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Psychological contracts are dynamic, but few studies explore the processes driving change and how employees influence them. By adopting a process approach with a teleological change lens, and drawing upon the sensemaking and coping literatures, this study positions individuals as active and adaptive agents driving contract change. Employing a mixed methodology, with a four-wave longitudinal survey (n = 107 graduate newcomers) and qualitative interviews (n = 26 graduate newcomers), the study focuses on unfolding events and develops an “adaptive remediation” process model aimed at unraveling contract dynamics. The model demonstrates how breach or violation events trigger sensemaking, resulting in initially negative employee reactions and a “withdrawal” of perceived contributions, before individuals exercise their agency and enact coping strategies to make sense of, and adapt and respond to, these discrepancies. A process of contract “repair” could then occur if the coping actions (termed “remediation effects”) were effective, with individuals returning to positive exchange perceptions. These actions either directly addressed the breach and repaired both it and the psychological contract (termed “remedies”) or involved cognitive reappraisal of the broader work environment and repaired the contract but not the breach (termed “buffers”). The results highlight the unfolding, processual nature of psychological contracting.

The goal of this study was to examine changes in newcomers’ psychological contract over time. Based on schema theory and the post-violation model of the psychological contract, we theorized that psychological contract fulfillment is strengthening the psychological contract over time, while changes in the psychological contract are most likely to occur in a situation of low employer and employee fulfillment. In a sample of newcomers in a Brazilian public organization, we tested how the fulfillment of both employer and employee obligations explain the change in the psychological contract. The results support the hypotheses, and we found that the highest level of change in psychological contracts occurred when the fulfilments of the obligations of both parties were low. We discuss the implications for theory on the change in psychological contracts.

Purpose This study examines the issue of change in newcomers' employer-based psychological contract obligations over time, viewing change as a potentially important determinant of perceived contract breach and subsequent employee attitudes and behaviors. Design/Methodology/Approach Data were collected using a three-wave longitudinal design from newly hired faculty members (N = 106). Findings Newcomers' perceptions of employer-based relational obligations significantly decreased during their first year on the job. Newcomers reacted negatively to these changes, subsequently reporting increased contract breach and more negative work attitudes (i.e., increased turnover intentions and reduced job satisfaction and organizational loyalty). Implications This study provides evidence of the negative effects of perceived changes to a newcomer's psychological contract. Practitioners should implement interventions to ensure a realistic set of psychological contract obligations are developed from the start in order to minimize the likelihood that newcomers will modify these obligations downward; and, therefore, experience these negative attitudes toward the organization. Originality/Value Drawing from the realistic job preview and socialization literatures, this study examines a topic that has received little empirical attention in the extant psychological contract research, yet has important implications to the management of employees' psychological contracts. Using both a three-wave longitudinal field design and a more rigorous statistical analysis for assessing change (i.e., latent growth curve modeling), we add a unique contribution to the extant research by identifying the negative consequences of psychological contract change on newcomers' subsequent work perceptions and attitudes.

The psychological contract is a key analytical device utilised by both academics and practitioners to conceptualise and explore the operation of the employment relationship. However, despite the recognised importance of the construct, some authors suggest that its empirical investigation has fallen into a 'methodological rut' [Conway & Briner, 2005, p. 89] and neglects to assess key tenets of the concept, such as its temporal and dynamic nature. This paper outlines the research design of a longitudinal, mixed methods study which draws upon the strengths of both qualitative and quantitative modes of inquiry in order to explore the development of, and changes in, the psychological contract. Supported by a critical realist philosophy, the paper offers a research design suitable for exploring the processes of change not only within the psychological contract, but also similar constructs in the human resource management and broader organisational behaviour fields.

In formulating a dynamic model of psychological contract (PC) phases, this paper offers new insights by incorporating a temporal perspective into the study of the PC. Although conceptualized as a dynamic construct, little empirical attention has been directed at how PCs evolve and change over time. Moreover, conceptualization of the PC and its processes has undergone limited revision since the 1990s despite challenges to some of its tenets and advances in related fields that suggest the importance of time to such processes. In this article, we address limitations in existing theory, clarify the conceptualization of the PC, and bring dynamism to the forefront of PC theory building by emphasizing dynamic processes. We propose a phase-based model of PC processes (intraphase and interphase) wherein the functions of key variables (e.g., promises, inducements, contributions, and obligations) change over time and context. These phases include creation, maintenance, renegotiation, and repair. This model directs attention to the dynamic nature of the PC, drawing on contemporary evidence regarding self-regulatory mechanisms. Finally, we present the implications of this dynamic phase model for theory and research.

