Научная статья на тему 'Emotional intelligence and interpersonal dynamics in the workplace: Importance of psychological contract'

Emotional intelligence and interpersonal dynamics in the workplace: Importance of psychological contract Текст научной статьи по специальности «Науки о здоровье»

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Ключевые слова
psychological contract / employee engagement / interpersonal skills / emotional intelligence / relational psychological contract / transactional psychological contract / attrition / психологический контракт / вовлечённость сотрудников / навыки межличностного общения / эмоциональный интеллект / реляционный психологический контракт / транзакционный психологический контракт / истощение

Аннотация научной статьи по наукам о здоровье, автор научной работы — Neena Pc, Abraham Varughese

Purpose. The purpose of the study is to identify which factors of the psychological contract contributes to the attrition level in the service and manufacturing sectors. The degree of psychological contract observed in the firms and its fluctuating degree is examined empirically in this study based on the influence of the external factors. There is evidence that the employees and the employers will not be able to sustain with same degree of the psychological contract as they work as two entities in the organization. The businesses which are successful undoubtedly had a strong ‘Relational Psychological Contract’ that enabled them to gain competitive edge in the market. Study design. This research was conducted in two stages, case study analysis, and primary data analysis. In case study analysis, twentyfive firms were selected of which eight were from manufacturing and seventeen from the service industry. The case study method helped to explore the employee-employer relationship. A broad-level study was conducted using a structured questionnaire in which 393 were considered for analysis. There is exploratory study with the structural equation modelling analysis done with the confirmatory factor analysis. Findings. The analysis of confirmatory factor model of structural equation modelling showed a ‘Psychological Dissonance’ between employees and employers and the negative covariance of the variables of the confirmatory factor analysis shows that the respondents have a commitment to the employers as employees but are not emotionally linked. The relationship is shrunk to a level of delivery tasks for remuneration. This leads to higher attrition rate in the service sector, comparing to the manufacturing sector among the employees with less experience which is proven in the study. Research limitations. The research limitations are the attrition data to collect from various firms as it is a negative outcome in any organization. Value of the results. The value of the results is genuine with the primary data collected from the respondents (both employers and employees of the firms) which the author could get access.

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Эмоциональный интеллект и межличностная динамика на рабочем месте: важность психологического контракта

Цель. Цель исследования — определить, какие факторы психологического контракта способствуют текучести персонала в сфере услуг и в производственном секторе. Уровень психологического контракта, наблюдаемая в компаниях, и его колебания изучаются в данном исследовании эмпирически через призму влияния внешних факторов. Есть свидетельства того, что работники и работодатели не смогут поддерживать одинаковый уровень психологического контракта, пока они работают в одной организации. Успешные предприятия, несомненно, имеют сильный психологический контракт, который позволяет им получить конкурентное преимущество на рынке. Дизайн исследования. Исследование проводилось в два этапа: анализ конкретного случая (кейс-стади) и анализ массива первичных данных. На первом этапе приняли участие работники из двадцати пяти фирм как производственного сектора, так и сферы услуг. Метод кейс-стади помог изучить отношения между работником и работодателем. На втором этапе были проанализированы ответы на 393 структурированные анкеты. Данное исследование представляет собой поисковое исследование с использованием моделирования структурными уравнениями и подтверждающего факторного анализа. Выводы. Подтверждающий факторный анализ совместно с моделированием структурными уравнениями показал «психологический диссонанс» между работниками и работодателями, а отрицательная ковариация переменных подтверждающего факторного анализа показывает, что респонденты имеют обязательства перед работодателями как сотрудники, но эмоционально с ним не связаны. Отношения сужаются до уровня выполнения задач за вознаграждение. Это приводит к более высокому уровню увольнений в сфере услуг по сравнению с производственным сектором среди сотрудников с меньшим опытом. Ограничения исследования. Ограничениями исследования являются данные о текучести кадров, которые было необходимо собрать от различных фирм, поскольку это отрицательный результат для любой организации. Ценность результатов. Ценность результатов подтверждается первичными данными, полученными от респондентов (как работодателей, так и сотрудников фирм), к которым авторы могли получить доступ.

