Psychological Contract Breach Case Study

With increasing commercial organization the employee-employer relationship is changing and as new workforce is expected to be flexible and innovative therefore the behavior dynamics are also changing. Earlier researches have shown that employee’s behavior is the aftermath of his attitude and emotions, often these emotions are triggered by the breach which in turn results in low performance, dissatisfaction and high turnover. The employees expect that in exchange to their efforts towards productivity of organization they deserve relational obligations in return. The psychological contract is an unsaid agreement between employees and Institution with reference to obligations and expectations (Robinson & Rousseau 1994). Trust is more of social phenomenon than personality and attitude therefore it is considered to be the base foundation of psychological contract (Guest and Conway 1998). The psychological contract breach occurs when an organization fails in gratifying the commitments and promises that an employee expects from their organization (Suazo 2009). When an employee has higher trust on their employer it act as diplomat between the psychological contract breach and psychological contract violation but when they experience a unfair practice or unfair treatment they tend to engage more in volatile behavior

Instances of Breach: When employers and employees fail to realize each other’s expectation with regard to commitment they have towards each other, it might be perceived as breach of psychological contract. This might occur due to various factors. It might be perceived as breach when the employee discerns a broken promise, say when the employee comes across cut in pay, or denial of promotion when deserved. Other instances being restrained promises (delay in promised bonuses), asking the employee to stay for longer hours and not acknowledging the efforts for same, and expectations of carrying work back home (Vandekerckhove and