Narrative Review of the Combined Effects of Counter-Productive Work Behaviour on Employee/Organisational Performance: Mediating Tole of Psychological Contract Breaches and Organisational Cynicism

Abstract

This narrative review, guided by PRISMA 2020, examines the interrelationship among psychological contract breach (PCB), organisational cynicism, and counterproductive work behaviours (CWBs), framed within social exchange theory (SET). Drawing from peer-reviewed studies across databases like EBSCOhost and ABI/INFORM, the analysis synthesizes definitions, mechanisms, and empirical evidence. PCB arises from perceived failures in reciprocal obligations, distinguishing breaches (cognitive perceptions of unmet promises) from violations (emotional reactions). Types include transactional (short-term, performance-focused), relational (long-term, loyalty-based), and balanced contracts. Breaches trigger CWBs' intentional acts harming organisational goals, such as theft, absenteeism, sabotage, and interpersonal deviance affecting ~95% of employees and costing billions annually (e.g., >$200 billion in U.S. theft losses). Organisational cynicism, characterised by distrust, frustration, and detachment, mediates the PCB-CWB link, often sequentially with work alienation and emotional exhaustion. Effect sizes show direct PCB-CWB paths (β/r = .32–.45) and indirect cynicism-mediated paths (.29–.68), amplified in low-support contexts or during change. SET explicates this as violated reciprocity norms eroding trust and prompting negative exchanges. Findings reveal PCB reduces productivity, satisfaction, and commitment while elevating turnover. Cynicism indirectly impairs performance via CWBs (r = -.48-.55). Implications include promoting transparent communication, fairness training, and relational contracts to mitigate risks. Future research needs longitudinal, multi-level, cross-cultural designs to establish causality, explore moderators (e.g., psychological capital), and test interventions like AI-driven breach detection. Updating meta-analyses post-2024 will refine SET applications for enhanced organisational integrity.