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DOI: 10.1177/0143831X07076111
2007 28: 212 Economic and Industrial Democracy
Thomas Rigotti, Kathleen Otto and Gisela Mohr
Justice and Trust: Possible Reasons and Consequences
West Differences in Employment Relations, Organizational East
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EastWest Differences in Employment
Relations, Organizational Justice and Trust:
Possible Reasons and Consequences
Thomas Rigotti, Kathleen Otto and Gisela Mohr
University of Leipzig
In a cross-sectional questionnaire study with 245 employees from
West Germany and 357 employees from East Germany, the inferior
labour market and economic situation in East Germany could be
shown to be related, as expected, to the psychological contract, with
a poorer delivery of the deal and lower levels of justice and trust.
Affective commitment, on the other hand, was shown to be higher in
the East than in the West German sample. Moderated multiple
regression analyses revealed that the cognitive perception of
psychological contract breaches is less related to emotional strain and
distributive justice in the East German than in the West German
sample. Results are discussed within the framework of economic and
normative differences, and also with reference to social exchange
theories.
Keywords: commitment, East Germany, justice, psychological contract, trust
Introduction
On 31 August 1990, the Federal Republic of Germany (FRG) and
the German Democratic Republic (GDR) signed the contract of uni-
cation. Two systems merged together, with enormously different
economies and labour markets. After the reunication of the two
German states the whole economic, corporate, legal and insti-
tutional system of West Germany was transported virtually
unchanged to the East. The adaptation process to the new demands
turned the economy of East Germany completely on its head. In
Economic and Industrial Democracy & 2007 Uppsala University, Sweden,
Vol. 28(2): 212238.
DOI: 10.1177/0143831X07076111
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addition to these massive economic changes, the forced implementa-
tion of the entire West German system continues to be perceived by
many as being unfair. East Germans did not have a voice, i.e. they
were not asked whether they accepted or rejected at least some of
the West German institutions. On the contrary, even those struc-
tures established in the former GDR that could be seen as being
more progressive (e.g. shorter education to get a university entrance
diploma) were simply abolished. Thus, it is questionable whether or
not East Germans can develop trust and perceive justice in the new
economic, corporate, legal and institutional system.
This study consequently aimed at exploring and comparing the
perceptions of East and West German employees regarding the
exchange of promises with employers (psychological contract), orga-
nizational justice and trust, and the impact on work-related out-
comes. We assume that differences in perceptions between East
and West Germany are related to different conditions on the
labour market, as well as differences in values and norms.
East Germany vs West Germany: Are There Still Differences?
Shortly after unication, tremendous economic modications began
in East Germany due to the fact that its industry still relied on mass
production and its service sector was underdeveloped. Nonetheless,
nearly 15 years after the unication have passed and differences
between the eastern and western parts are still glaringly apparent.
Today, unemployment rates in the new federal states are about
10 percent higher than in the old federal states. Looking only at
the German territorial states, we nd unemployment rates between
6.2 and 10.2 percent in the western and 16.7 and 20.5 percent in
the eastern parts of Germany (Statistische A
mter des Bundes und

der La nder, 2005). The discrepancies in these rates surely speak
for themselves.
Furthermore, approximately 44 percent of the East German
unemployed are long-term unemployed compared to (only) 35 per-
cent of the West German unemployed (Statistisches Bundesamt
Deutschland, 2005). The situation is not only more critical for
trained East Germans but also for school students and trainees
from the new federal states who are planning to start vocational
training or to enter the labour market. Only 30 percent of the East
German trainees can assume that they will get a permanent contract
Rigotti et al.: Organizational Justice in East and West Germany 213
after nishing their vocational training (Gru nert and Lutz, 2003),
and for only half of the East Germans of the same age group do
jobs exist at all (Lutz, 2001). To sum up, the cited statistics illustrate
that the economic and labour market situation in East Germany
seems to be much worse than in the West.
In addition to the aforementioned structural distinctions, differ-
ences can be expected on the individual level with respect to personal
history and attitudes towards work and family resulting from the
differences in the socialization processes: Although linguistically
and historically one people, 50 years of very different economic sys-
tems led people to perceive the nature of work quite differently
(Kirkcaldy et al., 1999: 121). For example, East Germans in general
perceive higher job insecurity (Otto and Dalbert, forthcoming) than
West Germans, and this independent of their professional biography
and actual work situation (e.g. current position, frequency of un-
employment). Consequently, they value job security much higher
than West Germans (Heyn et al., 1997), and prefer secure jobs
over jobs that demand, among other things, a lot of responsibility
or autonomy at work (Maier et al., 1994). Moreover, it was found
that East Germans show higher uncertainty avoidance (Danne,
1996). The economic transitions in East Germany were also con-
nected to avoidance of individual responsibility (Frese et al., 1997).
