related
to various occupational behaviors. However the role of personality
testing in the business world has been both good and bad for
research. Critics have pointed out that the proliferation and
aggressive marketing of poorly constructed psychometric tests has
frequently overstated and wrongly assessed their predictive value.
Finally author has concluded this final chapter with following hope:
“Hopefully, there will be a growing rapprochement between
occupational and personality psychology, and that well
designed and executed research will reveal not only which
personality factors relate to various occupational behaviours,
but why they do so”

3.2.13 It is amply clear from review of this book is that the ‘personality’ do
affect work behavior of employees in some or other ways. The
process by which behavior is related to personality factor may be
psychological contracting. Psychological contract include process
of exchange between employers and employee, and hence
employee’s behavior at work and psychological contracts is
affected by personality being idiosyncratic and personalized in

41
 nature. The present study is an attempt to understand the plausible
link between personality and psychological contracts.

3.3 BOOK: Understanding Psychological Contracts at Work: A

Critical Evaluation of Theory and Research (By Neil Conway and
Rob B. Briner)*

3.3.1 In recent time, the concept of psychological contract has gained

importance to understand the relationship between employer and
employee. The concept throws light on the implicit nature of many
of the beliefs surrounding the relationship, the ways in which these
beliefs are shaped by, and shape, the behaviors of both parties,
and how the relationship can go wrong. Many aspects of the
concept of psychological contract are being researched and
evolved, and the literature available is fragmented. This book
attempts to club all these materials together, review various
research findings and provide a detailed critical evaluation.

3.3.2 Chapter-1 of the book presents introduction to the concept of

psychological contract and provide overview of the book. In
organization psychology, as in all areas of behavioral and social
science, there are many ways of explaining human behavior.
Psychological contract is about the exchange relationship between
employee and employer. However, what makes the psychological
contract a psychological as opposed to a legal contract is that the

* Conway Neil and Briner Rob B.; Understanding Psychological Contracts at Work : A Critical Evaluation of Theory and
Research ; 2005; Oxford University Press, Oxford .

42
 nature of this exchange is based on the perception of each party
rather than what has been written down or explicitly agreed.
Psychological contract is about perception of reciprocal exchange
relationship. Authors have set following three aims of this book.
- To provide a comprehensive review of psychological
contract research and theory.
- To critically evaluate psychological contract research and
theory and suggest fields for future research.
- To consider how the psychological contract can be
practically applied in organization setting.

3.3.3 Chapter-2 covers ‘The History and Development of the

Psychological Contract Concept’. While tracing the history of the
concept, two major periods have been considered by authors:
i)early history up to but not including Rousseau’s seminal re-
conceptualization in 1989 and ii) second period or ‘modern’ period
which concerns Rousseau’s work and developments since then.
With the exception of some early theoretical developments by
Argyris, Levinson and Schein, there was little interest in
psychological contract until Rousseau’s re-conceptualization in
1989. Rousseau’s interpretation of the psychological contract as
consisting of implicit and explicit promises is regarded as highly
influential in reinvigorating research on the psychological contract,
and her interpretation has been adopted widely by contemporary
researchers. It is noted that current psychological contracts
research is mainly concerned with the contents of ‘psychological
contract’ and their structure and the effects of violation on
employee attitudes and behavior.

43
3.3.4 Chapter-3 attempts to define the psychological contract by
reviewing how it has been defined and identifying variations across
definitions offered by researchers. Various definitions of the
concept have been given by various researchers and this chapter
has discussed following key terms and features of psychological
contract found in this diverse range of definitions:
• The beliefs constituting the psychological contract
• The implicit nature of psychological contracts
• The subjective nature of the psychological contract
• Perceived agreement – not actual agreement – is
necessary for psychological contracts
• The psychological contract is about exchange
• The psychological contract is the entire set of an
employee’s beliefs regarding the ongoing exchange
relationship with his/her employer
• The psychological contract is an ongoing exchange
between two parties
• The parties to the psychological contract
• The psychological contract is shaped by the organization

3.3.5 Currently, the most widely agreed definition of the psychological

contract is that put forward by Rousseau, in which the
psychological contract is considered to be an employee’s subjective
understanding of promissory –based reciprocal exchange between
him or herself and the organization. Even critics of Rousseau’s
conceptualization of the psychological contract do not reject the
concept, but call for further research to clarify certain terms
contained in it.

3.3.6 Chapter-4 describes the ‘Contents of Psychological Contracts’. This

chapter explains what is meant by the contents of the psychological

44
 contract, evaluates empirical support for the contents of the
psychological contract, considers the factors that form perception of
promises and obligations, and examines how the contents have
been categorized and related to outcomes. The content of the
psychological contract refers broadly to the perception of an
employee about contributions they promise to give to their
employer and what they believe the organization promises in
return. The psychological contract includes many items and these
are categorized or standardized into transactional and relational
contracts. The chapter further discusses the factors which shape
perceptions of employees about psychological contract. These
factors could be outside the organization or within organization.
Further individual level factors like personality and social factors
also affect content of psychological contract. The chapter also
discusses how the contents of the psychological contract may
affect outcomes like job satisfaction, organizational commitments,
job performance and employee turnover.

3.3.7 Chapter-5: “How does the Psychological Contract affect Behavior,

Attitudes, and Emotion?” considers how the idea of breach has
been used to understand how the psychological contract affects
behavior. It also considers some weaknesses with the concept of
breach and some alternative theoretical approaches. Contract
breach has been defined as less than perfect performance by one
of the parties regarding contract terms. Further antecedents and
consequences of breach of psychological contract have been
discussed. Further moderators of the effect of breach on outcomes
have been discussed. Finally some unresolved issues have been
discussed, which in the opinion of authors, require further
investigation.

45
3.3.8 Chapter-6: “Researching the Psychological Contract” considers, in
detail, how research in this field has been done and its limitations. It
is noted that the method of cross- sectional questionnaire survey
has been most commonly used for researching the psychological
contract. The author has concluded that near exclusive use of
survey method has no doubt hampered conceptual, theoretical, and
empirical advance in this area. Authors have suggested to use
more appropriate means – a diary method being one example – of
examining the psychological contract as an event based social
process.

3.3.9 Chapter-7 covers “Challenges for Psychological Control

Researchers”. The weaknesses and limitations of ideas are often
discovered through the process of researching a theory or trying to
use it in a practical context. It is noted that, in spite of its almost fifty
years history and many fairly obvious weakness and limitations, the
psychological contract has received little attention. Authors have
listed six challenges for future research in these areas: 1) what are
the differences between expectations, obligations, and promises? ,
2) What is meant by implicit promises? , 3) Are psychological
contract beliefs only those shaped by the employee’s current
organization? , 4) What are the precise specific links in the
reciprocal exchange between the employer and the employee? , 5)
Who, or what, do employees perceive to be the organization? , and
6) How do employees anthropomorphize the organization?

3.3.10 Chapter-8: titled as ‘Understanding the Psychological Contract as a

Process’ explains the concept of psychological contract as a
process. A process approach is more likely to capture a fuller
representation of the experience of being party to a psychological
contract. In fact, one of the most appealing aspects of the

46
 psychological contract concept is that, it is a sort of ongoing and
unfolding process. The chapter discusses how existing approaches
do not adequately consider process and some ways in which this
can be done.

3.3.11 Chapter-9: ‘Managing the Psychological Contract’ starts with

discussion on key issues involved in management of psychological
contract and then consider how contents and breach can be
managed. The key issues discussed are :
1) What are we trying to manage and why?
2) Is managing the psychological contract by making
promises explicit really managing for psychological
contract as such?
3) Is managing the psychological contract by making
promises explicit likely to work?
4) What counts as managing the psychological contract and
who does it?
5) What do we know about managing the psychological
contract?

The contents of psychological contract can be managed through

imposing change, by communicating promises or through
negotiation. The contract breach can be managed by monitoring for
early signs of breach, preventing breach from happening, and by
redressing breach. Finally, some difficulties and dilemmas have
been discussed which are experienced while managing the
psychological contract.

3.3.12 Chapter-10 summarizes the entire book and presents conclusions

drawn by authors. This book has identified many weaknesses and

47
 limitations in psychological contract research and has suggested
ways in which they may be overcome. Authors have noted that:
“we believe that the psychological contract concept
has much to offer but it has been erected on somewhat
shaky conceptual and empirical foundations. …………..It is
our contention that its potential contribution to understanding
behavior at work will never be known if we do not
acknowledge and address some of its fundamental
limitations.”

3.4 BOOK: Organization and the Psychological Contract: Managing

People at Work (by Peter J. Makin, Cary L. Cooper, Charles J. Cox)*

3.4.1 In this book, authors have looked at many of the topics of

organizational behaviors and human resource management
discipline in terms of the relatively new concept of the
‘Psychological Contract’. The objective of authors has been to
describe how the psychological theories and practice can be
effectively and usefully applied to the behavior of the people within
the organization.

3.4.2 The concept of the psychological contract is explained and

explored in the introduction, as its relation to the other chapters in
the book. The chapters cover various aspects of human resource
practices in the organizations, e.g. selection & placement,
motivation, personality and individual differences, organizational

* Peter Makin, Cary Cooper and Charles Cox; ‘Organizations and the Psychological Contract : Managing People at
Work; 1996; The British Psychological Society; Published in India by Universities Press (India) Limited, 1999.

48
 change etc. Each chapter concludes with the section that links back
to the psychological contract and how it relates to the particular
chapter or particular topic.

3.4.3 Authors have noted that in the modern life, we are surrounded by
contractual obligations. The central features of the ‘contracts’,
whilst they differ in terms of their formality and specialty, they all
involve exchange. This perhaps is the essential features of all the
contracts. Contracts do not have to involve the exchange of
physical goods or services; exchange can take place which do not
involve physical things but, at the same time, are important in
affecting the people’s behavior and feelings. The concept of
contract has been extended to psychological domain.

3.4.4 However, the essence of psychological, as opposed to the

economic, contract is that the expectations concern non–tangible,
psychological issues. The psychological contract is characterized
not only by the expectations, but by the ‘promissory and reciprocal
obligations’. Perceived obligations are considered to be stronger
than expectations, hence when these obligations are broken; they
produce more emotional and extreme reaction than when weaker
expectations are broken. Broken obligations lead to feelings of
anger and a re-assessment of the individual’s relationship with the
organization.

3.4.5 Authors have further contended that the work in organization would
become more effective if the psychological contract was clarified
and agreed in much the same way as in the legal contract.

3.4.6 Chapter-1 covers the topic of ‘Selection, Placement, and Careers’.

The selection process is where the individual and the organization

49
 have their initial contact. It is here that initial expectation will be
established and, early in the career, either fulfilled or not. Both
sides will approach the process with their own ideas of what is
expected. What happens and indeed, how it happens can have an
influence on the psychological contract. Authors have described
the various aspects of selection process and career development
and its possible effects on the psychological contract of the
employees and have suggested means to manage these issues
effectively.

3.4.7 Chapter-2 deals with the issues of ‘Personality and Individual

Differences’. Authors have noted the recent developments in
personality theory. In particular, there is now some agreement
about the number of major personality dimension, the so called ‘Big
Five’. The extent to which work related behavior is determined by
personality has been discussed. In terms of the psychological
contract, individuals differ in their expectation of how they will be
expected, or allowed, to behave. Two of the most common and
important work–related attitudes, i.e. job satisfaction and
organizational commitment, have been discussed as to what impact
they have on an individual’s performance and other work related
behaviors. It is noted that violation of the psychological contract can
have the negative effect on job satisfaction and commitment to
remain with the organization.

3.4.8 In chapter-3, authors have beautifully described ‘Interpersonal

Perception & Interaction’. It includes detailed discussion on
transactional analysis. The authors have noted that the different
ego states are involved in both the economic and psychological
contract. A motivated work force will have its child needs satisfied,
and finally the negotiation and ongoing re–negotiation of the

50
 psychological contract is likely to be ineffective unless both parties
are operating from “I’m OK, You’re OK”.

3.4.9 Chapters-4 & 5 deal with the subject of ‘Motivation’ and ‘Behavioral
Approach to Motivation’. Major classical theories have been
discussed. Perhaps the most important theory, from the view of
psychological contract, is ‘equity theory’. Equity theory is concerned
with the underlying principles by which rewards are distributed, and
how these are perceived fair or otherwise. The links between equity
theory and the psychological contract are clearly drawn .The
behavioral approach combines the theories of ‘goal setting’ and
‘organizational behavioral modification.’ In many respects, the
behavioral approach fulfils many of the requirements for the
psychological contract. The main point made is that almost any
change has the potential to change the psychological contract. It is
part of the function of leaders to re-negotiate such changes.

3.4.10 Chapter-6 discusses the ‘leadership and management styles’. The

major theories of leadership have been discussed including the
Ohio and Michigan studies, contingency theories and situational
leadership theory. Expectations about the type and nature of
leadership are likely to figure large in the psychological contract.
The nature of the psychological contract will influence, and in turn
be influenced by, the interaction between managers and their staff.
Authors have noted that the situation such as appraisal interview
provides opportunity to achieve negotiation and continuing re-
negotiation of psychological contracts.

3.4.11 Chapter-7 deals with ‘Group Dynamics at Work’. The function of

groups, decision-making in groups, and team roles are discussed.
Further the nature, causes, and cures of inter-groups conflicts are

51
 discussed. The psychological contract in groups is concerned with
issue of how individual relates to each other in groups and may
also contain elements concerning inter group relations. It has been
noted that the breach of psychological contract may damage the
group effectiveness.

3.4.12 In chapter-8, authors have moved to macro level of organization.

Different types of organizations are considered. Organizational
culture and its significance, different types of organizational
structures and climates are discussed. The effect of organizational
culture is all pervasive for the psychological contract. It will define,
at the macro level, how people are dealt with in organization and
what the possibilities are for change. Changing the culture will
have, therefore, an enormous impact on the psychological contract
and hence on the organizational effectiveness.

3.4.13 Chapter-9 discusses the issues of ‘Organizational Change’. This

chapter considers how organization can change and adapt. It will
involve individuals, groups and the top management. For any
change to be effective, it needs to take in to account the
psychological contract of those who are getting affected by the
change. It is seen that any organizational change intervention
involves a continuous process of negotiation and re-negotiation of
the psychological aspect of contracts, between the OD consultant
and the member of the organization, and to be handed skillfully to
be effective.

3.4.14 The final three chapters of the book lay emphasis upon the
application of the theories to practical situation. Chapter-10 deals
with boss management, chapter-11 deals with ‘coping with change’

52
 and finally chapter-12 deals with self-management. It is noted that
change of any significance usually involve changes in both the
economic and psychological contracts. These will need to be re-
negotiated. Empowerment and self management involve a major
change in the psychological contract. Authors have noted that a
well planned and openly re-negotiated move to greater self-
management is essentially a non-zero sum game. Both the parties
(employees & employers) stand to gain from the new psychological
contract.

3.4.15 Thus it is seen that this book is well written book about
psychological contract, its linkages for various HR processes and
how management can effectively use the concept of psychological
contract for increase effectiveness of organization. The linkages of
psychological contract with other processes at macro level have
been covered in detail, but the micro level linkages at individual
level have been ignored. The linkages between psychological
contract and the personality are not dealt with in this book although
the personality of a person is likely to have an effect on nature of
his/her psychological contract.

REVIEW OF JOURNAL ARTICLES / RESEARCH PAPERS

3.5 Psychological Contracts: Employee Relations for the Twenty First

Century (By Lynne J Millward and Paul M Brewerton)*

3.5.1 This is one of the chapter in the book ‘Personnel Psychology and
Human Resource Management’, edited by Ivan T. Robertson and
Carry L. Cooper. In this chapter, authors have presented the
* Lynne J. Millward and Paul M. Brewerton; ‘Psychological Contract: Employee Relations for the twenty first century’
appeared in Cary L. Cooper and Ivan T. Robertson (Eds), IRIOP 2000 v 15, 2000, John Wiley & Sons Ltd.

53
 development of concept of ‘Psychological Contract’ from its initial
conception to the most modern status as a scientific construct. As
noted by authors:
“the employment contract is basic to organizational membership
and it constitutes the mainstay of employment relation,
establishing an exchange of promises and contributions
between two parties: employer and employee”

3.5.2 It has been noted in this paper that until the last decade, the term
‘Psychological Contract’ was used mainly as a framework or
backdrop (rather than a scientific construct) and little research
had been undertaken at that time. However, since 90s the
psychological contract has acquired construct status as a
cognitive-perceptual entity, and deemed to be measurable and
owned solely by the individual, as opposed to being a property of
the relationship between two parties. The authors have noted the
major contribution made by Rousseau through her research
papers and further researches done by her students.

3.5.3 Changes in economic and political life, with the attendant collapse
of traditional organizational designs and structures (through
downsizing, outsourcing etc) severely undermined conventional
forms of employer-employee exchange (E.g. Job Security offered
in exchange for loyalty). This led to organizational behavior
researchers to the study of “contract” between employer &
employee. The concept of psychological contract is now of
worldwide interest and significance.

3.5.4 Authors have noted following trends in changing nature of

employment and employee relations:-

54
 a) New ways of working: The changing context of the
workplace in the 1990s derives from a variety of economic,
technological and sociological phenomena and these
changes have had significant implications for the majority of
full time workforce. Full time jobs have been reduced and
part time or temporary jobs are on increase. There has been
a shift from traditional working pattern to a
core/complementary structure; that is organization
employing core long–term contract based and
complementary short-term contract based employees having
major implications for both type of employees.

b) The New Deal: The changes in the context of working as

noted above have wide ranging implications for the
workforce, regardless of the form of the work adopted. The
typical changes being noticed are summarized in TABLE –
3.1. The potential impact of these changes is immense.

TABLE 3.1: Old Deal Vs. New Deal

Old deal New deal

• Long-term security • No security

• Fair pay for good performance
• structured ,predictable employment
scenario
• Career managed by organization
• Time and Effort rewarded
• Income related to experience/status
• Offered promotion prospects and
supported in return for ‘going the extra
mile’
• Mutual trust and Investment
• High pay for high performance
• Flexible and ambiguous employment
scenario
• Career managed by individual
• Performance expected
• Income related to performance-
performance related pay
• Transactional attitudes ‘tit for tat’
mentality
• Little Trust and much cynicism

55
 c) Diversity and the multicultural working world:
Recognition of diversity and its systematic management has
become the key for organizational survival and success.
Diversity has major implication for how people work together
and how they perceive the work & its environment and thus
provides an essential backdrop against which to investigate
contractual issues.

3.5.5 It has been argued that an investment or input by both employee

and employer is crucial to organization’s success. However until
recently the focus of interest has been less in what the
organization can offer to the employee in exchange for their
loyalty and commitment, and more in terms of what an employee
can offer the organization. However it is clear that the behavior of
individuals in the organization cannot be understood in a social
vacuum. Psychological Contract, then, can be described in terms
of both the content (the perceived terms of employment contract)
and the process (how the contract was arrived at). Authors have
further discussed various issues relating to content as well as
process of psychological contracts.

3.5.6 Further the outcome of violation of the psychological contracts,

which have major practical implications for HR managers, have
been discussed. It is noted that the ‘contract violation’ is most
likely to result in negative outcomes for the organization and for
the individual. It has been further noted that in many cases
‘violation is a trauma for a relationship and undermines good
faith’- once lost it is not easily restored. Violation is said to be
most likely to occur when there is:

56
 • A history of conflict and low trust
• Social distance - parties do not understand the perspectives
of the other
• External pattern of violation (e.g. during an era of business
retrenchment)
• Incentives to breach contracts are high
• One party perceives little value in the relationship

3.5.7 Authors have further discussed issues related with

operationalisation of psychological contract - i.e. measurement of
type of contract (both content focused measures as well as
process focused measures), performance implications and its
evaluation.

