A STUDY OF RELATIONSHIP BETWEEN PSYCHOLOGICAL

CONTRACT AND ORGANISATIONAL CITIZENSHIP

BEHAVIOUR AMONG ARTS TEACHING FACULTY

Master thesis submitted in partial fulfilment of the

requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
VISHNU SANTHOSH S
Register No 1321341

Under the guidance of

DR ARTI ARUN KUMAR

Institute of Management
Christ University, Bangalore
March 2015

CHAPTER I

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The higher education sector of India is the third largest in the world, which represents a lot of
opportunities and challenges for the todays youngsters. The mushrooming of colleges without
emphasis on quality of the education will lead to lower employability of the students. Make in
India, Served in India will just be slogans if we dont have adequate skilled graduates. On one
hand, we have huge number of graduates and colleges in the country, on the other hand, we dont
have adequate number of qualified faculty to teach and train our students. Therefore, it is
essential to find out the problems pertaining to the faculty so that these can be sorted out to
attract qualified faculty. It is also essential that the faculty performs extra-role behavior like OCB
which is beyond what is mentioned in the job-description to help the students realize their true
potential.

The psychological contract which is an unwritten, mental contract between the

employer and the employee is also experienced by the faculty because of the lesser pay when
compared to other professionals and there is also the notion that the value of teaching cant be
monetized. Therefore it is necessary to study the relationship between psychological contract and
OCB in the context of higher education sector in India.
1.2 Psychological Contract
A psychological contract, a concept developed in contemporary research by organizational
scholar Denise Rousseau, represents the mutual beliefs, perceptions, and informal obligations
between an employer and an employee. It sets the dynamics for the relationship and defines the
detailed practically of the work to be done. It is distinguishable from the formal
written contract of employment which, for the most part, only identifies mutual duties and
responsibilities in a generalized form.
Psychological contract are becoming increasingly important in describing the relationship
between employees and the organizations as well as employees performance, while
psychological contract is built on the basis of trust and represents that employees believe that the
organizations can fulfill their obligations and commitments.
Psychological contract is a reflection of individual expectations of the obligations between
employees and organizations (Rousseau, 1995), containing both aspects of individuals and
organizations. Psychological contract means that there is an exchange relationship between
organizations and employees and needs to consider the expectations and obligations of both
parties (Schein, 1980), while psychological contract not only has the nature of expectation, but
also contains commitment and reciprocity towards obligations. To break the expectations will

generate disappointment, while to break the obligation will induce anger, thus making people reevaluate the relationship between the individuals and the organizations.
Mostly, the psychological contract is informal and implicit, rather than open and public.
Therefore, it is essentially subjective. For example, awards for long-term service rarely become a
part of a formal contract, but people have expectations on this. So most scholars agree that
psychological contract is the faith possessed only by employees.
Psychological contract breaches refer to employees perceptions towards organizations failure to
the delivery of the obligations in psychological contract (Morrison & Robinson, 1997; Turnley &
Feldman, 2000). Rousseau (1989) deemed that when one party of the organizations and
employees cant fulfill their obligations, psychological contract will be breached. Although both
employers and employees will perceive psychological contract breach, this study discusses the
definition of psychological contract breach as most scholars have proposed, that is, psychological
contract breach is employees unilaterally perception that organizations are unable to fulfill their
obligations. Such perception is individual and subjective, which reflects employees
psychological calculation towards their fulfilled commitments. In other words, psychological
contract breach is determined subjectively rather than factually.
Psychological contracts have been often defined according to their particular characteristics. For
example, Rousseau (1995 and 2000) distinguishes between two types of PC:
transactional contracts, which are structured with emphasis on material rewards that have a
short-term duration and are relatively narrow in their scope; and
relational contracts, which are structured around less tangible rewards, have a significant
duration (often without an implied end-date) and are subject to the individual parties' beliefs.
According to Rousseau (1995) there are three main types of contract violation:
inadvertent, which is the result of divergent interpretations that were made in good faith;
disruption, which is when both or at least one of the parties wants to comply with the
agreement but cannot; and
reneging, which is when both or at least one of the parties is unwilling to comply with the
agreement.
The effects of PC violation are strongly dependent on the emotional response they trigger to
employees. Due to the subjective nature of employee expectations, the reactions in the event of a

violation or breach could differ leaving a portion of the employees with a strong sense of
injustice on behalf of the organisation and another portion feeling less hurt (Deery, Iverson and
Walsh, 2006). As we can see, how will employees perceive a violation to their PC will also be
dependent on personal factors such as age, education and past experiences and altogether could
create differential perceptions about the employment relationships and perhaps on how to what
degree a breach or violation is perceived (Rousseau, 1995; Deery et al., 2006). Equally there can
be variations to the way employees will react to a contract violation.
According to Rousseau (1995) there are four principal reactions to a perceived violation
employees can have:
exit, which refers to the voluntary termination of the working relationship either from the
employer who lays off underperforming employees or from employees who prefer to leave an
unreliable organisation;
voice, which refers to the effort to negotiate the violated parts of the agreement and resolve
potential problems that have arisen in a constructive fashion;
silence, which refers to a passive response with no reaction in hope that conditions will change
to more favourable terms in the future but in essence it often ends in perpetuating the existing
relationship; and
destruction/neglect, which refers to passive indifference to one's duties in detriment to the
interests of the organisation or more active counterproductive behavior
Reasons for Interest in the Psychological Contract

