Abstract

This paper investigates the implications of psychological contract breach on employees’ retention and their individual performance in a non-western context where critical parameters such as employee loyalty to individual managers, high unemployment, unsatisfactory working conditions and absence of effective trade unions can present themselves as critical variable in our understanding of the psychological contract. The extant literature in the field of organisational psychology, and in relation to the psychological contract, has predominantly focused on adopting main effects approach in investigating the psychological contract-outcome relationships. In so doing various individual and situational variables were largely ignored (Agarwal and Bhargava, 2013). This paper attempts to fill some of the vacuum left in the field.