An HRM model for enhancing psychological capital in South African organisations during a psychological recession

The rationale behind this study was to identify various positive Human Resource Management (HRM) practices that contribute to the development and enhancement of psychological capital (PsyCap) during a psychological recession. A psychological recession, which is defined as a negative cognitive and emotional condition perpetuated by prolonged socio-economic hardships and amplified by the media, (Bardwick, 2008) could negatively affect employees’ PsyCap. While there has been no systematic study of the impact of various HRM practices on PsyCap (Gupta, 2013), a need existed to investigate and formulate best HRM practices for the development of employees’ PsyCap during a psychological recession. Furthermore, this study also aimed to investigate the potential buffering effect of HRM practices on the negative experiences and perceptions associated with a psychological recession. This research study took the form of a quantitative, cross-sectional design, using a composite questionnaire to measure personal vulnerability and exposure to the negative experiences associated with a psychological recession, the organisation’s application of various positive HRM practices, and employees’ levels of PsyCap. The target population consisted of all permanent and contract clinical and support staff employed at 43 fixed Primary Health Care (PHC) clinics situated in the West Rand District Municipality (WRDM) (n = 318). Exploratory factor analysis (EFA) was employed to determine the factor loadings on the overall scales and based on these factor loadings, main factors were extracted. Reliability analysis indicated that the newly structured measurement instruments would produce consistent results with continued application. The hypotheses were tested through the application of Pearson’s product moment correlation analysis, structural equation modelling (SEM), multiple regression analysis and a one-sample t-test. The empirical results indicated that all respondents included in the study experienced some degree of a psychological recession. Although significant correlations were uncovered between psychological recession and PsyCap, personal exposure and vulnerability with regards to organisational change and psychological uncertainty was identified as a major factor that negatively affected employees’ PsyCap. The inferential results identified competence development practices as a crucial intervention for the enhancement of PsyCap during a psychological recession. Lastly, the inferential results revealed that employee recognition and empowerment are fundamental practices in order to negate the negative impact of a psychological recession. Based on the results of this study, organisations have to proactively respond to a psychological recession by re-evaluating the effectiveness of their HRM actions and practices, in order to effectively enhance and maintain the PsyCap of their employees during a psychological recession

The impact of human resource management practices on the psychological contract during a psychological recession

The aim of this study was to investigate the impact of Human Resource Management (HRM) practices on the psychological contracts of employees who have been negatively impacted by the widespread psychological recession. The psychological contract that exists between employees and organisations is brittle due to the psychological recession, which is defined as an emotional state in which employees feel extremely vulnerable to economic hardship. This contributes to a negative and cynical view of the present and an even bleaker view of the future. Breach of the psychological contract has severe negative consequences for employees and organisations. These include reduced employee well-being, trust levels, various organisational citizenship behaviours, increased cynical attitudes toward the organisation, and stronger intention to quit. The target population for the present study consisted of all permanent support staff working at an organisation that has recently went through a large-scale retrenchment exercise (n=52). A self-administered questionnaire was distributed amongst employees. The findings suggest that when the harsh effects of the psychological recession increase, employees are more likely to engage in various destructive behaviours at work due to breach and violation of their psychological contracts. Furthermore, the results indicated that an increase in the number of progressive HRM practices correlated with a decrease in breach and violation of the psychological contract. It was further revealed that the widespread psychological recession may make the employment relationship brittle and prone to breach and violation. The findings suggest that through the effective development and application of many explicit HRM practices, employees’ psychological contracts may become less fragile to breach and violation during a psychological recession

The impact of human resource management practices on the psychological contract during a psychological recession

The aim of this study was to investigate the impact of Human Resource Management (HRM) practices on the psychological contracts of employees who have been negatively impacted by the widespread psychological recession. The psychological contract that exists between employees and organisations is brittle due to the psychological recession, which is defined as an emotional state in which employees feel extremely vulnerable to economic hardship. This contributes to a negative and cynical view of the present and an even bleaker view of the future. Breach of the psychological contract has severe negative consequences for employees and organisations. These include reduced employee well-being, trust levels, various organisational citizenship behaviours, increased cynical attitudes toward the organisation, and stronger intention to quit. The target population for the present study consisted of all permanent support staff working at an organisation that has recently went through a large-scale retrenchment exercise (n=52). A self-administered questionnaire was distributed amongst employees. The findings suggest that when the harsh effects of the psychological recession increase, employees are more likely to engage in various destructive behaviours at work due to breach and violation of their psychological contracts. Furthermore, the results indicated that an increase in the number of progressive HRM practices correlated with a decrease in breach and violation of the psychological contract. It was further revealed that the widespread psychological recession may make the employment relationship brittle and prone to breach and violation. The findings suggest that through the effective development and application of many explicit HRM practices, employees’ psychological contracts may become less fragile to breach and violation during a psychological recession