Breakdown of the traditional deal

A career in return for loyalty

A fair days work for a fair days pay

Loss of professional autonomy

Individualisation of the employment relationship

Organizational change and violation

Search for new ways of managing employment relations to meet the interests and
concerns of both employees and the organisation

1.3 Organizational Citizenship Behavior

Employees exhibit certain behaviors by going beyond the normal call of duty. These behaviors
are called Organizational Citizenship Behaviors (OCB) and they contribute significantly to an
organization's growth. (Organ, 1988). Organ (1977, 1988) defined OCB as individual behavior
that is discretionary, not directly or explicitly recognized by any formal reward system and that
in aggregate promotes effective functioning of an organization. Bateman and Organ (1983)
developed the first scales to measure OCB. According to them, OCB include any of those
gestures often taken for granted that lubricate the social machinery. Examples like helping
coworkers with job related problems, accepting orders without a fuss, tolerating temporary
impositions without complaints, helping to keep work area clean or uncluttered, making timely
and constructive statements about the work unit or its head to outsiders, promoting a work
climate that is tolerable and minimizing distractions created by interpersonal conflict, and
protecting and conserving organizational resources, for lack of a better term are referred by the
authors as Citizenship Behaviors.
Research by Graham (1989, 1991) proposes a four dimensional OCB model. The dimensions are:
(1) interpersonal helping: aiding coworkers in jobs when such help is needed; (2) individual
initiative: communications to others in a workplace to improve individual and group
performance; (3) personal industry: performance of specific task over and beyond the call of
duty; and (4) loyal boosterism: promotion of the organizational image to outsiders.
Further to Organ's definition, Podsakoff, Mackenzie, Moorman and Fetter (1990) identified five
major categories of OCBAltruism, Conscientiousness, Sportsmanship, Courtesy and Civic
Virtue. Relevant literature defines the above five categories as follows: Altruism is selfless
concern for the welfare of others. It is a traditional virtue in many cultures, and central to many
religious traditions. It is the opposite of selfishness. Conscientiousness is the trait of being
painstaking and careful or the quality of acting according to the dictates of one's conscience. It
includes such elements as self discipline, carefulness, thoroughness, organization, deliberation
(the tendency to think carefully before acting) and need for achievement. It is an aspect of what
was traditionally called character. Sportsmanship is, in a basic sense, conforming to rules and
proper spirit of sport. This is a term called etiquicy. More grandly, it may be considered as the
ethos of sport. It is interesting that motivation for sport is often an elusive element.

Sportsmanship expresses an aspiration or ethos that the activity will be enjoyed for its own sake
with apt consideration for fairness, ethics, respect and a sense of fellowship with one's
competitors. Courtesy is a consideration, cooperation generosity in providing something.
Civic Virtue is the cultivation of habits of personal living that are claimed to be important for
the success of a community. The identification of character traits that constitute civic virtue has
been a major concern of political philosophy. The term civility refers to behavior between
persons and groups that conforms to a social mode (that is, in accordance with the civil society),
as itself being a foundational principle of society and law (Podsakoff, Mackenzie, Moorman and
Fetter, 1990, pp 107-142).
Podsakoff et.al (1990) extended the research of Organ and have defined the OCB as the sum of
the following behaviours. Altruism: Discretionary behaviors on part of employees that have the
effect of helping another employee in a specific and an organizationally relevant problem
Conscientiousness: Discretionary behaviors on part of employees that go well beyond
minimum role requirements of the organization in areas of attendance and obeying rules and
regulations. Sportsmanship: Willingness of the employee to tolerate less than ideal
circumstances without complainingto avoid complaining, petty grievances, railing against real
or imaginary slights and making federal cases out of small potatoes. Courtesy: Discretionary
behavior on part of an individual aimed at preventing work related problems from occurring.
Civic Virtue: Behavior on part of an individual that indicates that he / she responsibly
participates in, is involved in, or is concerned about the life of the company
William and Anderson (1991) have expanded on Organ's research and identified two broad
categories of OCB. These are, organizational citizenship behavior for organizations (OCBO)
and organizational citizenship behavior for individuals (OCBI). OCBO is behavior that benefits
the organization in general, and OCBI is behavior that immediately benefits other individuals
and indirectly through this it contributes to the organization
Shore, Barksdale and Shore(1995) observed that managers feel that demonstration of OCB is a
sign of employees' commitment /emotional attachment by going beyond the normal call of duty.
They found that managers feel OCB is commitment of employees to the organization /emotional

