Practice Quizzes

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Psychological Contract Theory (PCT)
Q1
Who reconceptualized the psychological contract as a belief-based system of reciprocal promises in 1989?
A
Chris Argyris
B
Edgar Schein
C
Denise Rousseau
D
Frederick Herzberg
Correct Answer: C
A: Incorrect – Argyris used the earlier term "psychological work contract."
B: Incorrect – Schein contributed to organizational culture, not psychological contracts.
C: Correct – Rousseau framed the psychological contract around individual beliefs and promises.
D: Incorrect – Herzberg is known for motivation-hygiene theory, not psychological contracts.
Q2
According to Rousseau, what forms the basis of psychological contract obligations?
A
Shared goals
B
Employment duration
C
Promises exchanged
D
Written agreements
Correct Answer: C
A: Incorrect – Shared goals might influence expectations but aren’t the basis.
B: Incorrect – Duration influences relationship type, not obligation basis.
C: Correct – Promises form the foundation of perceived obligations.
D: Incorrect – Written agreements are part of legal contracts, not psychological contracts.
Q3
What distinguishes a psychological contract from a formal employment contract?
A
Its economic nature
B
Its legal enforceability
C
Its emphasis on beliefs and perceptions
D
Its emphasis on hourly wages
Correct Answer: C
A: Incorrect – Psychological contracts are often relational, not economic.
B: Incorrect – Psychological contracts are not legally enforceable.
C: Correct – They are based on subjective beliefs and perceptions.
D: Incorrect – Hourly wages reflect transactional, not psychological, contracts.
Q4
Which of the following best represents a transactional psychological contract?
A
A long-term mentorship relationship
B
A temp worker hired for a specific task
C
An executive promised career development
D
A supervisor giving regular feedback
Correct Answer: B
A: Incorrect – Mentorship aligns with relational contracts.
B: Correct – A temp job with wage-only focus reflects transactional nature.
C: Incorrect – Career development is part of relational contracts.
D: Incorrect – Feedback is more relational than transactional.
Q5
What is one key feature of relational psychological contracts?
A
Clear financial terms only
B
Mutual support and development
C
Fixed job duties and hours
D
Legal enforceability
Correct Answer: B
A: Incorrect – That describes transactional contracts.
B: Correct – Relational contracts go beyond money to include emotional support.
C: Incorrect – That’s about job descriptions, not psychological contracts.
D: Incorrect – Psychological contracts are not legally enforceable.
Q6
What does psychological contract "violation" refer to?
A
A breach of formal HR policies
B
An employee quitting without notice
C
A perceived willful failure to meet promised obligations
D
A missed payroll cycle
Correct Answer: C
A: Incorrect – HR policies are legal/formal, not psychological.
B: Incorrect – That's an outcome, not a violation definition.
C: Correct – Violations are perceived willful breaches of promises.
D: Incorrect – That’s a breach of contract, not necessarily psychological.
Q7
Which component strengthens an employee’s emotional response to breach?
A
Lack of employee handbooks
B
High trust and mutuality before breach
C
Clear job roles
D
Salary bonuses
Correct Answer: B
A: Incorrect – Documentation isn’t central here.
B: Correct – Greater trust before breach intensifies emotional response.
C: Incorrect – Job roles clarify expectations but don’t increase violation strength.
D: Incorrect – Bonuses may offset breach but don’t influence perception strength directly.
Q8
Which personality trait is associated with perceiving higher levels of breach?
A
Openness to experience
B
Neuroticism
C
Conscientiousness
D
Extraversion
Correct Answer: B
A: Incorrect – Openness relates to creativity, not breach sensitivity.
B: Correct – Neurotic individuals tend to perceive more breach and react strongly.
C: Incorrect – Conscientious people may notice inconsistencies but don’t react with intense emotion.
D: Incorrect – Extraverts aren’t especially prone to perceiving breach.
Q9
Which of the following factors helps organizations mitigate the impact of psychological contract breach?
A
Written reprimands
B
Delaying promotions
C
Offering tailored perks and justified explanations
D
Cutting communication
Correct Answer: C
A: Incorrect – Punishments worsen reactions.
B: Incorrect – Delays often cause breach perceptions.
C: Correct – Tailored responses and clear reasons reduce harm.
D: Incorrect – Silence increases perceptions of violation.
Q10
Which of the following is NOT a typical component of psychological contracts?
A
Trust
B
Work-life balance
C
Overtime laws
D
Career development
Correct Answer: C
A: Incorrect – Trust is central to psychological contracts.
B: Incorrect – Work-life balance is part of perceived obligations.
C: Correct – Overtime laws are legal, not psychological, expectations.
D: Incorrect – Career development is often a psychological expectation.
Q11
What does "mutuality" mean in the context of a psychological contract?
A
Employees obey orders without question
B
Both parties share common beliefs about obligations
C
Employers enforce strict compliance with policies
D
Employees have more power than employers
Correct Answer: B
A: Incorrect – Obedience does not reflect mutuality.
B: Correct – Mutuality is about shared understanding of obligations.
C: Incorrect – Enforcement is not mutual; it’s hierarchical.
D: Incorrect – Mutuality implies balance, not dominance.
Q12
What is the role of recruitment in psychological contract formation?
A
It has no effect
B
It creates legally binding terms
C
It sets initial expectations and beliefs
D
It reduces ambiguity in company structure
Correct Answer: C
A: Incorrect – Recruitment significantly influences initial beliefs.
B: Incorrect – Legal terms are separate from psychological contracts.
C: Correct – Promises and cues during recruitment shape expectations.
D: Incorrect – Structural clarity is not the main function here.
Q13
Why is the psychological contract considered an individual-level phenomenon?
A
It applies only to senior executives
B
It is the same for all employees
C
It reflects each person’s unique beliefs about obligations
D
It is based on collective bargaining agreements
Correct Answer: C
A: Incorrect – It applies at all levels, not just executives.
B: Incorrect – It varies across individuals.
C: Correct – Psychological contracts are based on individual perceptions.
D: Incorrect – Collective agreements are legal, not psychological, contracts.
Q14
What is a likely consequence of a well-maintained psychological contract?
A
Increased lawsuits
B
Decreased organizational performance
C
Positive attitudes and extra-role behaviors
D
Reduced communication
Correct Answer: C
A: Incorrect – Lawsuits concern legal, not psychological, contracts.
B: Incorrect – Fulfillment usually improves, not harms, performance.
C: Correct – Fulfillment leads to engagement, innovation, and commitment.
D: Incorrect – Fulfillment typically promotes communication.
Q15
Which of the following best differentiates breach from violation?
A
Breach is emotional, violation is legal
B
Violation is an emotional reaction to a perceived breach
C
Breach happens only with a contract
D
Violation only occurs in written agreements
Correct Answer: B
A: Incorrect – Breach is cognitive; violation is emotional.
B: Correct – Violation is the emotional fallout of breach.
C: Incorrect – Breach applies to psychological contracts too.
D: Incorrect – Violation can occur even with unwritten agreements.
Q16
What is a criticism of psychological contract theory mentioned in the literature?
A
It is based on outdated statistical methods
B
It offers limited practical guidance for managers
C
It ignores employee behavior entirely
D
It only applies in unionized workplaces
Correct Answer: B
A: Incorrect – The issue is not statistics but applicability.
B: Correct – Critics argue it lacks actionable strategies.
C: Incorrect – It explicitly focuses on employee beliefs and behaviors.
D: Incorrect – It applies broadly, not just in unionized contexts.
Q17
Which of the following would be a likely content of a psychological contract?
A
Payroll tax deductions
B
Legal grievance procedures
C
Expectation of fair treatment and respect
D
Hours required by federal law
Correct Answer: C
A: Incorrect – Taxes are not part of psychological expectations.
B: Incorrect – Legal procedures belong to formal contracts.
C: Correct – Fair treatment is a typical psychological expectation.
D: Incorrect – Legal hours are regulatory, not psychological, content.
Q18
How might organizations repair a breach of psychological contract?
A
Ignore the employee’s concerns
B
Offer rigid policy adherence
C
Provide a transparent explanation and recognition
D
Issue a formal warning to the employee
Correct Answer: C
A: Incorrect – Ignoring breaches erodes trust and exacerbates emotional fallout.
B: Incorrect – Rigid adherence without context often worsens breach perceptions.
C: Correct – Open, honest communication and tailored recognition rebuild trust.
D: Incorrect – Punitive actions do not address the underlying breach.
Q19
According to psychological contract theory, what role do post-entry experiences play?
A
They have no role after the onboarding period
B
They determine formal job classification
C
They shape, evolve, and reinforce psychological contracts
D
They replace the employment contract
Correct Answer: C
A: Incorrect – Experiences beyond onboarding remain influential.
B: Incorrect – Job classification is a formal HR function.
C: Correct – Ongoing experiences continuously influence expectations and beliefs.
D: Incorrect – They operate alongside, not instead of, employment contracts.
Q20
Which of the following is a limitation of psychological contract theory?
A
It does not apply to professional employees
B
It focuses solely on the employer’s view
C
It lacks standard definitions and measurement tools
D
It is based on outdated legal doctrines
Correct Answer: C
A: Incorrect – The theory applies to employees at all levels.
B: Incorrect – It has been criticized for focusing too much on the employee's view.
C: Correct – A common critique is the lack of consistent operationalization.
D: Incorrect – The theory is psychological, not based in legal doctrine.