3.5.8 Authors have explored the relationship found between the

psychological contract and other measures of workplace
perception and reaction, notables among them being:
1) organizational commitment and
2) Links with organizational culture.

3.5.9 Before concluding the chapter, authors have noted various

contemporary trends in psychological contracts (i.e. shift from
relational to transactional contracts and self- correcting contracts)
and issue of sex-differences in the context of formation of
particular type of psychological contracts.

3.5.10 In conclusion authors have noted that the term psychological

contract has a potential utility as a scientific and analytical
construct over and above constructs such as commitment,
however much work remain to be done in clarifying our use of
term, both theoretically and empirically.

57
 3.6 The Psychological Contract and Individual Differences: The Role of
Exchange and Creditor Ideologies (By Jacqueline A-M. Coyle-Shapiro
and Joel H. Neuman)*

Dramatic changes have been noted in contemporary business

practices and this has led to implicit social contracts long held
between employees and employers. This has led to the increased
interest in ‘psychological contract’ to understand and analyze the
relationship between employer and employees in current context.
Lot of research work in this field has focused on the outcome of
contract fulfillment, or its breach on employee’s attitudes and
behavior. However, little work has been done to examine the role of
dispositional variables in psychological contract process. Authors
have noted that “when you stop to consider that the psychological
contract is in essence based on an idiosyncratic belief, dispositional
characteristics would seem critical – and antecedents – to the
process.”

3.6.1 The article under review is about a research study which explores
the relationship between two such dispositional characteristics
(exchange and creditor ideologies) that relate strongly to the
social exchange process and the formation of psychological
contract beliefs. The influence of these dispositional
characteristics on psychological contract process has been
examined in this study.

* Coyle-Shapiro, Jacqueline A-M. & Neuman, Joel H. (2004), The psychological contract and individual differences: the
role of exchange and creditor ideologies [online], London: LSE research Online, Available at:
http://eprints.lse.ac.uk/archive/00000826.

58
3.6.2 Exchange ideology has been defined as the degree to which an
individual’s work effort depends upon perceived organizational
treatment. It is a dispositional orientation reflecting a person’s
expectations for the person - organization exchange. A person
with a strong exchange ideology will work hard if treated well or
fairly, whereas individuals with a weak exchange ideology will
continue to work hard even if perceive themselves as being poorly
or unfairly treated.

3.6.3 Broadly, individuals can be divided into three categories based on

types of exchange ideology they have: Benevolent (individuals
who are more tolerant to under-reward), Equity Sensitive and the
Entitled (those who are more tolerant to over-reward).
Consequently it has been proposed by the authors that “exchange
ideology will be different amongst the three groups; each group
will evaluate their relationship with the organization regarding the
balance between employee and organizational contributions”.
Individuals with a high level of exchange ideology focus on what
they receive, prefer high outcomes for themselves, and feel that
the organization is in their debt. As a result, these individuals are
more likely to think that the organization ‘owes’ them and are
more likely to have weaker obligations to the employer and less
likely to fulfill those obligations.

3.6.4 Creditor ideology refers to dispositional orientation of an individual

towards the giving of greater value than that received. As noted
by experts, “partners may differ in their readiness to reciprocate
benefits on the basis of ideologies concerning the most effective
ways to strengthen exchange relationships”.

59
3.6.5 As confirmed by some laboratory experiments, the individuals
rated high in creditor ideology returned greater help than they had
received. In the employment relationship, creditors are more likely
to invest in the relationship through increasing their perceived
obligations to their organizations and fulfilling those obligations to
a greater extent.

3.6.6 This article outlined the research study carried out by authors to
test their propositions about exchange and creditor ideologies and
its effect on psychological contract. The study confirmed that
there is a strong relationship between employer obligations and
employee fulfillment of obligations when exchange ideology is
high. Further the relationship between perceived employer
fulfillment of obligations and employee obligations is stronger for
employees with a low creditor ideology than for employees with
high creditor ideology.

3.6.7 Authors report that the inclusion of exchange ideology and

creditor ideology in the regression analysis explained unique
variance in employee obligations and fulfillment above that
accounted for by the situational determinants. Specifically the
direct effects of the individual difference variable explain a further
7% and 4% variance in the dependant variable respectively.

3.6.8 It has been noted by authors that the unique contributions of

exchange and creditor ideologies, in explaining employee
outcomes, highlights the importance of individual dispositions in
understanding organizational behavior. This article demonstrates
that some individuals are predisposed to contributing more to the
relationship with their employer than others and to respond
differently to situational factors: such as employer obligations and

60
 fulfillment of those obligations. In short, while it is recognized that
situational factors are important determinants in shaping behavior,
individual difference contribute another important element.

3.7 Psychological Contracts in the Workplace: Understanding the Ties

that motivates (By Denise M. Rousseau)*

3.7.1 This is an article by one of the leading researcher and authority in

the area of psychological contract theory. It summarizes current
researches in the exciting area of psychological contract theory.

3.7.2 To start with, the author has emphasized the need of managing
the psychological contracts of employees in modern time. Flatter
organizations, geographically dispersed work locations, and ever
increasing aspiration levels for service and innovation make it
difficult for employer to motivate workers strictly through
supervision or monetary incentives. However understanding and
effective management of psychological contract can help
organization thrive.

3.7.3 The author has listed six features of psychological contracts as

under:
a) Voluntary Choice: Psychological contracts have element of
voluntary choice by employees and hence motivate them to
keep their obligations.
b) Belief in Mutual Agreement: Psychological contract involves
perception of mutual obligations, regardless of whether that
is the case in reality.
* Rousseau Denise M., Psychological Contracts in the workplace: Understanding the ties that motivate, Vol 18, No 1,
2004, Academy of Management Executives.

61
 c) Incompleteness: Neither employers nor employees can
initially spell out all the details of a long term employment
relationship. Moreover, changing circumstances mean that
not all contingencies can be foreseen. This implies that,
probably with the exception of short term, limited transaction,
psychological contracts tend to be incomplete and need to
take shape over time.
d) Multiple Contract Makers: The interpretation of their
psychological contracts by employees is influenced by many
sources of information like boss, co-workers, and human
resource practices such as training and performance
appraisal process. When various sources convey different
messages, it erodes the mutuality of the psychological
contract.
e) Managing Losses When Contract Fail: When psychological
contracts are violated it results in negative reactions.
Therefore workers and employers must focus both on
fulfilling commitments of their psychological contracts as well
as managing losses when existing commitments are difficult
to keep.
f) The Contract as Model of the Employment Relationship: A
psychological contract creates an enduring mental model of
the employment relationship and this mental model provides
a stable understanding of future expectations and guides all
the future actions accordingly.

3.7.4 The author has further discussed various types of psychological

contracts. These are general patterns that differentiate how workers
and employers behave towards each other. Following types of
contracts have been identified by the author:
i) Relational Psychological Contracts

62
 ii) Transactional Psychological Contracts
iii) Hybrid or Balanced Psychological Contracts

3.7.5 The author further notes that agreement between worker and
employer on what each owes the other is critical to the employment
relationship’s success. Creating mutuality is the gold standard in
employment relations. A long list of dysfunctional outcomes is
generated when an employer or worker believes that the
psychological contract has been willfully breached by the other
side.

3.7.6 Author has further thrown light on how do workers shape their own
psychological contracts. It is suggested that workers shape their
psychological contracts in three ways:
i) Through their career goals
ii) Personality of workers
iii) Idiosyncratic deals ( special employment arrangements)

3.7.7 The article presents following guidelines for employers to help firms
effectively manage psychological contracts and, in so doing,
increasing the odds of achieving important organizational goals:
i) strive for consistent implementation of psychological
contract
ii) Establish a clear meta contract that can be used
across the firm
iii) Build flexibility into psychological contracts

3.7.8 To conclude the article, the author notes:

“Overall, the psychological contract is a product of complex
web of exchanges between worker and employer, with the
latter represented by several parties at the same time. Many

63
 employers simply have no clue how many different “contract
makers” shape the beliefs that their workers hold, implying
obligations without fully comprehending their ramifications. In
contrast, employers that deliberately formulate and execute
consistent psychological contracts are in a position to keep
their commitments and motivate the worker contributions
essential to their mutual success. Enterprises that serve their
stakeholders well are sustained by principled leadership and
a highly committed workforce, and psychological contracts
are their fundamental building blocks.”

3.8 The Psychological Contract and Job satisfaction: Experience of a

group of casual workers (By Lindsay Nelson, Graeme Tonks & Joshua
Weymouth)*

3.8.1 In this article, authors have presented a study conducted by them

about the effect of casual employment on a group of university
students using the psychological contract as interpretative
framework in the context of Australian labour market. It has been
noted that Australian labor market has witnessed a significant
development in the increased use of casual labor in the recent past.
The “casualisation” has resulted from ‘labor market fragmentation’
and there is a general agreement that it emerged from political and
economic factors, and labor market strategies used by employers
to alleviate labor costs, and mitigate market uncertainty in order to
gain a competitive advantage. However, casual labor, compared

* Nelson Lindsay, Tonks Graeme & Weymoutn Joshua; The Psychological Contract and Job satisfaction: Experiences of
a Group of Casual Workers, 2006, Research and Practice in Human Resource Management.

64
 with permanent workers, have substandard rights, benefits and
protection, as well as substantial levels of precariousness.

3.8.2 In this study, perceptions of the psychological contract and job

satisfaction of a group of casual worker is examined using
established measures together with interviews. The study was
conducted in three phases. Firstly, exploratory interviews were
conducted, second phase assessed the transactional-relational
orientation of psychological contract and lastly level of job
satisfaction was examined. A small group of 20 students, who were
enrolled in various Australians universities, undertaking an
undergraduate business management course and also engaged in
paid employment on a casual basis participated in the study. The
participant students represented many diverse organizations,
although the majority worked in the service sectors, particularly the
hospitality and retail industries.

3.8.3 Data obtained from the interviews were analyzed using computer
software and it revealed two primary categories reflecting the
transactional and relational contract entities. From this initial
divergence, software revealed a number of sub categories. The
transactional dimension exposed concerns about pay & benefits as
expected. However, the relational dimensions was mere complex
and surfaced various factors like ‘hard and soft versions’ of HRM,
interaction with colleagues and supervisors, issues of trust,
commitment, organizational citizenship behaviors(OCB) and anti
role attitudes. The result showed there was agreement with an
expectation of being paid for overtime, and doing the job for money
as expected in transactional psychological contract. The result
suggests that respondents did not expect that relational aspects of
the psychological contract would be fulfilled. Further it was noted

65
 that casual workers were dissatisfied with many aspects of their
job, yet were prepared to endure these features of the workplace in
order to gain employment.

3.8.4 The research results, as reported in this study, demonstrate that

casual are treated derogatively and unfairly by their employers
regularly. Respondents felt that they were treated in an inferior
manner because of their employment status and were aware of
power differentials between themselves and their employer.
Respondents often felt that they were victims of injustice and power
abuse by managers. This, in turn, invoked low job satisfaction, as
well as low levels of trust and commitments, a withholding of
organizational citizenship behaviour (OCBs) and involvement in anti
role behaviors by employees.

3.8.5 Although the sample size used for the study was small, the findings
showed a strong transactional orientation. Employees held no
thoughts of permanent relationship or a sense of belonging and
involvement. At the same time, however, the qualitative data
revealed a strong feeling of dissatisfaction over the way these
employees were treated.

3.8.6 The authors have noted that:

“Thus, in a convoluted way, although the relational

obligations were at a very low level, workers resented the
poor treatment to which they were exposed, indicating that
even these contingent workers wish to be treated with
respect and dignity. For this reason, and not withstanding
support for the transactional obligations, it appears that the
relational side of the psychological contract was regarded as

66
 important. --- In fact, the finding suggests that relational
qualities are more important than the transactional
orientation, because its fulfillment or unfulfillment can have
impact on individual’s attitudes and behaviors and thus, on
organizational performance.”

3.8.7 Although this study is undertaken in an Australian context, it may be

noted that employment environment is no different in other parts of
the world. The present global environment encourages deregulated
labor market which offers little motivation for corporate loyalty and
attachment to jobs. Whilst casual labor does provide employers and
employees with particular benefits, the management of such
arrangements needs to be considered carefully. If the organization
sticks to the notion of the relative importance of financial rewards,
they may be creating structures that could ultimately contribute to
reduced performance, or even their own failure. Organization
wishing to capitalize on the advantages of using casual labors need
to configure their HRM policies and practices to strengthen links
with the relational dimension of the psychological contract, requiring
much greater emphasis on the tenets of ‘soft’ HRM.

3.9 Psychological Contract development during organizational

Socialization (By Ans de Vos, Dirk Buyens and Rene Schalk)*

3.9.1 The psychological contract has been viewed as a relevant construct

to explain important employee attitudes and behaviours like
commitment, turnover and organizational citizenship behaviours.
Most researches have been focused on outcome of psychological
* Ans De Vos, Dirk Buyens and Rene Schalk; Psychological Contract Development during Organisational Socialisation:
adaptation to reality and the role of reciprocity; Journal of Organisational Behaviour, 2003, Published online in Wiley
InterScience (www.interscience.wiley.com); John Wiley & Sons, Ltd.

67
 contract breach in terms of responses by employees. The authors
have noted that the process of psychological contract formation
remains theoretically underdeveloped and has received limited
empirical attention with few exceptions. In this research study, the
main objective is to gain better understanding of the process of
psychological contract formation by the newcomers during
socialization process. Specifically, this study investigates the
process of psychological contract formation in following ways:-
a) To investigate psychological contract formation as a sense
making process taking place during organizational
socialization. This study examines how changes in
newcomers’ perceived promises are associated with their
interpretation of experiences encountered after
organizational entry.
b) To relate the process of psychological contract formation to
the socialization process. The socialization period is
generally considered as an important stage in the
formation of psychological contract.
c) It takes into account newcomer’s perception of both
parties’ promises and actions (employer and employees).
Taking into account newcomer’s perception of both parties’
promises and actions makes it possible to examine how
both are dynamically interrelated over time.

3.9.2 It has been theorized that socialization is characterized by sense

making process through which newcomers come to understand,
interpret, and respond to their new environment. These sense
making processes are seen as critical to the development of
attitudes and behaviors that enable newcomers to function
effectively within their new environment. Further the psychological
contract is a perceptual cognition defined at the level of the

68
 individual. It means that it is the perception of reality, not reality par
se, which is the central focus of the psychological contract
research. This means that employees actively make sense of their
psychological contract based upon their experiences within the
organization.

3.9.3 Newcomer’s psychological contracts are comprised of beliefs about

the inducements they have been promised by their employer and
the contribution they have promised to make in return. The role of
unilateral and reciprocal adaptation in explaining changes in new
comer’s psychological contract perception are modeled as shown in
FIGURE – 3.4.

3.9.4 The individual’s adjustment to the organization further occurs

during the sixth or twelfth month after entry, i.e., the acquisition
stage of socialization. As a more stable cognitive schema about the
employment relationship develops, uncertainty about the new
relationship is reduced and active sense making process
decreases. Therefore it is expected that during this period,
newcomer’s experiences will become less likely to affect changes
in their psychological contracts.

3.9.5 In this study, the research sample consisted of full time employees
with a permanent employment contract, working for six large
privately owned firms in Belgium (N= 333). Data was collected at
four points in time: 2 weeks after entry (T1) and then 3 months (T2),
6 months (T3) and 12 months(T4) after entry, using a longitudinal
research design to assess the perceived promises, perceived
inducements, and contributions.

69
 Employer Employee
Inducements Contributions

Interpretation of Interpretation of
experiences Reciprocal experiences
adaptation

Unilateral Unilateral
adaptation adaptation

Fig: The role of unilateral and reciprocal adaptation in explaining changes in

Perceived Promises Perceived Promises

FIGURE 3.4: Newcomer’s Psychological Contract Perceptions

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3.9.6 The analysis and result of the study has shown that newcomers
changed their perception of what their employer had promised them
based on their perception of the employer inducements actually
received. They also changed their perceptions of what they had
promised their employers based on their perception of what they
actually contributed to their employer.

3.9.7 The study shows that during the first year after entry newcomers’
interpretations of their experiences within the work setting are
associated with changes in their perceptions of the terms of their
employment deal. It implies that newcomers’ psychological contract
are not formed once and for all at the time they enter the
organization. They evolve and are periodically revised as a result of
sense made of experiences encountered after entry.

3.9.8 These results underscore many potential implications for

employers. It is important for employer to be aware of the impact of
their human resource policies on employees’ expectations and on
their intended contributions and employer can manage employees’
perceptions of their own promises directly by providing concrete
information and feedback about their own contributions.

3.9.9 In conclusions, the findings of this study contribute substantially to

the research on psychological contracts by focusing on the
important but neglected issue of psychological contract formation. It
is shown that it is important to view the psychological contract as a
dynamic set of expectations which, at least during the socialization
process, are affected by newcomers’ interpretations of their
experiences after entry.

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 3.10 The Changing Nature of Psychological Contract in the IT industry:
1997-2001 ( By Philippa Davidson) *

3.10.1 This paper outlines the nature of psychological contract formed by

employees of IT industry and it further analyze variations in the
nature of the contract as perceived by employees with different
demographic and career profiles.

3.10.2 The author has proposed that psychological contract is a series of

six bipolar continuums, the position of any individual on these six
continuums will vary according to their demographic profiles and
career experiences and finally the perceptions of individual of the
form of their psychological contract have changed in marked but
measurable ways over recent years.

3.10.3 For the purpose of this study, the authors have concentrated on IT
industry of UK during the period 1997 – 2001.

3.10.4 The authors have identified three key themes as a result of

psychological contract research. First, six key elements are
conceived to form the psychological contract, viz.
i) A balance between benefits given by an individual
and their expected rewards
ii) The amount of choice perceived to be present
iii) The pace of change experienced
iv) The perceived importance of trust in the contract
v) The existing level of clarity
vi) The extent to which the contract was individualistic

* Davidson Phillippa; The changing Nature of the Psychological Contract in the IT Industry: 1997-2001; Research Papers
in Human Resources Management; Kingston Business School; Kingston University, UK.

72
3.10.5 The second theme that emerged was that the psychological
contract is affected by a number of influences and in particular
following six factors were explored:
• Age
• Gender
• Individual’s role within the organization
• Type of organization : IT company or IT department
within a non IT company
• Length of time the individual had worked within IT.
• Length of time the individual had worked for the
current employer

3.10.6 And, finally the author notes that individual’s psychological contract
had changed over the period, following changes in wider work
environment.

3.10.7 To explore the key themes as mentioned above, it was important to

collect quantitative and qualitative data. For this purpose, the
author has considered it appropriate to use the semi-structured
interviews for data collection. The sample chosen by author
included employees of IT industry representing wide cross section
of respondents with different demographic characteristics and
career histories. However author has admitted that the sample
chosen was indicative rather than fully representative of IT industry.

3.10.8 The numerical data collected was analyzed using appropriate

computer programs. The finding of this research study confirmed
that the psychological contract can be modeled as a series of six
bipolar continuums, as shown in FIGURE - 3.5.

