The Influence of Psychological Contracts on Organizational Commitment with Ethical Leadership as a Moderator Variable

Oct 13, 2025 by ludoplayers7.com 123 views

The Influence of Psychological Contracts on Organizational Commitment with Ethical Leadership as a Moderator Variable

Introduction

The success of an organization is heavily dependent on its workforce. In ideal conditions, employees should have a high commitment to the organization where they work, which can lead to the organization's growth and development. However, many organizations currently face challenges in the form of low levels of employee commitment. To understand this problem, it is essential to investigate the factors that cause low employee commitment. This study aims to analyze the influence of psychological contracts on organizational commitment and to find out whether ethical leadership can strengthen these influences.

Background

Organizational commitment is a crucial factor in determining the success of an organization. It refers to the degree to which employees are committed to their organization, its goals, and its values. When employees are committed to their organization, they are more likely to be motivated, engaged, and productive. On the other hand, low levels of employee commitment can lead to decreased productivity, increased turnover rates, and a negative impact on the organization's reputation.

Psychological contracts are perceptions and expectations held by employees about what they receive from the organization, including rewards, recognition, and development opportunities, in return for the contributions they make. When employees feel that their psychological contracts are met, they will tend to show a high level of commitment. Conversely, if employees feel that the contract is not met, they will experience dissatisfaction that can result in a decrease in commitment.

Ethical leadership serves to create a positive work environment in which moral and ethical values are prioritized. Leaders who apply ethical principles in decision making and daily interactions can increase employee confidence. When employees feel supported by ethical leaders, they tend to be more bound to organizational values and feel more responsible for organizational performance.

Methodology

This study used a survey involving 172 employees at the North Sumatra Bank to collect data on organizational commitment, psychological contracts, and ethical leadership. The survey used a scale that measures these variables, and the data was analyzed using statistical methods to determine the relationships between them.

Results

The results of this study showed that psychological contracts have a positive and significant influence on organizational commitment. Furthermore, ethical leadership is proven to act as a moderator in the relationship between psychological contracts and organizational commitment. This finding shows that the better the psychological contract that is understood and accepted by employees, the higher their commitment to the organization, especially if supported by ethical leadership.

Discussion

The findings of this study have several implications for organizations. Firstly, it highlights the importance of psychological contracts in determining employee commitment. Organizations should strive to create a positive and supportive work environment that meets the psychological contracts of their employees. This can be achieved by providing rewards, recognition, and development opportunities that are aligned with the expectations of employees.

Secondly, the study shows that ethical leadership plays a crucial role in strengthening the influence of psychological contracts on organizational commitment. Leaders who apply ethical principles in decision making and daily interactions can increase employee confidence and create a positive work environment. Organizations should prioritize the development of ethical leadership skills among their leaders to create a more positive and productive organizational culture.

Conclusion

In conclusion, this study highlights the importance of psychological contracts and ethical leadership in determining employee commitment. The findings of this study have several implications for organizations, including the need to create a positive and supportive work environment that meets the psychological contracts of employees and the importance of developing ethical leadership skills among leaders. By prioritizing these factors, organizations can increase employee commitment, create a more positive and productive organizational culture, and ultimately achieve long-term success.

Recommendations

Based on the findings of this study, the following recommendations are made:

Organizations should prioritize the development of psychological contracts that meet the expectations of employees.
Leaders should be trained in ethical leadership skills to create a positive and supportive work environment.
Organizations should prioritize the development of a positive and productive organizational culture that is aligned with the values and expectations of employees.

Limitations

This study has several limitations that should be acknowledged. Firstly, the study used a survey involving 172 employees at the North Sumatra Bank, which may not be representative of all organizations. Secondly, the study used a scale that measures psychological contracts, organizational commitment, and ethical leadership, which may not capture the full range of these variables.

Future Research Directions

This study highlights several areas for future research. Firstly, further research is needed to investigate the relationship between psychological contracts and organizational commitment in different cultural and organizational contexts. Secondly, further research is needed to investigate the role of ethical leadership in strengthening the influence of psychological contracts on organizational commitment.

