Psychological contracts constitute beliefs and reciprocal obligations between the parties within the organisation (Rousseau 1994, cited in Knights and Kennedy, 2005). If those beliefs and obligations aren’t met a violation will occur. However there are two types of contact terms; Transactional and relational contract terms (Rousseau, 1995).
Transactional contract terms embody "economic obligations" .These terms encompass some degree of commitment and emotional interest to work (Rousseau, 1995), they comprise a readiness to extend working hours but with a relatively high pay in return .In addition, employees are not highly devoted to the organisation .Employees with transactional contract terms are also personalised to have a lack of commitment to the organisation (Rousseau, 1990, cited in Makin and McDonald, 2000).
In a contrary, relational contract terms are mutually agreed between the employee and employer. Where the employee has an obligation to be loyal as well as provide sense of commitment to the job and the organisation as a whole. Furthermore, the employer has to grant "job security" for the employee. Moreover, long term reciprocal obligations are entailed within this type of terms (Makin and McDonald, 2000).
Psychological contract terms (relational or transactional) are vulnerable to violations. Thus in this essay I will start by explaining what is meant by psychological contract violation , followed by the sources of violations , how do they develop and what affect them .After that I will present the types of responses to violations which Rousseau(1995) mentioned .Then I will examine the effect that violations have on employees and whose mostly affected are they temporary staff , full time staff or minority workers who come from different back grounds or if they affect all type of employees in the same way . In this essay i will base my knowledge on the work of several researchers like Rousseau, Robinson, Morrison, Feldman and Turnely,...