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  1. 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.

  2. Psychological contract breaches The problem then comes when these informal psychological contracts are breached. For example a new manager comes in and stops people charging their personal phones at work or using work computers for personal issues.

  3. Psychological contract breach is a subjective experience based not only (or necessarily) on the employer's actions or inactions but on an individual's perception of those actions or inactions within a particular social context. Thus the expe-rience of psychological contract breach should depend on

    • What Is Psychological Contract Breach?
    • Why Is Psychological Contract Breach Important?
    • How Can Psychological Contract Breach Be Reduced?
    • Qic-Wd Takeaways
    • References
    • Suggested Citation

    A psychological contract is defined as “individual beliefs, shaped by the organization, regarding terms of an exchange agreement between individuals and their organization” (Rousseau, 1995, p. 9, as cited in Zhao, Wayne, Glibkowski, & Bravo, 2007, p. 649). Psychological contracts do not necessarily involve legal contracts; they reflect promissory e...

    Psychological contract breach is important because it is associated with affective reactions, work attitudes, and employee effectiveness. It has strong, positive associations with affective reactions such as psychological contract violation and mistrust toward management (Zhao et al., 2007). Psychological contract breach has a strong negative assoc...

    Although there are associations between psychological contract breach and many outcomes, the research to date is correlational; thus, no conclusions about causation can be made. We have much to learn about how psychological contract breach works in tandem with other personal and professional dynamics, such as which comes first—one’s perceptions of ...

    Psychological contract breach has strong, positive associations with affective reactions such as psychological contract violation and mistrust toward management.
    Psychological contract breach has a strong negative association with job satisfaction, a moderate negative association with organizational commitment, and a moderate positive association with inten...
    With respect to more tangible work behaviors, such as organizational citizenship and in role performance, psychological contract breach has modest negative correlations.
    Affect, in turn, mediates breach’s relationship with work attitudes and individual effectiveness.

    Organ, D. W. (1988). Organizational citizenship behavior: The good soldier syndrome. Lexington, MA: Lexington Books. Robinson, S. L., Kraatz, M. S., & Rousseau, D. M. (1996). Changing obligations and the psychological contract: A longitudinal study. Academy of Management Journal, 37, 137–152. Rousseau, D. M. (1990). New hire perception of their own...

    Hollinshead, D., & Paul, M. (2020, September 10). Umbrella summary: Psychological contract breach. Quality Improvement Center for Workforce Development. https://www.qic-wd.org/umbrella/psychological-contract-breach For general information about Umbrella Summaries, visit https://www.qic-wd.org/umbrella-summaries-faq Return to list of Umbrella Summar...

  4. contract breach is a subjective experience and refers to one person’s perception that another has failed to fulfill the promised obligations of the psychological contract adequately (Rousseau, 1989).

  5. Why is a Psychological Contract so Important? The PC is based on employees’ perceptions of fairness and their belief that their employer will uphold ‘promises’ created between them. Thus, a PC breach or a violation can present significant consequences for organisations.

  6. Aug 8, 2012 · A psychological contract has been described as an individual’s beliefs regarding the terms and conditions of a reciprocal exchange agreement between the employee and the organization. 1 A perceived breach of a psychological contract can alter an employee’s performance and commitment to an organization as well as lead the employee to ...

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