Psychology Commons^™

Psychological Contract Breach, Dana Hollinshead, Megan Paul

Umbrella Summaries

What is psychological contract breach? 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 expectations that are the upshot of perceived implicit or explicit promises by one’s employer (Robinson, Kraatz, & Rousseau, 1996, p. 575). By extension, a psychological contract breach is an employee’s perception that their employer has failed to fulfill promises or expectations (Zhao et al., 2007). A …