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 process
5-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 content
perceived
benefits
internal context
change 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
Affective
Cognitive
e.g (Stressful
manner,
commitment,
overload,pay,turn
over, control
overall 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 balance
work content
career
development
social atmosphere
Organizational policies
Rewards
Freese et all 2008
Literature Review

Transforma
tional
change
Impact of
change
Successful
Changes in past
Frequency
Of change
Attitude
Toward 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