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Discharge Policy Information in the Job Offer Letter: Its Impact on Recruit Perceptions of Psychological Contract Formation and Organizational Attraction

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Abstract

Using a 2 × 2 design, this study incorporates psychological contract theory and the “good cause norm” to investigate discharge policy information and implied promises of job security on reactions to the job offer letter. Results indicate that while embedded implied promises significantly increase perceptions of organizational attraction relative to a control, they demonstrate no discernable effects on recruit perceptions of organizational psychological contract obligations. Furthermore, embedded at-will disclaimers, alone or in combination with implied promises, significantly reduce perceptions of organizational attractiveness and organizational psychological contract obligations. Implications are discussed.

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Author information

Authors and Affiliations

  1. Avatar Management Services, Macedonia, OH, 44056, USA

    Jessica McKinney

  2. Department of Management, Appalachian State University, 4078 Raley Hall, Boone, NC, 28607, USA

    Brian G. Whitaker

  3. Department of Management, Appalachian State University, 4065 Raley Hall, Boone, NC, 28607, USA

    Hugh Hindman

Authors
  1. Jessica McKinney
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  2. Brian G. Whitaker
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  3. Hugh Hindman
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Corresponding author

Correspondence to Brian G. Whitaker.

Additional information

We thank two anonymous reviewers for their helpful comments on an earlier version of this manuscript.

Appendices

Appendix A

Ms. / Mr. Applicant

Appalachian State University

Boone, NC, 28607

Dear Ms. / Mr. Applicant:

ABC would like to offer you the position of (assume this is a position you desire) in our organization. At ABC, we value each and every one of our employees.

Your initial compensation package includes a yearly salary of $47,915.83 and full medical and dental coverage through our company's employee benefit plan. In addition to this generous compensation package you will also be given a company car. You will be classified as an exempt executive-level employee. After 90 days you will become eligible to participate in ABC’s 401 (k) program.

As we discussed during your interviews, you will be assigned to our corporate headquarters. After completion of our six-week orientation and training program for new executives, you will report directly to Cynthia Coates.

Please let me know if you have any questions. We look forward to hearing from you.

Sincerely,

_________________________

Walter Wilson

Senior Vice-President

ABC Company, Inc.

If you accept our offer, please sign below and return one copy of this letter to my attention.

figure a

Appendix B

Ms. / Mr. Applicant

Appalachian State University

Boone, NC, 28607

Dear Ms. / Mr. Applicant:

DEF would like to offer you the position of (assume this is a position you desire) in our organization. At DEF, we value each and every one of our employees.

You will be classified as an exempt executive-level employee. Your initial compensation package includes full dental and medical coverage and an annual salary of $39,203.21. After 90 days you will be eligible for participation in DEF’s 401 (k) program.

As we discussed during your interviews, you will be assigned to our corporate headquarters. This position will require extensive travel and long hours. After completion of our six-week orientation and training program for new executives, you will report directly to Debra Donahue.

Please let me know if you have any questions. We look forward to hearing from you.

Sincerely,

_________________________

Steve Stephenson

Senior Vice-President

DEF Company, Inc.

If you accept our offer, please sign below and return one copy of this letter to my attention.

figure b

Appendix C

Ms. / Mr. Applicant

Appalachian State University

Boone, NC, 28607

Dear Ms. / Mr. Applicant:

GHI would like to offer you the position of (assume this is a position you desire) in our organization. At GHI, we value each and every one of our employees.

The beginning compensation package for this position includes an annual salary of $43,559.12, and full medical and dental coverage through our company's employee benefit plan. You will be classified as an exempt executive level employee. After 90 days you will be eligible for participation in GHI’s 401 (k) program.

As we discussed during your interviews, you will be assigned to our corporate headquarters. After completion of our six-week orientation and training program for new executives, you will report directly to Holly Hamilton.

Please let me know if you have any questions. We look forward to hearing from you.

This letter does not constitute a contract. Our company adheres to a policy of employment at-will. Your employment and compensation can be terminated, with or without cause, and with or without notice, at any time.

Sincerely,

_________________________

Joe Johnson

Senior Vice-President

GHI Company, Inc.

If you accept our offer, please sign below and return one copy of this letter to my attention.

figure c

Appendix D

Ms. / Mr. Applicant

Appalachian State University

Boone, NC, 28607

Dear Ms. / Mr. Applicant:

GHI would like to offer you the position of (assume this is a position you desire) in our organization. At GHI, we value each and every one of our employees. We are sure you will come to value the long-lasting relationship you develop with your colleagues. This is a company in which you can stay and grow. We hope this is the beginning of a long, rewarding, and mutually prosperous relationship.

The beginning compensation package for this position includes an annual salary of $43,559.12, and full medical and dental coverage through our company's employee benefit plan. You will be classified as an exempt executive level employee. After 90 days you will be eligible for participation in GHI’s 401 (k) program.

As we discussed during your interviews, you will be assigned to our corporate headquarters. After completion of our six-week orientation and training program for new executives, you will report directly to Holly Hamilton.

Please let me know if you have any questions. We look forward to hearing from you.

Sincerely,

_________________________

Joe Johnson

Senior Vice-President

GHI Company, Inc.

If you accept our offer, please sign below and return one copy of this letter to my attention.

figure d

Appendix E

Ms. / Mr. Applicant

Appalachian State University

Boone, NC, 28607

Dear Ms. / Mr. Applicant:

GHI would like to offer you the position of (assume this is a position you desire) in our organization. At GHI, we value each and every one of our employees. We are sure you will come to value the long-lasting relationship you develop with your colleagues. This is a company in which you can stay and grow. We hope this is the beginning of a long, rewarding, and mutually prosperous relationship.

The beginning compensation package for this position includes an annual salary of $43,559.12, and full medical and dental coverage through our company's employee benefit plan. You will be classified as an exempt executive level employee. After 90 days you will be eligible for participation in GHI’s 401 (k) program.

As we discussed during your interviews, you will be assigned to our corporate headquarters. After completion of our six-week orientation and training program for new executives, you will report directly to Holly Hamilton.

Please let me know if you have any questions. We look forward to hearing from you.

This letter does not constitute a contract. Our company adheres to a policy of employment at-will. Your employment and compensation can be terminated, with or without cause, and with or without notice, at any time.

Sincerely,

_________________________

Joe Johnson

Senior Vice-President

GHI Company, Inc.

If you accept our offer, please sign below and return one copy of this letter to my attention.

figure e

Appendix F

Ms. / Mr. Applicant

Appalachian State University

Boone, NC, 28607

Dear Ms. / Mr. Applicant:

GHI would like to offer you the position of (assume this is a position you desire) in our organization. At GHI, we value each and every one of our employees.

The beginning compensation package for this position includes an annual salary of $43,559.12, and full medical and dental coverage through our company's employee benefit plan. You will be classified as an exempt executive level employee. After 90 days you will be eligible for participation in GHI’s 401 (k) program.

As we discussed during your interviews, you will be assigned to our corporate headquarters. After completion of our six-week orientation and training program for new executives, you will report directly to Holly Hamilton.

Please let me know if you have any questions. We look forward to hearing from you.

Sincerely,

_________________________

Joe Johnson

Senior Vice-President

GHI Company, Inc.

If you accept our offer, please sign below and return one copy of this letter to my attention.

figure f

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McKinney, J., Whitaker, B.G. & Hindman, H. Discharge Policy Information in the Job Offer Letter: Its Impact on Recruit Perceptions of Psychological Contract Formation and Organizational Attraction. Employ Respons Rights J 24, 55–75 (2012). https://doi.org/10.1007/s10672-011-9168-0

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