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 Balance of benefits and rewards

Choice

Pace of Change

High Low
Trust

Clarity

Individualism

FIGURE 3.5: Bi-polar Features of the Psychological Contract

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3.10.9 The above continuum is based on the supposition of there being a
strong relationship between the benefits an individual is expected to
give to an organization and the reward they expect in return.

3.10.10 The author has identified following four distinct groups from the
research sample:
• Challenge-hunters tended to be male, under 40, worked
in the technical roles in IT departments and had been
employed by their current employers for less than two
years; they were also uninterested in Corporate Culture
and Job Security.
• Lifestyle-enthusiasts, on the other hand, were females
who had spent five years or more in their current
organizations; like Challenge–hunters they did not value
Job Security and ranked Corporate Culture and Loyalty
to the Company as relatively unimportant.
• Reward seekers were male, worked in management
roles in IT companies, had spent up to 20 years working
in IT and between two and five years in their current
companies; they shared the Lifestyle- enthusiast’s views
about Job security, Corporate Culture and Loyalty to the
Company and added Physical Working Environment to
the list of unimportant factors.
• Company-servers were 40 or over and had 20 or more
years experience in the IT industry; they felt that Physical
Working Environment and Working Hours were the least
important factors.

3.10.11 Further, conclusion was drawn that factors such as demographics

and career experience had a noticeable effect on individual’s

75
 psychological contracts. The four types of persons identified in the
findings supported this conclusion.

3.10.12 In the last, the authors have noted that the contract breaches (in
the form of redundancies) have had a marked effect on individuals
whether they have experienced them at first hand or not. It,
therefore, appears that mere awareness of breach is enough to
have an impact on the psychological contract. Further it is noted:
“The psychological contract has been shown to be a highly
subjective concept. Each individual’s experiences, both at
work and in their lives in general, play a part in defining both
current and future attitudes to the employment relationship.
This individuality makes the psychological contract an
interesting research subject: general findings may show
similarities across studies but detailed responses will always
exhibit an element of uniqueness.”

3.11 From Me to We: The Role of psychological contract in Team Formation

(By John E Galvin, Vicki R McKinney & Katherine M Chudoba) *

3.11.1 This paper was a part of proceedings of 38th Hawaii International

conference on system sciences- 2005 .This paper explains the
process of team formation with the help of psychological contract
literature and concepts.

* Galvin John E., Mckinney Vicki R. and Chudoba Katherine M.; From Me to We: the Role of the Psychological
th
Contract in Team Formation; Proceedings of 38 Hawaii International Conference on System Sciences-2005.

76
3.11.2 The role played by work teams to accomplish business objectives is
universally accepted as very important. Unfortunately not all work
teams are effective and it is important to understand the process of
formation of teams to make them more effective.

3.11.3 To form work teams, individual join together to achieve a common

goals dependent on contributions from all team members. This
establishes a level of interdependence within the team and instills a
measure of vulnerability on the part of each team member since
their individual performance is, at least in part, based on the results
of the collective group.

3.11.4 In this paper, authors have proposed a model to help better

understand the process of transformation from being individually
centric to being team centric.

3.11.5 As part of the individual’s integration with the team, there is an

implied agreement established between the team members and the
team which represents the “individual beliefs, shaped by the
organization, regarding terms of an exchange agreement between
individuals and their team. This has been referred to as an
individual’s “psychological contract” and describes the beliefs,
expectations and perceptions held by individuals concerning what
they are to give and receive as part of their working relationship
with the other participants.

3.11.6 The congruence of an individual’s psychological contract with that

of other team members provides a basis for transforming into a
team player since the individual’s expectation became aligned with
that of the team.

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3.11.7 When the individuals come together to form a team, they are
coming together to achieve a common goal. As team members join
the team, they bring with them their own personal goals and
objectives. These personal expectations provide them with scripts
and beliefs about how the team should function but are not
necessarily held in common with other team members. These
personal expectations form the individual psychological contract
with the team and become the framework for establishing shared
team mental models. Further the development of a shared team
model requires communication and as additional information is
received from other team members, individuals selectively use this
information to update their knowledge. As the team member
integrates their newly acquired knowledge with their existing
knowledge structures, their team mental model will be updated and
this process continues throughout the life of the team, thus allowing
the team members’ mental model to evolve towards shared models
with other team members.

3.11.8 The paper is concluded by authors with observation:

“A team’s success depends on the effective
integration of team members, and the transformation from
“me” to “we”. The concept of psychological contract is helpful
in understanding this transformation and thus helping
management with insights for guideline to be developed for
team formation.”

78
 3.12 An Analysis of Psychological Contracts in Volunteerism and the
Effect of Contract Breach on Volunteer Contributions to the
Organization (By Becky J. Starnes, PhD)*

3.12.1 This research article explores if the psychological contract is

developed between volunteer workers and the organization they
serve, and the effect of perceived breach of the psychological
contract on volunteers’ attitudes and behavior.

3.12.2 The not-for-profit sector (NGO etc.) form important part of modern
society and relies heavily on the support of volunteers to respond to
increasing demands for service, quality and accountability.
Therefore, it becomes necessary for managers of volunteers to do
all they can to recruit, retain, and improve the efficiency of their
volunteer workforce.

3.12.3 This study used the reasoning that volunteers develop

psychological contracts with the not-for-profit organization they
serve and that they will reduce their level of contributions if they
perceive a breach of the contract. A longitudinal cross sectional
panel design consisting of volunteer responses to a survey
instrument at two points in time was used for data collection.

3.12.4 The survey finding confirmed that the volunteers who perceived a
breach in the psychological contract were likely to reduce the
number of hours they worked, and increase (or perceive an
increase) in the quality of their work. However no relationship
between the volunteer’s intentions to remain with the organization
and a perception of a breach in the psychological contract was
* Starnes Becky J., An Analysis of Psychological Contracts in Volunteerism and the Effect of Contract Breach on
Volunteer Contributions to the organization; volume XXIV, Number 3, January 2007, The International Journal of
Volunteer Administration.

79
 found. However, data suggest that age and the length of time
served may influence the relationships between the volunteer’s
perceptions of a breach of contract and their intentions to remain
with the organization.

3.12.5 The research finding reflects that volunteers can develop

psychological contracts with their not-for-profit organization and
perceive breaches of those contracts. The study of psychological
contracts may play a purposeful role in understanding volunteer’s
contributions. Managers of not-for-profit organizations may consider
conducting honest feedback sessions with volunteers as a tool for
identifying and correcting perceived breaches before they result in
negative feelings and behaviors on the part of the volunteer.

3.13 The Role of Psychological Contract in Retention Management

(By Ans De Vos, Annelies Meganck & Dirk Buyens)*

3.13.1 This article is a part of Vlerick Leuvan Gent Management

School’s working paper series. It examines the views of
employees and HR managers on the factors affecting
retention of employees in the frame work of psychological
contract.

* Ans De Vos, Annelies Meganck & Dirk Buyens, The Role of the Psychological Contract in Retention management:
Confronting HR-Managers’ and Employees’ views on Retention factors and the Relationship with Employees’
Intentions to Stay; Vlerick leuven Gent working paper series 2005/05, Vlerick Leuven Gent Management School.

80
3.13.2 It is noted that due to ongoing environmental challenges like
globalization, competitive market conditions and
deregulation, organizations are required to be more flexible
and responsive. It has resulted in fundamental changes in
employment relationship also, and has led to more attrition
rate of talented employees. The organizations are pressed to
attract and retain talented employees who have
competencies that are critical for organization’s success.
This has resulted in emphasis on ‘retention management’. At
the same time, the concept of psychological contract has
become a relevant construct for understanding and
managing contemporary employment relationships.

3.13.3 While retention management focuses on the type of

organizational incentives and HR strategies that are required
in reducing the attrition rate, the psychological contract
focuses on employee’s subjective interpretations and
evaluation of inducements and how these affect their
intention to stay.

3.13.4 It implies that retention practices might only turn successful if

they are in line with expectations and value system of
employees.

3.13.5 The inducement offered by organization for retention of

employees can be put into following five major groups
1. Financial Rewards
2. Career development Opportunities
3. Job Content

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 4. Social Atmosphere
5. Work-Life Balance

3.13.6 Since the psychological contract involves employees’

subjective interpretation and evaluation of their employment
deals, the above retention factors will only turn out to be
effective for employees’ retention if they are in line with
employees’ subjective views and expectations.

3.13.7 Authors studied the views of both HR managers and

employees on retention management and thereby
integrating the concept of retention management and the
psychological contract. For this purpose, a two step research
was conducted. In the first step, telephonic survey among a
sample of HR managers was done. The second phase
consisted of a large-scale written survey among employees
representing organizations from different industries.

3.13.8 The outcome of above survey supported the idea of the five
categories of retention factors both by HR managers and
employees. However, the result indicated that not all five
types of retention practices are equally important in affecting
employees’ retention. The evaluation of promises about
‘career opportunity’ appears to be most predictive of
employees’ intention to leave and of their job search
behaviors.

3.13.9 This study indicates that HR managers should better take

into account what their employees value and how they
evaluate their organization’s efforts towards retention
management if they are to contribute in a cost efficient way

82
 to the strategic objectives of the organization. The
psychological contract hereby provides a practically useful
framework to manage employees’ expectations and to
engage in an open process of communication and
negotiation about the employment deal.

3.14 Violation of the Psychological Contract: The Mediating Effect of

Relational versus Transactional Beliefs (By Martin Grimmer & Mathew
Oddy)*

3.14.1 In the present study, authors have presented the result of

their research work on ‘psychological contracts’ in an
Australian context and explore the effect of it on the
employees’ organizational behavior.

3.14.2 Authors have noted that the recent trends in the employment
contracts which lay stress on short-term employment
contracts and a loss of job security. These factors have
resulted in a re-definition of career expectations and of the
nature of the employment relationship. It has been noted that
the old contract of ‘security in exchange for loyalty’ has been
replaced by a new contract of ‘employability for flexibility’.

* Martin Grimmer and Mathew Oddy; Violation of the Psychological Contract: The Mediating Effect of Relational Versus
Transactional Beliefs; vol. 32, No. 1, June 2007, Australian Journal of Management.

83
3.14.1 Authors have further mentioned about two major types of
psychological contract: relational and transactional.
Relational contract characterizes beliefs about obligations
based on exchange of socio–emotional factors (e.g. loyalty
and support) rather than purely monetary issues.
Transactional contract, on the other hand, are focused on
short-term monetary agreements with little close involvement
of the parties. Relational contract tends to describe
perceived obligations that are emotional and intrinsic in
nature, whilst transactional contract describe obligations that
are economic and extrinsic. Relational contract are,
therefore, more subjective and less tangible in comparison to
transactional contracts.

3.14.2 It is further pointed out that this transactional – relational

divide is not necessarily an exclusive one. The employment
relationship can better be described as comprising of varying
degrees of both relational and transactional elements. In
other words, people are not one versus the other and can
instead have elements of both types in their own individual
psychological contract.

3.14.3 Authors have presented the results of an exploratory study

that investigated the psychological contract of MBA students
at two Australian universities for the following purposes:
1) To evaluate the type of psychological contracts held
by the MBA students, using the classical relational
and transactional dimensions.
2) To consider the effect of contract violation.

84
 3) To assess the possible mediating effect of the
contract type, relational versus transactional, on the
impact of contract violation.

3.14.4 A total of 90 students enrolled in MBA program of the

University of Tasmania and Monash University participated
in the study. The survey battery contained 17 items
psychological contract scale (PCS), 15 items organizational
commitment questionnaire (OCQ) and 7 items relating to
trust in one’s employment and few other pertinent questions.

3.14.5 The results of the study showed that participants were more
likely to hold relational type expectations regarding their
employment than transactional expectations. Further, it was
found that relational scores were positively correlated with
organizational commitment and trust. The expected
relationship between transactional scores and commitment
was found, but not between transactional scores and trust.

3.14.6 The current study also supported the earlier research finding
to the perception of contract violation and contract fulfillment;
and authors have concluded that the notion of contract
violation, being normal, is generalisable to the Australian
context also.

3.14.7 Further, the prediction that the perception of violation would

result in lower commitment and trust was only partially
supported. However there was a significant positive
correlation between the perceived fulfillment of expectation
and both commitment and trust.

85
 3.14.8 This study further explored the mediating effects of contract
type on the relationship between fulfillment of expectation
and organizational commitment & trust. The relational scores
were found to be correlated with fulfillment of expectations,
and no such relationship was found for transactional scores.

3.14.9 The analysis indicates that the employees with a more

relational orientation will be more disappointed by the lack of
contract fulfillment than those with a more transactional
orientation. Relational orientation, therefore, has an
important mediating effect on the consequences of contract
fulfillment,

Concluding the literature review, it is noted that:

1. No study of psychological contract is known to exists in Indian

context.

2. There has been little research into the antecedents to the

psychological contract formation.

3. The research is almost absent regarding influence of personality on

the psychological contracts of an individual although the
idiosyncratic nature of the psychological contract is universally
accepted.

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 CHAPTER – 4

OBJECTIVES AND HYPOTHESES

4.1 The current study is an attempt to understand the type of

Psychological Contract held by employees of selected government
organizations / PSUs in India. The study also attempts to understand
the personality factors which may influence the psychological contract,
like demographic variables (gender, age) and Big Five Factors, in
case of persons employed in government organizations in India.

4.2 Objectives :

Based on above, objectives of the current study are:

i) To investigate about the type of psychological

contract held by employees of selected government
organizations / PSUs in India.

ii) To investigate the pattern of personality (Big Five

Factors) displayed in general by government
employees.

iii) To investigate the difference in type of Psychological

Contracts held by male and female employees of
government organizations.

87
 iv) To investigate the difference in type of Psychological
Contracts held by persons of different age groups
employed by government organizations.

v) To investigate the relationship between type of

Psychological Contracts and personality of
government employees

4.3 Hypothesis formulation:

4.3.1 Evidences in the organizational research suggest that

context of the job plays an important role in framing
employment relationship. The external inducements
influence employees’ attitudes and behaviors. ‘External
inducement’ here include broad level factor such as national
context, national culture, legal frame work etc, as well as
organization level factors such as HRM policies &practices.
The model in FIGURE - 4.1 depicts the influence of HRM
policies on an employee’s attitudes and behaviors.

4.3.2 In Indian context, the jobs in government organizations have

following characteristics in general:
i) Long Term employment
ii) Full time job
iii) Job security
iv) Well defined career path based primarily on
seniority
v) Fixed pay regardless of actual output ,fixed by
central/state government
vi) Limited responsibility and accountability

88
 Employers’ HRM
Policies and practices

Employees’ conception of
employment relationship

Employees’ attitudes
and behaviors

FIGURE - 4.1: Model of how HRM policies influence employee’s

attitudes & behaviors

89
4.3.3 In view of above characteristics of jobs in the government
owned organization in India, it is natural for employees to
have a relational type of psychological contract, which is
characterized primarily by long term relationship and above
mentioned characteristics of job under organizations owned
by the government. Therefore the null and alternative
hypotheses are:

Hypothesis - 1:

H1O : The type of psychological contract formed by

government employees is not specific in nature.

H1A : The type of psychological contracts formed by

government employees tends to be predominantly
‘Relational’ in nature.

4.3.4 Further it is hypothesized that the length of employment

(experience), age and gender may all have some effect on
type of psychological contract formed by employees. From
the employees’ perspective, the ideas about the employment
relationship change over time. This is because of changes
related to aging and progression through the life course,
changes and events in private life. (E.g. the career pattern of
the partner), and changes related to the development of the
employment relationship itself (socialization, renegotiation,
changing jobs, or leaving for another organization). It has
been noted by researchers that, in general, older employees
indicate higher-level of obligations, especially with respect to

90
 their own obligations. In other words, older employees tend
to have more relational contracts as compared to their
younger counterparts.

4.3.5 In a research study, Millward has identified a group of

individuals who have been conceptualized as ‘careerists’.
This group of employees expects to make their career in an
industry or a profession rather than with a specific
organization. This is more commonly described as career
commitment which is an individual’s attitude towards his/her
own career. It has been identified that the incidence of
careerism is higher in younger groups and among those who
have only been with the organization for a short time .As age
and length of time with the organization increases, so the
incidences of careerism decreases which may mean that
these employees develop less transactional relationship
overtime and became more relational. Therefore, the
relevant null and alternative hypotheses are:

Hypothesis - 2:

H2O : Age does not have any significant effect on type of

psychological contract of government employees.

H2A : As age increases, there will be a significant shift

towards relational dimension of psychological contract of
government employees.

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4.3.6 Gender is another important variable in organizational
research area because, for many people, it is one of the
fundamental categories around which the social world is
organized. Sex difference in human performance cannot be
explained easily and in several domains where reasonably
objective measurements have been possible, no such
differences have been found. In the area of psychological
contract research, it was hypothesized that women would be
more transactional oriented in relation to their job, they are
largely disconnected from the work place and will exit more
easily. However, this was refuted and this particular study
showed that women in full time work interface is much the
same way as men. Based on above discussion, the relevant
null and alternative hypotheses are:

Hypothesis - 3:
H3O: There will be no significant difference in type of
psychological contract formed by male and female
government employees.

H3A : There is a significant difference in the type of

psychological contract formed by male and female
government employees.

4.3.7 A psychological contract consists of individual’s beliefs about

the terms and conditions of the exchange agreement
between themselves and their organizations. A major feature
of the psychological contract is its idiosyncratic and
subjective nature, which arises due to the fact that the
psychological contract is made up of individual’s personal

92
 beliefs of what the agreement with his or her organization
involves. Many scholars agree that the psychological
contract is an individual level phenomenon that could be
influenced by individual differences variables. One of the
important and major individual level factor, which is used to
differentiate an individual, is his/her “personality”. The
personality refers to all those characteristics or fundamental
traits of the person that endure over time and that account
for consistent pattern of responses to every day situations.
Personality traits supposedly account for the what, why, and
how of human functioning. Therefore, it is logical to assume
that formation of psychological contract by an employee is
influenced by his or her personality. Rousseau, an expert in
this field, has also noted that “Personality undeniably plays a
role in psychological contracts.”

4.3.8 As has been seen that personality is best described in terms

of five broad factors – Big Five – i.e. Extraversion,
Neuroticism, Openness to Experience, Agreeableness and
Conscientiousness. The characteristics of each of these
factors are described in brief as under.

4.3.9 EXTRAVERSION implies an energetic approach to the

social and material world and includes traits such as
sociability, activity, assertiveness and positive emotionality. It
is marked by pronounced engagement with external world.
They tend to be enthusiastic, action oriented individuals who
are likely to adopt opportunities for excitement. They are
likely to prefer short term contract with employer and
probably would like to continuously search for new
opportunities elsewhere. On the other hand the people with

93
 low on ‘extraversion’ tend to be introvert, quiet, low-key,
deliberate and less dependent on social world.

4.3.10 NEUROTICISM refers to tendency to experience negative

emotions. People high on neuroticism are emotionally
reactive. They are more likely to interpret ordinary situation
as threatening, and minor frustrations as hopelessly difficult.
On the other hand, individuals who are low on neuroticism
are less easily upset and are less emotionally reactive. They
tend to be calm, emotionally stable and free from persistent
negative feelings.

4.3.11 OPENNES TO EXPERIENCE describes a dimension of

personality that distinguishes imaginative, creative people
from down-to-earth, conventional people. It describes the
breadth, originality and complexity of an individual’s mental
and experimental life. Persons high on Openness count has
broader interests, has a fascination with novelty and
innovation and tends to be open to considering new
approaches. On the other hand, the people who are low on
Openness factor, has narrower interests, are perceived as
more conventional and are more comfortable with the
familiar.

