ABSTRACT

This chapter focuses on theoretical advances in the study of psychological contracts to explore perceptions of psychological contract disruption in the context of organizational change and the circumstances under which these disruptions lead to positive and negative outcomes for employees and the change effort. It discusses the roles of employees and organizations in promoting successful change efforts. Ultimately, such efforts will impact the viability of functional psychological contracts during and following change efforts. Changes to the psychological contract may reflect increases or decreases in perceived employee and employer obligations. Psychological contract obligations may become particularly challenging to manage during change interventions. Disruptions to psychological contracts are common during organizational change. Despite employer efforts to avoid negative disruption, it is often unavoidable and employees transition into renegotiation or repair and attempt to modify their psychological contract. Theory and research offer potential guidance to promote psychological contract restoration in such cases.