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A psychological contract breach is a subjective experience that refers to the conception by one of the parties that the other has failed to adequately fulfill their obligations and promises.
This Essay argues that the “psychological contract”—the parties’ respective, subjective, idiosyncratic understandings of their contractual obligations to one another—is important and predictable. The common law of contract tells us how to discern the legal promise.
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.
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.
The psychological contract and its various constituent elements, such as content, breach, and violation, have frequently been cited as influencing employee attitudes and behaviour. There are many studies of the consequences of contract breach and violation.
This chapter first defines psychological contract breach and distinguishes it from psychological contract violation. It then discusses how often psychological contracts are breached and considers the few studies examining the antecedents to breach.
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What is psychological contract breach?
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The perception that an organization has broken their promise is known as a psychological contract breach (PCB). Psychological contract breach is associated with a host of negative employee emotions, attitudes, and behaviors (Conway and Briner 2005).
