Abstract:
Over the past two decades, a large body of research investigated the effect of high performance work system (HPWS) on firm performance, employee attitude and behavior. At the same time, however, the prior research primarily focused on managerial reports of the implementation of HPWS at organizational level (here after called O-HPWS), ignored the role of experienced HPWS by the employee (here after called E-HPWS). Given the fact that employees were the actual receiver and practitioners of HR practices, only when HPWS had been understood accurately by employees, would it operate to elicit higher affective commitment and greater discretionary effort of employees, which in turn led to high firm performance. However, the role of E-HPWS has seldom been examined explicitly as a mediator between HPWS and psychological contract breach of employees; furthermore, relevant empirical research is scarce. Hence the research need for multilevel research to examine simultaneously the impact and influence of HPWS on employee’s psychological contract breach from the perspectives of employee and organization, and it is particularly important if we want to accurately understand how and why HPWS does influence the employee’s psychological contract breach, and we can then provide managers with actionable knowledge about how to use HR practices effectively to create and sustain high quality of employment relations. Additionally, according to the social information processing theory, employees use information collected from others in the work environment to guide their perceptions, attitudes, and behaviors. This research showed that the interactional justice climate played an important role between the O-HPWS and E-HPWS and as it adjusted the relations between them. In this research, on the basis of social information processing theory, the researchers examined the influence and mechanism of HPWS on employee’s psychological contract breach at both individual and organizational levels, and tested the proposed theoretical framework using the data of 39 enterprises from these municipalities directly under the central government or Provinces: Beijing, Shanghai, Shandong and Liaoning. In order to reduce the homologous error, the researchers collected information from two sources. 52 managers from the human resource management departments and 253 employees participated in the matched questionnaire survey. In each enterprise, an average of one manager reported O-HPWS and an average of six employees reported E-HPWS, interactional justice climate and psychological contract breach. The hierarchical analysis was finished with the software aid of AMOS 7.0, SPSS 21.0 and HLM 7.0. The results of the Hierarchical linear modeling showed that the O-HPWS was significantly negatively correlated with employee’s psychological contract breach and E-HPWS took part in full mediating role between the O-HPWS and employee’s psychological contract breach. Additionally, the climate of interactional justice moderated the relationship between O-HPWS and E-HPWS. Furthermore, the climate of interactional justice moderated the indirect effect of O-HPWS on employee’s psychological contract breach through E-HPWS. These results revealed that the managers should emphasize on building better climate of interactional justice during the process of implementing HPWS, and pay attention to the employee’s experience of human resource management practices, in order to reduce the influence of employee’s psychological contract breach effectively and achieve the desired firm performance.