attachment with the organization by going beyond the normal requirements of the role. It was
also important for researchers to observe the link between OCB and various national cultures.
Farh, Earley and Lin (1997) explored whether OCB has ethical meaning in cultures in which
expectations from employees differ drastically. They found that altruism, civic virtue and
conscientiousness are relatively universal in nature. They did not find dimensions comparable to
courtesy and sportsmanship, but added interpersonal harmony and protecting company resources
based on Chinese National Culture. Podsakoff et al. (2000) observed that OCB are discretionary
and not formally rewarded by organizations. However, they could be expected as part of the role
or managers would like employees to display such behavior to be effective in an organization.
1.4 Industry Overview
Indias higher education sector, amongst the largest in the world, has experienced unprecedented
growth & increased investor focus over the past two decades. Yet, as it stands at the threshold of
continued transformation, the sector needs to shift gears and evolve with the changing times.
Despite its size and scope, the Gross Enrolment Ratio (GER) in Indian higher education
continues to be far below the global average. The rapid growth witnessed in the higher education
sector has generated numerous challenges with the key ones being maintaining quality,
improving equity and providing access to each and every student based in any part of the
country. In terms of global exposure and achieving internationalisation, our country has a long
way to go.
Gauging the need to catapult this sector to the next level, the governments in the recent past have
conceptualized a number of reforms specifically addressed to iron out some of the pressing
issues and also prepare our academic institutions to embrace the future. . In keeping with the
objectives of the 12th Five Year Plan of making the Indian higher education system globally
competitive and strong by focusing on state higher education system, the ministry launched the
Rashtriya Uchchatar Shiksha Abhiyan (RUSA) as a Centrally sponsored scheme in October
2013. With this the ministry has completed the journey which started with Sarva Shiksha
Abhiyan for universal elementary education and graduated to Rashtriya Madhyamik Shiksha
Abhiyan for universal secondary education. RUSA is Indias flagship program focused on
reforming higher education sector. Approved by the Cabinet in October 2013, the RUSA is a
landmark initiative to completely overhaul higher education infrastructure of public sponsored
universities.

The private sectors role till date has been instrumental in the growth of Indias higher education
sector and given the governments intent to increase our GER to 30% by 2020, people expect the
role of private sector to multiply manifolds. Increased private sector participation however would
need to be given special impetus by taking steps to simplify prevailing regulatory framework and
overall higher education ecosystem
The Government has already taken the initial steps to make a strong case for acceptance of
Indian educational institutions globally by making accreditation mandatory. Although, a bill to
make accreditation mandatory in higher education was introduced however it could not receive
the parliamentary accord. It was then decided to notify regulations to make accreditation
mandatory for universities, colleges and technical institutions in the country. The inclusion of
India as a permanent signatory of the prestigious Washington Accord this year is been viewed as
one of the achievements of the Government after taking such a progressive step. This recognition
would result in acceptance of Indian degrees globally besides opening up doors for employment
for graduates overseas.
As the third largest education system in the world, in terms of enrolment, and the largest by total
number of academic institutions the India higher education sector is considered by many as a
sunrise sector for investment. Indeed, the country has taken significant strides over the years in
higher education. In FY14, the size of this market has been estimated well above Rs.3.83 trillion
(US$62.34 billion) with over 38,000 formal degree/diploma granting higher education institutes.
Indias higher education sector is considered to be amongst the largest of its kind in the world by
the sheer number of institutions which currently operating across the country. Currently, about
687 universities and 37,204 colleges constitute the countrys higher education sector. The state
universities constitute the largest chunk followed by private universities.
More than 50% of Indias population is under 25 years of age. As a result of this favourable
demographic, Indias appetite for quality education is on the rise leading to establishment of a
large number of private academic institutions. Other drivers of growth in this sector are widening
demand-supply gap; increasing dominance & public trust on private sector institutions; fast
growing IT services sector leading to demand for skilled talent pool; rising FDI in the
manufacturing and affiliated sectors and the recent thrust provided by the government on online
education.
With just 1% of the GDP being spent on higher education currently, the government recognizes

that it needs private sector to play an active role going forward. The National Knowledge
Commission has predicted that India needs an investment of about US$ 190 bn to achieve the
GER target of 30% by 2020. The Government certainly needs to join hands with the private
sector to achieve this daunting task.
Education, under the Constitution of India, falls under the concurrent list making it both a
centre and a state subject. The primary policy makers for higher education in the central/state
government are MHRD, CABE and the State Councils for Higher Education. The MHRD lays
down the National Policy on Education, while the CABE is responsible for coordination and
cooperation between the Union and the States with respect to education. In addition, the State
Councils for Higher Education coordinates the roles of the government, universities and apex
regulatory agencies in higher education at the state level.
The higher education sector in India is broadly classified into two segments regulated and
unregulated. Higher education falls under the regulated segment and includes degree universities
and colleges. These are governed by multiple regulatory bodies. There are multiple agencies
which regulate higher education at the central level in addition to agencies which regulate at the
state level. The regulated segment comprises formal degree-granting universities and their
affiliated colleges, institutions of national importance and other institutions offering formal
degrees or technical programmes and is regulated by the UGC, AICTE and other regulating and
accrediting authorities. The unregulated segment include activities such as professional skill
enhancement, test preparation, tutorials and coaching centres, text books and content, other
services. These services though primarily provided by for-profit enterprises to higher education
institutions, yet they fall outside the purview of the regulators.
Yashpal Committee Report of 2009 pointed out lack of coordination and communication among
the statutory authorities, along with the existence of multiple regulators in the sector, has been
identified as one of the primary challenges for the higher education sector. The complexity of
overlapping mandates has further been compounded by archaic regulations that have little or no
relevance in the dynamic business environment prevailing today.
While India has made important strides towards improving its higher education system, which is
amongst the largest in the world, there remain significant challenges to be addressed. Access to

