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Types of Labour Contract and its Importance on Commitment and Engagement – a Case Study from Portugal |
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PP: 31-42 |
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Author(s) |
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Eduardo Tomé,
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Abstract |
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In this paper we present the results of a quantitative study done in a company located in Portugal. The focus of
the analysis was the relation between Organizational Commitment and Work Engagement and the type of Labor Contract.
According to the theory both the commitment and engagement are reinforced by long and permanent contracts; also in long
contracts the psychological bond with the organization is stronger. The model is as simple as it is important because in a
time of economic uncertainty organizations try decrease costs by hiring less permanent workers; this in turn may decrease
organizational commitment and work engagement, through a lesser form of psychological contract and therefore be
detrimental to the organization itself, in terms of returns; the question becomes even more important when the same
organization may have workers with short and long term contracts side by side performing exactly the same tasks. The
results of the study confirm our worst expectations – workers with short term contracts feel less committed and are less
engaged; also, they feel less linked with the organization in affective terms and they mainly stay there by calculation. This
finding is important and should be taken in consideration by managers and policy makers – in the long run, commitment
and engagement are essential to the survival of organizations, the well-being of workers and the prosperity of societies, so
in the long run, short term contracts are not at all the path to prosperity. |
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