Abstract
The psychological contract (PC) is a valuable tool for understanding and predicting employee attitudes and behaviours in the workplace. The PC reflects an individual’s perceptions of their own and another party’s obligations to one another. This entry highlights the significance of PC theory for analysing and informing contemporary employment relationships. Traditional PC research focused on two key PC states: breach and fulfillment, which have significant influence on affective, attitudinal, and behavioural outcomes. Recent theoretical developments include the Dynamic Phase Model of PC Processes, which recognizes the dynamic nature of employment relationships; and the Post-Violation Model, which explores how individuals cope with and move on from PC violations. Such advancements underscore the complex dynamics of PCs and provide a framework for understanding breach and fulfillment processes to promote positive employment relationships and organizational outcomes.
