Abstract:
Throughout recent years understanding an employee in the context of a workplace has become an
important topic of study for academia and practitioners. Research shows that employees that work
in the same work environment tend to develop similar psychological contracts however to
understand how it differs in effecting an employee’s mental health and personal consequences
when this contract is breached, I conducted this research. This research has examined this breach
when employees are experiencing transformational organizational change which causes the shift
in mindset. Impact of Change (IC) and Frequency of Change (FC) occurring in the organization
plays a role in the outcome the employee chooses. Outcomes discussed in this thesis, Employee
Exit Behavior, Employee Stress, and Employee Wellbeing. The data for this thesis was collected
from the Oil and Gas industry within reach of Rawalpindi and Islamabad using a cross sectional
research design method. Surveys were distributed in organizations undergoing transformational
change out of which 400 questionnaires were useable for the purpose of this research. Literature
shows there is an impact on variables; Employee Stress (ES), Employee Wellbeing (EWB), and
their intention to exit the organization through Employee Exit Behavior (EEB) when their
psychological contract is breached. It was noted that when impact and frequency of change are
higher, employee stress and employee exit intention will also be high. When impact and frequency
of change is high, employee’s wellbeing decreases. Within this writing, previously researched
variable Successful Changes in the Past (SCP) was for the first time introduced as a moderator.
Towards the end, theoretical and practical implications are discussed along with study limitations
and future recommendations.