higher education has increased over the years, but enrolment rates are still well short of
developed countries.
Regulatory Framework for education sector:
Ministry of Human Resources Development is the highest policy-making body in the country in
the field of Higher Education. It formulates National Policy on education, develops publicly
funded institutes like IIMs, IITs, NITs etc, provide scholarships for the poor and meritorious
students, formulate reservation for the minorities and other less privileged groups.
The regulatory authorities for the various educational institutes like

AICTE( All India Council for Technical Education) for engineering and technical

institutes, management institutes, hotel management & catering institutes)

University Grants Commission (for public universities and deemed universities)
Medical Council of India( for medical colleges)
Pharmacy Council of India( for Pharmacy colleges)
Veterinary Council of India( for Veterinary colleges)
Dental Council of India( for Dental Colleges)
Bar Council of India( for legal education)
India Nursing Council( for Nursing colleges)
India Council for Architecture( for Architecture colleges)

Main problems plaguing the higher education sector:

Shortage of qualified faculty

Mushrooming of engineering colleges
Not enough focus on research and development
Low employability of students
Low-level of industry-institute interactions
Abysmal Quality of education system in our country
Out-dated curriculum
Insufficient Funding for research and infrastructure development
Low usage of technology in imparting learning
Access to financial resources for the studies to the underprivileged

These problems have affected the ranking of Indian institutes in International rankings. There is
no single Indian institute in the top 200 list of Times Higher Education (THE) World University
Ranking 2014-15 and QS World University Ranking.

CHAPTER II

REVIEW OF
LITERATURE

The review of literature is necessary to understand other researchers point of view, their
methodology, findings and suggestions to find out the research gaps and thereby undertake a
suitable study in the topic considered
2.1 Psychological contract

Larn and Campos(2014) examined employee agency in psychological contracts by exploring

how young scientists proactively shape their careers in response to unmet expectations induced
by academic entrepreneurialism. It used the lens of social exchange to examine their
relationships with the professors engaged in two types of activities: collaborative research
characterized by diffuse/reciprocal exchange and commercial ventures, restricted/negotiated
exchange. The comparison of the two categories illustrated how the enactment of particular types
of agency is related to forms of exchange underlying individuals psychological contracts which
influence their agentic orientations and career adaptive behaviours. Those involved in
collaborative research experienced a relational psychological contract and responded to
unfulfilled promises by extended investment in their current jobs. They use proxy agency by
enlisting the support of their professors. However, some become trapped in perennial temporary
employment and are content to be sad. By contrast, those involved in commercialization
experienced a transactional contract and assert personal agency by crafting their own
entrepreneurial careers. They are runaways who seek autonomy. The evidence is based on
interviews with 24 pre-tenured researchers and 16 professors from three leading UK universities.
The study extends psychological contract theory by highlighting career agency and sheds new
light on changing academic careers.
Kiazad et.al (2014) This study integrated job embeddedness theory (Mitchell, Holtom, Lee, &
Erez, 2001) and recent formulations of different types of stayers (Hom, Mitchell, Lee, &
Griffeth, 2012), the present investigation tested a moderated-mediation model, in which job
sacrifices mediates the effect of psychological contract fulfillment (PCF) on extra-role behaviors
when employees have better fit and more links in the organization. That is, promised
inducements become sacrifices that bind employees to the organization. Sacrifices, in turn,
translate into greater extra-role contributions when other intrinsic forces, such as fit or links, are
also boosting employees desire to stay. Data was collected from 149 employees and their
immediate supervisors. PCF was related to increases in perceived sacrifices, which, in turn, was
related to increases in OCB-O and work-role innovation among employees with more links and
better fit (embedded engaged stayers; Hom et al., 2012). The present findings broaden and
enrich our understanding of why PCF results in positive employee responses. Implications of
these findings for theory and practice are discussed.

Chamber and Alcover (2011) found out that the number of call centre businesses and workers has
increased considerably over recent years and has become one of the sectors with the highest
growth rate in Portugal. In this cross-sectional study, covering 363 call/contact centre (C/CC)
workers in a Portuguese firm, they confirmed that the relationship between employees and the
organization, namely their psychological contract, is influenced by their employment conditions,
that is, their status and work premises. They performed multiple regression analyses and results
showed that: (1) temporary employees perceive fewer relational and balanced and more
transactional organizational obligations than permanent employees; (2) employees working at the
clients premises perceive more balanced obligations of the organization; (3) the psychological
contract has a relationship with the attitudes and behaviours of employees with a higher general
relational orientation to their work, who are more satisfied and present more civic virtue
behaviours. This study provides a discussion of the practical implications and future research.
Parzefall, Jacqueline AM. CoyleShapiro(2011) highlighted the variety of ways employees
perceive contract breach and the processual nature of the experience. Emotions and actions were
intertwined in the process of attributing responsibility and finding an explanation for the breach.
Contract breach is not necessarily a discrete event and reciprocity is integral to the sense making
process. The findings provide a basis for future research that could explore the role of time,
contextual factors and various employer representatives as sensegivers in psychological contract
evaluations.

