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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.

This study examines the relationship between violation of an employee's psychological contract and civic virtue behavior. A psychological contract is a set of beliefs regarding mutual obligations between employee and employer. One hundred twenty-six MBA alumni were surveyed at the time of hire (T1), and after 18 months (T2) and 30 months (T3) on the job. When employees felt that their employers had failed to fulfil employment obligations at T2, they were less likely to engage in civic virtue behavior at T3. There was evidence that this relationship was partly mediated by trust. These findings have implications for research on OCB and for managers seeking to maintain employee citizenship behavior.

The occurrence and impact of psychological contract violations were studied among graduate management alumni (N = 128) who were surveyed twice, once at graduation (immediately following recruitment) and then two years later. Psychological contracts, reciprocal obligations in employment developed during and after recruitment, were reported by a majority of respondents (54.8 per cent) as having been violated by their employers. The impact of violations are examined using both quantitative and qualitative data. Occurrence of violations correlated positively with turnover and negatively with trust, satisfaction and intentions to remain.