4.3.12 AGREEABLENESS reflects individual differences in

concern with cooperation and social harmony. Agreeable
people value getting-along with others. They are therefore
considerate, friendly, generous, helpful and willing to
compromise their interests with others. Highly agreeable

94
 people are prone to subordinate personal needs to those of
the group, to accept the group’s norms rather than insisting
on his or her personal norms. Harmony is more important to
them. At the other end of Agreeableness scale are
disagreeable individuals who place self-interest above
getting along with others. He is more focused on his or her
personal norms and needs rather on those of the group.
They are more concerned with acquiring and exercising
power, and follow the beat of their own drum rather than
getting in step with the group.

4.3.13 CONSCIENTIOUSNESS describes socially prescribed

impulse control that facilitates tasks and goal-directed
behavior, such as thinking before acting, delaying
gratification, following norms and rules, and planning,
organizing and prioritizing tasks. High conscientiousness
refers to persons who focus on fewer goals and exhibits the
self- discipline associated with such focus. Highly
conscientious people exhibits high self-control resulting in
consistent focus on personal and occupational goals. On the
other hand less conscientious person is more easily
distracted, is less focused on goals, is more hedonistic, and
is generally more lax with respect to goals. A passing idea,
activity, or person easily seduces them from the task at
hand; i.e. they have weak control over their impulses.
Flexibility facilitates creativity, inasmuch as it remains to
open to possibilities longer without driven to closure and
moving on.

95
4.3.14 Keeping above discussion in view, the relevant null and
alternative hypotheses are:

Hypothesis - 4:

H4O : The formation of ‘Transactional Contract’ is not related

to the personality .

H4A : The formation of ‘Transactional Contract’ is more likely

to be positively associated with scores on Extraversion
scale, Neuroticism scale and negatively associated with
‘Openness to Experience’ scale, Agreeableness scale and
Conscientiousness scale.

Hypothesis - 5:

H5O : The formation of ‘Relational Contract’ is not related to

the personality.

H5A : The formation of ‘Relational Contract’ is more likely to

be positively associated with scores on ‘Openness to
Experience’ scale, Agreeableness scale and
Conscientiousness scale and negatively associated with
Extraversion scale and Neuroticism scale.

96
 Hypothesis - 6:

H6O : The formation of ‘Balanced Contract’ is not related to

the personality.

H6A : The formation of ‘Balanced Contract’ is more likely to

be positively associated with scores on ‘Openness to
Experience’ scale, and Conscientiousness scale and
negatively associated with Neuroticism scale.

Hypothesis - 7:

H7O : The formation of ‘Transitional Contract’ is not related to

the personality.

H7A: The formation of ‘Transitional Contract’ is more likely to

be positively associated with scores on Neuroticism scale.

4.3.15 Various hypotheses (null as well as alternative) are tabulated

in TABLE – 4.1.

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 TABLE – 4.1: RESEARCH HYPOTHESES
Sr. No. Null Hypothesis
The type of psychological contract
formed by government employees is
H1 not specific in nature.
Age does not have any significant
effect on type of psychological
H2 contract of government employees.
There will be no significant
difference in type of psychological
H3 contract in male and female
employees.
The formation of ‘Transactional
Contract’ is not related to the
H4 personality.
The formation of ‘Relational
Contract’ is not related to the
H5 personality.
The formation of ‘Balanced
Contract’ is not related to the
H6 personality.
The formation of ‘Transitional
Contract’ is not related to the
H7 personality.
Alternative Hypothesis
The type of psychological contracts
formed by government employees
tends to be predominantly ‘Relational’
in nature.
As age increases, there will be a
significant shift towards relational
dimension of psychological contract of
government employees.
There is a significant difference in the
type of psychological contract formed
by male and female government
employees.
The formation of ‘Transactional
Contract’ is more likely to be positively
associated with scores on
Extraversion scale, Neuroticism scale
and negatively associated with
‘Openness to Experience’ scale,
Agreeableness scale and
Conscientiousness scale.
The formation of ‘Relational Contract’
is more likely to be positively
associated with scores on ‘Openness
to Experience’ scale, Agreeableness
scale and Conscientiousness scale
and negatively associated with
Extraversion scale and Neuroticism
scale.
The formation of ‘Balanced Contract’
is more likely to be positively
associated with scores on ‘Openness
to Experience’ scale, and
Conscientiousness scale and
negatively associated with
Neuroticism scale.
The formation of ‘Transitional
Contract’ is more likely to be positively
associated with scores on Neuroticism
scale.
98
 CHAPTER – 5

RESEARCH METHODOLOGY

5.1 The current research attempts to find out if there is a relationship

between the type of personality and type of psychological contracts
formed by persons employed in government organizations in India.
For this purpose, diagnostic research design is adopted.

5.2 The research process followed in this study is depicted in

FIGURE– 5.1.

5.3 As already discussed, the diagnostic research design is adopted for

this study. Under this design, attention has been paid on following
aspects:
a) Selection of Sample
b) Method of data collection
c) Data collection
d) Data processing and analysis
e) Interpretation

5.4 SAMPLE DESIGN: The target population covered under this project
are the employees of selected government departments / or
organizations owned by the government like PSUs. To ensure wide

99
 Define Research Problem

Literature Review

Review of concepts Review of previous

and theories research in related area

Formulation of research
objectives and hypothesis

Research Design
(Including sample design)

Data Collection

Data Analysis
& Hypothesis testing
FIGURE - 5.1: The model of the research process followed

Interpretation of Results

cross section of the sample, government departments/ PSUs

were selected to represent following industry / functions:

i) Production / Manufacturing
ii) Civil construction / Projects

100
 iii) Banks/ Insurance/ Finance
iv) Office jobs / Ministries
v) Armed Forces
vi) Education, Training and HRD
vii) Public Transport
viii) Marketing / Sales
ix) Health care / hospitals
x) Research & Development

5.4.1 Sampling: Sampling method used in this project is

best described as complex random sampling. To
ensure a true representative sample, few
organizations were selected at random to represent
various industry/ functional areas and also keeping
the convenience of data collection in mind. Then
samples were drawn at random from these
organizations to ensure cross section representation
from these organizations.

5.4.2 Specifically for the purpose of collection of sample for

this study, data were collected from organizations
shown in TABLE – 5.1.

TABLE 5.1: LIST OF ORGANISATIONS SELECTED FOR

DATA COLLECTION

Sr.
Organization Functional Area Represented
No.

101
1 Oil and Natural Gas Corporation, Marketing / sales
Vadodara
2 Oil and Natural Gas Corporation, Production
Mumbai
3 Hindustan Petroleum Corporation Marketing / sales
Limited, Lucknow
4 Bharat Petroleum Corporation Production
Limited, Mumbai
5 National Thermal Power Office job / Contracts
Corporation, NOIDA
6 National Thermal Power Production / Power Generation
Corporation, Ghaziabad
7 Employee State Insurance Health Care / Hospitals
Hospital, Lucknow
8 Life Insurance Corporation , Agra Finance / Insurance

9 Central Electricity Authority, New Office job / Ministry

Delhi
10 Nuclear Power Corporation, Office job / Technical
Mumbai
11 Naval Head Quarter, New Delhi Armed Force

12 Rajasthan State Road Transport Public Transport

Corporation, Jaipur
13 Moradabad Development Civil Construction
authority, Moradabad, U.P.
14 Institute of Secretariat Training and Training/HRD
Development, Ministry of HRD,
New Delhi
15 Jawaharlal Nehru Port Trust, HRD
Mumbai (JNPT)
16 Kendriya Vidyalaya, Agra Education

17 Central Electronic Engineering Research & Development

Research Institute ( CEERI), Pilani

102
5.4.3 Each of these organizations was sent 25 sets of research
questionnaires through acquaintances in these organizations
and prospective respondents were requested to fill up
questionnaire and return the same. The filled up
questionnaire received from each organization and number
of valid responses are indicated in following TABLE – 5.2.
The response rate for valid responses is 35% which is
considered to be adequate.

5.4.4 SAMPLE SIZE: 149 persons participated in this study. The

technique of data analysis used in this study are examination
of differences between independent samples (e.g. between
male and female) and paired samples, and as well as
association between variables.

5.4.4.1 For the purpose of comparison of means of two

independent groups, independent sample t-test is used.
For this purpose the sample size required for medium
effect size (d=0.5) with a power of 80% and a 0.05
significance level is 130.

5.4.4.2 For the purpose of paired sample t-test, assuming a

medium effect size and a correlation between scores of
0.6 or less, the sample size of 30 to 40 is adequate for
80% power of test and a 0.05 significance level.

103
 TABLE 5.2: ANALYSIS OF SAMPLE COLLECTION

No. of No. of
Sr. No. of valid
Organization questionnaires questionnaires
No. questionnaires
sent received
1 Oil and Natural Gas 25 11 10
Corporation, Vadodara
2 Oil and Natural Gas 25 4 3
Corporation, Mumbai
3 Hindustan Petroleum 25 13 10
Corporation Limited,
Lucknow
4 Bharat Petroleum 25 6 4
Corporation Limited,
Mumbai
5 National Thermal Power 25 10 10
Corporation, NOIDA
6 National Thermal Power 25 10 7
Corporation, Ghaziabad
7 Employee State Insurance 25 7 5
Hospital, Lucknow
8 Life Insurance Corporation 25 9 7
, Agra
9 Central Electricity 25 17 14
Authority, New Delhi
10 Nuclear Power 25 11 9
Corporation, Mumbai
11 Naval Head Quarter, New 25 20 18
Delhi
12 Rajasthan State Road 25 19 18
Transport Corporation,
Jaipur
13 Moradabad Development 25 10 6
authority, Moradabad,
U.P.
14 Institute of Secretariat 25 16 13
Training and
Development, Ministry of
HRD, New Delhi
15 Jawaharlal Nehru Port 25 5 3
Trust, Mumbai (JNPT)
16 Kendriya Vidyalaya, Agra 25 10 8

17 Central Electronic 25 5 4
Engineering Research
Institute ( CEERI), Pilani

TOTAL 425 173 149

104
 5.4.4.3 The sample size required for an independent sample
one way ANOVA analysis, assuming medium effect size
(Cohen’s f = 0.25), is around 150 for 80% power of test
and a 0.05 significance level.

5.4.4.4 For correlations, the correlation coefficient itself is a

good measure of effect size. For medium effect size (i.e.,
r = 0.30), and for 80% power of test, the required sample
size is 70 at 0.05 significance level. (Ref: Chris Dewberry
in Statistical Methods for Organisational Research –
Theory and Practice)

5.4.4.5 The sample size used in this study (n=149) meets the
above requirements of sample sizes for various statistical
analysis to be carried out in this study at 0.05
significance level and for 80% power of test.

5.4.5 The total sample size used in this study is 149 (n=149). The
demographic analysis of sample is shown in TABLE - 5. 3
and depicted graphically in FIGURE – 5.2.

5.5 DATA COLLECTION METHOD: The method used for data collection
is self-report questionnaires. The merits of this method are:
i) This method is economical as compared to other
methods like interview.
ii) It is free from interviewer’s bias.
iii) Respondents get adequate time to give well thought out
answers.
iv) Respondents in far away areas can be reached.
v) Large samples can be used.

105
TABLE 5.3: Demographic Analysis of Sample

Demographic Frequency Percent

Characteristics

Gender
Males 120 81 %

Females 29 19 %

Total 149 100.0 %

Age
21 yr – 30 yr 26 17 %

31 yr – 40 yr 38 26 %

41 yr – 50 yr 51 34 %

51 yr – 60 yr 34 23 %

Total 149 100.0 %

106
 Gender Distribution of Sample

19%

MALE
FEMALE

81%

Age Distribution of Sample

23% 17%

21 Yrs - 30 Yrs
31 Yrs - 40 Yrs
41 Yrs - 50 Yrs
26%
51 Yrs - 60 Yrs

34%

FIGURE 5.2: Demographic Analysis of Sample

107
 There are certain pitfalls also of this method, as detailed
under:
i) Low rate of response. However about 30%
response rate is considered adequate.
ii) Can be used only with educated respondents.
iii) There is a possibility of ambiguous reply or
omission of replies altogether to certain
questions.
iv) It is difficult to know whether willing
respondents are truly representatives.

5.5.1 However, merits of the self-report questionnaire as

method of data collection outweigh its pitfalls.
Therefore, the current study employed this method for
data collection using self-report questionnaire.

5.6 DATA COLLECTION: The major variables under this project

are ‘Personality’ and the “type of Psychological Contract”
formed by the respondents with their employers.

5.6.1 For measurement of personality, many standard

instruments are available which measure the big five
factors of personality. The most comprehensive and
highly regarded is the instrument developed by Costa
& McCrae, known as NEO PI R ( NEO Personality
Inventory Revised) with excellent psychometric
properties , but rather lengthy. Although Costa &
McCrae have developed shorter version of this
inventory, all these inventories are commercially
controlled.

108
5.6.2 Other researchers have also constructed instruments
for measuring the prototypical components of the Big
Five particularly keeping in mind the need for shorter
instrument. One such instrument is Big Five Inventory
(BFI). BFI is brief inventory that allows efficient and
flexible assessment of the five dimensions, without
giving more differentiated measurement of individual
facets. It is decided to use this inventory to assess the
personality. The alpha reliability of BFI scale has been
reported to be above 0.80 (average), and mean test-
retest reliability of 0.85. Validity evidence includes
substantial convergent and divergent relations with
other Big Five instruments as well as with peer
ratings.

5.6.3 The other variable of interest in this project is the type

of psychological contract formed by employee with
their employers. Denise M. Rosseau has developed a
psychometrically sound tool, known as ‘Psychological
Contract Inventory’ (PCI), to assess the generalizable
content of psychological contract. The PCI assesses
individual subjective reports regarding a particular
employment relationship. The instrument divides the
items into four sets – Employer obligation, Employer
Transition Scale, Employee obligation and Employee
Transition Scale. In addition to these, PCI contain
some additional questions about global measure of
Employer fulfillment, Employee fulfillment, Satisfaction
and the perception regarding the person responsible
for employer’s obligations. The internal consistency

109
 reliability of Employer Fulfillment and Employee
Fulfillment is reported as 0.84 and 0.75 (cronbach’s
alpha) respectably. Rosseau claims that PCI meets
the established criteria for internal consistency
reliability and convergent and discriminant validity.

5.6.4 Other demographic variables, like age and gender,

are obtained to carry out the required analysis.

5.7 THE RESEACH QUESTIONNAIRE: The survey questionnaire

for this study purpose is enclosed herewith in APPENDIX-1.
It was accompanied by a covering letter. It is in three
sections, as described below.

5.7.1 Covering Letter: Covering letter introduced the subject of

research and requested the respondents to give their free
and frank opinion against each item of the survey
questionnaire. The respondents were not asked to mention
their names to keep the information confidential.

5.7.2 Section-1: It deals with general and background information

about the respondents like age group they belong to,
gender, position held by the respondents, length of their
service, type of industry and organization they are employed
and nature of their employment contract. The respondents
are not required to disclose their name and other identity to
ensure confidentiality.

110
5.7.3 Section-2: Section-2 of the questionnaire captures the type
of psychological contract of the respondents, which they
perceive as formed between them and their employer. It
uses “Psychological Contract Inventory (PCI)” developed by
Denise M. Rousseau. As reported by her, it is a
psychometrically sound tool for assessing the generalisable
content of the psychological contract, which contains both
content, and evaluation measures. It assesses individual
subjective reports regarding a particular employment
relationship. It measures type of psychological contract –
Relational, Transactional, Balanced or Transitional. Each of
these dimensions has further been subdivided to subscales
as shown in TABLE-5.4 below:

TABLE 5.4: Dimensions of Psychological Contract

& their sub-scales

Dimensions Sub Scales

Relational Stability
Loyalty
Balanced External employability
Internal employability
Dynamic performance
Transactional Narrow
Short term
Transitional Mistrust
Uncertainty
Erosion

111
 PCI employs four items for each construct and it is
measured twice – first in terms of respondent’s belief
regarding employer’s obligations to the employee, and then
again in terms of employee’s obligations to the organization.
Therefore it contains 80 items in all.

The psychometric analysis presented by Rousseau indicate

that PCI scale meet the established criteria for internal
consistency, reliability and convergent and discriminant
validity.

5.7.3 Section-3: Section-3 of the questionnaire assesses the type

of personality of the respondents. It is done by using “Big
Five Inventory (BFI)”, which is based on five-factor model of
personality.

The Big-Five framework is a hierarchical model of

personality with five broad factors, which represent
personality at the broadest level of abstraction. Each bipolar
factor (e.g. Extraversion vs. Introversion) summarizes
several more specific facets (e.g., sociability), which, in turn,
subsumes a large number of even more specific traits (e.g.,
talkative, outgoing).

Several rating instruments have been developed to

measure the Big Five dimensions, the most comprehensive
being McCrae & Costa’s 240 items NEO Personality
Inventory, Revised (NEO-PI-R). However three well
established and widely used shorter instruments are John

112
 and Srivastava’s 44- items Big Five Inventory (BFI); Costa &
McCrae’s 60-items NEO Five Factor Inventory (FFI); and
Goldberg’s instrument of 100 trait descriptive adjectives
(TDA). Out of these, it is proposed to employ 44-items BFI
for this study.

BFI uses short phrases based on the trait adjectives

known to be prototypical markers of the Big Five. Although
the BFI scales include only eight to ten items, they do not
sacrifice either content coverage or good psychometric
properties. The alpha reliabilities of the BFI scales typically
range from 0.75 to 0.90 and averages above 0.80; three
months test-retest reliabilities range from 0.80 to 0.90, with a
mean of 0.85. Validity evidence includes substantial
convergent and divergent relations with other Big Five
instruments as well as with peer ratings.

5.8 The Research Questionnaire used for this study is enclosed

as APPENDIX-1. Data processing and analysis, and
interpretation of results are presented in subsequent
chapters.

113
 CHAPTER – 6

DATA ANALYSIS AND

HYPOTHESES TESTING

6.1 DATA ANALYSIS: Data were collected over a six months

period and 149 people, employed in few selected government
organizations, participated in the study. Of these, 120 were
males and 29 were females. As expected, all were employed for
long time with their organization (It may be noted that all
government employees in India are guaranteed life time
employment for all practical purpose). The age profile of
respondents shows that 17 % were between 21-30 years of
age, 26% between 31-40 years of age, 34% between 41-50
years of age and 23% between 51-60 years of age. 60 years is
the retirement age for government employees. Thus the
samples represented a broad cross section of age profile and
government employees in general.

6.2 The data analysis and hypothesis testing were carried out
using computer software package SPSS ver-12. The
relevant result outputs of SPSS are enclosed under
APPENDIX–2, as various annexures to this chapter.

114
6.3 Analysis of Scores of Psychological Contract Inventory (PCI)
scale (section 2 of Research Questionnaire) : The scores
on four types of psychological contract was calculated by taking
average of individual items on a 5-point scale with 5
representing the highest end of particular type of contract. The
analysis output of SPSS on these scales is enclosed in
Annexure -1.

6.3.1 As can be seen from above SPSS output, the maximum

score is on ‘Relational Contract’ (Mean = 3.60), and the
minimum score is on ‘Transitional Contract’ (Mean =
2.08) , as summarized below:

Type of psychological Standard

Mean Score
contract Deviation
Relational 3.60 0.64

Balanced 3.39 0.74

Transactional 2.45 0.59

Transitional 2.08 0.81

6.3.2 Further, Stem & Leaf plot on these variable indicate the
normal distribution of scores on these variables. The
output of SPSS is enclosed as Annexure -1.