PurposeBased on signaling and motivation theories, this study investigates the impact of organizational practices on the formation and development of expatriates' psychological contracts in three stages. Stage 1: the impact of the selection process on psychological contract formation with the mediating role of perceived organizational justice. Stage 2: the impact of pre-departure training on psychological contract formation with the mediating role of individual absorptive capacity. Stage 3: the impact of perceived organizational support on psychological contract development with the mediating role of expatriates' adjustment.Design/methodology/approachBy using a purposive sampling technique, the respondents were approached via e-mails and personal visits in three waves, each wave had 45 days gap. After three waves, a total of 402 complete questionnaires were received back. To test the hypotheses, the partial least squares-based structural equation modeling (PLS-SEM) approach was used.FindingsStage 1: effective selection process and perceived organizational justice positively support the psychological contract formation. Stage 2: the pre-departure training and individual absorptive capacity have a positive influence on the psychological contract formation of expatriates. Stage 3: the perceived organizational support and psychological contract development have a positive direct association. However, expatriates' adjustment does not mediate the association between perceived organizational support and the psychological contract development of expatriates.Practical implicationsThe implications of this study are supportive to the organizations that deal with expatriates. The organizations should adopt practices (i.e. effective selection process, pre-departure training and perceived organizational support) for effective formation of psychological contract formation and development. In addition, perceived organizational justice, individual absorptive capacity and expatriates' adjustment can help out in the formation and development of the psychological contract of expatriates.Originality/valueThis study highlights the role of organizational best practices in the formation and development of the psychological contract of expatriates.

This paper examines the relationship between psychological contract breach and insomnia among older workers (aged 40 years and up). Drawing upon the conservation of resources theory, we conceptualize breach as a stressful event characterized by a perceived threat, failure to gain, or actual loss of valued resources, which increases psychological distress and insomnia. Moreover, we hypothesized that older workers' generativity concerns would act as a personal resource that would buffer the negative impact of breach. We tested our proposed model in 2 studies (Study 1 = 123; Study 2 = 168) of employee–spouse dyads. Results revealed that psychological distress mediated the relationship between psychological contract breach and insomnia. These mediated relationships were significant for those with low, but not for those with high levels of generativity concerns. These effects remained significant even after controlling for perceived organizational support (i.e., a social exchange mechanism). Theoretical and practical implications are discussed.

The post-violation model of the psychological contract outlines four ways in which a psychological contract may be resolved after breach (i.e., psychological contract thriving, reactivation, impairment, and dissolution). To explore the implications of this model for post-breach restoration of organizational commitment, we recorded dynamic patterns of organizational commitment across a fine-grained longitudinal design in a sample of young academics who reported breach events while undergoing job changes (N = 109). By tracking organizational commitment up until 10 weeks after the first reported breach event, we ascertain that employees may indeed bounce back from a breach incidence, albeit that some employees do so more successfully than others. We further demonstrate that the emotional impact of the breach and post-breach perceived organizational support are related to the success of the breach resolution process. Additionally, we reveal a nonlinear component in post-breach trajectories of commitment that suggests that processes determining breach resolution success are more complex than currently assumed.

People’s engagement and success at work depend heavily on the psychological contract. Professionals must design strategies to manage employee expectations effectively. This study examined how employee work engagement is influenced by transactional and relational psychological contract fulfillment. To fulfill its objectives, this research utilized a quantitative approach and an explanatory research design. A total of 315 government employees made up the population under study, and 177 responses were included in the sample size using the sample size determination formula. This investigation used both primary and secondary data sources, as well as correlation and regression analysis, to investigate the correlation and influence of independent variables on the dependent variable, employee engagement. Psychological contract fulfillment and employee engagement in the researched area were shown to be positively and significantly correlated in this study. Moreover, employee engagement is positively and significantly affected by both relational and transactional psychological contract fulfillment. The theoretical implications of the study underscore the need to incorporate cultural and contextual factors, as per social exchange theory, in understanding psychological contracts and employee engagement in Ethiopia. Practically, this study contributes by providing valuable insights for organizational leaders and policymakers to enhance work engagement and organizational effectiveness within diverse cultural contexts.

This study examines the concept of the psychological contract strength deriving from an employee’s expectation of mutual exchange with regard to their employers’ obligation fulfillment. This study explores the role of psychological contract strength and the relationship between the human resources (HR) practice consistency and organizational commitment. We collected data from 226 employees in 50 medium to large enterprises across the manufacturing and service industries in Taiwan. The results support the proposed hypotheses and provide theoretical and empirical contributions, highlighting the importance of the psychological contract strength. This study also advocates for consistency in HR practice as a key antecedent for creating favorable conditions for increased employee exchange belief. This study is the first to investigate the constitution of employee exchange belief, in emphasizing the concept of the psychological contract strength. Therefore, it complements our understanding of an organization’s ability to harness employees’ efforts more effectively, by enhancing the strength of the psychological contract.