1997-10-01 | TSUI, AS; PEARCE, JL; PORTER, LW et al.
The article describes four approaches to the employee-organization relationship from the employer's perspective: quasi-spot contract, underinvestment, overinvestment, and mutual investment. An empirical study of employees from ten companies found that employees performed better on core tasks, demonstrated more citizenship behavior, and expressed higher affective commitment when working in overinvestment or mutual investment relationships compared to quasi-spot contract or underinvestment relationships. These results were obtained after controlling for other variables that could affect employee performance and attitudes.
The quasi-spot contract approach is characterized by short-term, purely economic inducements and well-specified contributions. Employees are expected to focus on core tasks and are not expected to engage in activities beyond their specified roles. In contrast, the mutual investment approach involves open-ended and long-term investments in both the employer and employee, with the employer offering extended consideration of the employee's well-being and career development. Employees in this relationship are expected to work on job assignments outside of prior agreements, assist junior colleagues, and accept job transfers when requested.
The underinvestment approach is characterized by short-term and specified monetary rewards with no commitment to a long-term relationship or investment in the employee's training or career. The overinvestment approach involves open-ended and broad-ranging rewards, including training and a commitment to provide the employee with career opportunities.
The study hypothesized that employees would perform best in the mutual investment relationship, followed by the overinvestment, quasi-spot contract, and underinvestment relationships. Employees in the mutual investment relationship were expected to demonstrate higher levels of organizational citizenship behavior, dependable continuance of employment, and affective commitment to the employer. Employees in the underinvestment relationship were expected to have the lowest levels of these outcomes.
The study also hypothesized that employees in the mutual investment relationship would report greater trust in coworkers than employees in any of the other three types of employee-organization relationships. The results of the study supported these hypotheses, indicating that the mutual investment approach offered the most advantage to employers in terms of favorable employee performance and attitudes. The underinvestment approach appeared to have the most disadvantages in terms of employee performance and attitudes. The quasi-spot contract approach offered a high level of performance on core tasks, while the overinvestment approach offered advantages on some outcomes, such as continuance of employment, but disadvantages on other outcomes, such as attendance.The article describes four approaches to the employee-organization relationship from the employer's perspective: quasi-spot contract, underinvestment, overinvestment, and mutual investment. An empirical study of employees from ten companies found that employees performed better on core tasks, demonstrated more citizenship behavior, and expressed higher affective commitment when working in overinvestment or mutual investment relationships compared to quasi-spot contract or underinvestment relationships. These results were obtained after controlling for other variables that could affect employee performance and attitudes.
The quasi-spot contract approach is characterized by short-term, purely economic inducements and well-specified contributions. Employees are expected to focus on core tasks and are not expected to engage in activities beyond their specified roles. In contrast, the mutual investment approach involves open-ended and long-term investments in both the employer and employee, with the employer offering extended consideration of the employee's well-being and career development. Employees in this relationship are expected to work on job assignments outside of prior agreements, assist junior colleagues, and accept job transfers when requested.
The underinvestment approach is characterized by short-term and specified monetary rewards with no commitment to a long-term relationship or investment in the employee's training or career. The overinvestment approach involves open-ended and broad-ranging rewards, including training and a commitment to provide the employee with career opportunities.
The study hypothesized that employees would perform best in the mutual investment relationship, followed by the overinvestment, quasi-spot contract, and underinvestment relationships. Employees in the mutual investment relationship were expected to demonstrate higher levels of organizational citizenship behavior, dependable continuance of employment, and affective commitment to the employer. Employees in the underinvestment relationship were expected to have the lowest levels of these outcomes.
The study also hypothesized that employees in the mutual investment relationship would report greater trust in coworkers than employees in any of the other three types of employee-organization relationships. The results of the study supported these hypotheses, indicating that the mutual investment approach offered the most advantage to employers in terms of favorable employee performance and attitudes. The underinvestment approach appeared to have the most disadvantages in terms of employee performance and attitudes. The quasi-spot contract approach offered a high level of performance on core tasks, while the overinvestment approach offered advantages on some outcomes, such as continuance of employment, but disadvantages on other outcomes, such as attendance.