Page No., 324-334.
Poonam Yadav* & N. K. Chadha**
Jawahar Lal Nehru University*, New Delhi University of Delhi, Delhi**
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Contemporary employment relationships are in transition and a major issue is that of
psychological contract. Promises are important to employees in the age of dramatic
changes. When those promises are in the form of some unwritten contract and are
somehow not fulfilled, it becomes more important to study its consequences. The present
study was undertaken to examine the relationship between psychological contract
violation and the variables of trust, job satisfaction, actual turnover of the organization
and intent to remain with the organization among public and private sector employees.
A comparative between the two sector employees on the above variables including
psychological contract violation was drawn. A sample of 120 employees from public
and private sector organizations was taken. Snowball sampling technique was used to
collect the data. The results indicated that violation of psychological contract results in
decrease in trust in the employer, loss of job satisfaction and low intent to remain with
the organization.Also, a significant difference emerged between public and private sector
employees on job satisfaction and intent to remain. This study highlights consequences
of psychological contract violation and points out how important it is to maintain healthy
employment relationships
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