Breach and Fulfillment of the Psychological Contract: A Comparison of Traditional and Expanded Views

Abstract

Breach and fulfillment in a psychological contract has traditionally been studied with approaches that are conceptually and methodologically limited. We compared predictions derived from the traditional view to predictions from an expanded view that maintains the distinction between promised and delivered inducements and examines their joint relationship with employee satisfaction. The traditional and expanded views were compared using longitudinal data and polynomial regression analysis. Results provided little support for the traditional view. In contrast, results supported the expanded view and revealed that relationships for breach and fulfillment are more complex than previously suggested. Specifically, satisfaction depended on whether breach represented deficient or excess inducements and the particular inducement under consideration. Moreover, satisfaction was more strongly related to delivered inducements than promised inducements. These results question basic tenets of psychological contract research and indicate new avenues for research that build on the expanded view developed in this article.The type of relationship that develops between employees and organizations is fundamental to organizational success and suMval as well as employee well being. This relationship also forms the foundation of many streams of organizational behavior research, including research into the psychological contract. A psychological contract is an employee's beliefs regarding the mutual obligations between the employee and an employer (Rousseau, 1989; Rousseau & Tijoriwala, 1998). These beliefs entail perceptions of the inducements (e.g., pay, recognition) promised by an employer compared to the inducements delivered by the employer. When a psychological contract is violated, employees may experience anger, distrust, reduced loyalty and commitment, and increased propensity to leave the organization (

An Empirical Study on the Organizational Trust, Employee-Organization Relationship and Innovative Behavior from the Integrated Perspective of Social Exchange and Organizational Sustainability

“…Social exchange theory [26] predicts that organizations can promote individual positive attitudes and behaviors through providing employees with inducements. Our theoretical implication is consistent, but different, with the conclusion found by Lambert et al (2003) [50] and Shaw et al (2009) [66]. Lambert et al (2003) [50] found that organizations invested in employees through providing employees with vocational development, training opportunities, which could influence employees' attitudes and behaviors.…”

“…Our theoretical implication is consistent, but different, with the conclusion found by Lambert et al (2003) [50] and Shaw et al (2009) [66]. Lambert et al (2003) [50] found that organizations invested in employees through providing employees with vocational development, training opportunities, which could influence employees' attitudes and behaviors. Shaw et al (2009) [66] found that EOR could lead to increasing employee performance and decrease quit intention.…”

“…Formation of psychological contract is a reflection of organizational trust, and employees will construct their psychological contacts depending on the degree of incentives provided by the organization [50]. Employees with high-level organizational trust will undertake more reciprocal behaviors for their organization [51].…”

When I'm 64: Psychological contract breach, work motivation and the moderating roles of future time perspective and regulatory focus

“…Moreover, in line with earlier research, we distinguish between perceived obligations, which constitute the psychological contract, and the fulfilment of these obligations (Conway & Briner, 2005), and include two subscales to measure psychological contract breach (cf. Lambert et al, 2003;Robinson, 1996).…”

“…Based on the principles of social exchange theory (Cropanzano & Mitchell, 2005;Guest, 1998), psychological contract theory states that if employees perceive that their organization has not fulfilled its obligations, they will react with anger and frustration (Robinson & Morrison, 2000). More specifically, psychological contract breach is defined as the belief of an employee that the organization has failed to deliver its obligations (Lambert, Edwards, & Cable, 2003;Morrison & Robinson, 1997). Earlier research has revealed significant age differences in relations between psychological contract breach and work-related outcomes like job satisfaction, commitment and job turnover (Bal, De Lange, Jansen, & Van der Velde, 2008), and pointed to possible underlying age-related changes, such as a changing time perspective (perceptions of the individual's future), that may explain these effects (Bal, Jansen, Van der Velde, De Lange, & Rousseau, 2010).…”