Текст научной работы на тему «Emotional intelligence and interpersonal dynamics in the workplace: Importance of psychological contract»

Organizational Psychology, 2024, Vol. 14, No. 2, P. 44-57. DOI: 10.17323/2312-5942-2024-14-2-44-57

ORGANIZATIONAL PSYCHOLOGY

www.orgpsyjournal.hse.ru

Emotional intelligence and interpersonal dynamics in the workplace: Importance of psychological contract

Neena PC

ORCID: 0000-0002-8112-5555

Nagarjuna College of Management Studies, Bangalore, India

Abstract. Purpose. The purpose of the study is to identify which factors of the psychological contract contributes to the attrition level in the service and manufacturing sectors. The degree of psychological contract observed in the firms and its fluctuating degree is examined empirically in this study based on the influence of the external factors. There is evidence that the employees and the employers will not be able to sustain with same degree of the psychological contract as they work as two entities in the organization. The businesses which are successful undoubtedly had a strong 'Relational Psychological Contract' that enabled them to gain competitive edge in the market. Study design. This research was conducted in two stages, case study analysis, and primary data analysis. In case study analysis, twenty-five firms were selected of which eight were from manufacturing and seventeen from the service industry. The case study method helped to explore the employee-employer relationship. A broad-level study was conducted using a structured questionnaire in which 393 were considered for analysis. There is exploratory study with the structural equation modelling analysis done with the confirmatory factor analysis. Findings. The analysis of confirmatory factor model of structural equation modelling showed a 'Psychological Dissonance' between employees and employers and the negative covariance of the variables of the confirmatory factor analysis shows that the respondents have a commitment to the employers as employees but are not emotionally linked. The relationship is shrunk to a level of delivery tasks for remuneration. This leads to higher attrition rate in the service sector, comparing to the manufacturing sector among the employees with less experience which is proven in the study. Research limitations. The research limitations are the attrition data to collect from various firms as it is a negative outcome in any organization. Value of the results. The value of the results is genuine with the primary data collected from the respondents (both employers and employees of the firms) which the author could get access.

Keywords: psychological contract, employee engagement, interpersonal skills, emotional intelligence, relational psychological contract, transactional psychological contract, attrition.

Employment is a bilateral agreement between the employer and employee to source Knowledge, Skills, Abilities and Other characteristics (KSAOs) of employees to fulfill the organizational demands on a timely manner (Brannick et al., 2012). "Psychological contract" is the unwritten agreement

Introduction

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between an employee and an employer that outlines the expectations and obligations of each party. It includes things like job duties, compensation, benefits, and opportunities for growth and development. Psychological contract is clear and well-aligned which can lead to increased trust, commitment, and engagement from employees, which in turn can lead to improved performance and productivity (Guest, 2004). The congruence to fulfill the expectations by both employee and employer enhances psychological contract built on emotional bond (Fuchs, 2012). Interpersonal skills are the abilities that allow people to effectively communicate, interact, and build relationships with others. Understanding and leveraging the psychological contract is a key aspect of mastering interpersonal skills. Employment is a mutual commitment between the employer and employee in which the employee is committed to deliver targeted outputs in the stipulated time in the right quality, while the employer is committed to provide appropriate environment to perform and to compensate with the right reward which aligns to the employee's contributions (Cheung et al., 2017; Lester, Kickul, 2001).

Interpersonal skills: synthesis of psychological contract

To master interpersonal skills and effectively leverage the psychological contract, individuals should focus on the following. Communication: clearly and effectively communicate expectations and obligations to others, and actively listen to their perspectives and feedback. Empathy: Understand and relate to the feelings and experiences of others and adjust your communication and actions accordingly. Conflict resolution: identify and address conflicts in a constructive and respectful manner and find common ground with others. Trust building: build trust with others through honesty, reliability, and consistency in your actions and words. Adaptability: be open to change and new ideas and be willing to adjust your expectations and obligations as needed. By understanding and leveraging the psychological contract, individuals can improve their interpersonal skills and build stronger, more effective relationships with others. The psychological contract also refers what each party will bring to and expect from the employment relationship. Navigating interpersonal dynamics in the workplace can be challenging, and understanding and managing the psychological contract can help to build trust and foster positive relationships between employees and managers.