It has been reported that workforces in East Germany show high
organizational commitment (Mesner-Andolsek and Stebe, 2004)
and possess an increased readiness to agree to concessions (Brixy
and Christensen, 2002). In an EastWest comparison, they were
more ready to practise a job that was below their professional
qualication or to accept changing working times, longer journeys
to get to work and less satisfying working conditions. However,
they were less ready to tolerate nancial penalties. This should be
seen in light of the fact that there is still a wage gap between East
and West Germany, which is more accentuated for women, who
earn 75 percent of the mens wages in the western parts and 95 per-
cent of the mens wages in the eastern parts (Lu hrig, 2002).
Although a general trend towards individualism can be observed
all across Europe (see Guest, 2004), there is some evidence to suggest
that East and West Germans still differ on the collectivistic-
individualist dimension, with higher scores on a collectivistic orien-
tation in the eastern part, even among students who had only spent
their very early childhood years in the former GDR (Spie and
214 Economic and Industrial Democracy 28(2)
Bru ch, 2002). Overall, it can be assumed that people in the eastern
part of Germany are likely to have different perceptions of employ-
ment relations due to the diverse socialization and the different
labour market conditions they experienced (see Borg and Braun,
1996; Frese et al., 1997).
Psychological Contracts
Psychological contracts have become a prominent theoretical frame-
work for the description of individually perceived employment
relationships. The psychological contract (PC) is dened as an indi-
viduals belief about mutual obligations in the context of the rela-
tionship between employer and employee (Rousseau, 1990: 391).
Those obligations implied in the employment relationship may
also include the perception of promises and their fullment, which
we call the delivery of the deal (see Guest, 2004). Albeit, we agree
with a social exchange approach of psychological contracts, includ-
ing mutuality, in this article we limit our scope to organizational
inducements, i.e. employers promises and obligations as they are
perceived by employees. Both positive effects of contract fullment
on work-related attitudes and citizenship behaviour, as well as nega-
tive outcomes of contract violation have formed the core of empiri-
cal studies over the past few years (see Lester et al., 2002).
Recent empirical studies have shown that individual traits inu-
ence the perceptions of PCs, as well as moderating the effects of a
perceived breach on diverse outcomes (Ho et al., 2004; Raja et al.,
2004; Rigotti, 2005). When comparing samples from different
nations, cultures or, in our case, federal states, the underlying
assumption is that contextual factors have an impact on collectively
shared norms and values within one group, which may then explain
differences between two groups.
Our behaviour is based upon cultural values and norms (Schein,
1992), which form individual perceptions about how things ought
to be or how one should behave. Thomas et al. (2003) assume that
cultural values may have an impact on the formation of PCs.
According to these authors, culture may inuence the perception
of PCs via the shaping of cognitions and motives. Rousseau and
Schalk (2000) postulate that the societal framework may inuence
the zone of negotiability of PCs. As we have the same legal employ-
ment regulations in all of Germany, we assume potential differences
between East and West Germany to be caused by structural differ-
ences (like unemployment rates, union density, economic growth
rates) and/or socialization. These possible determinants (culture
and economy) may to some extent lead to different hypotheses
when it comes to comparing East with West Germany.
Cross-national research on PCs has so far focused mainly on the
description of employment relations in different societal contexts
(e.g. Rousseau and Schalk, 2000) and failed to establish theory-
based comparative studies. First, comparative studies, however,
point towards the cultural sensitiveness of the PC concept. Kickul
et al. (2004), for example, report differences in the perceptions of
PCs of American and Hong Kong Chinese, where Americans
placed higher importance on PC outcomes but also perceived
fewer breaches.
Union density, how easy it is to ll a vacancy, the regional un-
employment rate, the qualication structure of potential employees
are all factors that may be connected to the establishment of a PC
for both partners. Employers who are not depending on the long-
term commitment of their employees, because open vacancies can
easily be lled, may give fewer pledges. If we follow this line of argu-
mentation with respect to the inferior labour market conditions in
East Germany as compared to West Germany, we can expect
employers to need to give fewer promises in order to nd and
keep a qualied workforce, and thus we can expect employees in
East Germany to perceive a lower delivery of the deal regarding obli-
gations and promises of their employers:
H1: Employees in East Germany report a lower delivery of the deal
of employers obligations and promises compared to West
German employees.
