Abstract
Work in organizations entails an exchange relationship between employees and organization. Apart from the written employment contract, there still exists a set of mutual expectations from the two parties (employer and employee) which remain unwritten and unvoiced and yet drives the behavior of both workers and organizations alike, and this is what is referred to as the psychological contract. Psychological contract refers to the employees’ subjective interpretations and evaluations of their deal with the organization. The aim of this study is to explore the impact of breaches or violations in the psychological contract on the performance of employees. It aims to present two concurrent hypotheses, based on theoretical interaction effects of social exchanges (conceptualized as social exchange relationships, fairness, and job security).Data were collected from a sample of 150 employees from both Public and Private Banks in Ghana. Regression analysis was used to explore the moderating effects of social exchanges on the relationships between psychological contract breach and work performance (operationalized as in- role behaviors and organizational citizenship behaviors).It was found that the negative relationship between psychological contract breach and work performance was moderated by social exchanges, such that the relationship was stronger for employees with high social exchange relationship, perceived organizational support, and job security which means that psychological contract breach will negatively affect employees with higher expectations in social exchanges.
 Keywords: Breach of contract; Social interaction; Psychological contracts; Job satisfaction
Highlights
Psychological contract breach is defined as the cognition that the organization has failed to meet one or more obligations within the scope of the psychological contract whereas the employee has fulfilled his or her obligations (Morrison & Robinson, 2009)
Since the actual exit from the organization depends on other factors like availability of attractive employment alternatives at the point of time of Psychological contract breach or the period immediately following it, we propose to measure the ‘Intention to quit’ rather than the ‘actual exit’ and study its relationship with Psychological Contract breach
The current study focused on the moderating role of social exchanges in the relation between psychological contract breach and work performance
Summary
Psychological contract breach is defined as the cognition that the organization has failed to meet one or more obligations within the scope of the psychological contract whereas the employee has fulfilled his or her obligations (Morrison & Robinson, 2009). Previous research has supported the relationship between psychological contract breach and various performance dimensions as purported by. The processes through which contract breach leads to work performance has received less empirical attention. Since psychological contract researchers use social exchanges between the employer and the employee as an explanatory framework, in the current study we examine breach processes from this perspective. This study contributes to existing knowledge on the consequences of psychological contracts and their relationship with performance (e.g. Turnley et al, 2011) by examining theory-based and heretofore empirically unexamined interactions between contract breach and these forms of social exchange. The paper contributes to existing research by focusing on social exchanges as moderators in the relationships with work behaviors, instead of investigating social exchanges as outcomes or predictors of psychological contract breach The paper seeks to: Christine & Joseph / International Journal of Technology and Management Research, Vol 2, No 2 (June 2017) 38-43
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