Psychological Contracts and Counterproductive Work Behaviors: Employee Responses to Transactional and Relational Breach

Purpose This study extends the research on counterproductive work behavior (CWB) by examining the psychological contract breaches that trigger employee CWB. Specifically, we explored the relationship between transactional and relational contract breach and five forms of CWB (abuse, production deviance, sabotage, theft, and withdrawal). Further, we considered the role of situational and individual factors that mitigate CWB engagement and examined the moderating effects of organizational policies meant to deter CWB and personality (conscientiousness, agreeableness, and emotional stability). Design/Methodology/Approach A total of 357 employees responded to surveys of transactional and relational psychological contract breach, CWB, knowledge of organizational policies, and personality. Relationships were examined via hierarchical linear regression. Findings Findings generally supported the notion that transactional and relational breach has differential effects on CWB. However, there was limited support for the moderating effects of policies and individual differences on these relationships. Implications Given the consequences of CWB for organizations and individuals, it is important for organizations to understand how transactional and relational contract breach relates to different forms of CWB. In addition, it is important to recognize the limited role that organizational policies and personality have in diminishing CWB. Originality/Value Our contribution to this area of study is the parsing of the effects of distinct elements of the psychological contract to specific forms of CWB, so that organizations can achieve a better understanding of which aspects of the psychological contract affect CWB and implement targeted interventions.