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Hayton (2004) conceptualized discretionary HR
practices are those which imply optional invest-
ment in the human capital of the organization in
programs and practices such as those included in
the selection, training and development, participa-
tion and involvement, pay for performance, and
performance management initiatives.
In contrast to discretionary HR practices, non-
discretionary HR practices are administrative, are
considered a cost of doing business, and its activi-
ties are typically associated with mandated com-
pliance (Hayton, 2004). These more traditional
HR practices are transactional in nature and are
requirement of doing business (Hayton, 2004).
Examples of transactional practices include timely
administration and processing of payroll, enroll-
ment and administration of benefits, processing
worker compensation claims, etc. Both discre-
tionary and non-discretionary HR practices are
posited to influence employees' behavioral out-
comes such as organizational citizenship behavior
(OCBO and OCBI) and turnover intentions (Ben-
jamin, 2012; Hemdi, Hanafiah & Tamalee, 2013)
and organizational outcomes such as performance,
customer commitment, and organizational com-
mitment (Nadiri & Tanova, 2010).The core discre-
tionary HR practices used in this study include pay
for performance, staffing and selection, perform-
ance management, training and development, and
employee involvement.
& Briner, 2005). Most research uses the term ful-
fillment as the opposite concept of breach (Lam-
bert, Edwards & Cable, 2003). Studies within the
hotel industry found that found that psychologi-
cal contact have significant influence on turnover
intentions (Hemdi & Rahim, 2011) and affective
commitment (Hemdi & Rahman, 2010).
2.3 Organizational citizenship behavior
Organizational citizenship behavior (OCB) was
defined as “individual behavior that is discretion-
ary, not directly or explicitly recognized by the
formal reward system, and that in the aggregate
promotes the effective functioning of the organiza-
tion” (Organ, 1988: pg.4). Organ (1988) proposed
five-dimension framework OCB comprising altru-
ism, courtesy, conscientiousness, civic virtue, and
sportsmanship. Based on Organ's (1988) frame-
work, Williams and Anderson (1991) proposed a
two-dimensional framework of OCBO and OCBI.
Coleman and Borman (2000) proposed an inte-
grated model of OCB, in which the first category
includes the interpersonal citizenship performance
such as altruism and courtesy of Organ's (1998)
framework and is similar to OCBI of Williams &
Anderson (1991). The second category, organiza-
tional citizenship performance, includes Organ's
(1998) sportsmanship, civic virtue, and conscien-
tiousness pertaining to OCBO of Williams and
Anderson (1991). A review by Podsakoff, Macken-
zie, Paine, and Bachrach (2000) found that job atti-
tudes, task variables, and leadership behaviors are
strongly related to OCBs. Job satisfaction, organi-
zational commitment, and perceptions of fairness
appeared to be important determinants of OCBs.
In addition, task feedback, task routinization,
and intrinsically satisfying tasks were consistently
related to OCBs. However, prior research did not
adequately deal with HR practices as potential ante-
cedents of OCBs. Nevertheless, based on the data
obtained from hotels, Sun, Aryee, and Law (2007)
found high-performance HR practices are positively
related to service-oriented OCBs. Hemdi and Nasur-
din (2008) found that hotel employees' perceptions
of organizational justice have significant influence
on OCB intentions. Based on the above discussion,
the following hypotheses were proposed:
H1: Employee's perception of quality of discre-
tionary HR practices will be positively related to
OCBO and OCBI.
H2: Employee's perception of quality of discretion-
ary HR practices will be positively related to psycho-
logical contract fulfillment.
H3: Psychological contract fulfillment will be posi-
tively related to OCBO and OCBI.
2.2 Psychological contract
According to Rousseau (1995), the psychological
contract is individual beliefs, shaped by the organi-
zation, regarding terms of an exchange agreement
between an individual and the organization. Recent
research (Lee & Kim, 2010) considers psychologi-
cal contract to be composed of beliefs regarding
exchange relationships that are shaped by the
employee's experience in “current” organization.
MacNeil (1985) categorized psychological con-
tract into relational and transactional contracts.
Transactional contracts are short-term, purely of
economic focus, characterized by limited involve-
ment of both parties, and mostly job-task, and
contract-oriented. Relational contracts are long-
term and broad, as these entail exchanges of
socio-emotional resources and largely focused on
relationship and development. Researchers (Hoff-
man, Blair, Meriac & Woehr, 2007) suggest that the
two types of contracts are on rather independent
dimensions. The reported correlations in previ-
ous studies (Raja, Johns & Ntalianis, 2004) do not
strongly support that the two types of contracts
are bipolar. Psychological contract breach occurs
when an individual perceives an organization to
have failed to fulfill promised obligations (Conway
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