The interpersonal components become significant as one moves up in the career trajectory, when the transition from an employee to a team leader. Timely delivery of targets in time, quality to be maintained and responsibility of the team mounts pressure on employees, and stress tolerance is important. The negative response to the system or authorities in a revenge will lead to a psychological contract breach (Balogun et al., 2018). The adaptability of employees is overly sensitive, especially, reality testing, flexibility, and problem-solving (Cullen et al., 2014). It is a creative approach to find solutions to the problems matching both reality and flexibility. A happy employee will be optimistic and content if the psychological contract will be intact (Winter, Jackson, 2006). W. G. Gresse and B.J. Linde developed and validated an instrument to measure the psychological contract expectation of university graduates who were ready to enter the labour market (Gresse, Linde, 2020). The authors conducted an exploratory quantitative research approach on 316 students and their findings indicated that some of the instruments within the "Psychological Contract Expectations Questionnaire" (PCEQ) are reliable and valid to measure the anticipatory psychological contract of graduates.

Psychological contract and employee engagement

Psychological contract and employee engagement are the two sides of a coin in which the psychological contract represents the expectations of an employee from the employer in terms of

the intrinsic and extrinsic rewards and the employer's expectation in turn to fulfill the organization's objectives (Paul et al., 2000; Protsiuk, 2019). This encourages the employer to devise right employee engagement strategies to enhance the employee's KSAOs. The employee performance will be optimum when the psychological contract and employee engagement is in resonance (Moore, 2014). Hence, operational effectiveness is a function of three factors, organizational commitment, psychological contract and employee engagement (Coyle-Shapiro, 2002).

Psychological contract: an unseen power of emotional bonding between employers and

employees

Psychological contract is an emotional bond between the participants in a contract, whether it is employment or customer with the organization. The psychological contract is explained based on, unwritten reciprocal expectations, implicit contract, perceptions, and beliefs between two participants in the contract. The psychological contract is an outcome of promises, obligations, and expectations of the participants from each other. The psychological contracts are grouped into three types, transactional, relational, and transitional (Rousseau, 2001). The prime difference between these three are the duration of the contract exists in which the transactional contract exists during the employment while relational exists for an indefinite period until it is disturbed by a breach of contract or withdrawal of one participant from the contract due to any reasons (Jensen et al., 2010). In transitional, there is no commitment on future employment or relationship. The relational contract is strengthened with emotional attachment and its dynamic in nature (Gibbons, Henderson, 2012).

Investigates the psychological contract between employers and employees and its effect on employee attitudes and behaviors (Sonnenberg, Koene, Paauwe, 2011). The paper takes a multilevel approach, examining the psychological contract at both the individual and organizational level. The study found that the psychological contract has a positive effect on employee attitudes and behaviors, such as job satisfaction and organizational commitment. The study also found that the psychological contract is affected by the level of trust between employees and employers, as well as the level of HRM practices and policies implemented by the organization in the contemporary scenario (Smissen van der et al., 2013). In other words, the psychological contract depends on potential of the participants to reward each other. If an employee has potential to perform well and confident in grabbing new opportunities, his relation with the employer will be transactional while if the employee performance is low, the employer looks for an opportunity to substitute with an individual with a better performance and contribution. Hence, the relational contract exists when the employer's and employee's expectations and contributions are congruent to each other, and both like to avoid risk of losing a trusted employee and employment (D'Annunzio-Green, Francis, 2005).

In a career choice process, every individual selects a career based on a set of expectations: reasonable or high remuneration, career growth, and prolonged sustainable growth. So, the first psychological contract starts within him in his confidence to earn and achieve career advancement (Sturges et al., 2005). The choice of the appropriate psychological contract, whether transactional or relational, depends on the individual's perceptions, attitudes, goals, and beliefs (Usman et al., 2004). The psychological contract of an entrepreneur to his business will be both transactional and relational (Blackman, Hindle, 2008). Hence, the psychological contract of an employee and entrepreneur will be different. The transition from transactional to relational psychological contract (Maahs, 2004) in an employee depends on his prospects in career and adequacy of return in meeting living expenses. The dragging pull, in this case, is whether the income is adequate to meet the life demands or not.