Perceived breaches of PCs should have greater effects in situations
where employees have high expectations towards organizations. It is
possible that employees perceive a breach of promises without
experiencing a strong emotional response to this event (see Morrison
and Robinson, 1997). As discussed in the introduction, people in the
East were found to possess an increased readiness to agree to conces-
sions (Brixy and Christensen, 2002) and should therefore react to
breaches with lower levels of strain than West Germans. This
would also be in line with the proposition that collectivists will have
a higher overall threshold for the perception of a PC violation than
will individualists (Thomas et al., 2003: 461). Low values in the
delivery of the deal can also be interpreted as a breach of perceived
promises. We therefore assume:
H2: East Germans experience lower emotional strain when perceiv-
ing a low delivery of the deal of the psychological contract than do
West Germans.
The perception of mutual promises and obligations is closely
linked to perceived justice and trust in the social exchange process
between employers and employees (see Kickul et al., 2001; Robin-
son, 1996). Hence, we also expected to nd differences in perceptions
of organizational justice and trust between East and West German
employees. Therefore, in the following we would like to give brief
denitions of these constructs and report some theoretical and
empirical grounds that led us to our hypotheses.
Organizational Justice and Trust
Organizational justice, in the psychological connotation, is an indi-
viduals perception concerning the allocation of resources (distribu-
tive justice), the implementation of changes and procedures
(procedural justice) and the social interaction (interactional justice)
of people in the workforce (see Folger and Cropanzano, 1998).
Justice and fairness are properties that exist largely in the eye
(and the mind) of the beholder (Morris and Leung, 2000: 101).
Numerous investigations have shown that distributive and pro-
cedural justice cognitions are relevant for evaluating work-related
attitudes (e.g. Tremblay and Roussel, 2001; Younts and Mueller,
2001). Studies focusing on distributive justice measured how jobs,
wages or career advancements should be distributed if they are to
be perceived as being fair, while studies from the procedural justice
perspective looked more at the effects of the level of employees par-
ticipation in the decision-making within the organizations (for a
review, see Colquitt et al., 2001). Distributive justice perceptions
are related more to cognitive, emotional and behavioural reactions
to particular outcomes, whereas procedural justice appears to be a
stronger predictor for reactions towards the organization as a
whole. Interactional justice is something that seems to affect the
perception of the direct supervisor or source of justice (see Cohen-
Charash and Spector, 2001). Others found justice to act as a media-
tor between leadership behaviour and trust (e.g. Pillai et al., 1999).
And trust, to continue this path, has again been found to mediate
between justice and work-related outcomes (e.g. job satisfaction or
commitment, Aryee et al., 2002).
Fischer and Smith (2004) could nd greater perceived justice
among British employees than among East German ones, and pos-
tulated that individual values may play a moderating role: Thus,
the perception of justice is an interaction between the actions of
authorities and individuals values (Fischer and Smith, 2004: 672;
see also Fischer, 2004). Several authors reported cultural differences
in effects of perceived organizational justice (e.g. Brockner et al.,
2001; Tyler et al., 2000). Regarding these earlier empirical ndings,
and also the described inferior labour market situation in the eastern
part of Germany (higher unemployment rates, lower career pro-
spects, higher job insecurity and lower wages), we expected to nd
lower values of perceived justice in the East as compared to the
West:
H3: Employees in East Germany report lower levels of justice than
do West German employees.
Whether unmet promises result in attitudinal and behavioural
reactions may strongly rely on the justice judgement (see Morrison
and Robinson, 1997). We expect that the relation between cogni-
tively perceived breach of contract and perceptions of justice
should be stronger in the West German sample than in the East
German sample.
H4: Delivery of the deal of psychological contracts is more strongly
related to justice perceptions in West than in East Germany.
A further important construct, when looking at the quality of
employment relationships, is trust (e.g. Guest, 2004; Robinson,
1996). In line with the previous arguments, we also expected to
nd differences in perceptions of trust between the East and West
German samples. Even though there is less empirical evidence for
this relation than for organizational justice, both constructs are
closely linked, i.e. they are based on one another, in the sense that
trust cannot be developed without perceiving justice and, in turn, that
trusting other people in exchange relationships itself strengthens
the perception that justice will be delivered in the long term (for a
review, see Lewicki et al., 2005). Thus, we derive our hypothesis
from the ndings of organizational justice research:
H5: Employees in East Germany report lower levels of trust than
West German employees.
