The success of the organization-employee relationship relies on the mutual exchange of benefits. In this context, the paper focuses on the necessity of involving employees in the development of performance appraisals, as this involvement is related to reducing negative outcomes. Accordingly, this paper aims to examine the impact of the different perceptions of the performance appraisal system and internal psychological capital on psychological contract violation. The paper is a cross-sectional, descriptive, and quantitative investigation of data gathered through surveying academics working in Egyptian private universities about their perceptions, positive psychological states, and psychological contract violations. The results from 361 academics indicate that the impacts among the research variables are significant and negative. As a result, academics should be recognized as main stakeholders and should be involved in the selection of performance appraisal systems. Moreover, private universities ought to select HR practices that enhance academics' psychological capital.