Psychological resilience and psychological contract

Psychological resilience is the balancing approach in which the employee settles in the pre-crisis level if the crisis is temporary and wait for the improvement in the situation (Rebecca et al., 2015).

It depends on working environment, engagement, performance evaluation reward fixation and interpersonal relationship with peers and subordinates (Rees, Breen, Cusack, Hegney, 2015). Else, the employee moves to transactional and then transitional level so that they opt for other opportunities. In the same way, the growth trajectory of the firms also affects the psychological contract in which employees exhibit relational and transactional psychological contract in the growth phase while the psychological resilience and transitional psychological contract in the case of employee redundancy if the firm fail to perform (Graber et al., 2015). In brief, the psychological contract depends on his KSAOs in meeting the job needs than depending on employer.

Emotional intelligence and psychological contract

The psychological contract refers to the implicit agreement between an employer and employee regarding the rights and obligations of each party, while emotional intelligence refers to the understanding of self and social awareness, and self and social management. While emotional intelligence may play a role in how an individual perceives and navigates the psychological contract, more research would need to be done to understand the specific relationship between the two. Emotional intelligence is a perceived approach to view external objects and incidents from the purviews of one's beliefs, faiths, understanding, and perceptions. R. Bar-On's inventory EQ-i classified emotional intelligence into five categories, intra-personal, interpersonal, stress management, adaptability, and general mood (Kanesan, Fauzan, 2019). Emotional intelligence defines the bond between the employer and employee and the findings of R. Bar-On is significant in explaining the psychological contract in a firm (Bar-On, 1997). Self-regard, independence, self-actualization, assertiveness, emotional self-awareness, etc. are the intrapersonal sub-factors that determine emotional bonding between employee and employer (Austin, 2004). Increments, salary revisions, promotions, medical insurances, Job security and other benefits make the employees more independent and the improvement in living style improves their self-regard and self-actualization (Callea et al., 2016).

A survey is conducted among employees to analyze the effect of emotional intelligence on psychological contract using a structured questionnaire based on the findings from the case study explained above. 393 respondents participated in the survey. The paper by D. M. Rosseau and S. Tijoriwala reviews different measures that have been used to assess psychological contracts, including self-report surveys, interviews, and observation (Rosseau, Tijoriwala, 1998). The authors suggest that psychological contract measures should be multidimensional, assess both the employee and the employer perspective, use both quantitative and qualitative methods, and include both perceived and actual contract items. The authors also suggest that the use of multiple methods in measuring psychological contract can provide a more comprehensive view of the psychological contract and its effects. An individual's approach is emotional in character and driven by intrapersonal factors.

Emotional intelligence, from the psychological contract perspective, refers to an individual's capacity to identify, comprehend, and control one's own emotions as well as those of others. This involves the capacity to experience, recognize, and communicate emotions; to access and produce emotions to support thought; to comprehend emotions and emotional knowledge; and to manage emotions in a reflective manner in order to foster both emotional and intellectual development. In the context of the psychological contract, emotional intelligence is important because it enables individuals to effectively manage and navigate the expectations and obligations that exist within their relationships with others, including in the workplace.

It's important to note that the psychological contract can be affected by various factors such as culture, individual personalities, and past experiences, and it can change over time. Managers and

employees should regularly assess and adjust the contract to ensure that it remains mutually beneficial. Acknowledging and addressing any breaches in the psychological contract is crucial in maintaining a positive and productive work environment. This can be done through open communication, active listening and addressing any issues that may arise and putting a plan in place to prevent future breaches. Overall, a positive psychological contract can lead to increased job satisfaction, motivation, and commitment to the organization (Rayton, Yalabik, 2014). It's important for both employers and employees to continuously work on building and maintaining a positive psychological contract in the workplace.