While we assume that delivery of the deal is more strongly linked
to perceptions of justice in the West as compared to the East
German sample (H4), we do not expect a moderating role of being
East German in the relationship between delivery of the deal and
trust.
Even though trust is closely linked to justice it is clearly a different
construct. Besides the justice component, many other factors enhance
the development of trust, like openness (the willingness to be open
and transparent in ones actions and intentions), integrity (adher-
ence to principles and willingness to follow through on commit-
ments), benevolence (the desire to do good towards the other) or
competency (having skills and capabilities in a key relationship con-
text) and so on (for a review, see Lewicki et al., 2005). Looking at the
components of trust, there is no reason to expect that a perceived
contract breach should have a more negative meaning for employees
in West Germany compared to those in East Germany
Differences in Attitudes between East and West
Despite the disadvantaged position of East Germany, organ-
izational commitment is reported to be higher in East than in West
Germany (Mesner-Andolsek and Stebe, 2004). Wasti (2003), who
employed a Turkish sample and focused on an individual level,
reports a substantial positive association of horizontal collecti-
vism and affective commitment (N 801890, r :29, p < :001).
A collectivistic cultural background should therefore predict
higher organizational commitment:
H6: On average, East German participants report higher affective
commitment than West Germans (which should be true even
when background variables are controlled for).
There is no theoretical or empirical evidence, however, to support
the idea that perceived contract breaches, organizational justice per-
ceptions or trust, and their association to work-related attitudes,
should generally differ between distinct groups (e.g. cultures,
nations). Favourable correlates of perceived justice, such as trust
or commitment, have been found across different country samples
(see Morris and Leung, 2000).
Method
Sample
The sample is part of the research project PSYCONES. Data were
gathered in 33 organizations from the educational, retail and food
sectors across Germany in 2004. In these three sectors we have
(1) private companies as well as public organizations, (2) a broad
variety of educational and skill levels and (3) manufacturing as
well as service orientations. Thus, central features across the sectors
match, leading to comparable samples of employees working in the
33 organizations. Overall, we gathered data from 643 employees.
As we were interested in distinguishing East and West German
employees, we examined our East and West German participants
further. In West Germany, 262 employees from 14 organizations,
and in East Germany, 381 employees from 20 organizations, par-
ticipated. However, we found 24 persons now working in East
Germany who did not grow up in the former GDR, and 17 persons
who grew up in the former GDR but were now working in West
Germany. In accordance with our aim to compare the East and
West German samples (based on both economic and value-
differences), we focused only on those individuals who had not
moved to the respective other part of Germany. Consequently, we
excluded the movers from our sample, which then resulted in
N 245 employees from West Germany and N 357 employees
from East Germany. Almost half of the respondents (45 percent)
had a non-permanent employment contract.
The percentage of females in the West German sample, 35 per-
cent, was far below the share in the East German sample, which
was 62 percent (
2
1 43:40, p < :01). There were more blue-
collar workers in the West German sample (38 percent as compared
to 16 percent,
2
1 38:80, p < :01), and the average age was lower
in the West (M 35:15, SD 11:69), than in the East (M 38:93,
SD 11:89; t 3:83, p < :01; see Table 1 for details). Moreover,
the educational background was, on average, higher in the East
German sample (M 4:16, SD 1:14) than in the West
(M 3:45, SD 1:15, t 7:47, p < :01), measured against the
international classication of educational levels, ISCED (OECD,
1999). Therefore, we control for these differences in all multivariate
analyses.
Instruments
Controls. Age was assessed as a continuous variable and concate-
nated in ve age categories for multiple classication analyses.
Gender is a dichotomous variable with 0 for females and 1 for
TABLE 1
Sample Characteristics after Exclusion of People Who Had Moved to the Respective
Other Part of Germany
West East
N
Organizations
N
Employees
N
Organizations
N
Employees
Food 7 142 2 51
Retail 2 20 9 171
Education 5 83 9 135
Total 14 245 20 357
Percentage blue-collar 38% 16%
Percentage females 35% 62%
Age M 35:15
SD 11:69
M 38:93
SD 11:89
Educational level
a
Lower secondary level 22% 7%
Upper secondary level 42% 28%
Post-secondary level 5% 6%
First stage of tertiary
education
31% 50%
Second stage of tertiary
education
0% 5%
a
Levels according to the international educational classication scheme ISCED (OECD, 1999).
males. Type of contract is a dummy, with 0 representing temporary
and 1 permanent contracts. Position, albeit assessed on six levels, is
also used as a dummy, contrasting blue-collar workers (1) with
others (0). Educational level was measured by using a combination
of school and vocational education and transformed to the six levels
of the international standard scheme, ISCED (OECD, 1999). As
usual, we considered this measure to be metric. The regional un-
employment rate connected to the participating organizations was
gathered in October 2004 from the ofcial websites of the respec-
tive towns. The unemployment rate ranged from 3.80 percent to
19.70 percent.
