Impact of Psychological Contract Violation on Employee Well-being: The Case of Service Industry Employees in Taiwan

Abstract

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Nowadays, the competitive environment forced companies to create competitive advantage and further impacts traditional labor-employment relations. Therefore, in order to understand modern labor-employment relation, this research examined the relationship between psychological contract violation and employee well-being. Furthermore, this study added emotional intelligence as moderator to clarify whether the impact of psychological contract violation and employee well-being will be adjusted by emotional intelligence. Samples of this study were 257 full-time employees working in service industry in Taiwan. Quantitative research design and online-based questionnaire were adopted to test the research hypotheses. Researcher used SPSS 23.0 to analyze the data, the result indicated that employees who perceived psychological contract violation from their employers will result in the reduced employee well-being. However, the results did not find a significant moderating effect of emotional intelligence for the relationship between psychological contract violation and employee well-being. Through this study, we can understand the importance of psychological contract issue in organizational management field and provides a new direction of modern labor-employment relation in human resources management for domestic service industry.