Application Questions

Application Q1
Identify a relational psychological contract in your professional experience. How did it shape your engagement with the organization?
Application Q2
In your dissertation research, how might psychological contract fulfillment influence the outcomes you are studying?
Application Q3
Think of a time when a supervisor made a promise that was not fulfilled. How might this affect organizational commitment in a study you could design?
Application Q4
How could you measure psychological contract breach in your study? What indicators or instruments might be useful?
Application Q5
Psychological contract theory emphasizes individual beliefs. How would this affect the design of a survey versus an interview protocol?
Application Q6
Suppose your participants are temporary contract workers. How might their psychological contracts differ from permanent employees?
Application Q7
Describe how promises made during recruitment could shape participant expectations in your study.
Application Q8
How might you design an intervention to prevent breach perceptions in a high-turnover organization?
Application Q9
In your dissertation context, whose perspective matters most: the employee or the employer? Why?
Application Q10
Create an example of a psychological contract based on a case in your professional setting or prior job. Label it as transactional or relational.
Application Q11
What role does trust play in your proposed theoretical framework? Where might you introduce this construct?
Application Q12
If breach is common in your research setting, what contextual factors might explain it (e.g., lack of mentorship)?
Application Q13
How could you include personality traits like neuroticism or locus of control in your theoretical model?
Application Q14
What are the practical implications of psychological contract theory for leaders in your dissertation research context?
Application Q15
How would you distinguish between legal contract terms and psychological contract expectations in your data collection?
Application Q16
How might cultural or generational differences shape psychological contract formation in your dissertation research?
Application Q17
Given the criticisms of this theory, how would you address concerns about definitional clarity and measurement validity in your dissertation research?