References

Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71(3), 500-507.
Ehrhart, M. G. (2004). Leadership and procedural justice climate as antecedents of unit-level organizational citizenship behavior. Personnel Psychology, 57(3), 655-688.
Podsakoff, P. M., MacKenzie, S. B., & Bommer, W. H. (1996). Meta-analysis of the relationships between leader reward and punishment behavior and subordinate attitudes and performance. Journal of Management, 22(2), 295-317.

Appendices

Appendix A: Survey Instrument
Appendix B: Data Analysis Procedures
Appendix C: Results of Data Analysis
Frequently Asked Questions: The Influence of Psychological Contracts on Organizational Commitment with Ethical Leadership as a Moderator Variable

Q: What is a psychological contract?

A: A psychological contract is a set of perceptions and expectations held by employees about what they receive from the organization, including rewards, recognition, and development opportunities, in return for the contributions they make.

Q: Why is organizational commitment important?

A: Organizational commitment is a crucial factor in determining the success of an organization. It refers to the degree to which employees are committed to their organization, its goals, and its values. When employees are committed to their organization, they are more likely to be motivated, engaged, and productive.

Q: What is the role of ethical leadership in organizational commitment?

A: Ethical leadership serves to create a positive work environment in which moral and ethical values are prioritized. Leaders who apply ethical principles in decision making and daily interactions can increase employee confidence. When employees feel supported by ethical leaders, they tend to be more bound to organizational values and feel more responsible for organizational performance.

Q: How can organizations create a positive and supportive work environment?

A: Organizations can create a positive and supportive work environment by providing rewards, recognition, and development opportunities that are aligned with the expectations of employees. Leaders should also be trained in ethical leadership skills to create a positive and supportive work environment.

Q: What are the implications of this study for organizations?

A: The findings of this study have several implications for organizations. Firstly, it highlights the importance of psychological contracts in determining employee commitment. Organizations should strive to create a positive and supportive work environment that meets the psychological contracts of their employees. Secondly, the study shows that ethical leadership plays a crucial role in strengthening the influence of psychological contracts on organizational commitment.

Q: What are the limitations of this study?

A: This study has several limitations that should be acknowledged. Firstly, the study used a survey involving 172 employees at the North Sumatra Bank, which may not be representative of all organizations. Secondly, the study used a scale that measures psychological contracts, organizational commitment, and ethical leadership, which may not capture the full range of these variables.

Q: What are the future research directions for this study?

A: This study highlights several areas for future research. Firstly, further research is needed to investigate the relationship between psychological contracts and organizational commitment in different cultural and organizational contexts. Secondly, further research is needed to investigate the role of ethical leadership in strengthening the influence of psychological contracts on organizational commitment.

Q: What are the practical implications of this study for leaders and organizations?

A: The findings of this study have several practical implications for leaders and organizations. Firstly, leaders should prioritize the development of psychological contracts that meet the expectations of employees. Secondly, leaders should be trained in ethical leadership skills to create a positive and supportive work environment. Finally, organizations should prioritize the development of a positive and productive organizational culture that is aligned with the values and expectations of employees.

Q: What are the key takeaways from this study?

A: The key takeaways from this study are:

Psychological contracts play a crucial role in determining employee commitment.
Ethical leadership strengthens the influence of psychological contracts on organizational commitment.
Organizations should prioritize the development of psychological contracts that meet the expectations of employees.
Leaders should be trained in ethical leadership skills to create a positive and supportive work environment.
Organizations should prioritize the development of a positive and productive organizational culture that is aligned with the values and expectations of employees.

Q: What are the future directions for this research?

A: The future directions for this research are:

Investigating the relationship between psychological contracts and organizational commitment in different cultural and organizational contexts.
Investigating the role of ethical leadership in strengthening the influence of psychological contracts on organizational commitment.
Developing and testing interventions to improve psychological contracts and organizational commitment.
Investigating the impact of psychological contracts and organizational commitment on organizational performance and outcomes.