Beyond the Job Description: How Psychological Contract Breach and Illegitimate Tasks Affect Employee Productivity and Well-Being

Abstract

A startup is a newly established entrepreneurial venture that typically focuses on a limited range of products to streamline operations while driving meaningful and socially beneficial outcomes. While agility, disruption, and innovation are characteristic of startups, they often face significant challenges due to resource constraints, flat hierarchies, and direct founder involvement. Young professionals, eager to develop new skills and gain experience, are drawn to start-ups with varied expectations regarding job roles, career growth, and mentoring opportunities. However, the volatile work environment often leads to unmet expectations, contributing to psychological contract breaches, a perception that one’s implicit or explicit agreement with the employer has been violated. Additionally, employees are assigned illegitimate tasks; tasks that often fall outside one’s occupational role. These tasks are perceived as unreasonable and often unnecessary by the employees leading to significant work stress, job dissatisfaction, and burnout, ultimately affecting employee well-being and productivity. This chapter provides an in-depth review of the psychological and organizational consequences of psychological contract breaches and illegitimate tasks. It further examines the role of risk factors and personal resources in shaping employee perceptions of these challenges.