When Broken Promises Make You Anxious: How Different Expectations Shape Performance

What is it about?

This study investigates how employees’ perceptions of broken organizational promises—psychological contract violations—affect job performance. When employees feel betrayed by their employer, they experience job-related anxiety that drains energy and focus, lowering both ability and motivation to perform. However, the strength of this effect depends on employees’ expectations: it is stronger for those with relational contracts based on trust and long-term support, and weaker for those with transactional, short-term exchange views. Drawing on multi-source, three-wave survey data from employees and supervisors in Pakistan, the study finds that when employees feel their organization has broken promises, their performance drops because anxiety increases. This negative chain is stronger among employees with relational contracts, who expect loyalty and care, and weaker among those with transactional contracts focused on short-term exchange. In relational contexts, betrayal heightens anxiety and reduces productivity, while transactional employees remain more task-focused. For organizations, these findings emphasize that psychological contract violations carry emotional as well as behavioral costs. When workers feel betrayed, they lose motivation and emotional stability, which undermines their ability to perform effectively. Leaders can reduce this risk by setting realistic expectations, communicating openly about unavoidable changes, and providing support to help employees manage anxiety when promises cannot be kept. Training supervisors to recognize signs of emotional strain and fostering transparent communication can prevent performance losses and rebuild trust.

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Photo by Vitaly Gariev on Unsplash

Photo by Vitaly Gariev on Unsplash

Why is it important?

This study stands out because it connects psychological contract theory with the emotional process of job-related anxiety, offering a new mechanism that explains how broken promises lead to lower performance. It also identifies psychological contract type as a key moderator—showing that relational expectations, often assumed beneficial, can intensify harm when promises are breached. By integrating emotional strain and expectation structures, this research provides a fuller picture of how perceived organizational betrayal erodes job performance. The study is timely as organizations in Pakistan and similar emerging economies face increasing instability, restructuring, and unmet promises amid change. In such contexts, managing employee expectations and emotional well-being is essential. The findings remind leaders that even necessary changes can trigger anxiety and lower productivity if not handled with care. Transparent communication and support during promise violations are not just ethical—they are vital for maintaining performance, trust, and emotional resilience in today’s turbulent work environments.