Exploring the relationship between the psychological contract breach, globalization and recruitment

(1)

University of Amsterdam Faculty of Economics and Business

Exploring the Relationship Between the Psychological Contract Breach, Globalization and Recruitment Ria Nash 10621512 Bachelor Thesis Business Administration BSc Word count: 12,827

Supervisor: Nesrien Abu Ghazaleh 28th June 2016

(2)

Statement of Originality

This document is written by student Ria Nash who declares to take full responsibility for the contents of this document.

I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it.

The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

(3)

Abstract

This thesis studies literature on the psychological contract and the effects of breach and fulfillment. Much of this literature introduces the complications that arise as a result of globalization, especially the occurrence of increasingly diverse cultures. There is also a vast amount of literature that examines the importance of recruitment, however, there are few examples of how it effects the psychological contract. Consequently, this thesis looks at the importance of recruitment and how this interacts with the psychological contract within culturally diverse firms, in order to propose how the recruitment process can lessen the negative consequences of a psychological contract breach. This paper found that in order for the recruitment process to be useful in culturally diverse firms, and thus decrease the chances of a psychological contract breach, the organization is advised to be knowledgeable of the market, use a strict recruitment process, and use opportunities to transfer the desired organizational culture to employees whenever possible.

(4)

Contracts create a naturally appealing and culturally accepted way to describe relationships in a working environment. They are however, subject to dispute (Rousseau, 1995). The reform of corporations and the decline in organized labor has created a challenge for traditional employment contracts. Contracts are made up of promises about the future, however these promises are increasingly difficult to make and even more so to keep (Rousseau, 1995). Additionally, meeting the agreements of a formal contract is important within firms, however in order to provide satisfaction, management must meet additional obligations related to beliefs and expectations of employees. These additional obligations are what formulates the psychological contract, defined by Herriot, Manning and Kidd (1997) as “the perceptions of mutual obligations to each other held by two parties in the employment relationship, the organization and the employee” (page151). Rousseau (1995) further defines the psychological contract as individual beliefs, shaped by the organization, regarding terms of an exchange agreement between individuals and their organization.

Most psychological contract research has focused on the effects of fulfillment or breach. For example, Rego and Cunha (2008) demonstrate the positive outcomes of fulfillment and the increase in organizational citizenship behaviors, while Robinson and Rousseau (1994) found the negative effects that a psychological contract breach has on employee behavior including decreased effort, a lack of commitment, and vandalism. This research has made it evident that the psychological contract plays a very important role in the relationships within the working environment. This is therefore useful for the organization as it will increase effectiveness of the firm. However, in the case of a firm failing to meet these additional expectations, a psychological contract breach is said to occur. A psychological contract breach has a detrimental effect on the firm, more specifically it lowers citizenship behavior, reduces loyalty and decreases satisfaction (Robinson, 1996).

Many definitions of the psychological contract emphasize perception and subjectivity; this highlights the difficulty that arises due to individuals constructing the psychological contract in different ways, thus it can result in two parties having different or unclear ideas of their obligations (Herriot et al. 1997). Consequently, breaches are often inevitable. The likelihood of a breach is also intensified due to the nature of today’s work environment. As organizations move toward the trends of globalization, restructuring, and downsizing, employment relationships are becoming progressively more dependent on the psychological

(6)

2

contract which is playing an increasingly important role (Robinson, 1996). The increase in globalization is introducing a greater variety of nationalities and cultures to what used to be completely domestic firms. These cultures bring greater dynamics to firms and opposing beliefs as to what is the norm. As a result of this individuals have different expectations from their firm, consequently the understanding of the psychological contract has become more complex. This is best described through Hofstede’s cross-cultural dimensions.

Hofstede (1990) describes the differences between nations by introducing four cross-cultural dimensions. These include; power distance, uncertainty avoidance, collectivism and masculinity – all of which impact the psychological contract. One example from Zagenczyk, Cruz, Cheung, Scott, Kiewitz & Galloway (2015) discovered that the level of power distance that is the norm in culture will play a role in how employees respond to a psychological contract breach, identifying that the negative consequences that occur as a response to a breach will differ depending on the power distance. They suggest that, when triggered by the situation of a breach, an individual’s culture will play a role in their reactions – for example, employees with a low power distance orientation will have more severe and detrimental reactions to a psychological contract breach than those with a high power distance orientation (Zagenczyk et al., 2015). A more in depth example of each of the four dimensions along with examples will be explained in succeeding chapters.

Additionally, during a study on newly recruited students, Rousseau (1990) found that the psychological contract begins to develop during the recruitment process. They further found formation of the psychological contract is dependent on what type of relationship the employee wanted with their employer and therefore differed depending on what the employee sought from their job. Employees seeking a short-term relationship desired monetary benefits in exchange for hard work, whereas those desiring a long-term relationship held emphasis on job security for their loyalty (Robinson and Rousseau, 1994). Further studies by Robinson and Rousseau (1994) identified that 54% of new employees reported some form of contract breach in their first 2 years of employment. It is probable that this breach is a result of different interpretations of the deal and changes among contract makers. One may assume that understanding how managers, co-workers, human resource practices, and organizational culture shape individual psychological contracts can create guidance towards more consistent communication and management of the psychological contract. Recruitment is the primary tool for attracting applicants and refers to any activities used in order to identify and attract suitable employees. It is also a way of ensuring the appropriate individuals are hired (Acarlar

(7)

3

& Bilgic, 2013). Thus it is apparent that the process can and should be used by organizations, not only to fill vacant positions, but also to ensure there is fit between the employee and the organization.

Much research, including that realized by Rodwell (2013) and Rousseau (1995), has investigated the detrimental effects of a psychological contract breach including reduced effectiveness, weaker employment relationships and lower performance and attendance. Moreover, they researched how this may be more apparent in culturally diverse firms. Other research has also focused on the importance of job advertisements to ensure they attract the most suitable employees and provide these employees with sufficient information (Mohamed, Singh, Irani and Darwish, 2013). However, there is little research on the interaction of these dimensions and how prior contact with the employees can aid the firm in reducing the likelihood of a psychological contract breach. Therefore, the purpose of this paper is to fill this literature gap and explore the research question: how can recruitment mitigate the

possibility of a psychological contract breach in today’s global work environment? In order

to answer this it is necessary to first answer a number of sub questions. Firstly, what is the psychological contract? What are the effects of violating the contract? What are the

incentives of fulfilling the psychological contract? What influence does globalization have on the interpretation of the psychological contract? Why is recruitment important in today’s organizations and how does it relate to the psychological contract?