Every employee is optimistic and motivated if the reward, career growth, job sustainability, learning opportunities, and positive management is in tune the firm (Elst van, Meurs, 2015). It may be a psychological contract or a situation in which employees feel comfortable doing their job with motivation, involvement, creativity, and innovation (Moye et al., 2001). Psychological contract is subjective as every employee perceives reward, motivation, acceptance, opportunities to demonstrate their abilities, incentives, and a supporting hand in emergencies vary with perception (Michael et al., 2006).

Psychological contract organizational related dimensions

Organizational commitment and psychological dissonance

The organizational commitment is to fulfill the perceptions ofthe employees to develop confidence in management, loyalty to the firm, commitment to the job, and job satisfaction (Maia et al., 2015). It is an emotional attachment, dissolving the self of the employee for the organizational well-being (Restubog et al., 2007). Nevertheless, employability, learnability, trainability, and adaptability are the implicit qualities expected by any management from any employee to notch with organizational outlooks and which initiates the psychological contract (Rousseau et al., 2018). The psychological contract is augmented and depends on the efficiency of defining task inventory, skill matrix, and job description before the recruitment of an employee. The mismatch in this congruence (Kubicek, Korunka, 2015) is one of the challenges to the psychological contract due to the widening gap in expectations and task delivery. Another issue is positivity in management, a strategy to develop a sense of ownership in employees on firm, a passion to take job, firm and association as their own (Kiazad et al., 2019; Rousseau, Shperling, 2003). 'Right employee with the right skill' for an apt job will reduce the nonconformity in employability and performance (Allen, Shanock, 2013).

Positive management is the environment in which the management and employee have a shared responsibility in achieving the targets (Walters, 2010). In the research done on psychological dissonance between employees and employers the authors refer to the mental discomfort or stress experienced by an individual when their beliefs, attitudes, or values are in conflict with their actions or behaviors (Harmon-Jones, Mills, 2019). In the context of employees and employers, this could refer to a situation where an employee holds certain values or beliefs that are at odds with the actions or policies of their employer. This can lead to feelings of dissatisfaction and frustration for the employee and can potentially lead to reduced job satisfaction and productivity. As an employee moves up in his career growth trajectory, KSAOs will improve along with confidence level and increases the interest in autonomy for the higher positions in the authority ladder. Employers must position the employees with the right set of performance credentials in the higher helms. Timely increments, promotions, incentives, appreciations enhance the intrapersonal component of emotional Intelligence and improve the psychological contract. The covariance between emotional intelligence and the psychological contract is not well studied.

Employee performance and psychological contract

Employee performance will be optimum if the task inventory, skill inventory and talent matrix of employees have a high degree of congruence. Task inventory is a process of breaking the tasks into

multiple sub-tasks with specific characteristics and require specific skills to do it (García-Izquierdo et al., 2015; Moore, 1976). Defining the right skill matrix for each task and acquiring the right talent will help to increase the slope of the learning cycle that rework which will reduce waste and thereby increase the output. This improves productivity and rewards as well. The mission and vision of the organization, rules, and regulations, work process and work measurement methods, performance assessment and evaluation methods, rewards and appreciations, and disciplinary norms must be known to all employees to ensure a collective performance of the employees (Wenzel et al., 2019). Pyramiding the objectives of strategic groups or task centers to a single goal and single output is essential in developing a unique work process system (Rousseau, Wade-Benzoni, 2003). Internal training helps the employees to stick to the internal quality control process and benchmarks so that the wastage will be reduced, and output can be maximized.

Research methodology

The empirical research was conducted in two levels, as a case study and a primary data collection. The case study method helped to explore the employee-employer relationship. In case study analysis, twenty-five firms were selected of which eight were from manufacturing and seventeen from the service industry. A broad-level study was conducted using a structured questionnaire in which 630 respondents participated in which 393 were considered for analysis. The response profile is presented in Tables 1 and 2. Multiple linear regression models and confirmatory factor model using SEM was used to explain the relationship.

