Global Economic Meltdown, Psychological Contract Breach and Workers’ Behaviour in Nigerian Manufacturing Organizations

Abstract

This study examined the impact of Global Economic Meltdown on the operations of manufacturing organizations, its impact on psychological contract breach, as well as the effect of such breach on workers’ behavior. The correlational study was conducted with a sample of 60 workers of selected manufacturing organizations in Port-Harcourt. The study outcome shows that: (1) there is a negative impact of global economic meltdown on manufacturing organizations’ operations (2) workers attribute the breach of the reciprocal exchange relationship with their organizations to the impact of the ongoing global economic meltdown; (3) organization-members’ job satisfaction at their place of work is negatively impacted by the breach of the reciprocal exchange relationship with their organizations; and (4) organization-members’ commitment towards their organization is negatively impacted by the breach of the reciprocal exchange relationship with their organizations. The study therefore recommends that manufacturing organizations should endeavor to evolve ways of cushioning the impact of the global economic meltdown on their operations to enable them fulfill their obligations to workers as defined in the exchange relationship that exist between both parties, as this is likely to enhance job satisfaction and workers’ commitment.