1.
| Received
04-Jun-2026 |
Accepted
- |
Published
04-Jun-2026 |
Abstract
Against the background of a
changing business environment,
the psychological contract between
the employer and the employee is
susceptible to be broken. It is
important for managers and
supervisors in organizations to
have a proper appreciation of the
nature and dynamics of the
psychological contract and its
implications on employee behavior
and attitudes. This paper examines
the theoretical underpinnings of the
concept of psychological contract
and the effects of its breach or
violation. The implications on
organizations and on the employeremployee
relationship are also
discussed. The paper also proposes
a framework for further investigation
of the transactional and
relational elements of psychological
contract construct.
Keywords : Changing business environment, Psychological contract
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