Table 1. Response from different sectors of industry

Responses Industry Number of responses Percentage

Responses in case study Manufacturing 11 44

Service 14 56

Manufacturing Machine shops 3 12

Machine manufactures 4 16

FMCG producers 4 16

Service Healthcare 5 20

Hospitality 3 12

Education 4 16

Private financial Institutions 2 8

Table 2. Attrition rate of employees in manufacturing sector

Observations Explanations Service % of employees left % of total employees Manufacturing % of employees left % of total employees

Attrition < 3 months 16 4 12 2

(percentage of number 3-6 months 26 12 18 10

of employees left and 6-12 months 32 15 23 19

percentage of total 1-3 years 14 4 24 12

employees) 3-6 years 5 2 12 8

6-10 years 4 1 7 3

10 and more 3 1 4 1

The attrition rate is higher in the service sector comparing to the manufacturing sector among the employees with experience of less than one year (Table 1). But the attrition rate is high among the employees who have served more than one year. 74% of the attrition in a year is in the service sector and 53% of the attrition in the manufacturing sector occurred among the employees less than

one year of service. 39% and 55% of the total employees resign from service and manufacturing sectors every year. The reasons for the strained relationship between employers and employees were found with the data collected is shown in (table 3) and its effect with this attribution are also shown in table 3.

Table 3. Reason for attrition

Reason for attrition Service (months) Manufacturing (months)

< 3 3-6 6-12 12 < < 3 3-6 6-12 12 <

Rules and regulations 4 2 1 4 2

Lower salary 6 5 9 4 0 3 5 10

Irregularity in salary 4 3 5 4 0 3 3 6

Partiality and favouritism 2 3 3 3 0 2 4 9

Inconsistency in job 1 3 5 2 2 3 4 3

Denying promised salary hike 5 6 0 4 4 6

Conflicts with superiors 2 1 2 4 0 1 3 4

Low career growth 1 2 2 1 0 0 3 3

Less opportunity for learning 1 1 1 2 0 0 3 6

Table 4. Response from employer

Reasons Service Manufacturing

Low performance 16% 21%

Non sticking to the regulations 15% 14%

In consistency in performance 14% 6%

Delay in payment 16% 10%

Pending in payment 8% 11%

Pending promotions 11% 15%

Conflict in interest 20% 23%

— employer relations

Table 5. Reasons for strained employee

Sources for constrained relation

Inadequate analysis of resume with job profile Unclear employment terms Inadequate employee engagement Non communication of job, tasks properly

Non analysis of market and business opportunities effectively Improper job description, work instruction Lack of communication with employees Unclear performance evaluation and appreciation strategies Personal relationships than professional

_Effect_

Non-performance of employees, skill-task mismatch Conflicts on salary and other terms

Fall in production, informal gatherings and communication Rework, wastage, and conflict between supervisor and employees

Fall in sales & Product/service improvement, fall in revenue

Work delay, fall in performance

Fall in confidence and conflicts with management

Biasing in rewards and promotions

Polarization among employees and cause conflict

Results

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The model (Fig. 1) shows that CMIN/DF is slightly more than 3, the thumb value of 3 due to the large sample size (393). Fitness indices is near to 0.9 and RMSEA is 0.075. It means that model fit with the data (Wan 2002; Schermelleh-Engel et al., 2003). The Hoetler's critical 'N' is 78 and it is within the acceptable range (75-200) (Wan, 2002; Garson (2009). Similarly, NFI, RFI and TLI are also in the acceptable range (Schumacker, Lomax, 2004).