The paper will be structured as follows; firstly, it will examine and define concrete understandings of the psychological contract and the effects that breach and fulfillment have on an employee’s behavior. Then it will introduce the influence that today’s globalization has had by using Hofstede’s four cross-cultural dimensions to analyze how cultures differ, thus suggesting ways in which different cultures may understand the psychological contract and how they may react to a breach. It will then look into the importance of the first points of contact that a firm has with employees, through the means of the recruitment process. Finally a conclusion will be presented where this information will be used to see how the initial points of contact can be utilized for both parties to gain more of an understanding of the unwritten expectations and consequently mitigate the chances of a psychological contract breach occurring, or minimizing the negative effects that a perceived breach may have.

(8)

4 2. Psychological Contract

The idea of the psychological contract was first introduced by Argyris in 1960 in order to characterize the mutual expectations between an employee and employer and to understand the nature of work relationships (Hui et al. 2004). It has since been dramatically developed by many authors. For example Rodwell and Gulyas (2013) state that the

psychological contract is essentially “an exchange relationship that encompasses an

employee’s perceptions of reciprocal promises and obligations between themselves and their employer” (page 2775). Such obligations include performance related pay, opportunities for promotions, training and the level of responsibility that one is given (Rousseau, 1990). This gives a basic answer to the first sub question ‘what is the psychological contract’, however the concept is a lot more complex than the simple definition. Robinson and Rousseau (1994) explain that an individual’s psychological contract is formed through explicit promises, previous exchanges and observations. However, they also describe the psychological contract as being inherently subjective, and existing in ‘the eyes of the beholder’. A contract is

comprised of the beliefs in mutual obligations, however the two parties do not need to agree on these obligations for the contract to exist. As a result, the psychological contract is a personal construction of each individual, thus it is different for every individual (Robinson and Rousseau, 1994). What is more, when defining this concept it is important to note that the psychological contract should not be confused with simple expectations (Robinson and Rousseau, 1994). Whilst expectations refer to what one expects from their employer, the psychological contract goes further and also denotes mutual obligations that depict the relationship between an employee and employer. It involves beliefs – based on perceived promises - of what the other party is obliged to provide (Robinson and Rousseau, 1994). This research indicates that the psychological contract is different depending on the individual, therefore it is clear that understanding one another’s idea of the psychological contract may be difficult and means that fulfillment or breach of the psychological contract does not involve the same things for each employee. The following text introduces how the psychological contract can influence and employees workplace behavior.

An employee’s performance and actions whilst at work are believed to be a result of their constructs of the psychological contract (Hui et al., 2004). Rousseau (1995) found that fulfillment of the psychological contract lead to in-role and extra-role performance, trust, satisfaction, and intention to remain within the organization, whereas Parzefall and Coyle-Shapiro (2001) found that failure to meet obligations and thus causing a breach of the

(9)

5

contract leads to a decrease in organizational commitment, increased turnover, reduced organizational citizenship behavior and increased deviant behaviors. Evidently the psychological contract brings together the employee and employer, creating a mutually beneficial relationship if both parties cooperate and do their part. Robinson and Rousseau (1994) state that this bond is weakened if a violation occurs - the party perceiving violation will lose faith in the advantages of staying in the relationship, thus there is a greater chance of them ending the relationship by leaving. Therefore it can be argued that it is beneficial for organizations to be aware of the existence of the psychological contract and aim to

understand how it can effect an employee’s behavior depending on how it is approached. The detrimental effects that occur as a result of a psychological contract breach are explored in more detail in the following chapter.

2.1 Psychological Contract Breach

The psychological contract is subjective and made up of individual’s perceptions of obligations, thus they do not always involve a common understanding between two parties (Rodwell, 2013). Blancero, Johnson and Laxham (1996) reiterate the issue of subjectivity by stating that each individual has a unique psychological contract making it difficult for every component to be satisfied. As a result of this it is easy for one party to fail to meet their obligations, therefore it is inevitable that some inadvertent violation will arise - this violation is termed the psychological contract breach (Robinson, 1996). She continues to highlight “the psychological contract breach is inherently perceptual, and thus one party’s understanding of the contract may not be shared by the other” (page 575). Furthermore, she states that “it is an employee’s belief that a breach has occurred that affects behavior and attitudes, regardless of whether that belief is valid or whether and actual breach took place”. Moreover, there are two sides that are open to interpretation and these are influenced by situational factors which construe how these contracts are understood and kept (Rousseau, 1995).

A psychological breach occurs when obligations - such as performance related pay, promotions, training and responsibility - have not been met (Rodwell, 2013). This failure of fulfilment negatively effects an employee’s attitudes towards their work in a number of ways, including reduced organizational commitment and a decreased desire to partake in activities that go beyond their formal duties (Parfezall and Coyle-Shapiro, 2001). Additionally, the violation of contracts creates anger, reduces effectiveness, and changes the way people behave in successive interactions (Rousseau, 1995). Likewise, contract violation impedes

(10)

6

trust; it weakens the employment relationship, causing lower employee input – performance and attendance – and lower employer investments – retention and promotion (Rousseau, 1995). As a result, it is unsurprising that a breach of the psychological contract is said to have a negative relationship with organizational commitment but in fact a positive relationship with job commitment, implying that employees will act in favor of themselves instead of the organization (Rodwell, 2013). These consequences of a psychological contract breach are said to be a lot more severe than lucid unmet expectations or a lower degree of fulfillment of the psychological contract (Rodwell and Gulyas, 2013), further stating why it is important for a firm to avoid its occurrence.

Individuals’ reactions to a violation of the psychological contract vary, ranging from suffering in silence to ending the relationship (Rousseau, 1995). An individual’s choice of how to react is a function of situational factors and the predisposition of parties. Prior research by Hirschman (1970) largely focuses on four courses of action: exit, voice, loyalty and neglect (as cited by Rousseau, 1995). Moreover, the perception that a violation has occurred and the impact of this violation may differ depending on an individual’s career motives. Those who have a greater need for a relationship within the organization will feel more negatively influenced if a violation takes place (Robinson and Rousseau, 1994). These findings are further evidence that that the psychological contract is unique for every

individual.

