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A Study on the Relation among the Psychology Contract, Job Satisfaction and Turnover Intention

Author: LuoYuChen
Tutor: ShiLei
School: Southwestern University of Finance and Economics
Course: Business management
Keywords: Psychological Contract Job Satisfaction Turnover Intention Personal Attributes
CLC: F272
Type: Master's thesis
Year: 2009
Downloads: 810
Quote: 1
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Abstract


With the market changing and the increasingly competitive business, companies are suffering from the disaster of staff loss and the staff turnover intention also improved significantly in this flexible and unpredictable environment. For enterprises, employees’leave lead to a great deal of business costs, and how to reduce staff turnover rate affects the competitiveness of enterprises in the future development.When a person into the enterprises, besides the business contract he signed (contract), there’s an implicit psychological contract. The psychological contract refers to the awareness that employees undertake the obligations in exchange for payment and their expectations of economic reward, as well as a sense of work security, a fair, equitable treatment, as well as organizations to support their desire to achieve development and so on. Psychological contract is violated more easily than the written contract. Because that, the staff will have a negative impact on behavior, such as job satisfaction, performance, and organizational citizenship behavior reduced, and turnover intention strengthen. Job Satisfaction is also an important concept in the Study of Human Resources Management, which refers to the staff’s attitude for their work. Job satisfaction is often used to be the forecast variables for dimission. Therefore this article attempts to the point of psychological contract, job satisfaction to study the turnover intention and offers inspiration in the management practice of human resources. Considering the personal attributes such as gender, age, job level, and so on will produce a certain impact on the psychological contract, job satisfaction, and turnover intention, this study will regard the personal attributes as a control variable into the scope of the study.This study aims to explore the relationship of the employees’psychological contract, job satisfaction, and turnover intention, and understands what impacts the various dimensions of psychological contract and job satisfaction have on turnover intention. Then, based on empirical findings of the study, put forward a number of building positive psychological contract, increasing job satisfaction and reducing turnover intention, and provide a practical guide to human resources management.In order to test the rationality and validity of the theory,this study establishes a model which includes the psychological contract,job satisfaction, turnover intention and personal attributes. Then use the data got in questionnaire investigation in enterprises to examine this model.This study made four core assumption which is“Psychological contract has the plus relevant to job satisfaction”;“Psychological contract has the plus relevant to turnover intention”;“Psychological contract and job satisfaction have a remarkable ability to forecast turnover intention”;“There is a significant difference among personal attributes and psychological contract, job satisfaction, and turnover intention,”.In order to verify these models and assumptions, learning from domestic and foreign research results related, prepare“A questionnaire on relationship among Employees’Psychological Contract, Job Satisfaction and Turnover Intention”.After empirical research, this study confirmed the basic conclusion of the four core assumptions. Based on the findings of this study, there are a few suggestions:First, manage on the status of the psychological contract; Second, manage according to the stage of the psychological contracts development; Third, Strengthen human resources management functions to enhance job satisfaction.This innovates of this research as follows:First,it is innovative to regard the psychological contract, job satisfaction, turnover intention, personal attributes into an overall framework for research; Second,analyzed and researched psychological contract from the perspective of both employees and organizations on the psychological contract; Third, analyzed the relevance of employees’psychological contract, job satisfaction and turnover intention and did the empirical research; Fourth, proposed some management suggestions to build a positive employees’psychological contract, raise employee job satisfaction and reduce turnover intention.Finally,because of the limitations of relevant conditions,there is certain limitation in this research. The limitations of the study are discussed and suggestions for future research are offered at the last part of this text.

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