Table 6. Regression coefficient (with p < 0.05) and maximum likelihood estimate

Variables Regression coefficients Estimate Std. Err. C.R. p

Assertiveness .538 1

Independence -.443 -.982 .142 -6.93 ***

Self-awareness .043 .09 .12 .749 .454

S elf- actualization .549 .806 .104 7.724 ***

Interpersonal relationships -.075 -.188 .146 -1.29 .197

Stress tolerance .011 .021 .102 .203 .839

Impulse control .25 .573 .123 4.657 ***

Problem solving .354 .693 .125 5.538 ***

Optimism .247 .602 .146 4.126 ***

Empathy -.319 -.657 .151 -4.366 ***

Flexibility -.308 -.659 .127 -5.183 ***

Happiness .016 .032 .114 .283 .777

Equal opportunities and fair treatment .711 1

Job satisfaction -.043 -.081 .104 -.775 .438

Immediate management .128 .222 .097 2.282 .022

Pay and benefits .316 .511 .091 5.61 ***

Current career intentions .019 .041 .121 .342 .732

Stress and work pressure -.019 -.036 .106 -.338 .735

Variables Regression coefficients Estimate Std. Err. C.R. P

Formal training .008 .016 .107 .147 .883

Feeling valued and involved .028 .048 .099 .488 .626

Working hours -.043 -.081 .107 -.757 .449

Work life balance -.395 -.724 .107 -6.791 ***

Supportive and motivating .178 .261 .081 3.212 .001

Adequacy in facilities and supporting environment -.249 -.403 .09 -4.462 ***

Performance and appraisal .616 1.291 .117 11.005 ***

Social responsibility .627 -1.505 .181 -8.33 ***

Note: *** — p < 0.01.

Table7. Covariance

Covariance between latent variables

Estimate Std. Err. C.R. p

Psychological contract Intrapersonal factors -.63 .08 -7.57 ***

Variance latent variables

Intrapersonal factors .543 .103 5.251 ***

Psychological contract .753 .104 7.272 ***

Note: *** — p < 0.001.

Findings and discussions

Regression coefficients (Table 6) are statistically significant in the confirmatory factor model and the emotional components like assertiveness (.538), self-actualization (.549), problem-solving (.354), and optimism (.247) increases, while independent (.443), (.319) and flexibility (.319) decrease by their respective regression coefficient for every unit increase in emotional intelligence as a latent variable.

Equal opportunities and fair treatment (.711), social responsibility (.627), performance appraisal (.616), pay and benefits (.316), supportive and motivating (.178), immediate management (.128) will increase while work-balance (-.395) decrease with every unit increase in psychological contract.

The variance of all errors are statistically significant. In the maximum likelihood scaler estimates, self-actualization (.806), problem-solving (.573), impulse control (.573), problem-solving (.693), and optimism (.602) have a positive change on employee's emotional intelligence while independence (-.982), Empathy (-.657) and flexibility (-.659) have negative change among employees.

Pay and benefits (.511), immediate management (.222), supporting and motivating (.261), and performance appraisal (1.291) have a positive effect on psychological contract while the work-life balance (-.724), adequacy in facilities (-.403), and social responsibility (-1.505) has a negative effect. The error terms have positive variances, and they are statistically significant as well for both variance and covariance as pairs (Table 4). The latent variables, emotional intelligence, and psychological contract explained 54.3% and 75.3% of the variance (Table 4).

The covariance between emotional intelligence and the psychological contract is -.63 (Table 4). This explains that the objective of employees for having a job is survival and to empower themselves financially, emotionally, and socially. The negative covariance shows that the respondents have a commitment to the employers as employees but are not emotionally linked. It shows a psychological distance between the employer and the employee. It is a performance and pay-based commitment. The employees opt for a change if better options are available while the employers opt for replacement of employees if better talents are available.

Conclusion

The results of the study show that psychological contract is affected due to the variations in emotional and environmental factors related to the employees. This can be attributed the variations in the emotional components and also due to a lower degree of job fit or organizational fit of the employees. Learning circles, work discussions, periodical review meetings, etc. helps to identify performance variations and makeup through on-job training and discussions. Conflicts in the interlayers of the hierarchy and partiality among employees cause informal polarizations among employees and this can be removed through training of mid-management executives in the firm. The source of the bias is the difference in the performance of employees and the stress mid-management have to undergo as to meet the targets in time and depend on performers in the group.

The financial and marketing challenges are not effectively conveyed to all employees till the firm faces a critical point of postponing salary payment or withholding the benefits, and this causes doubt on the intentions of management and gets psychologically demotivated. Transparency has to be developed among employees and management to discuss the issues and to be open-minded in accepting their suggestions which help to develop psychological contract. Thus, these issues trigger Bias, delay on salary payment and increment, non-transparency, performance appraisal etc., to cause an increase in attrition among employees with higher experience. The lack of transparency in performance appraisal and increments demotivate the employees. The attrition rate among employees of less than one year of experience is high in both sectors as they are frustrated with many issues. The problems that may affect psychological contracts can be minimized through internal training, learning circles, periodic reviews, etc. Salary-related issues can be lessened through an efficient performance appraisal system while internal conflicts can be dealt with by mentoring and training of mid-management executives.

