Abstract

Psychological contract between employee and employer is one of the most important idea as it is the main way of understanding the feelings, attitudes, and behaviors of individuals at workplace. The unfair procedural justice climate at workplace results in increased feeling of anger among employeesthat leads to decreased psychological contract, individual behavior and organizational performance. This study examined the empirical effect of Procedural justice Climate on Psychological Contract and Individual behavior. The cross-sectional survey results revealed that Procedural justice Climate at workplace has significant and positive effect on psychological contract and individual behavior. It is concluded that fair procedural justice climate, strong psychological contract between employee and employer creates positive changes in individual in-role and extra-role behavior at workplace.It is recommended that Equity in employee-supervisor relationship ultimately will improveindividual and organizational performance. Study has important implications and gives insights into the relationship among Procedural justice Climate, Psychological Contract and Individual behavior.

Key words: Procedural justice, Psychological contract, Individual behavior