Substantial evidence in the literature has shown that hospitality employees’ identification to their organizations is one of the main contributors of organization’s success and profitability. Recognizing the important role of employees’ organizational identification for businesses’ success and survival, a large number of studies have devoted to identify its important antecedents. Among these research efforts, however, research attention on whether organization’s ability to fulfill obligations for their employees affects the formation of employees’ organizational identification is still limited, especially in the context of hospitality industry. The dearth of research in this area in the hospitality literature is surprising. Since hospitality industry is known for its low pay, long work hours, demanding duties and customers and a high employee turnover rate, psychological contract, a perceptual, undocumented and mutual agreement between employees and employers (Robinson, 1996) seems extremely crucial for hospitality businesses to develop and manage their employees’ organizational identification. This study thus aims to address the void linkage between psychological contract and organizational identification in the hospitality literature. The current study also aims to identify two possible moderators which might strengthen/weaken the influence of psychological contract on organization identification, which are leader-member-exchange (LMX) and employees’ generational differences. In the literature, even LMX and organizational identification have respectively drawn lots of research interests, there are only few studies linking these two constructs together (Loi, Chan, & Lam, 2014) and none of these studies pays attention to LMX’s moderating effect. Also, even there already have a number of studies investigating different generational employees’ organizational identification in the literature, research efforts on the moderating effect of generational cohort employees belong to is still scarce (Lu & Gursoy, 2016). Therefore, studying the possible moderating effect of LMX and generational differences on the relationship between psychological contract and organization identification would address the above research gaps. Data of this study was collected using a self-administrated questionnaire in both paper work and online format, and participants of this study were 316 frontline employees from several 3 star hotels in Taiwan. Data was analyzed using descriptive analysis and hierarchical regression. The findings reveal that psychological contract breach is negatively related to organizational identification, and LMX can buffer such negative relationship. In addition, findings also show that Generation Y employees display a significantly lower organizational identification than Generation X employees when experiencing psychological contract breach by their employers. The findings of this study can make Taiwan service industry employers become more aware of the importance of psychological contract for personnel management. This study also provide several valuable implications for Taiwan hotel industry regarding how to wisely implement LMX to effectively manage employees psychological contract and organizational identification, as well as how to devise customized recruiting, selection and training programs for two different generational cohorts (Gen-Xer and Millennials).
|Effective start/end date
|2019/08/01 → 2020/07/31
- Psychological contract breach; Organizational identification; Leader-memberexchange (LMX); Generational difference
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