The development of psychological contract breach and violation: a longitudinal study

TLDR

The study investigates which factors influence employees’ perceptions of psychological contract breach and the subsequent feelings of violation. The study followed 147 managers from the start of their new jobs to 18 months later, collecting data at two time points. Perceived breach at time 2 was more likely when organizational and employee performance were low, there was no formal socialization, limited pre‑hire interaction, prior breach history, or many alternatives; and breach perception was linked to stronger violation feelings when employees blamed purposeful reneging and felt unfairly treated. © 2000 John Wiley & Sons, Ltd.

Abstract

This study examines factors affecting employees' perceptions that their psychological contract has been breached by their organization, and factors affecting whether this perception will cause employees to experience feelings of contract violation. Data were obtained from 147 managers just prior to their beginning of new job (time 1) and 18 months later (time 2). It was found that perceived contract breach at time 2 was more likely when organizational performance and self-reported employee performance were low, the employee had not experienced a formal socialization process, the employee had little interaction with organizational agents prior to hire, the employee had a history of psychological contract breach with former employers, and the employee had many employment alternatives at the time of hire. Furthermore, perceived breach was associated with more intense feelings of violation when employees both attributed the breach to purposeful reneging by the employer and felt unfairly treated in the process. Theoretical and practical implications of these results are discussed. Copyright © 2000 John Wiley & Sons, Ltd.