The Influence of One’s Social Network on Psychological Contract Formation




Engel, Kathryn L.

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Psychological contract (PC) breach is a common organizational occurrence and is associated with significant negative outcomes for organizations and employees. This study investigated the social network as a source of accurate information that may help new employees form PCs congruent with their organization. A sample of 129 new employee (i.e., with less than one year tenure) and supervisor pairs from diverse organizations participated in the study. Results suggest that congruence regarding organizational obligations is the aspect of PC congruence most influenced by social networks. Results also indicate that networks with large range and strong ties play a role in establishing congruent PCs. For especially new employees (i.e., those with tenure < 100 days): low status networks are most effective; large range and strong ties are not beneficial for establishing congruent PCs. Overall, results indicate that social networks play a role in developing congruent PCs among new employees.



Psychological contract, Social networks, Socialization, Psychological contract breach, New employees, Psychological contract incongruence