Causes and consequences of psychological contract breach among grassroots employees in Shanghai's manufacturing industry during the pandemic

Cheng Meng and Toh, Pei Sung and Sharifah Rahama Amirul (2025) Causes and consequences of psychological contract breach among grassroots employees in Shanghai's manufacturing industry during the pandemic. International Journal of Academic Research in Business and Social Sciences, 7. pp. 2051-2073. ISSN 2222-6990

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Abstract

The appearance of the pandemic has led to a temporary paralysis of the world's manufacturing industry. Measures such as lowering employee wages, canceling employee promotion mechanisms, adopting remote work, uncompensated remote overtime, layoffs, and canceling employee benefits were mainstream methods at the time. Shanghai, where China's manufacturing industry is most concentrated, has to conduct online courts to deal with a large number of disputes between employees and companies. This study used the SEM structural equation model to conduct statistical analysis on 303 valid questionnaires of Shanghai grassroots employees to identify the factors that affect employees' perception of psychological contract violation and the complex consequences caused by such psychological contract violation. The final study found that the lack of distributive justice led to an increase in some employees' perception of corporate psychological contract violation, which in turn reduced their satisfaction and increased their willingness to leave. Satisfaction positively and significantly affects employee performance. However, the intention to leave does not affect employee performance. The research results call on companies to pay more attention to distributive justice and improve satisfaction and performance by reducing employees' perception of psychological contract violation.

Item Type:	Article
Keyword:	Human Resource, Psychological Contract Breach, Manufacturing Industry, Employee Performance, Employee Satisfaction
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD72-88 Economic growth, development, planning H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD4801-8943 Labor. Work. Working class > HD7795-8027 Labor policy. Labor and the state
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	SITI AZIZAH BINTI IDRIS -
Date Deposited:	11 Aug 2025 09:54
Last Modified:	11 Aug 2025 09:54
URI:	https://eprints.ums.edu.my/id/eprint/44819

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