The paper provides an underresearched sense makingperspective on

psychological contract breach. Through a qualitative inquiry, the complex nature of the
employees' experience of and reaction to breach, is highlighted.
Harold Andrew Patrick (2008) used six psychological contract variables - relational contract,
transactional

contract,

employer's

commitment/obligation

to

employee,

employee's

commitment/obligation to employer, employer's relationship with employee, and employee's

relationship with employer and were measured on 202 employees from 15 IT companies
randomly chosen for the study. The study revealed that relational contract was dominant in the IT
companies under study. Employees' commitment/obligation to their employers was higher than
employers' commitment/obligation to their employees. Employees' relationship with their
employers was also stronger than employers' relationship with their employees. The implications

of the study for the IT industry have also been discussed for harnessing the energy, knowledge
and creativity of employees for competitive advantage.
2.2 Organizational citizenship behavior
Bolino et.al(2014) found out that in recent years, there has been increasing interest in positive
organizational scholarship in general, including positive organizational behavior (POB) in
particular. This work identifies organizational citizenship behavior (OCB) as a prototypical POB.
Conceptualizing OCBs in this way is sensible in light of more than 30 years of research
highlighting the desirable aspects of such behavior. At the same time, some researchers have
raised questions about positive organizational scholarship and have called for a more balanced
view of ostensibly positive behaviors. The purpose of this paper, then, is to take a more nuanced
view of OCBs while highlighting the dark side of citizenship behavior. In doing so, they review
conceptual and empirical work that has challenged the idea that OCBs are inherently positive.
They also discussed research that seeks to develop a deeper understanding of the conditions
under which OCB does more harm than good. Finally, important areas for future research and the
practical realities facing scholars who seek to publish research investigating the dark side of
citizenship are addressed as well
Spector (2013) This was an introduction to a point/counterpoint exchange in Journal of
Organizational Behavior on the negative versus positive sides of organizational citizenship
behavior (OCB). Such behaviors go beyond the core tasks that individuals do on the job and are
generally considered positive contributions that support organizations. Bolino, Klotz, Turnley,
and Harvey cover the dark (negative) side of OCB, arguing that it can be performed for selfserving motives and that it can have detrimental effects. They discuss the costs of performing
OCB to the individuals who perform it, and potential negative consequences for organizations.
Conversely, Spitzmuller and Van Dyne cover the light (positive) side, focusing on OCB as forms
of either proactive or reactive helping behavior. Proactive helping is motivated by internal needs
with the individual seeking out opportunities to engage in OCB. Reactive helping is an altruistic
response to a perceived need by a colleague or the organization itself. Taken together, these two
papers provide a comprehensive overview of the complex effects of OCB on actors who perform

it and targets who receive it.

Chou et.al(2013) proposed that in developing a successful IS development project today, good IS
personnel are crucial. However, just achieving and maintaining their skills is not sufficient; they
must contribute to the project in a meaningful fashion, including their supportive activity:
organizational citizenship behavior (OCB). However, IS personnel have different motivational
factors, informal behavior patterns, and exhibit OCBs different from those in other fields. In
addition, projects present a different face than operations in an organization and alter the context
of OCBs. This combination leads to a unique setting where the perceptions of equity by IS
employees in project teams are unlikely to follow patterns established for functional operations.
To determine if perceived equity can lead to desirable attitudes and behavior in this novel setting,
they surveyed IS team members of development projects. Data from 298 respondents in 47
project teams indicated that equity, as measured by perceptions of justice, add to job
commitment, which serves as a mediator between the justices and OCBs. Project leaders of
teams with IS personnel must therefore work to improve the perception of equity in the
distribution of rewards and treatment.
Arthaud-Day et.al (2012) The authors used Schwartz's values theory as an integrative framework
for testing the relationship between individual values and peer-reported organizational
citizenship behavior (OCB) in teams, controlling for sex, satisfaction, and personality traits.
Using hierarchical linear modeling in a sample of 582 students distributed across 135 class
project teams, the authors find positive, direct effects for achievement on citizenship behaviors
directed toward individuals (OCB-I), for benevolence on citizenship behaviors directed toward
the group (OCB-O), and for on both OCB-I and OCB-O. Applying relational demography
techniques to test for contextual effects, the authors fonnd that group mean power scores
negatively moderate the relationship between individual power and OCB-I, whereas group mean
self-direction scores positively moderate the relationship between self-direction and both OCB-I
and OCB-O.
Eatough (2011) found out several quantitative reviews have documented the negative
relationships that role stressors have with task performance. Surprisingly, much less attention has

