Academic journal article IUP Journal of Organizational Behavior

The Relationship between Breach of Psychological Contract and Workplace Deviant Behavior

Academic journal article IUP Journal of Organizational Behavior

The Relationship between Breach of Psychological Contract and Workplace Deviant Behavior

Article excerpt


The world of work is currently undergoing a complete transformation. Organizations are reshaping themselves into totally new forms. Information Technology (IT) is underpinning this transformation by providing the backbone for new organizational structures and new ways of working. The major problem regarding IT industry in Pakistan is that there is a lack of organizational commitment regarding fulfilling the job agreement of employees, which is a hindrance to the progress of this industry. So, this study tried to find out the reasons behind this problem.

Psychological contract is a set of a person's individual beliefs regarding the reciprocal obligations and benefits established in an exchange relationship (Rousseau, 1995). Psychological Contract Breach (PCB) may occur if employees perceive that their firm has failed to deliver on what they perceive was promised or vice versa. Employees or employers who perceive a breach are likely to respond negatively. Responses may occur in the form of reduced loyalty commitment and organizational citizenship behavior. Workplace deviance, in group psychology, may be described as the deliberate (or intentional) desire to cause harm to an organization-more specifically-a workplace. PCB is an important aspect that has a negative impact on employee's behavior and attitude. If there is a PCB, the performance of employee is affected. There is less job satisfaction and organizational commitment and the intention to turnover increases. There is a negative relationship of PCB with organizational citizenship behavior and job performance. If an individual is more qualified or has more knowledge, the effect of PCB will be more on the attitude and behavior of that employee.

IT Industry of Pakistan

The overall consensus of industrial analysts is that Pakistan is one of the countries with a huge untapped potential for IT growth and an attractive investment environment. Recently, Business Monitor International (BMI) ranked Pakistan as a key destination for IT growth. The BMI rankings take into account a number of factors, including industry situation, growth potential, competitive landscape, economic and political risks, etc.

Here is a general introduction to some of the IT companies which were included in the study. The products of BIS include eDox, Ecommerce Management System, Activity- Based Database Management System, Pharmacy Information System, Human Machine Interface System and many related services in this sector.

Now BIS is offering mega solutions at enterprise level in the form of Software Development, Office Automation, GIS Development, etc. BIS is carrying on all the future projects as well as provides technical support to the existing customers. The customers of BIS include Pakistan Navy, Pakistan Telecommunication Authority, Civil Aviation Authority, Central Board of Revenue, Harvard University, etc. The second major company in this study is Siemens International. Since 1953, Siemens has been active in Pakistan, where it holds leading positions in the three application fields: Energy and Environmental Care; Industry and Public Infrastructures; and Healthcare. The Siemens IT Solutions and Services Group functions across all three fields. PSO, AGPR, Atlas Honda, Pakistan Petroleum and ICI are some of the customers having SAP solutions from Siemens.

Literature Review

Psychological Contract

Psychological contract perceived breach can result in decrease in organizational commitment, job satisfaction and organizational citizenship behavior, and this has an impact on organizational performance (Cantisano et al., 2008). If the employer does not fulfill the expectations of employee, PCB occurs, there can be emotional reactions to this breach, resulting in workplace deviance behavior. A breach in psychological contract will incline an employee towards negative behavior in an organization (Tompru and Nikolau, 2011). Employees will react if they perceive that there is a PCB and this reaction may decrease productivity of organization (Tekleab et al. …

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