The Effects of Psychological Contract Violation on Employee Performance
The research was to seek answers to the question, what is the relationship between Psychological contract violation and an employees’ level of performance. For this purpose, a study was conducted of 100 employees in the DVLA. The
distributed questionnaire considers transactional and relational psychological contract. There was a significant positive relationship between relational contract and employee’s performance but a significant relationship was not observed
between transactional contract and employee’s performance, ANOVA tests of the two models are significant at 5% significance level suggests that psychological contract violation in terms of the relationship between employees and employers more strongly impedes employee performance than psychological contract violation in terms of transactions between employees and employers The study further reveals that PCV accounts for a variation of 34.3% of the total variation, which represents a weak fit of the regression model. This evidence means that employee performance falls with increasing psychological contract violation.