Benefit of the doubt: the buffering influence of normative contracts on the breach-workplace performance relationship

Abstract

This study investigates the influence of employees' perception of managerial breach of the normative relational contract (i.e. the psychological relational contract at the group level) on workplace performance. Many employees in Australia are employed on a permanent or continuing basis and have normative relational contracts whose terms are embedded in human resource practices. We use normative relational contract theory to hypothesise that where there is a mutually recognised high-quality normative relational contract – a strong contract – the emotional bonds of loyalty that are developed by collective sense-making constrained negative reactions to breach. We also hypothesise that, where ma..