It has been made apparent that the consequences that follow the perception of a psychological contract breach are detrimental to firms. This subsequently gives a valid answer to the second sub question ‘what are the effects of violating the contract’ by

recognizing that a violation leads to a decrease in trust which in turn weakens the relationship leading to lower employee input, a decrease in organizational commitment and can result in an employee’s exit from the company. As a result, it is within an organizations best interests to work in order to prevent them from occurring or mitigate the negative effects that they have. Although the negative consequences of contract breach have received the greatest empirical attention, it must be stressed that the concept does not solely have negative connotations. The next section will explain the possible positive outcomes that arise as a result of fulfilling the psychological contract.

(11)

7

2.2 Fulfillment of the Psychological Contract and Organizational Citizenship Behaviors Managers should be aware of the positive outcomes that arise as a result of the two parties meeting their mutual obligations leading to fulfillment of the psychological contract. Reciprocity is developed once relationships are formed in the workplace, and promotes an environment of employees helping one another and the organization beyond their expected duties (Xerri and Brunetto , 2013), these are more commonly known as organizational citizenship behaviors (OCB). Xerri and Brunetto (2013) describe OCB as “the discretionary advantageous, tangible and intangible activities and behaviors that are a result of effective workplace relationships” (page 3164). They also refer to it as a factor that has the potential to enable the implementation of organizational strategy and gain a competitive advantage, through positive relationships. Organ (1998) also adds that OCB is done at the employee’s will and explains that it is not associated with formal organizational rules or rewards (as cited by Xerri and Brunetto , 2013). Moreover, Rego and Cunha (2008) describe OCB as

“organizationally beneficial behaviors and gestures that are neither explicitly enforced on the basis of formal role obligations nor elicited by the formal reward system”. They continue by adding “OCB consists of informal contributions that employees can choose to make or not, without regard to considerations of sanctions or formal incentives” (page 541). Such organizational behaviors are said to be helping behavior, sportsmanship, organizational loyalty, compliance, individual initiative, civic virtue and self-development, and are said to be crucial for the survival and good functioning of organizational systems (Katz, 1964 as cited by Rego and Cunha, 2008).

Some believe that all effective organizations must have members with cooperative and spontaneous behaviors (Rego and Cunha, 2008). This was supported in research by Karambayya (1990) who found that OCB existed more in work units where the employees work performance was also higher (as cited by Rego and Cunha, 2008). This supports the idea that OCBs are facilitators or organizational effectiveness.

OCB could also have a positive influence on performance through enabling the attraction and retention of the best and most talented individuals, as a result turnover may decrease which in turn will reduce hiring and training costs (Rego and Cunha, 2008). What is more, Cohen and Avrahami (2006) believe that the process of recruitment and selection is a possible opportunity to recruit individuals who convey characteristics that may suggest such citizenship behaviors.

(12)

8

One particular positive for organizations whose members exhibit organizational citizenship behaviors is that the managers of these firms feel more reassured that they can empower their employees, thus managers will be more available to dedicate their efforts to more strategic actions and ways of dealing with opportunities and delegate other tasks to their employees. As a result, it is suggested that manager should focus their attention towards actions that promote OCB (Rego and Cunha, 2008). Therefore, it has been made clear that understanding and fulfilling an employee’s psychological contract is beneficial for managers.

This previous literature on organizational citizenship behaviors highlight the positive outcomes that arise from the fulfillment of a psychological contract. It is clear that an

employee who feels as though their company cares for their needs will be more willing to put extra time and effort into their organization. This provides an answer to the third sub question ‘what are the incentives of fulfilling the psychological contract’ by describing the positive outcomes. In particular mentioning organizational citizenship behaviors and describing them as actions of the employees that are not explicitly enforced, are actions that the employee chooses to make, and are not necessarily rewarded. Consequently these behaviors are also said to lead to a more effective work environment. It is also suggested that organizations are able to select employees during the recruitment process in order to obtain employees who are most likely to partake in OCBs, this is a positive opportunity that a firm can implement even before the potential employee joins the organization. Therefore, it is clear that fulfillment of the psychological contract that results in employees participating in organizational citizenship behaviors will improve the effectivity and efficiency of an organization and is consequently important to maintain. However, the increase in globalization has changed the dynamics of the traditional workforce and meant that fulfillment of the psychological contract has become more complex.

3. Globalization

Globalization is ever more apparent in today’s workplace and creates an increase in the number of cultures, languages, perspectives, and introduces more expatriates to the

workforce. Friedman (2007) highlights the problem that cultural and institutional differences make it difficult and sometimes impossible for the best human resource management

practices to be transferred across countries. However, as globalization expands, it is becoming increasingly important for firms to have effective international human resource

(13)

9

management, one aspect of this may be gaining a better insight into the vast perceptions of the psychological contract that vary between individuals and even more so between nations.

Some examples of how human resource management practices differ across countries involve the amount of severance payments offered to employees who have been terminated. In the United States, terminated employees are given one week for every year worked, whereas employees in Spain are given nine weeks for every year worked. Moreover, starting vacation in the U.S is two weeks, unlike many European countries who are given five weeks. Plus, the allowance for family and medical leave is 12 weeks in the U.S yet one year in France (Falcone, 2004 as cited by Friedman, 2007). These examples highlight the different benefits countries are able to receive. Such benefits could be the basis as to why people have different expectations from the firm depending on where they are from, and thus different constructions of the psychological contract.

Additionally, Robinson (1996) argues that globalization has also led to organizational climate change which has caused a change in the traditional contracts. These contracts, involving long term job security in return for hard work, are becoming less valid resulting in all organizational members rethinking their mutual obligations (Robinson, 1996).

Furthermore, as organizations move toward the trends of globalization- which may further lead to restructuring and downsizing- it may be assumed that employment relationships will become progressively more dependent on psychological contracts, thus leading to them playing an increasingly important role.

What is more, the psychological contract is becoming more complex as a result of

globalization which in turn is introducing more elaborate individual needs (Robinson, 1996). It may be assumed that this is due to individuals gaining greater access to a richer set of information and are accordingly better informed and connected. Therefore, employees attitudes are likely to have changed including attitudes towards traditional corporations, markets and governance. Robinson (1996) argues that this will lead to the psychological contract being more significant and elaborate as a result of these changes. However, she also states that these changes have heightened the chances of psychological contract breach.

