Task

The psychological contract is a complex phenomenon. Psychological contracts are different from legal contracts especially in regards to the procedures followed in the event of breach of contract. Breach of a legal contract allows the aggrieved party to seek enforcement in court of law. A breach of a psychological contract, however, offers no such recourse, and the aggrieved party may choose only to withhold transactional or relational contributions made to the employer or organisation (Spindler, 1994).

Using the Organisational Behaviour theories and concepts you have studied, critically analyse and discuss the meaning of psychological contract breach and its effects employees, in particular on employee attitudes and behavioural job outcomes, such as, job satisfaction, intention to quit, organizational support, motivation, organizational citizenship behaviour and employees' job performance. Then consider the implications of your findings from the perspectives of both employees and their employing organisations.

Rationale

This assignment requires knowledge and understanding of the OB theory and concepts. In addressing this question you need to critically examine the ideas presented within the theories, and consider how they help you to make sense of the issue. The aim of this assignment is not to merely summarise theories as discussed within the text book, but to critically examine them in terms of their relevance and assistance.

Your discussion should include appropriate academic references, such as academic journal articles, which you should make a wide use of, to develop and support your arguments.

1. Critically discuss the meaning of psychological contract breach and its effects on employees.

2. Critically analyse its effects on employees, in particular upon employee attitudes and job outcomes.

3. Critically discuss the implications of the findings for the lives and choices of employees and for their employing organisations.