Power differential and employee responses to perceptions of non-fulfilment by the organization of its psychological contract obligations

This study aims to explore how an individual’s psychological contract type and power distance orientation combine to shape the behavioural response to perceptions of non-fulfilment by the organization of its PC obligations. A theoretical model is developed and four hypotheses are tested using data collected by the administration of a survey questionnaire to a sample of 223 business students at an Australian university. The results indicate that when considered at the level of the individual, power distance orientation and psychological contract type can be combined to predict an individual’s likely behavioural response in terms Exit, Voice, Loyalty and Neglect.