This is supported by Rousseau (1995) who identifies situations when a violation of the psychological contract is most likely to occur; she suggests they are often probable when there is a history of conflict and low trust in the relationship, yet she stresses that one of the greatest causes is when social distance exists between the two parties such that one does not

(14)

10

understand the perspective of the other. This is extremely relevant and unfortunately more likely in today’s organizations where many organizations are experiencing organizational changes such as rapid modernization and downsizing of state owned enterprises (Robinson, 1996). As a result of this, many individuals are working in foreign-owned firms (Hui, Lee and Rousseau, 2004). Consequently, this is leading to a greater variety of cultures in a workplace that need to be able to work together in order for the firm to strive.

This provides an answer to the fourth sub question by stating that globalization introduces more cultures to an organization, however in order to study how globalization can impact individuals and their psychological contract, it is important to understand how culture can play a role in determining how an individual will construct their psychological contract. This can impact how firms organize themselves, and why it may be difficult for an individual from one nation to work under another nation with different cultural dimensions.

4. Cultural Dimensions

“Culture consists of patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups, including their embodiments in artifacts; the essential core of culture consists of traditional ideas and especially their attached values” (Hofstede, 1984, page 21). This definition stresses that the core of culture arises from traditional and historically derived artifacts which

suggests that it is deeply rooted. This may further propose that culture is hard to change and could give an explanation to the findings of Pearce (2001) who emphasizes that societal differences create different understanding of the psychological contract, thus raising issues regarding generalizability (as cited by Hui et al., 2004). Also, Hui et al. (2004) identify that workers will respond differently to the psychological contract depending on how traditional their values are. They further explain the differences between the psychological contracts in traditional countries, such as China, in comparison to other less traditional nations and explain that it is a result of distinct beliefs, values, and societal structures of the Chinese that other nations may not hold. For example, in North America business people create contracts with the use of rules and legal protection, whereas the traditional Chinese business sector relies on human factors in business situations, especially when managing employees. The characteristics of communism that prevails in China creates the absence of legal contracts, suggesting employee-employer relationships are influenced by psychological, social and interpersonal mechanisms (Hui et al., 2004). Moreover, the psychological contract will be of

(15)

11

different importance to different nations. It is suggested that if a nation’s social orientation promotes harmony in relationships – such as Asian societies – individuals are expected to value relational forms of employment (Yang, 1995 as cited by Hui et al., 2004). These examples reiterate previous findings by stressing that societal differences will lead to varied understanding of the psychological contract, but also explains why some nations may see it as more important than others.

Hofstede (1980) researched how cultures differ across nations. By outlining four cross-cultural dimensions, Hofstede was able to describe the cultures of different countries. These four cross-cultural dimensions are uncertainty avoidance, masculinity-femininity, individualism-collectivism, and power distance. Uncertainty avoidance is the degree of ambiguity people are comfortable with. Masculinity-femininity refers to the degree that individuals exhibit masculine values - such as independence and dominance, or feminine values - like interdependence, empathy and openness. Individualism-collectivism focuses on the extent that individuals focus on individual needs and wants compared to the needs of the groups. Finally, power distance is the amount that individuals accept a difference in people’s authority depending on their level in the organization (Friedman, 2007).

These cross-cultural dimensions can influence the characteristics and behavior of a firm. For example Lau and Ngo (1996) explain that Americans have a rational culture suggesting they are low in uncertainty avoidance, high in individualism, and high in masculinity. As a result, it may be assumed that this nations firms will be innovative, be attracted to growth possibilities, and will strive for personal achievement. Also, these cross-cultural dimensions can be used by human resource managers in order to increase their effectivity in different cultures and gain a better idea of what each employee expects. Nations fit differently within Hofstede’s cross-cultural dimensions, and therefore are an example of how such nations may require different things from the same organization and will therefore have different constructions of the psychological contract. These cross-cultural dimensions and their impact on the construction of the psychological contract will be explained in the subsequent text.

4.1 Power Distance

Inequality of members’ abilities and power is inevitable in organizations and an unequal distribution of power between members is said to be the essence of an organization

(16)

12

(Hofstede, 1984). Power distance was originally described by Hofstede (1984) as “a measure of the interpersonal power or influence between a boss and subordinate, as perceived by the less powerful of the two” (page 71). The power distance index (PDI) focuses on whether inequality is desired within a nation. A hierarchy will exist in all firms regardless of whether they have a high or low PDI; however the presence of the hierarchy will be for different purposes. For high PDI nations (where there is large and obvious inequality) a hierarchy will be a key feature of the organizational structure, whereas low PDI nations will implement hierarchies purely for convenience (Hofstede, 1984).

Zagenczyk et al. (2015) found that one of the obvious differences of employees with high power distance orientation, in comparison to those with low power distance orientation, is their respect for those with greater authority. This is shown through the formal manner in which they address superior personnel, but also they are less likely to question what is

instructed by these superiors. However, employees with a lower power distance recognize the absence of long-lasting power. In this particular situation, subordinates who are recognized as being high performers will be given regular leadership tasks and are more likely to be offered promotions to positions with more authority. What is more, Zagenczyk et al. (2015) state that these subordinates regularly address their superiors by using their first name and are

accustomed to superiors asking for their opinions in matter that will have an impact on their role in the organization.

Moreover, culture influences the importance and implementation of hierarchy as organizations and nations vary in terms of their norms and status of equality (Florida and Kenney, 1991 as cited by Rousseau, 1995). It is therefore understandable that due to

opposing levels of power distance between employees depending on the PDI, countries often differ in their structure of organizations, as a result their solutions to similar tasks may be controlled in different ways (Hofstede, 1984). For example, nations with a low PDI will have less of a distance between an employee and employer, this can result in the subordinate being given greater responsibility over tasks or problems that arise. This has the potential to be difficult for an employee who is from a nation with a high PDI as they may not feel as though they are qualified enough to take such responsibility. It is possible that even within continents there can be a difference in power distance. Eastern European countries, such as Poland, Czech Republic and especially Slovakia, are said to have a high power distance in

comparison to Western European countries (Kolman, Noorderhaven, Hofstede and Dienes, 2003).

(17)

13

The existence of hierarchies is also an indication of the opportunities of being

promoted within the organization, and gives more of a definite classification of roles. This is particularly relevant for American workers who require more job classification to provide them with the feeling as though they have an internal career ladder (Florida and Kenney, 1991 as cited by Rousseau, 1995). Moreover, it is traditional for the Chinese to abide by a strict social structure; the hierarchies make it clear that the people at the top possess power over those below (Hui, et al. 2004). Consequently, employees within different nations look upon the existence of hierarchies as a way of classifying their roles within the firm.

