An Examination of Psychological Contract Violation and Its Effect on Work Outcomes

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Suazo, Mark M.
article description
Researchers have described psychological contracts as an employee's beliefs regarding the terms and conditions of a reciprocal exchange agreement between that employee and the employing organization. A key issue in the perceived agreement between the employee and the organization is that the organization will live up to its promises. Psychological contract breach (PCB) refers to the cognitive perception of unfulfilled promises. Psychological contract violation (PCV) refers to a negative and relatively intense affective reaction that sometimes follows an employee?s perception that he/she has not received all that was promised. This research examines potential moderating variables (equity sensitivity, affective disposition) in the relationship between PCB and PCV as well as potential moderating variables (reciprocation wariness, work ethic) in the relationship between PCV and work outcomes (in-role and extra-role work performance).