Analyzing the effect of organizational change on psychological contract in

private business oriented organizations.

By Amin Ullah

M.Phil (LMS)

Introduction

• Long term sustainability• Implementation of change• Facing of competitors• Psychological Contract

Statement of the Problem

The banking sector of Pakistan is a very important sector for the economy. Banks perform various duties that are dissimilar in nature. The strongest bank in the Pakistan will survive only so long as the people will have sufficient confidence in it to keep their money there. The process and experiences of organizational change are on the peak in the banking sector of Pakistan due to inception of competitors both national and multinational banks. Various banks on national level are unable to compete in the market. Role of human resource in the efficient performance of these institutions is mandatory; therefore the effects (both negative and positive) of organizational change on psychological contract of employees shall be identified for for future development of this sector.

Objective/Purpose of the Research

1. What will be the effect of organization change on attitude towards work?

2. What will be the impact, if attitude towards change affect the employer obligation?

3. What will be the impact, if attitude towards change implement as a mediating variable between determinant of change and fulfillment of obligations?

Significance of the Study

This study will adds to the understanding of the organizational change and portrays the image of fulfillment of psychological contract & how they should react to & attitude of the work play a mediating role between these variables.

Variable Concept Construct References Transformational change

It define five primary antecedent categories that are linked to individual reaction to change.

1 – Change content, 2 –Perceived obligation, 3- Internal context , 4-Change process, 5-Change recipient

Oreg et al 2011)Woodman (1995)

Impact of change Change content 1 -Change content,2-Percieved obligation,3- Internal context ,4-Change process5-Change recipient

(Reichers et al,1997).

Successful change in past

Perceived benefits(impact on change Recipient)

Experience Anxiety

Oreg et al (2011)

Frequency of change

Change process(how the change can be implemented,Change recipient characteristics(personal traits, circumstances)

Change contentperceived benefitsinternal contextchange recipient

(Oreg,2006;Van de Heuvel and Schalk,2009

Attitude towards Change at work

Employee attitude towards the change is an important determinant of success or failure of the organization change

AffectiveCognitivee.g (Stressful manner,commitment,overload,pay,turn over, controloverall job stress)

(Henderson-Loney,1996;Grant, 1996). Pederit(2000)

Employer obligation

In the employment relationship employee have expectation about the organization will offer.

work life balancework contentcareer developmentsocial atmosphereOrganizational policiesRewards

Freese et all 2008

Literature Review

Transformational change

Impact of change

SuccessfulChanges in past

FrequencyOf change

AttitudeToward change at work

Employer

Obligation

Employee

Obligation

Theoretical Framework

Pc fulfillment

Determinants of Organizational change

Hypothesis

H1-positive attitude towards change, perceived the high fulfillment of organizational obligation.

H 2-Transformational changes have a more negative attitude towards change. H 3-Epmloyees that are confronted with impact changes have a more negative attitude

towards change. H 4 -Successful changes in past always impact positive attitude towards organization. H 5-High frequencies of changes delivered a negative attitude towards change. H6- The relationship between determinant of change (change characteristics e.g.

transformational change, impact of change, success full past changes, and frequency of changes) and perceived employer obligation is mediated by the attitude towards change.

Methodology

• Population: All employees of private banks in Rawalpindi and

Islamabad who consider as a blue color job holder.• Sample: The sample is likely to be consisted of around 300

employees from different level of organizational hierarchy will be conveniently taken. The sample was divided in to two broad categories i.e. male and female respondents.

Cont......

• Data collection The questionnaires will be conveniently

distributed among 300 employees of private banks from Rawalpindi and Islambad. Questionnaires completed in all aspects will be included in study for analysis. The purpose of the questionnaire will be explained to each of the respondent. Proper instructions will be written on the questionnaire.

Cont......

• Data Analysis The data will be analyzed electronically using

regression and Independent Sample T-Test. For this purpose the computer package: MSTAT-C and SPSS will be used.

References

Oreg et al(2011)Woodman (1995)(Reichers et al,1997).Oreg et al (2011)(Oreg,2006;Van de Heuvel and Schalk,2009(Henderson-Loney,1996;Grant, 1996).

Pederit(2000) Freese et all 2008