The Impact of Psychological Contract Violations on Exit, Voice, Loyalty, and Neglect

Abstract

This study examines the relationships between violations of employees' psychological contracts and their exit, voice, loyalty, and neglect behaviors. Using a sample of over 800 managers, this research found that psychological contract violations result in increased levels of exit, voice, and neglect behaviors and decreased levels of loyalty to the organization. In addition, this research examines the moderating effects that situational factors (such as the availability of attractive employment alternatives) have on the relationships between psychological contract violations and managers' behaviors. The results suggest that these situational factors moderate the relationship between psychological contract violations and exit, but not the relationships between psychological contract violations and voice, loyalty, or neglect. Finally, this research also examines differences in the nature of psychological contract violations experienced across three categories of workers: new managers entering the workforce, expatriates and managers in international business, and managers working in downsizing or restructuring firms. The results suggest that psychological contract violations are both more frequent and more intense among managers working in downsizing or restructuring firms, particularly in terms of job security, compensation, and opportunities for advancement.