been directed at the impact of role stressors on other aspects of job performance, such as
organizational citizenship behavior (OCB). The goal of this study was to therefore estimate the
overall relationships of role stressors (i.e., role ambiguity, conflict, and overload) with OCB. A
meta-analysis of 42 existing studies indicated that role ambiguity and role conflict were
negatively related to OCB and that these relationships were moderated by the target of OCB,
type of organization, OCB rating source, and publication status. As expected, role conflict had a
stronger negative relationship with OCB than it did with task performance. Finally, they found
support for a path model in which job satisfaction mediated relationships of role stressors with
OCB and for a positive direct relationship between role overload and OCB.
2.3 Studies linking psychological contract and OCB
Hussain & Malik(2013) The study showed that if there is a breach of psychological contract
on part of employer then the employee tends to show negative behaviors and attitudes. This can
result in reduced loyalty, decrease in organizational commitment and organizational citizenship
behavior
Banerjee,R., Banerjee, S, Patwardhan, M (2013) found out that the strong psychological contract
between employee and employer can increase the citizenship behaviour and commitment of
employees towards organization
Md. Hassan Jafri (2012) His present research intended to understand the influence of employees
perception of psychological contract breach on their organizational citizenship behaviour and
trust on employers. The study was carried out in private banks of North Delhi. Data were
gathered from 90 junior level executives using convenience sampling method. Result revealed
that psychological contract breach significantly predicts organizational citizenship behaviour and
trust. The findings imply that the organization needs to understand and manage employees
psychological contract properly otherwise perception of its breach can jeopardize employees
citizenship behaviour and also their trust in employer which in turn may affect their job
performance.

Philipp and Beverly (2012) investigated relationships between relational and transactional
contracts, and outcomes such as organizational commitment and organizational citizenship
behavior (OCB). Results indicated that relational contracts were positively associated with
affective, normative, and continuance commitment, as well as with OCB target-ratings.
Transactional contracts were found to be negatively related to affective and normative
commitment, as well as OCB self-ratings.
Adams, John W. (2011) The objective of his research was to investigate the impact of careerist
orientation and the implicit psychological contracts between employers and employees on
organizational citizenship behaviour. It was hypothesized that the effect of careerist orientation
and the nature of psychological contract on organisational citizenship behaviour would be
mediated by turnover intention and life satisfaction. The researcher examined these relationships
in two different populations of expatriates and nonexpatriates. The primary hypothesis was
confirmed with psychological contract proving a significant predictor of organisational
citizenship behaviour, and careerist orientation was a mediator of this relationship.
Newton, S.K., & Nowak, L.I. (2010) This research investigated the relationship among
discrepancies between the employers obligations and the level of fulfillment of those obligations
and the information technology (IT) professionals citizenship and innovative work behaviors.
The dimensional approach to the psychological contract was used to demonstrate the IT
professionals perceptions of their employers obligations and the level of fulfillment of those
obligations. Survey data from 229 IT professionals across the United States were collected.
Lower discrepancies were found to have a positive relationship with the loyalty citizenship
behavior and innovative work behavior. These findings support using the dimensional approach
in psychological contract research.

Restubog,SimonLD,Hornsey,Matthew(2008) They researchedthatpsychologicalcontract

breachhasreferencedsocialexchangeasitsdominanttheoreticalfoundation.Inthisstudy,they
draw insights from the group value model as a theoretical extension to explain employees'
negativeresponsestopsychologicalcontractbreach.Accordingtothegroupvaluemodel,fair
treatmentbygroupmemberscommunicatessymbolicmessagesabouttherelationshipbetween

theorganizationandtheemployee,andhasimplicationsforwhetheremployeescantakepridein
their organizational membership. When people are treated unfairly, they lose trust in the
organizationanddisidentifyfromthegroup.Thisinturnresultsinlesswillingnessonthepart
oftheemployeestoengageinorganizationalcitizenshipbehaviours(OCBs).Wetestedthese
relationshipsacrossthreestudies.InStudy1,theyconductedalongitudinaltestoftheroleof
trust as a mediator between breach and organizational identification. In Studies 2 (cross
sectional)and3(longitudinal),theytestedthecompletemodelinwhichweexaminedtheroleof
trust and identification in mediating the link between breach and OCBs. All three studies
providedsupportforthemediatedmodel.Furthermore,aspredictedbythegroupvaluemodel,
thehypothesizedrelationshipsemergedinresponsetorelationalbutnottransactionalcontract
breaches.