In some cultures, if a powerful employer commits to their obligations presented in the psychological contract they are likely to exceed the anticipations of employees. This in turn will create a positive response leading to the employee being prepared to reciprocate the good gesture (Hui et al., 2004). However, if a breach occurs this will have a negative impact on the employees, although the negative responses vary depending on the power distance.

Zagenczyk et al. (2015) quoted “although psychological contract breach has destructive consequences for all employees, the deference to authority and preference for harmony characteristic of higher power distance employees seems to be related to less active responses to breach” page 862. Thus, they found that employees’ reactions to a psychological contract breach varied depending on their power distance orientation. Of the four reactions previously mentioned, exit and voice were a more common reaction for employees with a lower power distance orientation. Therefore, these employees who have a high power distance between themselves and their employer are more likely to tolerate treatment from an authoritative figure that they deem to be unfair or breaching their psychological contract.

It has been made clear that in the event of a psychological contract breach occurring, individuals who are most likely to react by voicing their concern or removing themselves from the situation are those employees with a low power distance orientation and it has been made apparent that employee’s with a larger power distance may be more accepting of breach than those with a lower power distance. However it is still important to realize that a breach of the psychological contract will lead to reduced loyalty and increased neglect regardless of the power distance orientation (Zagenczyk et al., 2015).

As a result of their findings, Zagenczyk et al. (2015) stress the importance of being attentive towards an employee's power distance orientations, and state that is it important to be aware that these are likely to have an impact on how an individual will react to a

(18)

14

psychological contract breach. Organizations should keep in mind that employees with a lower power distance orientation are increasingly likely to have an active response to breach including actions such as exiting the organization. This is likely to be useful knowledge for managers who are more familiar with working alongside employees with higher power distance orientation but are being introduced to employees with low power distance orientation.

It has been made apparent that power distance is important to recognize, and can be beneficial to the organization, for example if an employer commits to their obligations the employee is likely to reciprocate the good gesture. It has also been made clear that a breach has a negative effect for all employees regardless of their power distance orientation, thus it is important for the organization to be aware of the individual’s psychological contract in all cases. However, the consequences are more severe in low power distance organizations thus it is important for firms to notice the power distance orientation and respond accordingly in order to avoid the potential breach of the psychological contract.

4.2 Uncertainty Avoidance

Uncertainty avoidance is the degree to which uncertain or unknown situations makes a country feel threatened (Hofstede, 2006). Uncertainty is deemed to be inevitable in modern organizations and is said to have strong connection with the environment. Hofstede (1984) says the environment includes “everything not under direct control of the organization” he further explains that it is “a source of uncertainty for which the organization tries to

compensate” (page 112). However, internal uncertainty is also relevant and can stem from the unpredictability of the behavior of members and stakeholders, as a result organizations

attempt to reduce this by implementing rules and regulations which Hofstede (1984) explains “rules stem from past adjustments and seek to stabilize the present and future” (page 115). These internal uncertainties are more in the control of the firm and therefore they are able to work in order to mitigate the difficulties that arise from them.

Whether a nation has a high or low uncertainty avoidance index (UAI) will have a consequence on the organization. Firms within nations with a low UAI are said to have less structure of activities, fewer written rules, a more interpersonal oriented and flexible

manager, and ambitious employees. Firms in high UAI countries on the other hand, will have more structured activities, an increase of written rules, uniform organizations (which

(19)

15

and less ambitious employees (Hofstede, 1984). According to Hofstede’s dimensions, Greece and Portugal are examples of countries with high uncertainty avoidance. In this situation it is suggested that such nations require detailed plans and timetables in order to reduce anxiety associated with uncertainty (Friedman, 2007). It may be possible that the level of uncertainty avoidance in a host country could lead to employees having to obey more rules than they are used to, for example if an individual from a nation with a low uncertainty avoidance index works in a firm with a high UAI, they may feel restricted by the vast amount of regulations they must follow.

Cultural heritage of societies is likely to be a determinant as to how members cope with uncertainty. These coping mechanisms are made apparent through basic institutions and are reflected through members of a society through the values they collectively share

(Hofstede, 1984). The roots of these shared values are non-rational therefore they can create a collective behavior in one society, yet this behavior could be seemingly abnormal and

incomprehensible in another (Hofstede, 1984). This identifies the issue that many firms will face when employees are unable to understand why others act in such different ways and may find it difficult to adapt to behaviors that feel so unfathomable to their norms.

The level of uncertainty avoidance that is the norm within a country may also affect the differences in power. Hofstede (1984) suggest that power within an organization is not solely a result of the PDI within that nation, yet if the norm is a low tolerance for uncertainty, those individuals who have control of uncertainty will automatically have more power, whereas if uncertainty is tolerated the power is more equally shared between individuals.

Finally, Hofstede (1984) explains that uncertainty about the future is a basic fact of human and organizational life. Members of organizations try to cope with these uncertainties through technology, rules, rituals and laws. However, whilst globalization continues to become more popular and firms become more culturally diverse this will introduce a greater array of these coping mechanisms. This will introduce more rules, rituals and laws that are unfamiliar with individuals and will be another uncommon norm they must adjust to.

Consequently, this second dimension also introduces differences between nations that are likely to influence their constructions of the psychological contract and the individual’s reaction to a breach, it is clear that the more an organization aims to avoid uncertainty the more structured the organization is. This in turn creates a greater set of rules that must be followed. However, this varies for every nation and can mean that mean that cultures may

(20)

16

find it difficult to comprehend others. This creates a greater chance of the occurrence of a psychological contract breach as individual’s may not understand what and why some aspects are so important to one another.

4.3 Individualism

The relationship between an individual and the organization of which they belong is strongly affected by the degree of individualism or collectivism that is most predominant within the society (Hofstede, 1984). Individualism, as described by Hofstede (2006) is “the degree to which people in a country learn to act as individuals rather than as members of cohesive groups: from collectivist to individualist” (page 156).

The level of individualism or collectivism will also play a role in an individual’s reasons for conforming to requirements set by the organization. In collectivist nations, members will have a moral involvement with the firm, whereas in individualist nations the involvement will be more calculative (Hofstede 1984). Moral involvement is described by Mowday, Porter and Steers (1982) as representing “a positive and intense orientation toward the organization that is based on the internalization of the organization’s goals, values, and norms and on identification with authority. Hence an employee may become involved in organizational activities because they feel the organization is pursuing useful societal goals” (page 21).

