Impact of transactional, relational
and balanced contract on
affective commitment
Meaningful work as mediator
Nishant Singh
Department of Management (HR and OB), CMS Business School,
Jain (Deemed-to-be University), Bengaluru, India
Harsha Tyagi
Department of Humanities and Social Sciences,
Birla Institute of Technology and Science Pilani, Pilani, India, and
Umesh Bamel
HRM & OB, IIM Amritsar, Amritsar, India
Abstract
Purpose – This paper is aimed at examining the impact of three types of psychological contracts such as
transactional, relational and balanced contract on affective commitment by keeping meaningful work (MFW)
as a mediator in this relationship.
Design/methodology/approach – The data of 355 employees was collected from the large heavy Indian
manufacturing organizations. The mediation path was analyzed through SPSS macro computational tool, i.e.
PROCESS.
Findings – The result suggests that MFW partially mediates the relationship between all three types of
psychological contract and affective commitment.
Originality/value – The study adds value to research in organizational behavior and human psychology by
providing new insights on employee-employer relationships, MFW, and commitment.
Keywords Psychological contract, Meaningfulness, Commitment
Paper type Research paper
1. Introduction
India has attracted investors from across the globe because of its vast natural resources, cheap
and huge manpower, and strong economic fundamentals (Mehta and Rajan, 2017). The
manufacturing sector, with a share of 16 percent has helped in the significant growth of the
Indian GDP (Deloitte, 2016). Presently, the manufacturing sector accounts for only 12 percent
of the aggregate workforce, which is much below its actual potential (Kapoor, 2015). The
Indian government has envisaged a national manufacturing policy for enhancing the share of
manufacturing sector to 25 percent by 2025 and providing employment to 100 million people
by 2022 (Shanbaug, 2017). Despite the upsurge of this sector, several organizations still focus
on the hardcore production-oriented approach for maximizing their output (Singh and
Rangnekar, 2018). Employees not only encounter tough work conditions and hectic schedules,
but they also have to run heavy machinery. Moreover, the repetitive nature of mechanical
work undertaken in several shifts reduces meaningfulness of work, increases routine
monotonous work activity and which impacts their attachment with their organizations
(Singh, 2018). An “employee’s emotional attachment to, identification with and involvement in
the organization” is stated to be affective commitment (Allen and Meyer 1997).
Krishnan and Singh (2010) suggested that in the manufacturing sector, employee–
employer relationships are complex and play a crucial role in creating meaningfulness of
Meaningful
work as
mediator
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Received 5 December 2018
Revised 14 August 2019
14 January 2020
Accepted 31 January 2020
International Journal of
Productivity and Performance
Management
© Emerald Publishing Limited
1741-0401
DOI 10.1108/IJPPM-12-2018-0432