Delivery of the deal. Respondents were asked to indicate whether
the organization had committed itself to a diverse range of 15 pro-
mises. Seven topics were covered: content of the job, employment
relationship, compensation, advancement, participation, social rela-
tionship and workfamily balance. Our subjects were requested to
answer the 15 items after having been given the instruction Has
your organization promised or committed itself to . . ., e.g. . . . pro-
vide you with a reasonably secure job? Answers could range from
0 no, in cases where employees perceived no promise, and
from 1 yes, a promise was given but not at all kept to 5 yes,
promise given and fully kept to rate the fullment of the promise
(see Rigotti and Mohr, 2004). Delivery of the deal is operationalized
by computing the mean of promise keeping for every individual,
with values ranging from 1 to 5. We performed factor analyses
based on tetrachoric correlations (see, for example, McLeod et al.,
2001) using the programme Testfact (Bock et al., 2003) on the
dichotomous answers. Although there was some evidence for a
two-factor solution (Eigenvalues: 8.86, 1.46, 0.93), a single factor
explains 56 percent of the variance. The ratios of chi-square and
degrees of freedom dropped only slightly from 2.52 (
2
1544:42=
d:f: 612 for one factor), to 2.15 (
2
1282:73=d:f: 598 for two
factors), applying 100 iterations. Nevertheless, even after rotation of
factor loadings, there were many cross-loadings of items. For the
one-factor solution all loadings were greater than .60. Hence, for
the purpose of this study the use of the measure as only one under-
lying latent construct seems to be justied. Analyses of internal con-
sistencies (using codings from 0 to 5) yielded alphas of .87 (East) and
.92 (West).
Organizational justice. Three dimensions of organizational justice
were assessed by single or two-item measures (items were taken
from Guest and Conway [2002], who considered these items to
reect only one latent construct, fairness). Distributive justice was
reected by the two items Overall, do you feel you are rewarded
fairly for the amount of effort you put into your job? and Do
you feel you are paid fairly for the work you do?, which showed a
correlation of r :80 (p < :01), and yielded alphas of .88 (West)
and .89 (East). Procedural justice was assessed with the item Do
you feel that organizational changes are implemented fairly in
your organization?; and interactional justice with the item, Do
you feel fairly treated by managers and supervisors? The response
format ranged from 1 not at all to 5 totally. The correlations
between the three dimensions of justice (r
dp
:40, r
di
:41,
r
pi
:46, p < :001, N 590599) are in line with ndings of
Cohen-Charash and Spectors (2001) meta-analysis and underpin
the validity of the one- and two-item measures respectively (see
Table 2).
Trust. To measure trust, we used a subset of three items from
Guest and Conway (2002; e.g. In general, how much do you trust
your organization to keep its promises or commitments to you
and other employees?). Answers could be given on a ve-level
scale ranging from 1 = not at all to 5 = totally. The scale yielded
alphas of .79 in both subgroups.
Commitment. A four-item measure was used to assess affective
commitment (Cook and Wall, 1980; e.g. I am quite proud to be
able to tell people who it is I work for). Answer format ranged
from 1 strongly disagree to 5 strongly agree. Cronbachs
alphas of the scale in our samples are .70 (West) and .65 (East).
Emotional irritation. This variable was measured using a subset of
the Irritation Scale (Mohr et al., 2005a, 2005b). Irritation is dened
as a state of psychological impairment, caused by perceived goal
discrepancy, and includes rumination about problems at work
( cognitive irritation) and irritability ( emotional irritation; see
Mohr et al., 2006; Mu ller et al., 2004). We chose to focus on emo-
tional irritation as this concept has been proven to be a precursor
of further impairments, such as psychosomatic complaints or
depression (e.g. Dormann and Zapf, 1999). The scale consisted of
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ve items (e.g. I get in a bad mood when I am disturbed by others),
which could be rated on seven levels with 1 strongly disagree to
7 strongly agree. With an alpha of .85 in both subgroups, the
measure can be considered highly reliable.