Parsons and Shills (1951) suggest that the level of individualism or collectivism that a culture denotes is a way of distinguishing whether individuals will be oriented towards the group and care for social systems and individuals who are self-interested and strive to reach their own goals (as cited by Moorman and Blakely, 1995). An individualist is said to consider their personal interests as more important, would look out for themselves, and would rank the attainment of their personal goals as primary importance. Contrastingly, a collectivist gives priority to the interests of the group; they greatly appreciate being a member of a group, and would look out for the well-being of the group at their personal expense (Moorman and Blakely, 1995). Cultures such as the United States, are primarily individualistic and include citizens whose priority is their own interests. On the opposite end of the spectrum there are countries such as China, whose culture is more collectivist and thus citizens aim to support the goals of the group and care for the prosperity of the group (Moorman and Blakely, 1995). Additionally, Australia, Great Britain and America are countries that are characterized as being individualistic. These countries would work well under HR initiatives that lay focus on individual achievement and accountability. On the other hand, collectivist nations such as

(21)

17

Pakistan, Peru and Taiwan would prefer team-based programs including quality programs and team building (Friedman, 2007).

These differences in whether an individual is oriented towards themselves or the group can influence how they construct their psychological contract. Hui et al. (2004) found that relational contracts are more highly related to behavior in work groups, they also found that such contracts were more apparent in Hong Kong than in the United States, this is because collectivism is more apparent in Hong Kong and individuals strive for personal relationships at work, thus creating a psychological contract will identify the obligations and the terms of the relationship that the individual requires.

Thereupon, the evidence from previous literature has shown that the importance of the psychological contract will differ depending on whether an individual is looking for

relationships within their work and therefore are deemed collectivists, suggesting that collectivist cultures will place more value on the psychological contract. Thus it is necessary for an organization to understand whether their employees are collectivist or individualist in order to know the level of importance their psychological contract holds as this is likely to impact the severity of a perceived breach.

4.4 Masculinity

The final dimension introduced by Hofstede is masculinity, “the degree to which values like assertiveness, performance, success and competition, which in most cultures are traditionally considered the domain of men, prevail over values like the quality of life, maintaining warm personal relationships, service, care for the weak, and solidarity, which in most cultures are considered to be more the domain of women: from tender to tough”

(Hofstede, 2006, page 156). Masculinity also identifies the degree to which an individual magnifies the need for achievement and success. Such individuals are often aggressive, competitive and strive for material objects and value achievement. Whereas individuals who are high in femininity desire social relationships, quality of life and are compassionate towards others (Hofman and Newman, 2014). Therefore, a particular individual’s characteristics could be best suited to a particular nation’s level of masculinity.

Like the other cultural dimensions identified by Hofstede, the origins of cultural norms within a society stem from historical factors. Musil (1993) describes the differences in masculinity between European countries from a historical and family perspective suggesting that in patriarchal countries the role of fathers and extended families prevail, whereas the

(22)

18

father figure is less apparent in others (as cited by Kolman et al. 2003). This is said to be an explanation as to why some countries differ in their level of masculinity, suggesting that countries that historically have a stronger male and father figure will have characteristics of a masculine nation. It also, much like the other dimensions, suggests that these norms are deeply rooted and identify with an individual’s personal life as well as their work.

Additionally, jobs are also often described as being either masculine or feminine, however this stereotype may differ between nations (Hofstede, 1984). A specific job role may require an individual whose exhibits characteristics that are particularly competitive, assertive and aggressive, or more tender, caring and empathetic. Therefore it is necessary for an

organization to state the characteristics that are desired for the role that is available. An individual who is caring and compassionate towards others but is placed in a role where they need to be more task oriented could be less likely to succeed. It may be assumed that more feminine individuals will rely more on the psychological contract as, much like collectivist individuals, the psychological contract is a way of defining their relationships they search for at work. They may also desire relationships within their work which will not exist, thus they will be experiencing a potential breach of their psychological contract.

From these four cultural dimensions it is clear to see that a firms norms are a result of their culture, this subsequently influences what individuals are used to when working in their home nation. It is also often stressed that these norms that create their cultures are deeply rooted and heavily influenced by their historic pasts. What is more, the norms of one nation compared to another can vary dramatically in how they fit within Hofstede’s cultural dimensions. As a result of this, if an employee enters a firm with extremely different norms they will experience a setting that is not only unfamiliar but they may fail to understand norms that they are unaccustomed to and are subsequently alien to them. As a result of this the firm may fail to meet the needs of the psychological contract, not because they don’t care but because some aspects of one nation aren’t as important for the other.

In spite of this, Hofstede (1984) explains that scientist believe many societies will become increasingly similar as all countries are becoming gradually exposed to the same technologies which are believed to play a large role in cultural change. This suggests that as a result of the technological advances that are arising, nations will slowly adapt to the same norms. However, it is more realistic to conclude that technological modernization is creating change which guides societies to similar developments. It is important to understand that this does not annihilate differences among societies and may even amplify them; this is due to

(23)

19

preexisting value systems managing technological modernization in a variety of ways (Hofstede, 1984). This suggest that although cultural norms create large differences between nations and globalization is amplifying these norms as they are being put in the same firm, it is also introducing other factors, such as technological change, that may even lead to societies evolving towards similar ways.

It has been made clear by Robinson and Rousseau (1994) that the psychological contract is made from observations, exchanges and explicit promises therefore it will be interesting to explore how a firm can use the initial interaction with employees in order to have more control over the construction of the psychological contract and potentially lessen the negative effects. One of the initial points of contact an employee has with the firm is the recruitment process, therefore the next section will explore the recruitment process and how this may be utilized to decrease the negative effects of the psychological contract breach.

5. Recruitment

Recruitment is the primary tool for attracting applicants and refers to an

organization’s activities carried out with the aim of identifying and attracting potential employees. As a result, the recruitment process impacts both quality and quantity of applicants (Acarlar & Bilgic, 2013). Job advertisements are a way of notifying potential applicants of job openings. The information presented in this form is important as it allows the job seeker to gain a prior understanding of what the job may entail. As a result, the messages in job advertisements can reduce any initial uncertainty. Mohamed, Singh, Irani and Darwish (2013) argue that the way in which employees are recruited, trained and retained are key success factors for any organization. Moreover, they believe this relationship is the foundation of sustaining a competitive advantage compared to its rivals. Additionally, Koch and McGrath (1996) identified that careful recruitment and selection have a positive

relationship with labor force productivity.

