Bringing the psychological contract to the surface: the effects of a formal contract on perceptions of violation

The psychological contract is an important part of an employee's relationship with supervisors and the organization. It is often unspoken and implicit, with tacit assumptions that create expectations for what employees experience in day-to-day activities. This study examined whether distinctions across contract types might help bring support for clear, concrete and formal contracts that will guard against negative outcomes. Undergraduates were placed into groups based on three different contract types and presented with a judgment task. A contract violation occurred when a promise of feedback put into place to help increase their performance on the second trial was voided. Results showed that the three groups did rate their perception of contract violation as expected. However, a performance decrement was not found and attitudes about the experience were similar across all conditions.