An empirical Study of IT Industry Employee’s Psychological Contract Violation Theory Method and Computation Simulation

Abstract

IT companies generally have a higher turnover rate than other companies. It is thus vital to consider employees’ turnover intention in IT companies that rely on human capital. In particular, Chinese IT employees are featured with high psychological pressure. These employees will choose to give up current jobs if their psychological demands are unmet and they see the employees in other industries have better working conditions. The purpose of the study is to find how Chinese IT employees’ PPCV (Perceived Psychological Contract Violation) affects their turnover intentions and how organizational trust plays an intermediary role in the affective disposition. The paper surveyed the IT companies in Jiangxi Province, China and analyzed the data collected from 281 employees through SPSS 21.0 and AMOS 18.0 for theoretical methods and process simulation of psychological contract violation of Chinese IT industry employees. Three conclusions were drawn: First, an increasing number of IT employees think they will have a higher turnover intention, if they perceive psychological contract violations. Second, IT employees’ opinions of psychological contract violation are positively affecting their turnover intention. Despite all this, organizational trust reduces the impact of psychological contract violation on employees’ turnover intention. Third, the relationship between psychological contract violation and the turnover intention shows the turnover intention of employees with more positive emotions is less affected by psychological contract violation.