Psychological Contract


The concept examines theoretical and empirical issues related to the psychological contract and provides an overview of the types of psychological contracts - transactional and relational, as well as some information on how to implement it.

Technique Overview

Psychological Contract

Psychological Contract Definition

The psychological contract refers to the mutual expectations people have of one another in a relationship and how these expectations change and impact behaviour. The psychological contract is often used to describe the expectations an employee has of the organisation (salary, pay rate, working hours, benefits, privileges), the expectations the organisation has of the employee (loyalty, confidentiality of sensitive information, or enhancing organisational image), or the expectations customers have of an organisation. The idea, however, can apply to any relationship (Schein, 1965; Wellin, 2007).

Psychological Contract Description *

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Business Evidence

Psychological Contract Strengths *

Psychological Contract Weaknesses *

Examples of Psychological Contract *

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Business Application

Psychological Contract Implementation *

Success Factors of Psychological Contract *

Measures of Psychological Contract *

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Professional Tools

Psychological Contract Videos *

Psychological Contract Downloads *

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Further Reading

Psychological Contract Web Resources *

Psychological Contract Print Resources *

Psychological Contract References (4 of up to 20) *

  • Argyris, C. (1960) Understanding Organisational Behaviour. The Dorsey Press Inc., Homewood, Illinois.
  • DelCampo, R. (2007) Understanding the Psychological Contract: A Direction for the Future. Management Research News, Vol. 30(6), pp. 432-440.
  • Erickson, J. (2010) The Leaders We Need Now. Harvard Business Review. May.
  • Guest, D. and Conway, N. (2004) Employee Well-Being and the Psychological Contract. Research Report, London: CIPD.

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