It is observed that the entrepreneurs and mid-managers need management training to improve the management practices if they are from non-management disciplines. Systematic human resource management, payroll management, and performance appraisal are absent in many firms that responded in the case study analysis, especially in manufacturing. This encourages the employees to change the job for better pay after getting experience. This skill erosion may be significant for the firm based on the level of substitutability. The mismatch between the work requirement and the wages affects psychological contract negatively. The outcome of the results reports a dissonance in emotional intelligence and psychological contract. The relational psychological contract transforms into transitional psychological contract with more emphasis on the outcome expected from both the parties.

Suggestions for improvement

The psychological distance between employees and management has to be reduced to enhance psychological contract and it will be possible through recruitment strategies, job profile, and appointment terms. A documented and evidence-based approach is needed to convince employees where they lag and how to improve through effective counselling. The other suggestions are to mminimize the difference between task inventory and skill matrix, structured internal HR policies on leave, benefits, attendance, etc. and communicate with employees, clear work instructions, reporting and work measurement systems. Effective documentation and communication with the assigned employee, well defined and communicated performance evaluation, and career development opportunities, Strict wages / salary payment schedule, introduction of incentives, and case-based appreciations and need of counseling and conflict management and internal Continuous training are

other strategies suggested for improvement of the psychological contract. The social implications of this study are to understand the need of the psychological contract for mutual obligations which is required to function effectively between two parties. The social implications of this study are to understand the need of the psychological contract for mutual obligations which is required to function effectively between two parties.

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Received 30.01.2023

Эмоциональный интеллект и межличностная динамика на рабочем месте: важность психологического контракта

ПЧ Нина

ORCID: 0000-0002-8112-5555

Бизнес-школа CMS, Джайн (университет), Бангалор, Индия

ВАРУГЕЗЕ Авраам

Колледж управленческих исследований Нагарджуны, Бангалор, Индия

Аннотация. Цель. Цель исследования — определить, какие факторы психологического контракта способствуют текучести персонала в сфере услуг и в производственном секторе. Уровень психологического контракта, наблюдаемая в компаниях, и его колебания изучаются в данном исследовании эмпирически через призму влияния внешних факторов. Есть свидетельства того, что работники и работодатели не смогут поддерживать одинаковый уровень психологического контракта, пока они работают в одной организации. Успешные предприятия, несомненно, имеют сильный психологический контракт, который позволяет им получить конкурентное преимущество на рынке. Дизайн исследования. Исследование проводилось в два этапа: анализ конкретного случая (кейс-стади) и анализ массива первичных данных. На первом этапе приняли участие работники из двадцати пяти фирм как производственного сектора, так и сферы услуг. Метод кейс-стади помог изучить отношения между работником и работодателем. На втором этапе были проанализированы ответы на 393 структурированные анкеты. Данное исследование представляет собой поисковое исследование с использованием моделирования структурными уравнениями и подтверждающего факторного анализа. Выводы. Подтверждающий факторный анализ совместно с моделированием структурными уравнениями показал «психологический диссонанс» между работниками и работодателями, а отрицательная ковариация переменных подтверждающего факторного анализа показывает, что респонденты имеют обязательства перед работодателями как сотрудники, но эмоционально с ним не связаны. Отношения сужаются до уровня выполнения задач за вознаграждение. Это приводит к более высокому уровню увольнений в сфере услуг по сравнению с производственным сектором среди сотрудников с меньшим опытом. Ограничения исследования. Ограничениями исследования являются данные о текучести кадров, которые было необходимо собрать от различных фирм, поскольку это отрицательный результат для любой организации. Ценность результатов. Ценность результатов подтверждается первичными данными, полученными от респондентов (как работодателей, так и сотрудников фирм), к которым авторы могли получить доступ.

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Ключевые слова: психологический контракт; вовлечённость сотрудников; навыки межличностного общения; эмоциональный интеллект; реляционный психологический контракт; транзакционный психологический контракт; истощение.

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