A Study On Psychological Contract And The Relative Factors Of The Finance Industry

In recent years, the study on Psychological Contract has become a new hot pot in the researches of Organizational Behaviors and Management Psychology. with the knowledge economy time coming, the unofficial concealed relational between the organization and the staff has become the management important content because of intense competition for talent. The psychological contract concept was proposed aiming at the employment relationship between employee and the organization. It refers to the mutual responsibility and obligation perceived by both employers and employees. Therefore, the psychological contract is composed by two parts, the responsibility and duty which organization should undertake perceiving by employees, called Organization Obligation, and the employee's cognition of their responsibility and duty which should fulfill to the organization, is called Employee Obligation.Focusing on financial industry, this study explored the structure and inner relationships of psychological contract between the organization and employees from the employee's angle by the empirical research. Then it analyzed the differences in the psychological contract on demography characteristics, and how the psychological contract affected staff's work attitudes.In the psychological contract structure aspect, the researches were mainly carried on under the western background, which regarded the psychological contract mainly manifested for two-dimensionally "the transaction - relations" contract. The division depended on the contractual obligation classification, whether it taking the economy exchange as the foundation or taking the social emotion exchange as the foundation. The contract that taking the economy exchange as the foundation (overtime, reward) was the transaction contract, and taking the social emotion exchange as the foundation (loyalty, job security) was called relation contract. Basing on Chinese traditional culture background and our country business management practice, Li Yuan (2002) highlighted the dimension "interpersonal support and social relation" from relation dimension, and separated it as an independent dimension. He proposed the Chinese employee psychology contract three dimensional structural model through empirical research, namely interpersonal dimension, development dimension and standard dimension. This model provided a new way for the research of our employee psychological contract. But compared with the overseas researches, our country subdivided the psychological contract research to various industries were still very little. Therefore, this paper too the three dimension model of Li Yuan (2002) as the starting point, investigated our finance industry employees through the existing questionnaire, and tried to describe the psychological contract structure and type. It as well as explored the correlation between psychological contract and work attitudes, in order to provide human resource management decision for support and guidance.Based on a broadly review of relevant literatures on psychological contract, this study investigated finance employees from Shanghai, Guangzhou and Changsha, totally sent out 300 questionnaires. After a statistical data analysis, it tested the 7 hypothesis proposed in this paper with regression analysis and Structural equation model technique.First, in the research of psychological contract intrinsic relations and structure, it proposed 3 hypotheses, respectively were: Said to the financial employees that, the psychological contract content manifested for the three dimensional structure: interpersonal dimension, development dimension, standard dimension; Inside psychological contract, " Organization Obligation " remarkable influence " Employee Obligation "; Outside psychological contract, the demography characteristic remarkably affected " Organization Obligation " and " Employee Obligation " of the psychological contract perceived by employees. The findings showed that: it was reasonable to describe finance employee psychological contract with the three dimensional structure model; and inside psychological contract, " Organization Obligation " had an obvious influence to " Employee Obligation ". Moreover, staff's gender and position did not affect their perception on the mutual responsibility and obligation, but their age, education, working age and yearly income made a great difference in understanding the bilateral responsibility and obligation of psychological contract.Next, in the research of the correlation between psychological contract and exterior relative factors, it proposed 4 hypotheses, which included: In the content of psychological contract, " Organization Obligation " and "Employee Obligation " both had positive influence to employee's organization commitment; as well as to job satisfaction; The different type of psychological contract made a great difference in organization commitment, job satisfaction and turnover intention; psychological contract had a strong negative influence to turnover intention, including direct influence and indirect influence. Through the multiple regression analysis and the structure equation model analysis, all above research hypotheses got the data support.The creativity of this research embodied: (1) took the financial industry employee as the research object, examined and confirmed the industry propriety of the existing theory; (2) systematically studied the influence of psychological contract to employee turnover intention, and inspected the indirect influence of psychological contract to turnover intention through job satisfaction and organization commitment these two intermediary variables.The psychological contract is the psychological link which related the organization and employees. The psychological contract research can help organization understand employee expectation and the demand, understand their work idea and values, thus formulates feasible human resource policy and system, matches the authority and the income which the staff obtains with the responsibility and the duty which they undertakes, and activates their enthusiasm well. Moreover, by examining the relations between employee psychology contract and work attitude, it helps organization promptly understand and grasp staff's present work situation in the organization, and inquired the staff's psychology that hides behind the situation, thus provides powerful instruction for the decision-making of organization. Therefore established in employee psychological contract, this paper studied the correlation of staff's job satisfaction, organization commitment and turnover intention, which provided a new perspective and angle to explain some phenomena existing in financial organization. Moreover, it provided definite evidence and the reference for Employee Relationship Management and real practice, specially the human resource management, including recruitment, training, career management and the corporate culture construction and so on, thus enhanced the management efficiency of financial corporation.The domestic and foreign scholars have widely studied the psychological contract, and the literature also gradually increased in recent years, but it still has not formed a unified mature theory system until now. Meanwhile the existing research indicated that, the different industry, its psychological contract content and structure all have the possibility to be different. Therefore, taking the foundation of domestic scholar research on psychological contract which carried under Chinese market environment, this paper examined and confirmed the industry propriety of the existing measuring, which was extremely essential for the construction of general psychological contract model. On the other hand, this study inspected the correlation between psychology contract and the stuff's work attitudes under the financial industry background, namely psychological contract whether could affect organization commitment, job satisfaction and turnover intention, has provided the empirical support for the organization behavior research. But this research also has some limitation, needs the future further study and .analysis.