6.4 Analysis of Score on Big Five Inventory (BFI) (section 3 of

Research Questionnaire) : The scores on personality factors
(Big five factors, viz. Openness, Conscientiousness,
Extraversion, Agreeableness and Neuroticism) were
calculated by taking average as these subscales. The final

115
 scores on these five factors were obtained on a 5-point
scale, where 5 indicating maximum on respective scale.

6.4.1 The maximum score on personally trait is for

‘Conscientiousness’ and ‘Agreeableness’ (Mean = 4 for
both) and the least score is on ‘Neuroticism’ factor
(Mean = 2.38), as summarized below.

Standard
Personality Factor Mean Score
Deviation
Conscientiousness 4.06 0.62

Agreeableness 4.06 0.53

Openness 3.65 0.49

Extraversion 3.40 0.60

Neuroticism 2.38 0.65

6.4.2 The SPSS output in respect of this data analysis is

enclosed in Annexure – 2.

6.5 HYPOTHESIS TESTING: Hypothesis testing is carried out

with the help of SPSS package. For each hypothesis, the
detailed discussion is as under.

6.5.1 Hypothesis – 1: As already discussed, it was expected

that the nature of the psychological contract held by
government employees is predominantly ‘Relational’ in

116
 nature. The mean score & standard deviation on four types
of contracts are shown in TABLE 6.1, as under.

TABLE- 6.1: Score on various types of Psychological Contract

Type of Minimum Maximum Mean Standard

contract Score Score Score Deviation
Relational 1.50 5.00 3.60 0.64
Balanced 1.46 4.75 3.39 0.74
Transactional 1.25 4.00 2.45 0.59
Transitional 1.00 4.75 2.08 0.81

6.5.1.1 It can be observed that the highest mean score is on

‘Relational’ contract and the next higher mean score
is on ‘Balanced’ contract.

6.5.1.2 It is obvious from above that the mean score of

Relational Contract is 3.60 (SD=0.64) and that of
Balanced Contract is 3.39 (SD=0.74). The difference
between mean levels of these two scales was
examined with a paired sample t-test. The output of
SPSS is enclosed as Annexure – 3.

6.5.1.3 The score on ‘Relational’ contract is significantly

higher than ‘Balanced’ contract, t (148) = 4.67, p<
.001.

6.5.1.4 The significant paired samples t-test result indicates

that the type of contract formed by government
employees is predominantly ‘Relational’ in nature.

117
 6.5.1.5 Therefore the null hypothesis (H1o) is rejected
and alternate hypothesis (H1A) is accepted.

6.5.2 Hypothesis – 2: It was hypothesized that as age increases,

there will be a significant shift towards ‘Relational’ contract of
government employees. The mean score on ‘relational’ contract
of various age groups is shown in TABLE – 6.2, as under.

TABLE- 6.2: Score on ‘Relational’ contract of various age groups

Minimum Maximum Mean Standard

Age Group
Score Score Score Deviation
21 yr – 30 yr 2.06 5.00 3.57 0.71
31 yr – 40 yr 2.56 4.81 3.69 0.54
41 yr – 50 yr 1.50 4.50 3.55 0.65
51 yr – 60 yr 1.63 4.69 3.59 0.70

6.5.2.1 The mean scores on ‘Relational’ contract were compared

between people belonging to various age groups (21-
30yrs, 31-40yrs, 41-50yrs and 51-60yrs). The mean levels
of score on ‘Relational’ contract were 3.57 (SD=0.71) for
people in 21-30 years age group, 3.69 (SD=0.54) for
people in 31-40 years age group, 3.55 (SD=0.65) for
people in 41-50 years age group and 3.59 (SD=0.70) for
people in 51-60 years age group. The 95 percent
confidence intervals for the mean are 3.29 to 3.86 for
people in 21-30 years age group, 3.51 to 3.87 for people in
31-40 years age group, 3.37 to 3.74 for people in 41-50
years age group and 3.35 to 3.84 for people in 51-60 years
age group.

118
 6.5.2.2 The mean scores on ‘Relational’ contract of various age
groups were compared using independent samples one
way analysis of variance (ANOVA) technique. The SPSS
output is enclosed as Annexure – 4.

6.5.2.3 An independent samples one-way analysis of variance

(ANOVA) showed that the difference between the scores
on ‘Relational’ contract across four age groups is not
significant. F (3,145) = 0.362, p = 0.78.

6.5.2.4 The above result shows that there is no significant variation

among scores on ‘Relational’ contract of various age
groups or in other words there is no significant difference in
the nature of psychological contract of government
employees as their age increases.

6.5.2.5 Therefore, the null hypothesis (H2O) is accepted.

6.5.3 Hypothesis-3: it was hypothesized that there is no significant

difference in the types of psychological contracts formed by
male and female employees. The mean score on four types of
psychological contracts for males and females are shown in
TABLE-6.3, as under:

TABLE 6.3: Mean Scores of Male and Female employees on

various types of psychological contracts
Type of Male Female
Contract Mean S.D Mean S.D
Relational 3.60 0.66 3.62 0.58
Balanced 3.44 0.73 3.18 0.74
Transactional 2.42 0.58 2.57 0.63
Transitional 2.00 0.74 2.37 1.03

119
6.5.3.1 The mean scores on various types of psychological
contracts of male and female employees were compared
using independent sample t-test. The SPSS output is
enclosed as Annexure-5.

6.5.3.2 The mean scores on ‘Relational’ contract were 3.60

(SD=0.66) for males and 3.62 (SD= 0.58) for females. The
95 percent confidence intervals for means are 3.47 to 3.72
for males and 3.39 to 3.84 for females. The scores on
‘Relational’ contract of males & females were compared
using an independent sample t-test. There was no significant
difference between the scores on ‘Relational’ contract of
males and females t (147) = 0.15, p = 0.88.

6.5.3.3 A non significant t-test result implies that null hypothesis of

no difference between scores on ‘Relational’ contract of the
two groups (males and females) is accepted.

6.5.3.4 The mean scores on ‘Balanced’ contract were 3.44

(SD=0.73) for males and 3.18 (SD= 0.74) for females. The
95 percent confidence intervals for means are 3.30 to 3.57
for males and 2.89 to 3.46 for females. The scores on
‘Balanced’ contract of males & females were compared
using an independent sample t-test. There was no significant
difference between the scores on ‘Balanced’ contract of
males and females t (147) = 1.72, p = 0.09.

6.5.3.5 A non significant t-test result implies that null hypothesis of

no difference between scores on ‘Balanced’ contract of the
two groups (males and females) is accepted.

120
6.5.3.6 The mean scores on ‘Transactional’ contract were 2.42
(SD=0.58) for males and 2.57 (SD= 0.63) for females. The
95 percent confidence intervals for means are 2.31 to 2.52
for males and 2.33 to 2.81 for females. The scores on
‘Transactional’ contract of males & females were compared
using an independent sample t-test. There was no significant
difference between the scores on ‘Transactional’ contract of
males and females t (147) = 1.24, p = 0.22.

6.5.3.7 A non significant t-test result implies that null hypothesis of

no difference between scores on ‘Transactional’ contract of
the two groups (males and females) is accepted.

6.5.3.8 The mean scores on ‘Transitional’ contract were 2.00

(SD=0.74) for males and 2.37 (SD= 1.03) for females. The
95 percent confidence intervals for means are 1.87 to 2.14
for males and 1.98 to 2.76 for females. The scores on
‘Transitional’ contract of males & females were compared
using an independent sample t-test. There was a significant
difference between the scores on ‘Transitional’ contract of
males and females t (147) = 2.16, p = 0.03.

6.5.3.9 A significant t-test result implies that null hypothesis of no

difference between scores on ‘Transitional’ contract of the
two groups (males and females) is rejected and alternative
hypothesis is accepted.

6.5.3.10 Based on above analysis, the null hypothesis (H3O) is

accepted except for ‘Transitional Contract’, that there is
no significant difference in the types of psychological

121
 contracts formed by male and female employees. For
‘Transitional Contract’, females were found to be having
more mean score as compared to males.

6.5.4 HYPOTHESIS – 4: It was hypothesized that ‘Transactional’

contract is more likely to be positively associated with
Extraversion & Neuroticism, and negatively associated with
‘Openness to Experience’, Agreeableness &
conscientiousness.

6.5.4.1The Pearson correlation coefficients between scores on

‘Transactional’ contracts and that on Big Five Personality
factors were calculated. The SPSS output is enclosed as
Annexure-6.

6.5.4.2 The Pearson correlation coefficients between scores on

‘Transactional’ contracts and various personality factors
are shown in TABLE-6.4, as under.

TABLE – 6.4 : Correlations between ‘Transactional’ contract and Big

Five Personality factors.
Transactional Openness Agreeableness Extraversion Conscientiousness Neuroticism

Transactional - - .05 - .19* - .06 - .05 .16

Openness - .40 ** .47 ** .30 ** - .25 **

Agreeableness - .31 ** .54 ** - .47 **

Extraversion - .31 ** - .39 **

Conscientiousness - - .45 **

Neuroticism -

** Correlation is significant at the 0.01 level (2 - tailed).

* Correlation is significant at the 0.05 level (2 - tailed).

122
6.5.4.3 It is observed that score on Transactional contract is
negatively correlated with scores on Openness ( r = -.05,
p>0.05), Agreeableness (r = -.19, p< 0.05), Extraversion
(r = -.06, p> 0.05), Conscientiousness (r = -.05, p>0.05)
and positively associated with Neuroticism (r = 0.16,
p>0.05).

Of these correlation coefficients, only correlation between

Transactional contract and Agreeableness was found to
be statistical significant at 0.05 level of significance and
having negative small correlation.

6.5.4.4 Thus null hypothesis (H4O) of no association

between transactional contract and personality is
rejected, and alternative hypothesis (H4A) is accepted
with respect to association between transactional
contract and Agreeableness.

6.5.5 HYPOTHESIS –5: It was hypothesized that ‘Relational’

contract is more likely to be positively associated with
‘Openness to Experience’, Agreeableness &
Conscientiousness, and negatively associated with
Extraversion & Neuroticism.

6.5.5.1 The Pearson correlation coefficients between scores on

‘Relational’ contracts and that on Big Five Personality
factors were calculated. The SPSS output is enclosed as
Annexure-7.

123
 6.5.5.2 The Pearson correlation coefficients between scores on
‘Relational’ contracts and various personality factors are
shown in TABLE-6.5, as under.

TABLE – 6.5: Correlations between ‘Relational’ contract and Big Five

Personality factors.
Relational Openness Agreeableness Extraversion Conscientiousness Neuroticism

Relational - .25 ** .32 ** .26 ** .34 ** - .21 *

Openness - .40 ** .47 ** .30 ** - .25 **

Agreeableness - .31 ** .54 ** - .47 **

Extraversion - .31 ** - .39 **

Conscientiousness - - .45 **

Neuroticism -

** Correlation is significant at the 0.01 level (2 - tailed).

* Correlation is significant at the 0.05 level (2 - tailed).

6.5.5.3 It is observed that score on Relational contract is

positively correlated with scores on Openness ( r = .25,
p<0.01), Agreeableness (r = .32, p< 0.01), Extraversion
(r = .26, p< 0.01), Conscientiousness (r = .34, p<0.01)
and negatively associated with Neuroticism (r = -.21,
p<0.05).

All these correlation coefficients were found to be

statistical significant at 0.01 level of significance except
correlation with Neuroticism, which is found to be

124
 statistical significant at 0.05 level of significance and
having negative medium correlation.

6.5.5.4 Thus null hypothesis (H5O) of no association

between relational contract and personality is
rejected. The alternative hypothesis (H5A) is accepted
with respect to association between relational
contract and various personality factors except with
respect to association with Extraversion which was
found to be having positive significant correlation
against negative correlation as hypothesized.

6.5.6 HYPOTHESIS –6: It was hypothesized that ‘Balanced’

contract is more likely to be positively associated with
‘Openness to Experience’, & Conscientiousness, and
negatively associated Neuroticism.

6.5.6.1 The Pearson correlation coefficients between scores on

‘Balanced’ contracts and that on Big Five Personality
factors were calculated. The SPSS output is enclosed as
Annexure-8.

6.5.6.2 The Pearson correlation coefficients between scores on

‘Balanced’ contracts and various personality factors are
shown in TABLE-6.6, as under.

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TABLE – 6.6 : Correlations between ‘Balanced’ contract and Big Five
Personality factors.
Balanced Openness Conscientiousness Neuroticism

Balanced - .27 ** .20 * - .15

Openness - .30 ** - .25 **

Conscientiousness - - .45 **

Neuroticism -

** Correlation is significant at the 0.01 level (2 - tailed).

* Correlation is significant at the 0.05 level (2 - tailed).

6.5.6.3 It is observed that score on Balanced contract is

positively correlated with scores on Openness ( r = .27,
p<0.01), Conscientiousness (r = .20, p< 0.05), and
negatively associated with Neuroticism (r = - .15, p>0.05)
as expected.

All these correlation coefficients were found to be

statistical significant at 0.01 level or 0.05 level of
significance except for correlation with Neuroticism, and
having medium correlation values.

6.5.6.4 Thus null hypothesis (H6O) of no association

between balanced contract and personality is
rejected. The alternative hypothesis (H6A) is accepted
with respect to association between balanced
contract and various personality factors as
hypothesized, however the relationship between
balanced contract and neuroticism was not found to
be statistically significant.

126
 6.5.7 HYPOTHESIS –7: It was hypothesized that ‘Transitional’
contract is more likely to be positively associated with
Neuroticism.

6.5.7.1 The Pearson correlation coefficients between scores on

‘Transitional’ contracts and that on Big Five Personality
factors were calculated. The SPSS output is enclosed as
Annexure-9.

6.5.7.2 The Pearson correlation coefficients between scores on

‘Transitional’ contract and Neuroticism is found to be
r = .2, p< 0.05

6.5.7.3 The above indicates a small positive but statistical

significant (at 0.05 level) correlation between Transitional
contract and Neuroticism as expected.

6.5.7.4 Thus null hypothesis (H7O) of no association

between transitional contract and personality is
rejected. The alternative hypothesis (H7A) is accepted
with respect to association between transitional
contract and neuroticism.

6.6 The results of hypotheses testing have been summarized in

TABLE-6.7.

127
 TABLE – 6.7: Result of Hypotheses Testing

Sr.
Null Hypothesis Alternative Hypothesis
No.
The type of psychological contract formed The type of psychological contracts formed by
by government employees is not specific in government employees tends to be
H1 nature. predominantly ‘Relational’ in nature.
-REJECTED - ACCEPTED

Age does not have any significant effect on As age increases, there will be a significant
type of psychological contract of shift towards relational dimension of
H2 government employees. psychological contract of government
employees.
- ACCEPTED -REJECTED

There will be no significant difference in There is a significant difference in the type of

type of psychological contract in male and psychological contract formed by male and
H3 female employees. female government employees.
- ACCEPTED, except for transitional -REJECTED, except for transitional
contract contract

The formation of ‘Transactional Contract’ is The formation of ‘Transactional Contract’ is

not related to the personality. more likely to be positively associated with
H4 scores on Extraversion scale, Neuroticism
scale and negatively associated with
‘Openness to Experience’ scale,
Agreeableness scale and Conscientiousness
scale.
-REJECTED - ACCEPTED , but partly(with respect to
Agreeableness only)

The formation of ‘Relational Contract’ is not The formation of ‘Relational Contract’ is more
related to the personality. likely to be positively associated with scores
H5 on ‘Openness to Experience’ scale,
Agreeableness scale and Conscientiousness
scale and negatively associated with
Extraversion scale and Neuroticism scale.
- ACCEPTED , (except with respect to
-REJECTED Extraversion)

The formation of ‘Balanced Contract’ is not The formation of ‘Balanced Contract’ is more
related to the personality. likely to be positively associated with scores
H6 on ‘Openness to Experience’ scale, and
Conscientiousness scale and negatively
-REJECTED associated with Neuroticism scale.
- ACCEPTED

The formation of ‘Transitional Contract’ is The formation of ‘Transitional Contract’ is

not related to the personality. more likely to be positively associated with
H7 scores on Neuroticism scale.
-REJECTED - ACCEPTED

128
 CHAPTER – 7

CONCLUSION, SUGGESTION
AND LIMITATION

7.1 CONCLUSION :

7.1.1 This study was designed to investigate the relationship between

type of psychological contracts and personality of people employed
in government organization in India. The existing literature in the
area of psychological contracts suggests four types of
psychological contracts, viz. Relational, Transactional, Balanced
and Transitional. The personality is often seen as a spectrum of Big
Five factors - viz. Openness to Experience, Conscientiousness,
Extraversion, Agreeableness and Neuroticism. Apart from these big
five factors, the gender is a natural way of classification of society
and so is the age of the employees. Hence gender and age are
also considered to study the effect of these two variables on
psychological contracts.

7.1.2 The literature review indicates that personality factors (big five
factors, gender and age) may have an effect on the type of
psychological contracts formed by employees. The study was
restricted only to the persons employed in government organization
in India. The reason of focusing on government employees were:
i. The government offers a unique employment condition in
India, viz. life time career job, stable pay and limited

129
 responsibility etc. These features of employment are not
observed in jobs in the private or corporate sectors where
job conditions are market driven.
ii. Government job in India are considered coveted and much
sought for. Also a sizable workforce is employed by the
Government in India.
iii. Citizen now expect positive response and better work
culture from government organizations.
iv. Psychological contract has emerged as a way to analyse
and manage the behaviour of employees.

7.1.3 Nature of Psychological Contract of Government Employees:

Analysis was conducted to determine the nature of psychological
contract primarily held by government employees in India. It was
revealed that government employees have a psychological contract
which is predominantly “relational” in nature, as expected. The
probable reason for this being employment conditions offered by
government jobs in India, viz. life time career job. The score on
‘relational’ contract was found significantly higher than other type of
contracts.

7.1.4 Pattern of Personality displayed by Government Employees:

The scores obtained on ‘Big Five Inventory’ were analysed to
ascertain the pattern of personality displayed in general by
government employees. It is noted that that the personality factors
of ‘Conscientiousness’ and ‘Agreeableness’ were most prominent,
and the presence of ‘Neuroticism’ is the least. This could explain
that only persons, who are high on Conscientiousness and
Agreeableness, take government employment, because these traits
are valued in bureaucratic working. Since the area of focus of this

130
 study was “Psychological Contracts”, no further detailed study on
this aspect was undertaken.

7.1.5 Comparison of Psychological Contracts of Male & Female

Employees: Since the gender is a natural variable around which
social world is organized, it is natural to compare persons
belonging to these two groups viz. males and females. Literature
review and numerous previous studies have revealed that no
significant difference have been noticed in the behavior & attitude
of males and females in the context of work-related behavior. The
same conclusion is drawn in the current study also.

Analysis was conducted to compare the mean score of male and

female employees on various type of psychological contracts, and
this yielded that there is no significant difference in the type of
psychological contracts held by males and female employees,
except for transitional contracts. The mean score of female
employees was higher than male employees with respect to
transitional contracts. This outcome needs further research and
validation.

7.1.6 Comparison of Psychological Contracts of Employees belonging to

various Age Groups: Based on the literature review, it was noted
that as persons grow older, their personal, family & social
requirements change over time. This leads to a requirement of
stable job. Accordingly it was hypothesized that as age increases,
there will be a significant shift towards ‘Relational’ type of
psychological contracts.