Analyses
Multiple classication analysis (MCA). MCA, as well as dummy
variable regression (DVR), estimates additive models and assumes
interactions between independent variables to be non-apparent
(Jacobsen, 1978). Concerning the prediction of the overall model,
MCA and DVR are interchangeable. The difference between the
two approaches is, however, that MCA measures the association
of the factors as a whole with the criteria, whereas DVR tests the
pattern of effects in relation to a reference category for each
factor (Jacobsen, 1978: 89). In contrast to DVR, the criteria may
be dichotomous in MCA (Jensen, 1978). As an additional result,
we can see the observed mean values of each subgroup in the depen-
dent variable in an MCA, as well as the estimation of the mean, con-
trolling for all other predictors. The beta-values are analogous to
beta-coefcients in multiple regressions, and can be interpreted as
part correlation coefcients. For our main purpose of comparing
the East and West German sample, we chose MCA. Hence, some
results will be cross-validated with multiple regression analyses,
which are used to test for moderating effects.
Moderated multiple regression analysis (MMR). In order to test
hypotheses concerning the difference in strength of an association
between two variables across different groups, we performed
MMR (see, for example, Aguinis, 2004; Aiken and West, 1991). In
the rst step, the predictor variable and the assumed moderator vari-
able are entered and, in the second step, the product term of both
variables is entered. A variable can be considered a moderator
when the interaction term yields a signicant beta-weight in the
multiple regression model and the change in R
2
(variance explained)
is signicant, compared to when the independent and moderator
variables are only included separately (see Jaccard and Turrisi,
2003). From the R
2
of the rst and second step, effect sizes can be
calculated (Aiken and West, 1991). Although Cohen et al. (2003)
proposed labelling effect sizes of .02, .15 and .35 as small, medium
or large, Aguinis et al. (2005) found a mean effect size of f
2
:009
across 636 published MMR analyses. An often ignored problem in
MMR with categorical moderator variables is the assumption of
homogeneity of error variances across categories of the moderator
variable, which may lead to an increase in Type I errors if sample
sizes are unequal across subgroups, and an increase in Type II
errors if the subgroup with larger sample size presents the larger
error variance (Aguinis, 2004). In their meta-analytic review,
Aguinis et al. (1999) could show that the assumption of homogeneity
of error variances was violated in 39 percent of analyses reviewed.
We therefore also present Bartletts (1937) test of homogeneous
error-variances.
Results
Mean Differences between East and West German Employees
We hypothesized that participants from East Germany would give
lower ratings on factors associated with the employment relation-
ship, namely delivery of the deal (H1), justice perceptions (H3)
and trust (H5). In Table 2, results from simple t-tests for indepen-
dent samples, as well as from MCA controlling for important
sample differences in age, sex (0 female, 1 male), education
(ISCED classication), type of contract (0 temporary,
1 permanent), blue collars (1 = blue-collar, 0 = others) and sec-
tors (sector_dummy1 1 for food industry, sector_dummy2 1 for
retail, reference group educational sector). Except for distributive
justice, the null hypotheses have to be rejected for all employment
relationship measures, indicating that East Germans gave lower
ratings on delivery of the deal (t 2:38, p < :05, d
0
:19), pro-
cedural justice (t 2:14, p < :05, d
0
:18), interactional justice
(t 2:40, p < :05, d
0
:19) and trust (t 3:33, p < :01, d
0
:30).
These mean differences do not vanish when controlling for sample
characteristics in MCA, although effect sizes point towards small
effects.
Furthermore, we hypothesized that we would nd higher ratings
in commitment (H6) in the East German than in the West
German sample. Differences in affective commitment turned out
to be stronger than for the employment relationship measures.
East Germans gave higher ratings on organizational commitment
(t 4:77, p < :01, d
0
:27). Effect sizes indicate a medium effect
and differences are still signicant after controlling for sample
characteristics.
We also tested whether or not the regional unemployment rate,
seen as an important indicator for the economic situation, may
explain differences between the East and West German samples.
We therefore performed partial correlation analyses. The results
are shown in Table 3. It turned out that perceptions related to the
employment relationship are mediated by the regional unemploy-
ment rate, as partial correlations fail to be signicant. Differences
in affective commitment cannot, however, be explained by the
regional unemployment rate.
The Impact of Delivery of the Deal when Comparing East and
West German Employees
Our rst moderating hypothesis was that the effects of perceived
breaches of the PC may be less pronounced for East Germans
than for West Germans (H2). We employed an MMR by rst intro-
ducing possible explanatory control variables: age, sex (0 female,
1 male), education (ISCED classication), type of contract
(0 temporary, 1 permanent), blue collars (1 blue-collar,
0 others) and sectors (sector_dummy1 1 for food industry,
sector_dummy2 1 for retail, reference group educational sector).