There are endless benefits accompanying effective and efficient recruitment and selection processes, and (as previously mentioned) Mohamed et al. (2013) argue these are critical success factors for organizations when choosing the right person for the job. If these practices are not used appropriately they can lead to demoralized and de-motivated

employees and other undesirable outcomes of which many are costly to an organization (Mohamed et al., 2013). Matthews and Redman (2001) introduce the “hidden” effects of employing an individual who is not appropriate for the role. Poor hiring decisions cause

(24)

20

havoc and this extends to sales figures, customer satisfaction and causes disharmony among reliable staff. Furthermore, employee turnover is not only costly to the organization, they are also disruptive as they disturb work routines (Matthews and Redman, 2001).

Therefore it has been made clear that the recruitment process is important in order to ensure that the right person is chosen for the job. What is more, it is necessary that both the candidate and the organization match in terms of what they seek from one another.

5.1 Organizational and Employee Fit

Pfeffer (1998) discovered the importance of selective hiring, suggesting that a better fit between organizational needs and employee skills and abilities can occur from careful recruitment and selection (as cited by Mohamed et al., 2013). What is more, Dawis, Lofquist and Weiss (1968) introduced their theory of work adjustments which can be used to explain why individuals may prefer a particular job. They propose that individuals strive to seek and maintain correspondence with their work environment. Mason and Belt (1986) describe correspondence in the work environment as “the individual fulfilling the requirements of the work environment and the work environment fulfilling the requirements of the individual” (page 426). They later emphasize the importance in correspondence suggesting that it leads to satisfactory work performance and satisfaction with the work. When applying the work adjustment model to the job search process one can assume that an individual will look to match their abilities to that required for the role. However, it is also suggested that the job seeker will look for a match between their personal needs and the nature of the work itself, thus it is the match between the individual’s needs and the job description (Mason and Belt, 1986). These findings suggest that a potential employee will search for a job that will best suit their needs and abilities, for example an individual who comes from a collectivist nation and thus prefers working in teams, is likely to be attracted to a firm that expresses the need for team work, and may be discouraged if they are required to work alone.

Moreover, it has been made evident that it is possible for organizations to limit employee turnover and undesirable outcomes at the start of an employee’s career by ensuring good fit between the organization and the individual. This can be implemented at the

recruitment stage by utilizing more stringent practices – one example of this is focusing on the content of the job advertisement (Mohamed et al., 2013). Job advertisements are a way of notifying potential applicants of job openings. The information presented in this form is important as it allows the job seeker to gain a prior understanding of what the job entails. As

(25)

21

a result, the messages in job advertisements can reduce any initial uncertainty (Acarlar and Bilgic, 2013). Moreover, it is also important to ensure that the information in the job advertisement relevant to the job and organization. This ensures that the vacancy is more favorable and is an opportunity for the organization to give more information before the employee constructs their psychological contract.

It has been made apparent that individuals aim to work in an environment that suits their needs, they will therefore search for and be attracted to an organization that suggests they will achieve this. If an employee believes that the organization will have a culture that fits theirs but in reality they are somewhat different, there may be a greater chance of a psychological contract breach because of unmet expectations.

5.2 Specificity of Information

There are typically two types of information available in recruitment advertising; information on the ability and requirements (job specification) and information regarding the work itself (job description). These sources of information can be made available to potential applicants in varying amounts of specificity and are believed to increase the probability of response as the level of specificity increases. It is also known that as specificity rises the more unqualified individuals will screen themselves out as they perceive a lack of match (Mason and Belt, 1986). Therefore, the more specific a job advertisement is, the more suited applicants will apply, leaving the less suited applicants to remove themselves from the process. Tom (1971) focuses especially on the second dynamic and implies that individuals analyze how their self-concept aligns with the organizational image, and then choose the organization accordingly (as cited by Mason and Belt, 1986). Therefore, in order to increase the chances of finding a match between job description and individual needs it may be necessary to increase the specificity of descriptions of both the job and the employee’s needs (Mason and Belt, 1986). This supports Dawis et al. (1968) concept of theory of work

adjustment, suggesting that a greater level of specificity of information will better enable a potential employee to assess whether the company is able to offer what they desire from an organization.

In addition to this Robinson and Rousseau (1994) have introduced the dangers of overselling the features of a job by insinuating that it will lead to biased understanding of what is actually involved in the ‘great’ job that was promised. Therefore this suggests that it is best to be totally honest when giving the two types of information that were previously

(26)

22

explained to be the main content of recruitment advertising – the job specification and job description. If these aspects of the advertisement are not accurate or over exaggerated in order to appear more attractive, employees are likely to be disappointed when the job is not what they expect. As a consequence this will lead to unmet promises and an increase in the perception of psychological contract violations.

Rousseau (1990) found that after recruitment an individual’s beliefs in terms of each parties obligations are impacted by the new employee’s career motives and intentions to stay within the organization. She gives the following example of “a person desiring long-term employment with a firm is likely to be party to a different set of commitments to the

employer and to perceive himself or herself party to more relational obligations than someone viewing employment as a stepping stone to another job. Whether the hiring process takes the form of a transaction or establishes an enduring relationship can influence the obligations new hires perceive” page 398. In addition, as previously mentioned, expectation differ from obligations, thus an employee who finds their work boring, after expecting it to be exciting, will feel disappointed, however they will not necessarily feel as though a promise has been broken. Yet when the individual perceives that an obligation has not been met, this will trigger a more emotional reaction (Rousseau, 1990).

Consequently, it has been made apparent that the specificity of information in a job advertisement will increase the chance of hiring the most appropriate candidate. Specific information allows candidates to remove themselves from the recruitment process if they believe they are not qualified enough for the role. It may also be the case that candidates who feel as though the organization does not fit their norms, or will not provide what they need will also not end the recruitment process. This in turn is likely to reduce turnover, thus avoiding these detrimental costs. As a result it is important to make the information truthful and specific as individuals will begin to construct their psychological contract.