LIN Lan, MO Chang-Wei.(2008) This paper supported the casual relationship between
psychological contract and organizational citizenship behavior (OCB) on the basis of a thorough
analysis of their logical link from the perspectives of the definition, context and motive of OCB.
It then critically reviewed the empirical studies on how psychological contract influences OCB
in both direct and indirect ways, and made comments on the problems in current studies in terms
of general situation, theoretical perspective and empirical methodology. Finally, it put forward
suggestions on future studies
Mark H. Jordan,(2005) This article proposed a conceptual model highlighting the importance of
perceived or real psychological contract support between the employee and the organization,
taking into consideration the complex dynamics that exist between these contracts, employee
attitudes, and OCB. The conceptual model also highlights the potential importance of perceived
or real psychological contract support between the employee and the organization. This contract
can have an important role in interacting with cynicism in employees displaying OCB.
Establishing this potential interaction could have important implications for managers trying to
gain a more comprehensive understanding of antecedents of OCB. the employees
behavior/beliefs and the organizations potential

Hui C, Lee C (2004) This study examined the generalizability of psychological contract forms
observed in the West (D. M. Rousseau, 2000) to China. Using 2 independent samples, results
confirmed the generalizability of 3 psychological contract forms: transactional, relational, and
balanced. This study also examined the nature of relationships of psychological contracts with
organizational citizenship behavior (OCB). In particular, this study explored the role of
instrumentality as a mediating psychological process. The authors found evidence that
instrumentality mediates the relationship of relational and balanced forms with OCB; however,
the transactional contract form is directly related to OCB.
Coyle-Shapiro, Jacqueline A. (2002) This study examined the contribution of the psychological
contract framework to understanding organizational citizenship behavior (OCB) using survey
data gathered at three measurement points over a three year period from 480 public sector
employees. Separating perceived contract breach into its two components, the data suggest that
perceived employer obligations explained unique variance in three dimensions of citizenship
behavior (helping, advocacy and functional participation) beyond that accounted for by
perceived employer inducements. Employees acceptance of the norm of reciprocity moderated
the relationship between employer inducements and the dimensions of advocacy and functional
participation. Employees trust in their employer moderated the relationship between perceived
employer obligations and the dimensions of advocacy and functional participation. Contrary to
the hypothesis, procedural or interactional justice were not found to moderate the relationship
between the psychological contract and OCB. The implications of the findings for psychological
contract research are discussed.

CHAPTER III

RESEARCH
METHODOLOGY

3.1 Introduction
The study is focused on understanding the effect of Psychological Contract on Organizational
Citizenship Behaviour. This study is done on the arts faculty. A standard questionnaire for
measuring Psychological Contract and OCB will be distributed to the faculty. It is to understand
whether fulfillment or non-fulfillment of Psychological Contract has a positive or negative

relationship with OCB.

3.2 Problem Statement
Todays higher education sector faces multiple issues like the weakening of relationship between
faculty and students. In this context, faculty performing extra-role behavior like OCB will be
able to nurture the students and unleash their potential to face the competitive world. So this
study focuses on the study of relationship between psychological contract and OCB.
3.3 Operational Definition
Psychological contract is a reflection of individual expectations of the obligations between
employees and organizations containing both aspects of individuals and organizations.
Psychological contract means that there is an exchange relationship between organizations and
employees and needs to consider the expectations and obligations of both parties
OCB as defined by Spector as Sometimes people at work may make extra efforts that go above
and beyond the call of duty. They may do things to help other individuals (e.g., Volunteered to
pick up a coworker at the airport") or to help the organization (e.g., Stayed late to finish up
work that had to be done).
3.4 Variables under Study
Independent Variable-Psychological Contract
Dependent Variable- Organizational Citizenship Behavior
3.5 Objectives of the study
1.To measure psychological contract
2.To measure OCB
3.6 Hypothesis
H0 There is no significant relation between Psychological Contract and OCB
H1 There is a significant relation between psychological Contract and OCB

H0 There is no significant association between age and OCB

H1 There is significant association between age and OCB

H0There is no significant association between years of experience and OCB

H1 There is significant association between years of experience and OCB
3.7 Population
Faculty who are teaching the students in the higher education sector in all the colleges
3.8 Sample
Faculty who are teaching the arts students in the higher education sector
3.9 Sample size
The sample size is 100
3.10 Sampling Technique
Convenience sampling will be adopted.
3.11 Tool used
A 20 item questionnaire to measure OCB
A Psychological Contract questionnaire to measure the strength of Psychological Contract

Dimensions of Psychological Contract:

Relational/ Transactional contract
Employee commitment to employer
Employer commitment to employee
3.12 Data collection Procedure
Selection of the geographical area:
Coimbatore in Tamil Nadu was chosen for conducting the study because it is the educational hub
of Tamil Nadu. It is home to 7 universities and 150 arts and science colleges. The average
literacy rate of Coimbatore district is 82.43% which is higher than the national average of
72.99%
Selection of the sample:
Of the 7 universities located in Coimbatore, one state university( Bharathiar University) and one

deemed university(Avinashilingam University ) was selected for the research

Size of the sample:
100 samples( 20 from Bharathiar University and 80 from Avinashilingam University) was
collected

CHAPTER IV

DATA ANALYSIS AND

INTERPRETATION

4.1Tools used for data analysis:

1.Likert rating scale
2.Scale Reliability (Cronbach alpha)
3. Chi-square analysis
4.Correlation
5.Multiple Regression
4.2 Profile of the respondents:
4.2.1 Years of experience:
Experience( in
years)
Below 5
5-10
10-15

