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  1. Abstract. A psychological contract is a set of individual beliefs that a person has about the reciprocal obligations and benefits established in an exchange relationship, such as an employment relationship in an organizational setting. A psychological contract breach is a subjective experience referred to the perception of one of the parties ...

    • 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. 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.

  3. 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.

  4. This paper examines the theoretical and empirical rela- tionships between employees' trust in their employers and their experiences of psychological contract breach by their employers, using data from a longitudinal field of 125 newly hired managers.

  5. 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.

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  7. 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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