BROKEN EXPECTATIONS AND EXIT PLANS: PSYCHOLOGICAL CONTRACT BREACH IN THE HPWS–TURNOVER INTENTION NEXUS

High-performance work system (HPWS) are a set of HR practices aimed at cultivating high performance among the staff along with other favorable organizational and employee outcomes. In the present study, a particular employee outcome namely turnover intention is investigated with HPWS as an explanatory variable. The study also adds the psychological contract breach as another explanatory variable based on the notion that it is influenced by factors outside HPWS. The study utilized quantitative methodology and used survey as a key method of data collection. The focus of the study was selected call center from Islamabad, Pakistan (n=159). The first part of the results includes confirmatory factor analysis (CFA) which based on Cronbach alpha and Average Variance Extracted shows that our constructs had satisfactory reliability and convergent validity. Furthermore, the discriminant validity is also established using the Fornell & Larcker criteria. The path analysis result shows that HPWS dimensions including recruitment & selection (β=-.0367, P<.05); training & development (β=-.473, P<.05); promotion opportunities (β=-.237, P<.05); and autonomy (β=-.257, P<.05) exerted a negative and significant influence on staff turnover intentions. Furthermore, psychological contract breach exerts a positive and significant effect on staff turnover intention (β=.234, P<.05). The moderation result shows that HPWS dimensions and employee turnover Intention are partially moderated by psychological contract breach. These results partially support the idea that psychological contract breach is influenced by factors beyond HPWS