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A psychological contract breach is a subjective experience referred to the perception of one of the parties that the other has failed to adequately fulfill its obligations and promises. Breaches have been systematically connected to employees’ attitudes and behaviors that hamper the employment relationship.
We provide a review of psychological contract research, beginning with past conceptualizations and empirical evidence. We tailor this retrospective look by reviewing the antecedents and outcomes associated with psychological contract breach and discussing the dominant theoretical explanations for the breach-outcome relationship. This synthesis of past evidence provides the foundation for ...
- The Definition
- The Pros
- The Cons
- The Impact on The Bottom Line
As editor, I have written about this form of ‘contract’ on occasion. Below is an excerpt from The Importance of the Psychological Contract. Vera Hillman, a former HR Exchange Network contributor, has also written about the concept. In her piece, The Psychological Contract: Relevance for Our Everyday Business Operations, Hillmann outlined what she c...
Having defined the psychological contract in greater detail, let us turn the focus now to the pros and cons.
Not-On-Paper
As previously mentioned, the psychological contract is not a physical contract; it’s not documented in any way. This makes it very difficult to execute. In fact, some say it is for this reason alone a PC cannot actually be defined as a contract.
Inconsistent
The psychological contract isinconsistent. Every single employee develops their own PC with the company. While these contracts may be similar across the board, they are still just as unique as each member of the company workforce.
Redundant
There are some that believe the concept of the psychological contract is redundant, even obsolete. Why? There are other ways to measure the employee-employer relationship. This includes employee engagement and pulse surveys.
Like it or not, the psychological contract is real and in force for every employee. Ignoring this fact can be a detriment to the company. Why? These contracts, while the responsibility of both parties, are not created by the employer, but the employee. Additionally, they can change those contracts on a whim and there is no notice required to the em...
- Mason Stevenson
Nov 23, 2022 · A psychological contract breach is a subjective experience referred. to the perception of one of the parties that the other has failed to adequately fulfill its obligations. and promises ...
We provide a review of psychological contract research, beginning with past conceptualizations and empirical evidence. We tailor this retrospective look by reviewing the antecedents and outcomes associated with psychological contract breach and discussing the dominant theoretical explanations for the breach-outcome relationship. This synthesis of past evidence provides the foundation for ...
Nov 17, 2005 · A second important reason for analysing key terms embedded in the definition of the psychological contract is that it helps map out the territory of the psychological contract helping to identify, for example, the kind of cognitions that can be considered as part of or outside of the psychological contract.
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Psychological Contract Breach and Trust Psychological contract breach is a subjective experience, re-ferring to one's perception that another has failed to fulfill adequately the promised obligations of the psychological contract (Rousseau, 1989). Psychological contract breach can and does occur in the absence of an actual breach (i.e.,
