Psychological Contract Breach Case Study

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The end of the 20th century has witnessed the advent of the so-called new employment association (Baruch, 1999; Grzeda, 1999). The much-discussed stormy and unremitting changes of the 1990s and 2000s with their resultant new modes of organising are said to have extra disguised and complicated employment relationships (Furnham, 2000; Thite, 2001). The new work relationship, it is argued, has unintentionally and certainly generated feelings of less job security, less organisational attachment, less commitment, less satisfaction and less reliability between employees (Cooper, 1999; Furnham, 2000). Increased curiosity of corporates in their vision and mission statements and values may expose a desire to capture the hearts and minds of the workforce…show more content…
First, it extends the psychological contract literature by examining the influence of psychological contract breach and employee outcomes namely, organisational citizenship Behaviour. The current study extends this line of research by examining positive organisational behaviours as mediators which are capable of suppressing the negative influence of Psychological Contract Breach. Second, the study contributes to existing psychological contract literature by conducting the research in a non-Western context. It is based in Chennai (India); no research has been conducted on psychological contract breach in a developing country such as India. An understanding of the behavioural and attitudinal outcomes resulting from psychological contract breach will have significant theoretical and practical implications to organizational researchers and practitioners, respectively. The results of the present study will also help organizational researchers to expand their understanding of the relationship between psychological contract breach and employee outcomes in a non-Western…show more content…
Empirical research on psychological contract is relatively recent and some of the major empirical research on psychological contract was based on part-time, full-time and recent MBA students in the USA (Kickul, 2001; Kickul & Lester, 2001; Robinson et al., 1994). In recent years, organizational researchers have used different samples drawn from the retail, banking, service and the manufacturing sectors to generalize and identify unique characteristics of employees’ psychological contract breach in a particular industry (Suazo, 2009; Bordia et al., 2008; Seeck & Parzefall, 2008; Suazo et al., 2005). Organizational researchers have emphasized the need to conduct of more research with employees and professionals to test the generalizability of psychological contract (Conway & Briner, 2009, 2005; Lester et al., 2002; Suazo et al., 2005). The data for the current research were gathered from 442 IT Industry employees in Chennai, India. The current study also gathered data on employee behaviours and attitudes from multiple sources to reduce common method variance (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003; Podsakoff & Organ,
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