Analysis was conducted to compare scores on various types of

psychological contracts held by employees belonging to different

131
 age groups, and contrary to expectation, no significant change in
scores on various types of contract across different groups was
noticed.

The finding could be attributed to the fact that government

employees tend to have a psychological contract, which is strongly
“relational” in nature in Indian context. Therefore, the effect of age
is not noticeable on the type of psychological contracts of
government employees.

7.1.7 Relationship between Personality and the type of Psychological

Contract: The psychological contracts are an individual’s belief
system regarding mutual obligations and are formed by individuals
themselves. Hence, psychological contract is idiosyncratic and
subjective in nature and is an individual level phenomenon. As
suggested in literature, the psychological contracts of workers are
shaped by their personality.

Analysis was conducted to find out association between Big Five

Factors of personality and the type of psychological contracts.

The relational contract was found to be significantly and positively

associated and with Extraversion, Openness, Agreeableness &
Conscientiousness, and negatively with Neuroticism.
No statistical significant correlation of Transactional contract was
found with personality factors except Agreeableness, which has
negative significant, although small (r = -.19, p<0.05) correlation.

Positive & significant correlation of ‘Balanced’ contract was found

with Openness and Conscientiousness. ‘Balanced’ Contract was

132
 found to be negatively associated with Neuroticism, although this
correlation is small and non-significant statistically.

Finally, the Transitional contract was found to be positively and

significantly associated with Neuroticism (r=0.2, p<0.05).

The above discussion indicates that personality factors have

significant association with types of psychological contract.

7.1.8 The objectives and outcomes of this study are summarized in

TABLE -7.1

7.2 SUGGESTION :

7.2.1 The concept of psychological contract has provided

academics and practitioners an umbrella concept to
understand the changes taking place in the nature of work. It
has brought a new vocabulary into their discussions – with
talk about employee mindsets, implicit deals, disengaged
behaviour and a host of other issues in modern
organizational life about which people are concerned.

7.2.2 The management of ‘hearts and minds’ has now become a

central human resource management task and it is being
used to bring together a series of organizational behaviour
studies in related topics such as commitment, job-
satisfaction, socialization and the fit between the employee
and employer. In terms of definition, it encompasses several
psychological phenomena –such as perception, expectation,

133
 TABLE - 7.1: Summary of Objectives and Outcomes
Sr. Objective
No.
1 To investigate about the type of
psychological contract held by the
employees of government organizations in
India
2 To investigate the pattern of personality
(Big Five Factors) displayed in general by
government employees
3 To investigate the difference in type of
Psychological Contracts held by male and
female employees of government
organizations.
4 To investigate the difference in type of
Psychological Contracts held by persons of
different age groups employed in
government organizations.
5 To investigate the relationship between
type of Psychological Contracts and
personality of government employees
Outcome
The type of psychological contract held by
government employees was found to be
significantly ‘relational’ in nature.
The pattern of personality revealed the
maximum presence of
‘Conscientiousness’ and ‘Agreeableness’
factors and the least presence of
‘Neuroticism’ factor.
No significant difference was noticed in
the type of Psychological Contracts held
by male and female employees of
government organizations.
No significant effect of Age was noticed in
the type of Psychological Contracts held
by persons of different age groups
employed in government organizations.
The relationships between types of
Psychological Contracts and the
personality of government employees
were found as under:
i) Transactional Contracts were found
to be significantly correlated
negatively with Agreeableness.
ii) Relational Contracts were found to
be significantly correlated positively
with Openness, Extraversion,
Conscientiousness, and negatively
with Neuroticism.
iii) Balanced Contracts were found to be
significantly correlated positively with
Openness & Conscientiousness, and
negatively with Neuroticism.
iv) Transitional Contracts were found to
be significantly correlated positively
with Neuroticism.
134
 beliefs, promises and obligations – each of which actually
implies different levels of psychological engagement. In the
same way that idea about culture, climate and competencies
were used to help practitioners capture complex changes
needed in their organization, the psychological contract can
be used as a frame of analysis that helps to:
- Capture changes taking place at the individual,
organizational and societal level.
- Discriminate between organizational responses.
- Serve as a basis for predicting individual behaviour.

7.2.3 Further it is important to note that in capturing expectations

of reciprocal behaviour in the employment contract,
discussion of the psychological contract also covers a range
of societal norms and interpersonal behaviour and is based
on changing perceptions of the employer-employee balance
of power. The sense of mutuality implicit in the psychological
contract has provided a useful vehicle to capture the
consequences of perceived imbalances of new employment
relationship.

7.2.4 The psychological contract is different for each individual

and for each type of employment relationship. However,
there are some individual difference factors that can help
organizations to categorize this complexity and spot patterns
in overall shape and content of the psychological contracts,
and therefore devise HR strategies that are more able to
cope with the twin challenges of creating flexibility and
fairness. There are very good reasons to consider that some
important aspects of the psychological contract can be
gleaned from individual measures. The present research

135
 study is a small step to understand this linkage between
individual measure of personality and the psychological
contracts.

7.2.5 A conceptual framework for applying the psychological

contract to the employment relationship is shown in FIG 7.1.
It is seen that the ‘personality’ is one of the individual level
background factor in formation of psychological contract
between employee and organizations.

7.2.6 The personality traits are relatively stable over time and
unique to an individual and many reliable and valid standard
instruments are available to assess the personality of
persons. The knowledge of personality can be used to
predict the type of psychological contract likely to be formed
by the employees. The contracts have the effect of reducing
uncertainty for both parties. The reduction of uncertainty is
important both for individuals and organizations. The
reduction of uncertainty allows individuals and organizations
to predict future events and to undertake planning.

7.2.7 There are various types of jobs and functions that an

organization performs. These functions require different type
of psychological contracts on part of employees which are
most appropriate depending on the requirements of job. For
example, the persons employed for specific project or limited
responsibility may require a psychological contract which is
transactional in nature, whereas persons employed for long
term objectives may prefer relational or balanced contract.
The knowledge of personality can be used by the
organizations to assess the preferred type of psychological

136
 Contextual
and Policy State of the
and Psychological Outcomes
Background Contract Psychological
Factors Practice Contract
Attitudinal
Individual: Consequences:
Age Organizational
Gender commitment
Education Work satisfaction
Personality HR policy Work-life balance
Level in and practices Job security
organisation Motivation
Reciprocal Delivery Stress
Type of work Leadership/
promises of the Trust
Hours worked Climate
and deal
Employment
contract Employment obligations Fairness Behavioural
Ethnicity relations Consequences:
Tenure Attendance
Income Quality of Intention to
workplace stay/quit
Organizational: Job performance
Sector OCB
Size
Ownership
Business
strategy
Union recognition

FIG 7.1 : Applying the psychological contract to the employment relationship

137
 contract by the individuals and hence can be used effectively for
selection / placement and tailoring the organizational incentives
to match the individual’s expectations. This will ensure minimal
occurrences of violation of psychological contract. This in turn
will enhance organizational effectiveness as negative
consequences of breach of psychological contracts are avoided.

7.2.8 Psychological Contract can be thought of as a mean of

individualizing the employment relationship. Organizations
can use them to manage employment relationship and they
can potentially benefit from it through enhanced level of
employee’s performance.

7.3 LIMITATION OF CURRENT RESEARCH & OPPORTUNITY FOR FUTURE

RESEARCH:

The current research examined the psychological contract of

government employees only. Since the government jobs in India offers
lifetime career jobs and well defined career path irrespective of
performance, the psychological contracts were found to be
predominantly ‘Relational’ in nature. It is suspected that this factor has,
in fact, interfered in major way in getting the more generalisable
relation with personality and the type of psychological contract.

In view of this, it is suggested that this study be repeated with

employees of private sectors as well in order to find out association
between personality & psychological contract which can be
generalized.

138
 Appendix-1 : Research Questionnaire

From:

Manoj Goyal
C/o Research & Extension Center,
Dr. D. Y. Patil Institute of Management Studies,
Belapur, Navi Mumbai

Dear Friends,

I am an M.Phil degree student at ‘Dr. D.Y.Patil Institute of Management Studies,

Navi Mumbai’. I am undertaking a project on psychological contracts and personality. I
am interested to know if there is any relationship between personality and the type of
psychological contract formed by employees with their employers.

The project requires you to fill in the enclosed survey questionnaire, which is in
three (3) sections including some general information about yourself. This information
remains strictly confidential at all times and no names are referred to in this
questionnaire. Please note that your participation in this survey is purely voluntary.

There are three sections in this survey. Please work through each section in order
of presentation. Please read the instructions before completing each section of the survey.
It is important to give your true reactions to each of the question asked. There are no
right or wrong answers. I am only interested to know what you really think and feel
about yourself, and how do you perceive your relationship with your employer.

The survey should take about 20-25 minutes of your valuable time to complete.
Your time and effort in completing this survey questionnaire will be greatly appreciated.

For any query or clarification, you may contact me at

‘manoj_goyal2000@hotmail.com’. Thank you very much for your participation.

Encl: Survey questionnaire (total 11 pages)

Yours Sincerely,

(Manoj Goyal)

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 Appendix-1 : Research Questionnaire

SECTION –1: ABOUT YOUSELF AND YOUR WORK

1. YOUR AGE:
Less than 21Yrs 31Yrs 41Yrs 51Yrs More than
20 Yrs to 30 Yrs to 40 Yrs to 50 Yrs to 60 Yrs 61 Yrs

2. GENDER:
Male Female

3. How long have you been employed in this organization?

Less than 1 – Less 2 – Less 3 – Less 4 – Less More than
1 Yr than 2 Yrs than 3 Yrs than 4 Yrs than 5 Yrs 5 Yrs

4. Tick the box which best describes your employment contract:

Permanent Other

5. Tick which industry you are employed within:

Manufacturing / Construction Health Service
Hospitality Information Technology
Education / Training Retail / Wholesale
Banking / Financial Services Others ( Pl specify)

6. Tick the box which best describes your current position in the organization:
Top Management Middle Management
Lower Management Supervisor/Inspector
Workman / Salesman Others ( Pl specify)

7. Tick the box which best describes your current function in the organization:
Production Finance
Marketing / Sales Human Resource
Projects Research & Development
Administration Others ( Pl specify)

140
 Appendix-1 : Research Questionnaire

SECTION- 2 (Total 7 pages)

INSTRUCTION:

Consider your relationship with your current employer.

To what extent has your employer made the following commitment or obligation to you?

Please answer each question by ticking in the appropriate box against each item:

Description of Commitments /
Extent of commitment made by your employer
Sr. Obligations made by your
No. employer
Not at Slightly Somewhat Moderately To a great
all extent
1 2 3 4 5
1 Employment for a specific time
period
2 Concern for my personal welfare

3 Support me to attain the highest

possible levels of performance
4 Skill development that increases
my value to the firm
5 Help me develop externally
marketable skills
6 Secure employment

7 Makes no commitments to retain

me in the future
8 Limited involvement in the
organization
9 Help me to respond to ever
greater industry standards
10 Developmental opportunities
within this firm for me
11 Short term employment

12 Be responsive to employee
concerns and well-being
13 Training me only for my current
job

141
 Appendix-1 : Research Questionnaire

Description of Commitments / Extent of commitment made by your employer

Sr. Obligations made by your
No. employer Not at Slightly Somewhat Moderately To a great
all extent
1 2 3 4 5
14 Support me in meeting
increasingly higher goals
15 Advancement within the firm

16 Job assignments that enhance my

external marketability
17 Wages and benefits I can count
on
18 It has made no promise to
continue my employment
19 Make decisions with my interests
in mind
20 A job limited to specific, well-
defined responsibilities
21 Potential job opportunities
outside the firm
22 Steady employment

23 Concern for my long-term well

being
24 Require me to do only limited
duties I was hired to perform
25 Set ever more difficult and
challenging performance goals
for me
26 Opportunities for promotion

27 Contacts that create employment

opportunities elsewhere
28 Stable benefits for employee’
families

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 Appendix-1 : Research Questionnaire

To what extent do the items below describe your employer’s relationship to

you?

Please answer each question by ticking the appropriate box below:

Sr. Description of your employer’s Not at Slightly Somewhat Moderately To a great

No. relationship to you all extent
1 2 3 4 5
1 Withholds information from me

2 Demands more from me while

giving me less in return
3 Doesn’t trust me

4 Difficult to predict future

direction of its relations with me
5 Introduces changes without
involving me
6 An uncertain future regarding its
relations with me
7 Decreased benefits in the next
few years
8 Doesn’t share important
information with me
9 Uncertainty regarding its
commitments to employees
10 Stagnant or reduced wages the
longer I work here
11 Uncertainty regarding its
commitments to me
12 More and more work for less pay

143
 Appendix-1 : Research Questionnaire

To what extent have you made following commitments or obligations to your employer?

Please answer each question by ticking in the appropriate box against each item

Sr. Description of Commitments / Extent of commitment made by you

No. Obligations made by you
Not at Slightly Somewhat Moderately To a great
all extent
1 2 3 4 5
1 Quit whenever I want.

2 Perform only required tasks

3 Accept increasingly challenging

performance standards
4 Seek out assignments that
enhance my value to this
employer
5 Build contacts outside this firm
that enhance my career potential
6 Remain with this organization
indefinitely
7 I have no future obligations to
this employer
8 Make personal sacrifices for this
organization
9 Take personal responsibility for
making the organization more
successful
10 Leave at any time I choose

11 Take this organization’s concerns

personally

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 Appendix-1 : Research Questionnaire

Extent of commitment made by you

Sr. Description of Commitments /
No. Obligations made by you Not at Slightly Somewhat Moderately To a great
all extent
1 2 3 4 5
12 Do only what I am paid to do

13 Build skills to increase my value

to this organization
14 Increase my visibility to potential
employers outside the firm
15 Do what it takes to keep my job

16 Work here for a limited time only

17 Protect this organization’s image

18 Fulfill limited number of

responsibilities
19 Respond positively to dynamic
performance requirement
20 Make myself increasingly
valuable to my employer
21 Build skills to increase my future
employment opportunities
22 Be a steady employee

23 Commit myself personally to this

organization
24 Only perform specific duties I
agreed to when hired
25 Continuously exceed my formal
accountabilities
26 Actively seek internal
opportunities for training and
development
27 Seek out assignments that
enhance my employability
28 Make no plans to work anywhere
else

145
 Appendix-1 : Research Questionnaire

To what extent do the items below describe your relationship with your
employer?

Please answer each question by ticking the appropriate box below:

Sr. Description of your relationship Not at Slightly Somewhat Moderately To a great

No. with your employer all extent
1 2 3 4 5
1 I cannot believe what this
employer tells me
2 I am uncertain what my
obligations are to this employer
3 It’s difficult for me to predict the
future of this relationship
4 I’m getting less pay for more
work
5 I have no trust in this employer

6 I cannot anticipate what my

future relationship with this
employer will be
7 I’m doing more for less

8 It’s difficult to anticipate my

future commitments
9 I expect less from this employer
tomorrow than I receive today
10 Inconsistency exists between
what this employer says and does
11 My commitments to this
employer are uncertain
12 I expect increasing demands from
this employer for little return

146
 Appendix-1 : Research Questionnaire

SECTION-3 (Total 3 pages)

The Big Five Inventory (BFI)

Here are a number of characteristics that may or may not apply to you. For example, do
you agree that you are someone who likes to spend time with others? Please tick in
appropriate box against each statement to indicate the extent to which you agree or
disagree with that statement.

Disagree Disagree Neither Agree Agree

Sr. Statement strongly a little agree nor a little strongly
No. disagree
1 2 3 4 5
I see myself as Someone Who …

1 Is talkative

2 Tends to find fault with others

3 Does a thorough job

4 Is depressed, blue

5 Is original, comes up with new

ideas
6 Is reserved

7 Is helpful and unselfish with

others
8 Can be somewhat careless

9 Is relaxed, handles stress well

10 Is curious about many different

things
11 Is full of energy

12 Starts quarrels with others

13 Is a reliable worker

14 Can be tense

15 Is ingenious, a deep thinker

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 Appendix-1 : Research Questionnaire

Disagree Disagree Neither Agree Agree

Sr. Statement strongly a little agree nor a little strongly
No. disagree
1 2 3 4 5

I see myself as Someone Who …

16 Generates a lot of enthusiasm

17 Has a forgiving nature

18 Tends to be disorganized

19 Worries a lot

20 Has an active imagination

21 Tends to be quiet

22 Is generally trusting

23 Tends to be lazy

24 Is emotionally stable, not easily

upset
25 Is inventive

26 Has an assertive personality

27 Can be cold and aloof

28 Perseveres until the task is

finished
29 Can be moody

30 Values artistic, aesthetic

experiences
31 Is sometimes shy, inhibited

32 Is considerate and kind to almost

everyone
33 Does things efficiently

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 Appendix-1 : Research Questionnaire

Disagree Disagree Neither Agree Agree

Sr. Statement strongly a little agree nor a little strongly
No. disagree
1 2 3 4 5

I see myself as Someone Who …

34 Remains calm in tense situations

35 Prefers work that is routine

36 Is outgoing, sociable

37 Is sometimes rude to others

38 Makes plans and follows through

with them
39 Gets nervous easily

40 Likes to reflect, play with ideas

41 Has few artistic interests

42 Likes to cooperate with others

43 Is easily distracted

44 Is sophisticated in art, music, or

literature

THANK YOU

149
 Appendix-2: S.P.S.S. Outputs

Annexure-1 : Analysis of Scores on Psychological Contract Inventory

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
TrxlAvg 149 100.0% 0 .0% 149 100.0%
RelationAvg 149 100.0% 0 .0% 149 100.0%
TrnslAvg 149 100.0% 0 .0% 149 100.0%
BalanceAvg 149 100.0% 0 .0% 149 100.0%

Descriptives

Statistic Std. Error

TrxlAvg Mean 2.4471 .04857
95% Confidence Lower Bound 2.3512
Interval for Mean Upper Bound
2.5431

5% Trimmed Mean 2.4256

Median 2.3125
Variance .352
Std. Deviation .59291
Minimum 1.25
Maximum 4.00
Range 2.75
Interquartile Range .81
Skewness .618 .199
Kurtosis -.120 .395
RelationAvg Mean 3.6003 .05265
95% Confidence Lower Bound 3.4962
Interval for Mean Upper Bound
3.7043

5% Trimmed Mean 3.6304

Median 3.7500
Variance .413
Std. Deviation .64273
Minimum 1.50
Maximum 5.00
Range 3.50
Interquartile Range .81
Skewness -.794 .199

Annex-1 150
 Appendix-2: S.P.S.S. Outputs

Kurtosis
.874 .395

TrnslAvg Mean 2.0791 .06665

95% Confidence Lower Bound 1.9474
Interval for Mean Upper Bound
2.2108

5% Trimmed Mean 2.0245

Median 1.9167
Variance .662
Std. Deviation .81351
Minimum 1.00
Maximum 4.75
Range 3.75
Interquartile Range 1.06
Skewness .965 .199
Kurtosis .691 .395
BalanceAvg Mean 3.3879 .06060
95% Confidence Lower Bound 3.2681
Interval for Mean Upper Bound
3.5076
5% Trimmed Mean 3.4008
Median 3.4167
Variance .547
Std. Deviation .73970
Minimum 1.46
Maximum 4.75
Range 3.29
Interquartile Range 1.10
Skewness -.221 .199
Kurtosis -.591 .395