No.of respondents
12
23
29

15-20
20-25

19
17

Age( in years)
Below 30
30-40
40-50
50-60

No.of respondents
31
27
18
24

4.2.2 Age

4.3 Likert rating scale

Likert rating scale was used to scale the different statements determining OCB, Relational and
Transactional contract , obligation to the employer and obligation to the employee. In the Likert
scale, the respondent was asked to respond to each of the statements in terms of different degrees
of agreement. Each point in the scale contains a score.
4.4. Pilot test result:
The Cronbach alpha value for the pilot test was 0.501 which indicated the good consistency of
the questionnaire used.
Table Reliability Statistics
Cronbach's Alpha
Based on
Cronbach's Alpha

Standardized Items

.501

.439

N of Items
59

4.5 Chisquare Test

This was used to find out whether there is significant association between age, years of
experience and the organisation citizenship behaviour.
The classification of the respondents on the basis of OCB as related to age is as follows
Age
Below 40 years
Above 40 years

High OCB
16
30

Low OCB
42
12

Total
58
42

The estimated chisquare value was 4.83 which was greater than chisquare table value 3.86. The
null hypothesis is rejected and hence there is association between age and OCB
The classification of respondents on the basis of OCB as related to years of experience is as
follows

Years of experience
Below 10 years
Above 10 years

High OCB
10
53

Low OCB
25
13

Total
35
65

The estimated value was 4.98.This was greater than chisquare table value 3.86.Hence the null
hypothesis is rejected and so there is association between years of experience and OCB

4.6 Correlation coefficient:

The correlation coefficient gives a mathematical value for measuring the strength of linear
relationship between the variable. It can take values from -1 to 1worth.
a. +1 representing absolute positive linear relation.
b. 0 representing absolute no linear relationship.
c. -1 representing absolute inverse relationship.
Bivariate correlation takes the strength of the relationship between two variables without
giving any considering to the interference of none other variables.
Partial correlation enables to examine the correlation between two variables while controlling
for the effects of one or more of the additional variables.

Table Correlations
VAR00001 VAR00002 VAR00003 VAR00004
VAR00001 Pearson
Correlation

.679**

.783**

.780**

.000

.000

.000

100

100

100

100

.679**

.926**

.954**

.000

.000

Sig. (2-tailed)
N
VAR00002 Pearson
Correlation
Sig. (2-tailed)

.000

100

100

100

100

.783**

.926**

.979**

Sig. (2-tailed)

.000

.000

100

100

100

100

.780**

.954**

.979**

Sig. (2-tailed)

.000

.000

.000

100

100

100

VAR00003 Pearson
Correlation

VAR00004 Pearson
Correlation

.000

100

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

Var1- OCB
Var 2- Relational and Transactional Contract
Var3 Obligation to employee
Var 4- Obligation to employer
As shown in the above table, it is found that OCB has positive correlation with Relational and
Transactional Contract, Obligation to employee and Obligation to employer
There was a significant positive correlation between organisation citizenship behaviour and
transactional contract since the estimated Pearson correlation coefficient is 0.679 and it was
significant at 95% confidence interval. Similarly there was statistically significant correlation

Model

between organisation citizenship behaviour and obligation to employee as indicated by the

estimated correlation coefficient of 0.783 . The relationship between organisational citizenship
behaviour and obligation to the employer was also found to be positive 0.78 and also significant
at 95% confidence interval
4.7 Multiple regression
R is the multiple regression between organisational citizenship behaviour and relational contract,
transactional contract, obligation to the employer and obligation to the employee concerned. The
estimated R2 value is 0.66 and it implies that 66 percent of variance in OCB is accounted by the
selected variables - Relational/ transactional contract, obligation to the employer and the
obligation to the employee concerned. The adjusted R2 value of 0.65 indicates that the estimated
model is a measure of good fit. The adjusted R 2 value takes into account the number of variables
in the model and the number of observations.

Table Regression

R Square
.813a

.661

Adjusted R

Std. Error of the

Square

Estimate
.650

a. Predictors: (Constant), VAR00004, VAR00002, VAR00003

.44653

Change Statistics
R Square Change
.661

F Change
62.331

df1

df2
3

Sig. F Change
96

.000

Model

R Square
.813a

.661

Adjusted R

Std. Error of the

Square

Estimate
.650

.44653

Change Statistics
R Square Change
.661

F Change
62.331

df1

df2
3

Sig. F Change
96

.000

CHAPTER V

FINDINGS,
CONCLUSION AND
SUGGESTIONS

Findings:

There is significant association between age and OCB

There is significant association between years of experience and OCB
There is a positive correlation between OCB and relational/transactional contract
There is a positive correlation between OCB and obligations to employee concerned
There is a positive correlation between OCB and obligations to employer
The fulfilled obligation to the employee concerned is a high significant predictor of
Organisational Citizenship Behaviour
Conclusion:
The teaching profession is a selfless, noble profession, in which also psychological contract
plays a significant role in explaining the OCB
Suggestion:
The study can be widened to other streams (like science, engineering, medicine) faculty and the
findings can be compared.
The study was conducted in the two universities. The study can be extrapolated to other affiliated
colleges to the university

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