5.3 Job Advertisement Content

A job advertisement can be displayed in a variety of medium, the effectiveness of this medium is dependent on the content (Matthews and Redman, 2001). They continue to stress that “advertisements that miss out on essential content may suffer seriously impaired

effectiveness” (Page 545). This further stresses that is it the content of the advertisement that is the most important aspect. Likewise, Askehave (2010) assesses the impact of

(27)

23

information about the work context, the firm’s social reputation, affirmative action programs, and having prompt communications with job applicants. Jennings, Werbel and Power (2003) suggest that the importance lies in being able to offer various types of benefits such as

insurance and flexible work arrangements. Whilst, Mathews and Redman (2001) express that advertisements that include long lists of candidate requirements, yet create an unclear image of what the organization offers, provide a poor start to the psychological contract between the employee and the organization. Consequently, as well as being specific about the job itself, candidates are interested in what more they can gain from the organization. It is therefore for this to be truthful as these are additional aspects that if promised and not fulfilled could lead to a breach of the psychological contract.

Advertisements that include company benefits, salary information and advertised more than one position received a larger number of applicants than advertisements lacking this content (Acarlar & Bilgic, 2013). This suggests that it is important for job seekers to have a large pool of information before even considering the job. Moreover, it suggests that

increased information and understanding throughout the employment process is an important aspect to most individuals. In addition to this, Behling, Labowitz and Gainer (1986) propose job choice was based on three dynamics; objectives factors (salary), company image and initial impressions of the organization (as cited by Mason and Belt, 1986).Additionally, vivid messages (through pictures), concrete language, messages that convey unexpected

information, messages that provide personally relevant information, and messages that are understandable and viewed as credible by the applicant are all listed by Breaugh and Starkie (2000) as attributes likely to appeal to potential applicants (as cited by Askehave, 2010).In addition, Rousseau (1990) suggests that an employee’s predispositions are likely to be reflected in their perceptions of acceptable contributions and entitlements. Therefore when joining an organization a new employee may have an idea of the benefits they will receive and the work they are required to put in based on what they have previously experienced. However, this may differ between firms, thus it is necessary for the new organization to clearly specify expectations such as effort required and possible benefits.

Matthews and Redman (2001) support this by expressing that adverts lacking fundamental information for potential applicants are limiting the recruitment process. In conjunction with this Acarlar & Bilgic (2013) argue that in the long run, individuals who receive more information about their job before they start are more satisfied than those individuals who receive less accurate and less complete information (p.51). In addition,

(28)

24

evidence shows that job advertisements containing more information are perceived as more appealing, and this increases further as the relevance of the information increases (Yuce and Highhouse, 1998 as cited by Acarlar & Bilgic, 2013). Furthermore, it is also important to ensure that the information in the job advertisement relevant to the job and organization. This ensures that it will attract best suited applicants and is an opportunity for the organization to give more information before the employee constructs their psychological contract.

Askehave (2010) as she highlights how organizational discourses, such as job advertisements and interviews reflect practices and values within an organization, thus they are a useful tool when attempting to create, sustain and change organizational reality. Moreover, an early study by Belt and Paolillo (1982) found that specificity of qualifications had little effect on response to job advertisement, whereas perception of a good corporate image had a strong positive effect (as cited by Mason and Belt, 1986). Therefore this shows that many applicants are attracted to the image of the company which also supports the idea previously mentioned by Dawis et al. (1968) that an individual will be attracted to an

organization that matches them personally and conveys the beliefs and ideas that they share. From this is has been made apparent that regardless of the medium used to advertise, the intentions of job seekers is influenced by the information in the job advertisement, and also impacts their perception of the organization in terms of compensation, organizational culture, training and development opportunities (Acarlar and Bilgic, 2013). It is advised that the job advertisement should play a key role in creating a corporate image of an organization, as opposed to simply expressing “help wanted” (Matthews and Redman, 2001). By using this opportunity a company is able to give a truthful image of the company and the job entail, this will allow the most suitable employees to apply for the job. It will also aid the employee into constructing a psychological contract that is realistic and has less chance of being unfulfilled as the recruitment offered truthful and realistic information.

5.4 Successful Recruitment in MNEs

Recruitment and selection are used by multinational enterprises (MNE) as major strategic international human resource management practices in order to coordinate and control global operations. They are also necessary to ensure the correct people are in charge of these operations (Mohamed, Singh, Irani and Darwish, 2013). However, Hsu and Leat (2000) found the differences in recruitment and selection across countries. They found that external recruitment agencies and executive search consultants are popular amongst British

(29)

25

firms, whereas this is rare in Taiwanese companies. A different study revealed that Japanese and Swiss firms fill positions within their firms by candidates from the home country, unlike the Netherlands, the UK and France who appeared to employ a greater spread of nationalities (Wong and Bimbaum-More 1994, as cited by Mohamed et al., 2013). They also found

distinct differences in HR practices such as staffing, training and career path design, between Western and Eastern companies. Such variations in recruitment preferences are likely to be a result of differences in culture suggesting they may be more effective in some nations than others.

International management teams are able to use their knowledge of local market conditions and internal organizational competence in order to overcome potential challenges that multinational enterprises may face during the recruitment and selection process

(Mohamed et al., 2013). They gave an example of multinational companies whose host country rank highly on the collectivist scale often prefer to recruit internally as this is said to endorse loyalty within the firm. In the particular situation of internal recruitment, the

company often prepares the candidate in advance in order to avoid competition between internal candidates, maintain harmony and avoid unwanted disruptions. What is more, organizations that look internally to recruit and actively prepare these employees for their new and higher position can improve the rates of employee turnover (Mohamed et al., 2013). Thereupon, although it has been made clear that different nations have opposing methods of recruitment, multinational enterprises are knowledgeable about the market in which they are operating and thus able to act accordingly.

A further reason as to why multinational enterprises are able to cope with a vast array of recruitment preferences and still able to manage successful recruitment, is that MNEs are predicted to be more strict in their recruitment and training and tend to be more rigorous when promoting individuals (Mohamed et al., 2013). MNEs also place a greater importance on training. Moreover, they create a stronger work culture by utilizing induction by

socialization and implementing buddy systems for mentoring (Mohamed et al., 2013).

Therefore, under the circumstances MNEs make many efforts to ensure that their recruitment is not jeopardized by the diversity of different nations.

A likely explanation for the differences in human resource practices across nations is a result of many factors. Their differences in national culture, external organizational factors (for example regulation by government institutions), internal organizational factors (such as

Exploring the relationship between the psychological contract breach, globalization and recruitment

Contents