Annex-1 151
 Appendix-2: S.P.S.S. Outputs

TrxlAvg
TrxlAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

4.00 1 . 2333
1.00 1 . 5
9.00 1 . 667777777
20.00 1 . 88888888888899999999
28.00 2 . 0000000000000111111111111111
20.00 2 . 22222222333333333333
14.00 2 . 44444455555555
14.00 2 . 66666666667777
11.00 2 . 88888889999
11.00 3 . 00000111111
3.00 3 . 333
6.00 3 . 445555
4.00 3 . 6667
3.00 3 . 889
1.00 4 . 0

Stem width: 1.00

Each leaf: 1 case(s)

4.00

3.50

3.00

2.50

2.00

1.50

1.00

TrxlAvg

Annex-1 152
 Appendix-2: S.P.S.S. Outputs

RelationAvg
RelationAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

3.00 Extremes (=<1.8)

4.00 2 . 0111
2.00 2 . 23
3.00 2 . 455
4.00 2 . 6677
4.00 2 . 8889
18.00 3 . 000000011111111111
11.00 3 . 22233333333
12.00 3 . 444555555555
20.00 3 . 66666666666667777777
26.00 3 . 88888888888888888889999999
21.00 4 . 000000000000111111111
11.00 4 . 22223333333
4.00 4 . 4455
4.00 4 . 6667
1.00 4 . 8
1.00 5 . 0

Stem width: 1.00

Each leaf: 1 case(s)

5.00

4.00

3.00

2.00
119
137
135

1.00

RelationAvg

Annex-1 153
 Appendix-2: S.P.S.S. Outputs

TrnslAvg
TrnslAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

12.00 1 . 000000000001
19.00 1 . 2222222222233333333
24.00 1 . 444444444444455555555555
16.00 1 . 6666666777777777
7.00 1 . 8889999
12.00 2 . 000000001111
10.00 2 . 2222223333
14.00 2 . 44444455555555
11.00 2 . 66677777777
6.00 2 . 888899
2.00 3 . 00
5.00 3 . 22333
1.00 3 . 5
6.00 3 . 667777
.00 3 .
1.00 4 . 0
3.00 Extremes (>=4.3)

Stem width: 1.00

Each leaf: 1 case(s)

5.00
139
140
143

4.00

3.00

2.00

1.00

TrnslAvg

Annex-1 154
 Appendix-2: S.P.S.S. Outputs

BalanceAvg
BalanceAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

1.00 1 . 4
1.00 1 . 6
2.00 1 . 89
5.00 2 . 00001
6.00 2 . 222233
11.00 2 . 44555555555
8.00 2 . 66777777
10.00 2 . 8888889999
17.00 3 . 00000000111111111
12.00 3 . 222223333333
13.00 3 . 4444555555555
16.00 3 . 6666666777777777
13.00 3 . 8888899999999
13.00 4 . 0000000000111
5.00 4 . 22223
11.00 4 . 44555555555
5.00 4 . 66777

Stem width: 1.00

Each leaf: 1 case(s)

5.00

4.00

3.00

2.00

1.00

BalanceAvg

Annex-1 155
 Appendix-2: S.P.S.S. Outputs

Annexure - 2: Analysis of Scores on Big Five Inventory

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
OpenAvg 149 100.0% 0 .0% 149 100.0%
ExtraAvg 149 100.0% 0 .0% 149 100.0%
AgreeAvg 149 100.0% 0 .0% 149 100.0%
NuroAvg 149 100.0% 0 .0% 149 100.0%
ConsAvg 149 100.0% 0 .0% 149 100.0%

Descriptives

Statistic Std. Error

OpenAvg Mean 3.6483 .03988
95% Confidence Lower Bound 3.5695
Interval for Mean Upper Bound
3.7271
5% Trimmed Mean 3.6682
Median 3.6000
Variance .237
Std. Deviation .48680
Minimum 2.10
Maximum 4.50
Range 2.40
Interquartile Range .65
Skewness -.534 .199
Kurtosis .320 .395
ExtraAvg Mean 3.4077 .04916
95% Confidence Lower Bound 3.3106
Interval for Mean Upper Bound
3.5049

5% Trimmed Mean 3.4058

Median 3.3750
Variance .360
Std. Deviation .60008
Minimum 2.00
Maximum 4.88
Range 2.88
Interquartile Range 1.00
Skewness .048 .199
Kurtosis -.468 .395
AgreeAvg Mean 4.0597 .04355

Annex-2 156
 Appendix-2: S.P.S.S. Outputs

95% Confidence Lower Bound 3.9736

Interval for Mean Upper Bound
4.1457

5% Trimmed Mean 4.0792

Median 4.1111
Variance .283
Std. Deviation .53154
Minimum 2.22
Maximum 5.00
Range 2.78
Interquartile Range .72
Skewness -.554 .199
Kurtosis .293 .395
NuroAvg Mean 2.3750 .05344
95% Confidence Lower Bound 2.2694
Interval for Mean Upper Bound
2.4806

5% Trimmed Mean 2.3782

Median 2.5000
Variance .425
Std. Deviation .65228
Minimum 1.00
Maximum 4.00
Range 3.00
Interquartile Range .81
Skewness -.187 .199
Kurtosis -.317 .395
ConsAvg Mean 4.0604 .05048
95% Confidence Lower Bound 3.9607
Interval for Mean Upper Bound
4.1601

5% Trimmed Mean 4.0754

Median 4.1111
Variance .380
Std. Deviation .61614
Minimum 2.11
Maximum 6.00
Range 3.89
Interquartile Range .89
Skewness -.320 .199
Kurtosis .377 .395

Annex-2 157
 Appendix-2: S.P.S.S. Outputs

OpenAvg
OpenAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

3.00 Extremes (=<2.40)

2.00 26 . 00
4.00 27 . 0000
1.00 28 . 0
1.00 29 . 0
4.00 30 . 0000
4.00 31 . 0000
7.00 32 . 0000000
11.00 33 . 00000000000
12.00 34 . 000000000000
8.00 35 . 00000000
19.00 36 . 0000000000000000000
11.00 37 . 00000000000
8.00 38 . 00000000
10.00 39 . 0000000000
10.00 40 . 0000000000
9.00 41 . 000000000
9.00 42 . 000000000
7.00 43 . 0000000
5.00 44 . 00000
4.00 45 . 0000

Stem width: .10

Each leaf: 1 case(s)

4.50

4.00

3.50

3.00

2.50
88

33
135

2.00

OpenAvg

Annex-2 158
 Appendix-2: S.P.S.S. Outputs

ExtraAvg
ExtraAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

4.00 2 . 0111
2.00 2 . 23
3.00 2 . 555
13.00 2 . 6666666677777
16.00 2 . 8888888888888888
20.00 3 . 00000000000111111111
20.00 3 . 22222222223333333333
12.00 3 . 555555555555
12.00 3 . 666666777777
14.00 3 . 88888888888888
22.00 4 . 0000000000000111111111
5.00 4 . 22223
2.00 4 . 55
2.00 4 . 67
2.00 4 . 88

Stem width: 1.00

Each leaf: 1 case(s)

5.00

4.50

4.00

3.50

3.00

2.50

2.00

ExtraAvg

Annex-2 159
 Appendix-2: S.P.S.S. Outputs

AgreeAvg
AgreeAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

2.00 Extremes (=<2.7)

2.00 2 . 77
1.00 2 . 8
2.00 3 . 11
11.00 3 . 22222333333
9.00 3 . 444455555
18.00 3 . 666666666777777777
14.00 3 . 88888888888888
25.00 4 . 0000000000000011111111111
18.00 4 . 222222223333333333
28.00 4 . 4444444444555555555555555555
9.00 4 . 666666667
6.00 4 . 888888
4.00 5 . 0000

Stem width: 1.00

Each leaf: 1 case(s)

5.00

4.50

4.00

3.50

3.00
135
49 112

2.50

88

2.00

AgreeAvg

Annex-2 160
 Appendix-2: S.P.S.S. Outputs

NuroAvg
NuroAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

10.00 1 . 0000111111
4.00 1 . 2333
8.00 1 . 55555555
7.00 1 . 6677777
6.00 1 . 888888
18.00 2 . 000000000111111111
20.00 2 . 22222222233333333333
15.00 2 . 555555555555555
24.00 2 . 666666666666666777777777
10.00 2 . 8888888888
13.00 3 . 0000000011111
6.00 3 . 223333
3.00 3 . 555
4.00 3 . 6666
1.00 Extremes (>=4.0)

Stem width: 1.00

Each leaf: 1 case(s)

21
4.00

3.50

3.00

2.50

2.00

1.50

1.00

NuroAvg

Annex-2 161
 Appendix-2: S.P.S.S. Outputs

ConsAvg
ConsAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

2.00 Extremes (=<2.2)

1.00 2 . 6
2.00 2 . 88
7.00 3 . 0111111
10.00 3 . 2223333333
12.00 3 . 444444445555
20.00 3 . 66666666677777777777
5.00 3 . 88888
22.00 4 . 0000000000011111111111
18.00 4 . 222222222233333333
19.00 4 . 4444444445555555555
19.00 4 . 6666666666777777777
5.00 4 . 88888
6.00 5 . 000000
1.00 Extremes (>=6.0)

Stem width: 1.00

Each leaf: 1 case(s)

82
6.00

5.00

4.00

3.00

121

2.00 88

ConsAvg

Annex-2 162
 Appendix-2: S.P.S.S. Outputs

Annexure - 3 : Paired sample t - Test for Hypothesis-1

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
RelationAvg 149 100.0% 0 .0% 149 100.0%
BalanceAvg 149 100.0% 0 .0% 149 100.0%

Descriptives

Statistic Std. Error

RelationAvg Mean 3.6003 .05265
95% Confidence Lower Bound 3.4962
Interval for Mean Upper Bound
3.7043
5% Trimmed Mean 3.6304
Median 3.7500
Variance .413
Std. Deviation .64273
Minimum 1.50
Maximum 5.00
Range 3.50
Interquartile Range .81
Skewness -.794 .199
Kurtosis .874 .395
BalanceAvg Mean 3.3879 .06060
95% Confidence Lower Bound 3.2681
Interval for Mean Upper Bound
3.5076
5% Trimmed Mean 3.4008
Median 3.4167
Variance .547
Std. Deviation .73970
Minimum 1.46
Maximum 4.75
Range 3.29
Interquartile Range 1.10
Skewness -.221 .199
Kurtosis -.591 .395

Annex-3 156
 Appendix-2: S.P.S.S. Outputs

RelationAvg
RelationAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

3.00 Extremes (=<1.8)

4.00 2 . 0111
2.00 2 . 23
3.00 2 . 455
4.00 2 . 6677
4.00 2 . 8889
18.00 3 . 000000011111111111
11.00 3 . 22233333333
12.00 3 . 444555555555
20.00 3 . 66666666666667777777
26.00 3 . 88888888888888888889999999
21.00 4 . 000000000000111111111
11.00 4 . 22223333333
4.00 4 . 4455
4.00 4 . 6667
1.00 4 . 8
1.00 5 . 0

Stem width: 1.00

Each leaf: 1 case(s)

5.00

4.00

3.00

2.00
119
137
135

1.00

RelationAvg

Annex-3 157
 Appendix-2: S.P.S.S. Outputs

BalanceAvg
BalanceAvg Stem-and-Leaf Plot

Frequency Stem & Leaf

1.00 1 . 4
1.00 1 . 6
2.00 1 . 89
5.00 2 . 00001
6.00 2 . 222233
11.00 2 . 44555555555
8.00 2 . 66777777
10.00 2 . 8888889999
17.00 3 . 00000000111111111
12.00 3 . 222223333333
13.00 3 . 4444555555555
16.00 3 . 6666666777777777
13.00 3 . 8888899999999
13.00 4 . 0000000000111
5.00 4 . 22223
11.00 4 . 44555555555
5.00 4 . 66777

Stem width: 1.00

Each leaf: 1 case(s)

5.00

4.00

3.00

2.00

1.00

BalanceAvg

Annex-3 158
 Appendix-2: S.P.S.S. Outputs

T-Test

Paired Samples Statistics

Std. Error
Mean N Std. Deviation Mean
Pair 1 RelationA
3.6003 149 .64273 .05265
vg
BalanceA
3.3879 149 .73970 .06060
vg

Paired Samples Correlations

N Correlation Sig.
Pair 1 RelationAvg &
BalanceAvg 149 .686 .000

Paired Samples Test

Sig. (2-
Paired Differences t df tailed)
95% Confidence
Std. Std. Error Interval of the
Mean Deviation Mean Difference

Lower Upper
Pair 1 RelationAvg
.21239 .55499 .04547 .12254 .30224 4.671 148 .000
- BalanceAvg

Annex-3 159
 Appendix-2: S.P.S.S. Outputs

Annexure - 4 : Testing of Hypothesis -2 ( One way ANOVA)

Age
Case Processing Summary

Cases
Valid Missing Total
Age N Percent N Percent N Percent
RelationAvg 21 to 30 Years 26 100.0% 0 .0% 26 100.0%
31 to 40 yeras 38 100.0% 0 .0% 38 100.0%
41 to 50 years 51 100.0% 0 .0% 51 100.0%
51 to 60 years 34 100.0% 0 .0% 34 100.0%

Descriptives

Age Statistic Std. Error

RelationAvg 21 to 30 Years Mean 3.5721 .13892
95% Confidence Lower Bound 3.2860
Interval for Mean Upper Bound
3.8582

5% Trimmed Mean 3.5767

Median 3.7188
Variance .502
Std. Deviation .70836
Minimum 2.06
Maximum 5.00
Range 2.94
Interquartile Range .94
Skewness -.167 .456
Kurtosis -.274 .887
31 to 40 yeras Mean 3.6908 .08731
95% Confidence Lower Bound 3.5139
Interval for Mean Upper Bound
3.8677
5% Trimmed Mean 3.6879
Median 3.6875
Variance .290
Std. Deviation .53822
Minimum 2.56
Maximum 4.81
Range 2.25
Interquartile Range .84
Skewness .039 .383

Annex-4 156
 Appendix-2: S.P.S.S. Outputs

Kurtosis -.273 .750

41 to 50 years Mean 3.5515 .09137
95% Confidence Lower Bound 3.3680
Interval for Mean Upper Bound
3.7350
5% Trimmed Mean 3.6019
Median 3.6875
Variance .426
Std. Deviation .65248
Minimum 1.50
Maximum 4.50
Range 3.00
Interquartile Range .69
Skewness -1.255 .333
Kurtosis 1.675 .656
51 to 60 years Mean 3.5938 .11992
95% Confidence Lower Bound 3.3498
Interval for Mean Upper Bound
3.8377

5% Trimmed Mean 3.6352

Median 3.7500
Variance .489
Std. Deviation .69924
Minimum 1.63
Maximum 4.69
Range 3.06
Interquartile Range .72
Skewness -1.068 .403
Kurtosis 1.013 .788

RelationAvg

Stem-and-Leaf Plots
RelationAvg Stem-and-Leaf Plot for
Age= 21 to 30 Years

Frequency Stem & Leaf

2.00 2 . 04
3.00 2 . 667
6.00 3 . 011133
8.00 3 . 66788889
4.00 4 . 0113
2.00 4 . 56
1.00 5 . 0

Annex-4 157
 Appendix-2: S.P.S.S. Outputs

Stem width: 1.00

Each leaf: 1 case(s)

RelationAvg Stem-and-Leaf Plot for

Age= 31 to 40 yeras

Frequency Stem & Leaf

3.00 2 . 578
8.00 3 . 00111124
15.00 3 . 555556666788889
9.00 4 . 000111123
3.00 4 . 678

Stem width: 1.00

Each leaf: 1 case(s)

RelationAvg Stem-and-Leaf Plot for

Age= 41 to 50 years

Frequency Stem & Leaf

3.00 Extremes (=<2.2)

2.00 2 . 23
2.00 2 . 89
12.00 3 . 011112233334
20.00 3 . 55666667888888889999
11.00 4 . 00001123333
1.00 4 . 5

Stem width: 1.00

Each leaf: 1 case(s)

RelationAvg Stem-and-Leaf Plot for

Age= 51 to 60 years

Frequency Stem & Leaf

3.00 Extremes (=<2.2)

.00 2 .
2.00 2 . 58
6.00 3 . 000334
12.00 3 . 556677778889
10.00 4 . 0000122344
1.00 4 . 6

Stem width: 1.00

Each leaf: 1 case(s)

Annex-4 158
 Appendix-2: S.P.S.S. Outputs

5.00

4.00
RelationAvg

3.00

88 122
79
2.00
119
137
135

1.00

21 to 30 Years 31 to 40 yeras 41 to 50 years 51 to 60 years

Age

Oneway
Descriptives

RelationAvg
95% Confidence Interval for
N Mean Std. Deviation Std. Error Mean Minimum Maximum

Lower Bound Upper Bound

21 to 30 Years 26 3.5721 .70836 .13892 3.2860 3.8582 2.06 5.00
31 to 40 yeras 38 3.6908 .53822 .08731 3.5139 3.8677 2.56 4.81
41 to 50 years 51 3.5515 .65248 .09137 3.3680 3.7350 1.50 4.50
51 to 60 years 34 3.5938 .69924 .11992 3.3498 3.8377 1.63 4.69
Total 149 3.6003 .64273 .05265 3.4962 3.7043 1.50 5.00

Test of Homogeneity of Variances

RelationAvg
Levene
Statistic df1 df2 Sig.
.768 3 145 .514

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 Appendix-2: S.P.S.S. Outputs

ANOVA

RelationAvg
Sum of
Squares df Mean Square F Sig.
Between Groups .455 3 .152 .362 .780
Within Groups 60.684 145 .419
Total 61.139 148

Robust Tests of Equality of Means

RelationAvg
Statistic(a) df1 df2 Sig.
Welch .445 3 71.205 .722
a Asymptotically F distributed.

Post Hoc Tests

Multiple Comparisons

Dependent Variable: RelationAvg

Tukey HSD

95% Confidence Interval

Mean
Difference
(I) Age (J) Age (I-J) Std. Error Sig. Lower Bound Upper Bound
21 to 30 Years 31 to 40 yeras -.11867 .16465 .889 -.5466 .3093
41 to 50 years .02064 .15589 .999 -.3845 .4258
51 to 60 years -.02163 .16854 .999 -.4597 .4164
31 to 40 yeras 21 to 30 Years .11867 .16465 .889 -.3093 .5466
41 to 50 years .13932 .13863 .747 -.2210 .4996
51 to 60 years .09704 .15272 .920 -.2999 .4940
41 to 50 years 21 to 30 Years -.02064 .15589 .999 -.4258 .3845
31 to 40 yeras -.13932 .13863 .747 -.4996 .2210
51 to 60 years -.04228 .14323 .991 -.4145 .3300
51 to 60 years 21 to 30 Years .02163 .16854 .999 -.4164 .4597
31 to 40 yeras -.09704 .15272 .920 -.4940 .2999
41 to 50 years .04228 .14323 .991 -.3300 .4145

Annex-4 160
 Appendix-2: S.P.S.S. Outputs

Homogeneous Subsets
RelationAvg

Tukey HSD
Subset for
alpha =
.05

Age N 1
41 to 50 years 51 3.5515
21 to 30 Years 26 3.5721
51 to 60 years 3.5938 34
31 to 40 yeras 3.6908 38
Sig. .803
Means for groups in homogeneous subsets are displayed.
a Uses Harmonic Mean Sample Size = 35.150.
b The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not guaranteed.

