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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.

    • 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...

  2. 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.

  3. 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. Breaches ...

  4. 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 consider leaving or to actually leave an organization. 2 ...

    • Gretchen L. Peirce, Shane P. Desselle, JoLaine R. Draugalis, Alan R. Spies, Tamra S. Davis, Mark Bol...
    • 10.5688/ajpe766108
    • 2012
    • Am J Pharm Educ. 2012 Aug 10; 76(6): 108.
  5. The remedy for breach of the psychological contract is essentially self-help—retaliation or exit. One study of graduate management alumni from a top business school found that over half of the respondents reported that their employers had breached the psychological contract, and the psychological contract breach had real consequences.[40]

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  7. Feb 25, 2022 · Abstract. The primary thrust of psychological contract (PC) research has focused on employees’ outward directed responses when they experience contract breach and violation. These responses have been primarily directed at the organization as the source of the psychological contract breach. In doing so, the inward-focused consequences of ...