In the second step, we introduced the sample dummy (0 West,
1 East) and delivery of the deal as a predictor variable. In the
nal step, we introduced the interaction between sample and delivery
of the deal. The interaction term yielded a signicant beta, and could
explain 1 percent of additional variance. Effect size was f
2
:009
(see Table 4). Bartletts test indicated homogeneous error variances
(M 0:44, p :50) across subgroups.
The interaction plot using 1 SD (see Aiken and West, 1991)
indicates that, in line with our hypotheses, the association between
delivery of the deal and emotional irritation is stronger for West
Germans than for East Germans (see Figure 1).
Along the same lines, we tested whether or not perceived breaches
of the PC (or delivery of the deal) led to different judgements of
justice in the East than in the West German sample (H4). We used
the same set of steps as predictors of distributive, procedural and
interactional justice separately in three MMRs. A moderating
T
A
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effect of sample could only be found for distributive justice, indicat-
ing that delivery of the deal is more strongly associated with distri-
butive justice in the West German sample than in the East German
sample. The interaction term explained 1 percent above the main
effects, which proved to be signicant on a 5 percent alpha level
(see Table 4). The effect size of f
2
:008 indicated a small effect.
The interaction is plotted in Figure 2. No moderating effect could
be found for procedural or interactional justice perceptions.
TABLE 4
Moderated Multiple Regression Analyses
DV: Emotional
Irritation
Distributive
Justice
Procedural
Justice
Interactional
Justice
Step 1
Age .02 *.12* .03 .04
Sex .04 .00 .00 .01
Educational level .03 .06 .05 .01
Type of contract .07 .08 .01 **.12**
Blue-collar .07 .06 .05 .06
Sector_dummy1 .09 *.04* .01 .07
Sector_dummy2 .05 .11 .13* .01
R
2
.03 *.03* .03 **.04**
Step 2
Delivery of the deal **.36** **.57** **.45** **.48**
Sample *.59* .45 .08 .15
R
2
**.06** **.21** **.18** **.25**
Step 3
Sample delivery of the
deal
*.57* *.49* .07 .12
R
2
*.01* *.01* .00 .00
Adj. R
2
.07 .24 .19 .27
Bartletts M M 0:44
(p :50)
M 1:54
(p :21)
M 1:14
(p :29)
M 6:12
(p :01)
f
2
.009 .008 <.001 <.001
Notes: N 522 after listwise deletion, * p < :05, ** p < :01, standardized betas.
Dummies: sample: East Germany 1, West Germany 0.
Delivery of the deal
West Germany
East Germany
1 SD +1 SD
4
3
2
1
E
m
o
t
i
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n
a
l

i
r
r
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t
a
t
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n
FIGURE 1
Delivery of the deal
West Germany
East Germany
1 SD +1 SD
4
3
2
D
i
s
t
r
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b
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t
i
v
e

j
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t
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e
FIGURE 2
Discussion
Guest (1998) denes an individual perception regarding the quality
of an employment relationship (state of the psychological contract)
as the extent to which the promises and obligations in the psycho-
logical contract have been delivered, whether the deal is perceived
to be fair and the degree of trust in whether it will continue to be
delivered in the future. Following this denition, we could nd evi-
dence that the perceived quality of the employment relationship is
lower in the East German sample than in the West German
sample. This was in line with our assumptions, which we derived
from the inferior labour market and economic situation in East
Germany and described in the introduction. The higher levels of
commitment in East Germany may more likely stem from possible
cultural differences. The reported partial correlations, controlling
for the regional unemployment rate, support this conclusion.
Higher values in affective commitment in the eastern sample could
not be explained by the respective unemployment rate, and we
would therefore argue for cultural differences on this dimension.
Further research could, nevertheless, explore alternative explana-
tions. Research comparing different countries that show even
more pronounced differences in their economic and labour market
situations may be particularly interesting in light of the continued
expansion of the European Union and may also offer a better frame-
work for making cross-cultural comparisons.
