Psychological contract breach and employee engagement: moderation of role of a high-performance work system

Irfan Hyder Soomro, Zahida Abro and Muhammad Shakil Ahmad ()
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Irfan Hyder Soomro: SZABIST Campus Larkana
Zahida Abro: Gulf University
Muhammad Shakil Ahmad: Teesside University International Business School

Quality & Quantity: International Journal of Methodology, 2024, vol. 58, issue 4, No 14, 3363-3377

Abstract: Abstract This study examines the relationship between psychological contract breach, high-performance work systems, and employee engagement in public sector banks of Larkana, Pakistan. The study proposes that high-performance work systems can moderate the negative impact of psychological contract breach on employee engagement. The study draws upon social exchange theory and self-determination theory to frame the research questions and employs a quantitative methodology to test the hypotheses. The sample consists of 250 employees from public sector banks in Larkana, Pakistan has been taken to analyze the data. To examine the relationship between the latent variables, SPSS and smart PLS modeling have been used. The study finds that psychological contract breach has a significant negative impact on both employee engagement and high-performance work systems, while high-performance work system has a significant positive relationship with employee engagement. Overall, the study concludes that HPWS can lessen the negative effect of psychological contract breach and create a productive workplace that enhances employee engagement. The results support the hypotheses and have theoretical, practical, and methodological implications for HRM practices in public sector banks. The study recommends that organizations prioritize maintaining psychological contracts with employees and implementing HPWS to enhance engagement. Future studies should focus on addressing the study's limitations, such as its cross-sectional design and dependence on self-report measures.

Keywords: Psychological contract breach; Employee engagement; High-performance work system (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11135-023-01807-4

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