A structural equation modeling approach to the study of the psychological contract and the implications for federal leaders

The purpose of this quantitative descriptive study is to examine the relationships of the 2005 Merit Systems Protection Board Merit Principles Survey data to Guest and Conway's (1997) model of the psychological contract by applying structural equation modeling (SEM) to determine if the survey data fit the Guest and Conway model. The psychological contract is defined as "the perceptions of both parties to the employment relations---organizational and individual---of the reciprocal promises and obligations implied in that relationship" (Guest & Conway, 2002, p. 22). The SEM analysis confirms that Guest and Conway's model fits the survey data and offers insight into the relationships that everyday personnel practices and routine supervisory activities can have on an employee's perception of the psychological contract as well as the circumstances that may lead to the formation of the psychological contract. The study offers suggestions on how managers and leaders can mitigate psychological contract breach and violation.