Theories on social comparison may give an alternative framework
to elucidate the pattern that East Germans in our study reported:
less favourable employment relationships in terms of perceived orga-
nizational promises (PC), procedural and interactional justice and
trust, but higher commitment than employees in West Germany,
and no differences in distributive justice. In addition to a possible
difference in accentuation of values between the two subsamples, a
further possible explanation for our ndings is offered by Adamss
(1963, 1965) equity theory. As described earlier, the proportion of
unemployed East Germans is much higher than that of unemployed
West Germans. Thus, to have a job at all and to be (still) employed
may have a different meaning for East German employees. The
social comparison with potential reference groups in East Germany
might result in a more favourable evaluation (see Morris and Leung,
2000) and could probably explain the higher affective commitment
for East German employees.
Although there is no signicant mean difference regarding the
self-reports of emotional strain between the two samples, the cogni-
tive perception of the delivery of the deal with respect to perceived
promises from the employer was shown to be more closely related
to levels of emotional strain in the West German than in the East
German sample. This may be interpreted as a higher threshold for
reacting towards breaches of the psychological contract (i.e. lower
delivery of the deal) for the East Germans than for the West
Germans. This is in line with theoretical considerations based on
individualistic-collectivistic distinctions (see Thomas et al., 2003).
Furthermore, the basic assumptions of cross-cultural organiza-
tional justice research seem to be met, as the same actions (i.e. set
of employers promises) led to different judgements of distributive
justice (see Morris and Leung, 2000). That no moderating effects
were found for procedural and interactional justice in this study
may have several reasons. From a theoretical standpoint, we
might speculate that distributive justice is the major concern when-
ever resources are scarce. Another reason might be the one-item
operationalization of procedural and interactional justice; whereas
weak power (sample size) is probably the least likely explanation.
However, justice perceptions as such, as well as the level of trust,
seem not to differ in their association to affective commitment.
Limitations and Strength
We would also like to point out some of the limitations that caution
us not to overgeneralize our results. This study has to be seen within
the historical context, and we have to be aware of the fact that the
reported differences in this study are not static, and may shift with
economic growth or decline. Morris and Leung highlight this fact:
the prominent constellations of values, beliefs, and social contexts
that determine justice judgments shift with the historical moment
(Morris and Leung, 2000: 114).
Although we controlled for sample differences in multivariate
analyses, it would be wise to verify the ndings in a more balanced
and representative sample. As we had to rely on the voluntary par-
ticipation of organizations, the sampling method cannot be comple-
tely random, and might be positively biased, as those organizations
with current problems are more likely to refuse participation.
Furthermore, the reliability of one-item measures of organizational
justice may be questioned. Caution should thus be exercised when
interpreting the results.
It is very common in cross-cultural, or let us say, in more
general comparative research, to compare groups that are very
distinct in certain features, such as, for example, the prominent
individualismcollectivism dimension. By comparing East with
West Germany, we chose two samples that naturally have many
aspects in common. They share, for instance, not only a certain
part of history, but also the same language, and the same legislative
frameworks. While most cross-cultural research has the short-
coming that differences between samples could stem, not only
from cultural differences, but also from problems in translating and
understanding items, this limitation can be ruled out in our study.
Implications
This study is the rst to look at EastWest German differences con-
cerning employment relationships, organizational justice and trust,
and leads us to new theoretical insights and practical implications.
We may conclude that labour market conditions seem to have an
impact on labour relations, which is reected in the subjective
evaluation of the social exchange between employer and employees.
If, in addition to structural differences, groups differ regarding
their values and norms, this might inuence the reactions associated
with the perceived quality of the employment relationship. There-
fore, we conclude that we should take an interactionist perspective
to come to valid models in the prediction of employees attitudes.
By combining both structural antecedents with individual differ-
ences, we can improve our understanding of organizational and
individual behaviour, both within and across cultural settings.
Note
This research is part of the PSYCONES project (PSYchological CONtracts across
Employment Situations) supported by a grant from the EU, fth framework pro-
gramme (HPSE-CT-2002-00121). Further information about the project is available
at: www.uv.es/~psycon
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Thomas Rigotti
is research assistant at the Work and
Organizational Psychology Unit at the
University of Leipzig, Germany. His research
interests include strain and health at work,
and the role of psychological contracts,
including their antecedents as well as
consequences, and possible moderators.
Kathleen Otto
is assistant professor at the Work and
Organizational Psychology Unit at the
University of Leipzig, Germany. Her
research interest lies in the eld of career
development, mobility readiness and
organizational justice.
Gisela Mohr
is full professor for Work and Organizational
Psychology at the University of Leipzig and
director of the Institute for Psychology II.
Her main research interests are
unemployment and job insecurity,
leadership, gender aspects, the effect of the
(psychological) contract on health, and
(multilingual) measurement of occupational
stress effects.

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