Means Plots

3.70

3.675
Mean of RelationAvg

3.65

3.625

3.60

3.575

3.55

21 to 30 Years 31 to 40 yeras 41 to 50 years 51 to 60 years

Age

Annex-4 161
 Appendix-2: S.P.S.S. Outputs

Annexure -5 : Testing of Hypothesis -3 : Indendent Sample t - Test

Explore

Gender
Case Processing Summary

Cases
Valid Missing Total
Gender N Percent N Percent N Percent
TrxlAvg Male 120 100.0% 0 .0% 120 100.0%
female 29 100.0% 0 .0% 29 100.0%
RelationAv Male 120 100.0% 0 .0% 120 100.0%
g female 29 100.0% 0 .0% 29 100.0%
BalanceAv Male 120 100.0% 0 .0% 120 100.0%
g female 29 100.0% 0 .0% 29 100.0%
TrnslAvg Male 120 100.0% 0 .0% 120 100.0%
female 29 100.0% 0 .0% 29 100.0%

Descriptives

Gender Statistic Std. Error

TrxlAvg Male Mean 2.4177 .05310
95% Confidence Lower Bound 2.3126
Interval for Upper Bound
Mean 2.5228
5% Trimmed Mean 2.4005
Median 2.3125
Variance .338
Std. Deviation .58164
Minimum 1.25
Maximum 3.88
Range 2.63
Interquartile Range .80
Skewness .599 .221
Kurtosis -.131 .438
female Mean 2.5690 .11764
95% Confidence Lower Bound 2.3280
Interval for Upper Bound
Mean 2.8099

5% Trimmed Mean 2.5360

Median 2.6250
Variance .401
Std. Deviation .63350
Minimum 1.75
Maximum 4.00

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 Appendix-2: S.P.S.S. Outputs

Range 2.25
Interquartile Range .91
Skewness .665 .434
Kurtosis -.114 .845
RelationAvg Male Mean 3.5964 .06009
95% Confidence Lower Bound 3.4774
Interval for Upper Bound
Mean 3.7153

5% Trimmed Mean 3.6319

Median 3.7500
Variance .433
Std. Deviation .65825
Minimum 1.50
Maximum 5.00
Range 3.50
Interquartile Range .81
Skewness -.932 .221
Kurtosis 1.004 .438
female Mean 3.6164 .10855
95% Confidence Lower Bound 3.3940
Interval for Upper Bound
Mean 3.8387
5% Trimmed Mean 3.6181
Median 3.5625
Variance .342
Std. Deviation .58457
Minimum 2.38
Maximum 4.75
Range 2.38
Interquartile Range .78
Skewness .087 .434
Kurtosis -.238 .845
BalanceAvg Male Mean 3.4389 .06692
95% Confidence Lower Bound 3.3064
Interval for Upper Bound
Mean 3.5714
5% Trimmed Mean 3.4595
Median 3.5208
Variance .537
Std. Deviation .73302
Minimum 1.46
Maximum 4.75
Range 3.29
Interquartile Range 1.08
Skewness -.316 .221
Kurtosis -.437 .438

Annex-5 157
 Appendix-2: S.P.S.S. Outputs

female Mean 3.1767 .13786

95% Confidence Lower Bound 2.8943
Interval for Upper Bound
Mean 3.4591

5% Trimmed Mean 3.1567

Median 3.2500
Variance .551
Std. Deviation .74241
Minimum 2.04
Maximum 4.75
Range 2.71
Interquartile Range 1.19
Skewness .164 .434
Kurtosis -.710 .845
TrnslAvg Male Mean 2.0090 .06758
95% Confidence Lower Bound 1.8752
Interval for Upper Bound
Mean 2.1428

5% Trimmed Mean 1.9664

Median 1.8542
Variance .548
Std. Deviation .74031
Minimum 1.00
Maximum 4.00
Range 3.00
Interquartile Range 1.08
Skewness .735 .221
Kurtosis -.168 .438
female Mean 2.3693 .19124
95% Confidence Lower Bound 1.9775
Interval for Upper Bound
Mean 2.7610

5% Trimmed Mean 2.3087

Median 2.2083
Variance 1.061
Std. Deviation 1.02986
Minimum 1.00
Maximum 4.75
Range 3.75
Interquartile Range 1.40
Skewness .991 .434
Kurtosis .373 .845

Annex-5 158
 Appendix-2: S.P.S.S. Outputs

TrxlAvg
Stem-and-Leaf Plots
TrxlAvg Stem-and-Leaf Plot for
Gender= Male

Frequency Stem & Leaf

4.00 1 . 2333
1.00 1 . 5
7.00 1 . 6677777
16.00 1 . 8888888899999999
23.00 2 . 00000000001111111111111
19.00 2 . 2222222233333333333
12.00 2 . 444445555555
8.00 2 . 66666777
8.00 2 . 88888899
9.00 3 . 000011111
2.00 3 . 33
6.00 3 . 445555
3.00 3 . 667
2.00 3 . 88
Stem width: 1.00
Each leaf: 1 case(s)

TrxlAvg Stem-and-Leaf Plot for

Gender= female

Frequency Stem & Leaf

6.00 1 . 778888
7.00 2 . 0001134
10.00 2 . 5666667899
3.00 3 . 013
2.00 3 . 69
1.00 4 . 0
Stem width: 1.00
Each leaf: 1 case(s)
4.00

3.50

3.00
TrxlAvg

2.50

2.00

1.50

1.00

Male female
Gender

Annex-5 159
 Appendix-2: S.P.S.S. Outputs

RelationAvg
Stem-and-Leaf Plots
RelationAvg Stem-and-Leaf Plot for
Gender= Male
Frequency Stem & Leaf
3.00 Extremes (=<1.8)
4.00 2 . 0111
1.00 2 . 2
3.00 2 . 455
2.00 2 . 66
4.00 2 . 8889
14.00 3 . 00001111111111
7.00 3 . 2333333
8.00 3 . 44455555
18.00 3 . 666666666666777777
21.00 3 . 888888888888888999999
18.00 4 . 000000000011111111
11.00 4 . 22223333333
3.00 4 . 455
1.00 4 . 6
1.00 4 . 8
1.00 5 . 0
Stem width: 1.00
Each leaf: 1 case(s)

RelationAvg Stem-and-Leaf Plot for

Gender= female

Frequency Stem & Leaf

1.00 2 . 3
2.00 2 . 77
8.00 3 . 00012233
11.00 3 . 55556788889
4.00 4 . 0014
3.00 4 . 667
Stem width: 1.00
Each leaf: 1 case(s)

5.00

4.00
RelationAvg

3.00

2.00
119
137
135

1.00

Male female
Gender

Annex-5 160
 Appendix-2: S.P.S.S. Outputs

BalanceAvg
Stem-and-Leaf Plots
BalanceAvg Stem-and-Leaf Plot for
Gender= Male

Frequency Stem & Leaf

1.00 1 . 4
1.00 1 . 6
2.00 1 . 89
2.00 2 . 01
3.00 2 . 223
10.00 2 . 4455555555
5.00 2 . 67777
8.00 2 . 88888999
15.00 3 . 000000111111111
8.00 3 . 22233333
12.00 3 . 444455555555
13.00 3 . 6666677777777
9.00 3 . 888999999
12.00 4 . 000000000111
5.00 4 . 22223
10.00 4 . 4455555555
4.00 4 . 6677
Stem width: 1.00
Each leaf: 1 case(s)

BalanceAvg Stem-and-Leaf Plot for

Gender= female

Frequency Stem & Leaf

6.00 2 . 000223
6.00 2 . 567789
6.00 3 . 002233
8.00 3 . 56678899
1.00 4 . 0
2.00 4 . 57
Stem width: 1.00
Each leaf: 1 case(s)
5.00

4.00
BalanceAvg

3.00

2.00

1.00

Male female
Gender

Annex-5 161
 Appendix-2: S.P.S.S. Outputs

TrnslAvg
Stem-and-Leaf Plots
BalanceAvg Stem-and-Leaf Plot for
Gender= Male

Frequency Stem & Leaf

1.00 1 . 4
1.00 1 . 6
2.00 1 . 89
2.00 2 . 01
3.00 2 . 223
10.00 2 . 4455555555
5.00 2 . 67777
8.00 2 . 88888999
15.00 3 . 000000111111111
8.00 3 . 22233333
12.00 3 . 444455555555
13.00 3 . 6666677777777
9.00 3 . 888999999
12.00 4 . 000000000111
5.00 4 . 22223
10.00 4 . 4455555555
4.00 4 . 6677
Stem width: 1.00
Each leaf: 1 case(s)

BalanceAvg Stem-and-Leaf Plot for

Gender= female

Frequency Stem & Leaf

6.00 2 . 000223
6.00 2 . 567789
6.00 3 . 002233
8.00 3 . 56678899
1.00 4 . 0
2.00 4 . 57
Stem width: 1.00
Each leaf: 1 case(s)

5.00

4.00
BalanceAvg

3.00

2.00

1.00

Male female
Gender

Annex-5 162
 Appendix-2: S.P.S.S. Outputs

T-Test
Group Statistics

Std. Error
Gender N Mean Std. Deviation Mean
TrxlAvg Male 120 2.4177 .58164 .05310
female 29 2.5690 .63350 .11764
RelationAv Male 120 3.5964 .65825 .06009
g female 29 3.6164 .58457 .10855
BalanceAv Male 120 3.4389 .73302 .06692
g female 29 3.1767 .74241 .13786
TrnslAvg Male 120 2.0090 .74031 .06758
female 29 2.3693 1.02986 .19124

Independent Samples Test

Levene's Test
for Equality of
Variances t-test for Equality of Means
Sig. 95% Confidence
(2- Mean Std. Error Interval of the
F Sig. t df tailed) Difference Difference Difference

Lower Upper
TrxlAvg Equal
variances .277 .599 -1.235 147 .219 -.15126 .12247 -.39328 .09077
assumed
Equal
variances not -1.172 40.178 .248 -.15126 .12907 -.41207 .10956
assumed
RelationAvg Equal
variances .201 .655 -.150 147 .881 -.02003 .13344 -.28372 .24367
assumed
Equal
variances not -.161 46.756 .872 -.02003 .12407 -.26966 .22961
assumed
BalanceAvg Equal
variances .036 .849 1.724 147 .087 .26216 .15205 -.03832 .56265
assumed
Equal
variances not 1.711 42.196 .094 .26216 .15324 -.04705 .57138
assumed
TrnslAvg Equal
variances 3.700 .056 -2.166 147 .032 -.36023 .16627 -.68881 -.03164
assumed
Equal
variances not -1.776 35.300 .084 -.36023 .20283 -.77187 .05142
assumed

Annex-5 163
 Appendix-2: S.P.S.S. Outputs

Annexure - 6 : Testing of Hypothesis - 4 (Correlation Analysis)

Graph

4.00

3.50

3.00
TrxlAvg

2.50

2.00

1.50

1.00

2.00 2.50 3.00 3.50 4.00 4.50

OpenAvg

4.00

3.50

3.00
TrxlAvg

2.50

2.00

1.50

1.00

2.00 3.00 4.00 5.00 6.00

ConsAvg

Annex-6 181
 Appendix-2: S.P.S.S. Outputs

4.00

3.50

3.00
TrxlAvg

2.50

2.00

1.50

1.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00

ExtraAvg

4.00

3.50

3.00
TrxlAvg

2.50

2.00

1.50

1.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00

AgreeAvg

Annex-6 182
 Appendix-2: S.P.S.S. Outputs

4.00

3.50

3.00
TrxlAvg

2.50

2.00

1.50

1.00

1.00 1.50 2.00 2.50 3.00 3.50 4.00

NuroAvg

Correlations
Correlations

TrxlAvg OpenAvg ExtraAvg AgreeAvg NuroAvg ConsAvg

TrxlAvg Pearson
1 -.051 -.060 -.190(*) .155 -.053
Correlation
Sig. (2-tailed) . .534 .470 .020 .059 .519
N 149 149 149 149 149 149
OpenAvg Pearson
-.051 1 .470(**) .397(**) -.246(**) .297(**)
Correlation
Sig. (2-tailed) .534 . .000 .000 .002 .000
N 149 149 149 149 149 149
ExtraAvg Pearson
-.060 .470(**) 1 .314(**) -.389(**) .311(**)
Correlation
Sig. (2-tailed) .470 .000 . .000 .000 .000
N 149 149 149 149 149 149
AgreeAvg Pearson
-.190(*) .397(**) .314(**) 1 -.472(**) .541(**)
Correlation
Sig. (2-tailed) .020 .000 .000 . .000 .000
N 149 149 149 149 149 149
NuroAvg Pearson
.155 -.246(**) -.389(**) -.472(**) 1 -.451(**)
Correlation
Sig. (2-tailed) .059 .002 .000 .000 . .000
N 149 149 149 149 149 149
ConsAvg Pearson
-.053 .297(**) .311(**) .541(**) -.451(**) 1
Correlation
Sig. (2-tailed) .519 .000 .000 .000 .000 .
N 149 149 149 149 149 149
* Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed).

Annex-6 183
 Appendix-2: S.P.S.S. Outputs

Annexure-7: Testing of Hypothesis-5 (Correlation Analysis)

Graphs

5.00

4.00
RelationAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50

OpenAvg

5.00

4.00
RelationAvg

3.00

2.00

1.00

2.00 3.00 4.00 5.00 6.00

ConsAvg

Annex-7 184
 Appendix-2: S.P.S.S. Outputs

5.00

4.00
RelationAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00

ExtraAvg

5.00

4.00
RelationAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00

AgreeAvg

Annex-7 185
 Appendix-2: S.P.S.S. Outputs

5.00

4.00
RelationAvg

3.00

2.00

1.00

1.00 1.50 2.00 2.50 3.00 3.50 4.00

NuroAvg

Correlations
Correlations
RelationAvg OpenAvg ExtraAvg AgreeAvg NuroAvg ConsAvg
RelationAvg Pearson
1 .246(**) .264(**) .324(**) -.210(*) .335(**)
Correlation
Sig. (2-tailed) . .002 .001 .000 .010 .000
N 149 149 149 149 149 149
OpenAvg Pearson
.246(**) 1 .470(**) .397(**) -.246(**) .297(**)
Correlation
Sig. (2-tailed) .002 . .000 .000 .002 .000
N 149 149 149 149 149 149
ExtraAvg Pearson
.264(**) .470(**) 1 .314(**) -.389(**) .311(**)
Correlation
Sig. (2-tailed) .001 .000 . .000 .000 .000
N 149 149 149 149 149 149
AgreeAvg Pearson
.324(**) .397(**) .314(**) 1 -.472(**) .541(**)
Correlation
Sig. (2-tailed) .000 .000 .000 . .000 .000
N 149 149 149 149 149 149
NuroAvg Pearson
-.210(*) -.246(**) -.389(**) -.472(**) 1 -.451(**)
Correlation
Sig. (2-tailed) .010 .002 .000 .000 . .000
N 149 149 149 149 149 149
ConsAvg Pearson
.335(**) .297(**) .311(**) .541(**) -.451(**) 1
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .
N 149 149 149 149 149 149
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).

Annex-7 186
 Appendix-2: S.P.S.S. Outputs

Annexure-8 : Testing of Hypothesis-6 (Correlation Analysis)

Graph

5.00

4.00
BalanceAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50

OpenAvg

5.00

4.00
BalanceAvg

3.00

2.00

1.00

2.00 3.00 4.00 5.00 6.00

ConsAvg

Annex-8 187
 Appendix-2: S.P.S.S. Outputs

5.00

4.00
BalanceAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00

ExtraAvg

5.00

4.00
BalanceAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00

AgreeAvg

Annex-8 188
 Appendix-2: S.P.S.S. Outputs

5.00

4.00
BalanceAvg

3.00

2.00

1.00

1.00 1.50 2.00 2.50 3.00 3.50 4.00

NuroAvg

Correlations
Correlations

BalanceAvg OpenAvg ExtraAvg AgreeAvg NuroAvg ConsAvg

BalanceAvg Pearson
1 .265(**) .366(**) .145 -.149 .195(*)
Correlation
Sig. (2-tailed) . .001 .000 .078 .069 .017
N 149 149 149 149 149 149
OpenAvg Pearson
.265(**) 1 .470(**) .397(**) -.246(**) .297(**)
Correlation
Sig. (2-tailed) .001 . .000 .000 .002 .000
N 149 149 149 149 149 149
ExtraAvg Pearson
.366(**) .470(**) 1 .314(**) -.389(**) .311(**)
Correlation
Sig. (2-tailed) .000 .000 . .000 .000 .000
N 149 149 149 149 149 149
AgreeAvg Pearson
.145 .397(**) .314(**) 1 -.472(**) .541(**)
Correlation
Sig. (2-tailed) .078 .000 .000 . .000 .000
N 149 149 149 149 149 149
NuroAvg Pearson
-.149 -.246(**) -.389(**) -.472(**) 1 -.451(**)
Correlation
Sig. (2-tailed) .069 .002 .000 .000 . .000
N 149 149 149 149 149 149
ConsAvg Pearson
.195(*) .297(**) .311(**) .541(**) -.451(**) 1
Correlation
Sig. (2-tailed) .017 .000 .000 .000 .000 .
N 149 149 149 149 149 149
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).

Annex-8 189
 Appendix-2: S.P.S.S. Outputs

Annexure-9 : Testing of Hypothesis-7 (Correlation analysis)

Graph

5.00

4.00
TrnslAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50

OpenAvg

5.00

4.00
TrnslAvg

3.00

2.00

1.00

2.00 3.00 4.00 5.00 6.00

ConsAvg

Annex-9 190
 Appendix-2: S.P.S.S. Outputs

5.00

4.00
TrnslAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00

ExtraAvg

5.00

4.00
TrnslAvg

3.00

2.00

1.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00

AgreeAvg

Annex-9 191
 Appendix-2: S.P.S.S. Outputs

5.00

4.00
TrnslAvg

3.00

2.00

1.00

1.00 1.50 2.00 2.50 3.00 3.50 4.00

NuroAvg

Correlations
Correlations

TrnslAvg OpenAvg ExtraAvg AgreeAvg NuroAvg ConsAvg

TrnslAvg Pearson
1 -.033 -.285(**) -.147 .199(*) -.218(**)
Correlation
Sig. (2-tailed) . .692 .000 .073 .015 .007
N 149 149 149 149 149 149
OpenAvg Pearson
-.033 1 .470(**) .397(**) -.246(**) .297(**)
Correlation
Sig. (2-tailed) .692 . .000 .000 .002 .000
N 149 149 149 149 149 149
ExtraAvg Pearson
-.285(**) .470(**) 1 .314(**) -.389(**) .311(**)
Correlation
Sig. (2-tailed) .000 .000 . .000 .000 .000
N 149 149 149 149 149 149
AgreeAvg Pearson
-.147 .397(**) .314(**) 1 -.472(**) .541(**)
Correlation
Sig. (2-tailed) .073 .000 .000 . .000 .000
N 149 149 149 149 149 149
NuroAvg Pearson
.199(*) -.246(**) -.389(**) -.472(**) 1 -.451(**)
Correlation
Sig. (2-tailed) .015 .002 .000 .000 . .000
N 149 149 149 149 149 149
ConsAvg Pearson
-.218(**) .297(**) .311(**) .541(**) -.451(**) 1
Correlation
Sig. (2-tailed) .007 .000 .000 .000 .000 .
N 149 149 149 149 149 149
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).

Annex-9 192
 Appendix-3: Bibliography

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193
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