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    • 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...

  1. The term psychological contract refers to the often unspoken set of expectations and assumptions that two parties (employees and the organisation, its leaders and managers) have of each other about things like how they will behave and act. Examples. Psychological contract breaches. Development of the term. References.

  2. Feb 25, 2022 · Psychological contract breach is defined as “the cognition that one’s organization has failed to meet one or more obligations within one’s psychological contract in a manner commensurate with one’s contributions” (Morrison and Robinson 1997, p. 230).

  3. 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).

  4. May 11, 2020 · A psychological contract comprises the unwritten rules within an employment relationship. These include the right to safety, the resources needed to complete the role, job security, opportunities for development and organisational culture.

  5. Psychological Contract Breach and Violation. Unwritten agreements are key to psychological contracts. When these agreements break down, it’s called a breach. This happens when employees feel their employer hasn’t kept promises. Signs of a breach include: Decreased motivation; Reduced effort; Increased turnover intentions