Research shows that when an organization breaches a psychological contract,
Multiple Choice
A this has no effect on employee satisfaction, commitment, intentions to quit, or job performance.
B employees are likely to be less committed and satisfied, without their performance being affect, but they are also more likely to quit.
C employees are likely to be less committed and satisfied and more likely to quit, and their performance is likely to be lower.
D employees are likely to be less committed and satisfied, but their performance and intentions to quit are not affected
E employees are likely to be less committed and satisfied and have lower job performance, but are not more likely to quit
The Correct Answer and Explanation is :
The correct answer is C: “Employees are likely to be less committed and satisfied and more likely to quit, and their performance is likely to be lower.”
Explanation:
A psychological contract refers to the unwritten, implicit expectations that employees have regarding their employment relationship. It is an understanding between the employer and the employee about mutual obligations, such as career development opportunities, work conditions, and compensation. When this psychological contract is breached by the employer (for example, failing to fulfill promises or meet expectations), it can significantly affect the employee’s attitude and behavior in the workplace.
- Decreased Commitment and Satisfaction: When employees perceive that their psychological contract has been breached, they often feel betrayed or undervalued. This feeling can lead to decreased commitment to the organization. Employees may also experience lower job satisfaction because they feel that the organization is not fulfilling its side of the agreement, which erodes trust and positive perceptions.
- Increased Likelihood of Quitting: The breach of the psychological contract can lead employees to reconsider their long-term relationship with the organization. If the breach is significant or continues over time, employees may feel that they have no future in the company, leading to an increased intention to quit. They may look for other opportunities where they believe their expectations will be met.
- Lower Job Performance: Employees who perceive a breach of their psychological contract may also experience a drop in job performance. When employees feel less committed or satisfied, their motivation and engagement at work decline. As a result, they may not perform at their usual level because they feel less motivated to meet organizational goals or expectations.
Thus, the impact of a psychological contract breach is multifaceted—it leads to decreased satisfaction and commitment, a higher likelihood of quitting, and diminished job performance, making option C the correct answer.